FEMA Cruise Ships

FEMA has granted one of the most controversial contracts of the Hurricane Katrina relief operation, a $236 million agreement with Carnival Cruise Lines for three ships that now sit half empty in the Mississippi River and Mobile Bay. From the Washington Post:

“the price is exorbitant. If the ships were at capacity, with 7,116 evacuees, for six months, the price per evacuee would total $1,275 a week”

The Carnival deal has come under particular scrutiny. Not only are questions being raised over the contract’s cost, but:

“Congressional investigators are examining the company’s tax status. Carnival, which is headquartered in Miami but incorporated for tax purposes in Panama, paid just $3 million in income tax benefits on $1.9 billion in pretax income last year.”

Via: WashingtonPost

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