Something is very rotten in Baton Rouge. The whole Road Home program mess has been swept under the rug for too long. It is high time that legislators convened a grand, Watergate style hearing to investigate which individuals financially benefited from the Road Home program and why a FairfaxVirginia firm, ICF International, received a contract worth $912 million to operate the Road Home debacle. In fact, questions have swirled around Road Home for many years. Why was it so expensive? Why was an out of state firm chosen in the first place? Why was a firm chosen that had no experience in operating a program as large as the Road Home? What connections were there between the Blanco administration and ICF International? Did anyone in the Blanco administration or any relative or associate of an administration figure benefit financially from this contract? Why was an additional $156 million contract extension given to ICF International without legislative or public approval?
In the view of most Louisiana residents, ICF International has been an unmitigated disaster in handling this program. There have been massive delays and thousands of struggling citizens who are still waiting for help or many others who have received letters informing them that no money is left for them. What is really infuriating is that hurricane victims have received letters informing them that there are no funds remaining, yet ICF International has received almost one billion dollars to manage Road Home.
Instead of giving an out of state firm with no experience operating a program like Road Home a huge state contract, it would have been a much better decision to use that $912 million on housing or infrastructure. The Road Home could have been much more efficiently operated by an existing state agency or a consortium of local banks
It is a good first step that Governor Jindal and his administration are calling for the Legislative Auditor and the Inspector General to examine this program. However, in addition to the internal investigations, the Louisiana Legislature needs to hold a Watergate style hearing on this issue. A hearing will provide for witnesses and allow the public to hear exactly how this program was mismanaged and especially where the funds were spent.
A legislative hearing is necessary to place the public spotlight on the misdeeds of this incompetent company. It will serve an important purpose that an internal investigation will not. A large scale legislative hearing will give the public that has been abused in the process and deserves a seat at the table, an opportunity to find out exactly why the Road Home program is still such a mess.
Jeff Crouere is a native of New Orleans, LA and he is the host of a Louisiana based program, “Ringside Politics,” which airs at 7:30 p.m. Fri. and 10:00 p.m. Sun. on WLAE-TV 32, a PBS station, and 8 a.m. till Noon weekdays on WGSO 990 AM in New Orleans and the Northshore. For more information, visit his web site at www.ringsidepolitics.com. E-mail him at jeff@ringsidepolitics.com
Perhaps you are doing what you can by getting their plight out in public. I can tell you care about them. Check out some of the church groups who are working on the city's recovery, of government fails that may be your last recourse. The shame of it is, if that lady and her grandaughter were related to the right people in government they would have nothing to fear. Government desires to appease GROUPS of people, they are just as heartless as any slumlord or sweatshop owner in the private sector as concerns individual people. Written by kpf
on 7/4/2009
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I'm confused, shocked, and just plain mad at this corp. They just recently made two families suffer. Both with hope for a better life. The only thing that was needed to be done was a simple signing of a paper. The lawyer who was in charge of this signing repeatlly postpone the dates. Don't know why. Now a lady sits with her grand daughther in a broken up home. After she has already been approved to move in a new home. The current owners( married folks with two kids) went to exstremes to find another house near family. Now they are in danger of both losing homes and a chance of a better life. Which. the younger couple and elderly lady are just wanting ansewers or advice before their homes are foreclose,are their kids are out on the street.The lawyer in charge to road home is hard to reach. Are he is just ignoring their needs. Please if anyone could give these folks any advise Written by Skeat
on 7/3/2009
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I HAVE BEEN REACHING OUT FOR HELP IT HAS BEEN FIVE YEARS NOW AND I CANT GET ANYTHING WE ARENT ASKING FOR BILLIONS OF DOLLARS WE JUST NEED A NEW ROOF OWN THE HOUSE AND REPLACE WINDOWS AND FLOORS. IT HAS BEEN REALY HARD TO BE TOLD THEIR IS NO HELP AT ALL .I AGREE WITH YOU THE MORE YOU GIVE THE LESS YOU RECEIVE.THANKS Written by patricia
on 4/7/2008
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KPF, Professor, it is so interesting that you trod onto that ice…….. Allow me to take your discourse of discontent a little farther and formulate into a relevant context as it may relate to this miserable story line whose threads have unfolded before my very eyes…… ICF International is quite solvent, is making money, and has provided service………. Via our state government. Just like the United States Army Corp of Engineers is quite solvent, is making money, and not only has, but is continuing to provide service……………… Via not only our state government, but the Federal as well. As far as Micro Soft goes….. Well, it would appear that Bill Gates one way or another was able to identify, appreciate, and secure claim to the quintessential block which all software systems in the known universe are harnessed to. Improvements upon that platform? Well, it is a free country and if someone were to come up with a better system, then it should be allowed on the market place….. If it is truly an improvement, or an advent of superior task driven technology…… But, if for some reason the Government, or a collection of collective ‘hooligans’ were to step into the foray and keep this technology from surfacing, maturing, and being utilized, and in the face of vast odds against the initiator of a higher level of efficiency were to go bankrupt…. Ahhhh,,, now you have something different entirely. Was a crime committed? Maybe, maybe not. Is it immoral, maybe, or maybe not…… But take that train of thought even farther, when not only pocketbooks, but lives are potentially affected because of such a position taken by the strong against the weak, well then that is Facism…………… Or a close resemblance of the same…….. Especially when it is the servants of the people that allow this to happen. But perhaps the servants of the people allow this to happen because of a catch-22 clause. Ahhhh,,,,, not enough people ran out into the streets burning down the house for it to be justified as an issue….. Perhaps the people seeing this figure, ehhh, it is common sense, surely my elected representative will take care of this common sense issue as well as the other 3 or 4 dozen sitting on its table at this time….. Not true……. And back to the ‘vig’. Time is the generator of all fates or fortunes, and in some instances ‘profit’……… Chrysler? Only because the population out of work, didn’t need to be crowded at the unemployment and welfare lines by more of their immediate neighbors that were out of work. Lockheed? Well, that is a defense matter….. Microsoft? Not even a good example…….. Irresponsible? Who is being irresponsible? The people or the Government? It is clear to me that the Government both State and Federal are forcing people to cover its (their) own irresponsibility’s……… But then again, there are those that said they would gladly “pay higher taxes” And I have to concur with President Bush on this: That position is welcome, and the IRS will gladly accept all donations”………. I think what we have is a micro circle glad-handing the common man, while reaching around for its wallet with the other one. Written by Definitions????? You can't handle the defamations.
on 3/19/2008
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I really am not disagreeing with you that some businesses should be protected - but there should be some penalty to prevent a reoccurrence of this situation. Being fired and having to go home to “somehow” struggle with millions in one's personal bank account is hardly a "deterrent." Sometime more is required - I'm not advocating a return of the guillotine - but something to make these firms FEAR reaching a point where they require a taxpayer bailout – perhaps a complete 100% forfeiture of ALL their personal assets: bank accounts, homes, vehicles; leave them penniless. I think other companies executives would take note and act appropriately. Written by kpf
on 3/19/2008
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kpf - I am not disagreeing with you. For 99.9% of the companies, if they make stupid decisions and go bankrupt, wonderful. I say, "Adios, amigos - have a nice life." However, there are companies that, if were allowed to fail, would bring down the entire economy. Right or wrong, this is a fact. I'm not saying that the PEOPLE running these companies should be saved - quite the opposite in fact - sack them all!! But, the company itself must be kept solvent. Allow me to paint a clearer picture. Almost every major company in America uses Windows, Windows-based or some other Microsoft software in the process of running their business. Almost all of these systems require updates, patches, online verifications and myriad other things that only Microsoft can provide (the whole discussion of Microsoft's business practices is another issue, not to be discussed here). So, let's say Microsoft is going bankrupt. Bill Gates says that he is going to stop all of the updates, patches, and online verifications. When that happens, almost every computer in the country will experience some lost efficiency, and eventually total failure. Therefore, the price of allowing MS to fail is that almost every other business in America fails or is significantly negatively impacted. That is just not a viable outcome. Someone will step in and buy MS. They may (and probably should) fire everyone who made it go bankrupt in the first place, but the updates will still come, the patches will be available for download, and the online verifications will be authenticated. No, it's not "pure free market" - but it IS what is best for the average American citizen. Written by Professor
on 3/19/2008
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...before Chrysler there was Lockheed, later the Savings and Loan bailout. I have no ill will towards those - such as Bill Gates - who do well. Good for you Buddy, "only in America", etc., etc. On the other hand if you gamble and lose, well.... you lose. Hope you can afford to lose what was lost, if not you will serve the very useful purpose of "what not to do" - a shining (albeit negative) example to all. We did not protect the jobs of the wagon wheel makers when Henry Ford’s creation came out, or the typewriter union members’ jobs with the advent of the personal computer. “Failure” of some businesses goes hand-in-hand with progress; as Martha Stewart would say, “it’s a good thing.” The only way to soften these losses is to take from those who are prudent and give these funds to those who are reckless, not only is this immoral but it is also counterproductive. An example that comes to mind is when - during Hurricane Georges - those who brought food into the Superdome were forced to “share” their food with those who only saved their electronic devices from their homes – what should either party learn from that? “Don’t be responsible, the government will force those who are to cover your irresponsibility.” Written by kpf
on 3/19/2008
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KP, perhaps the woids U iz luking 4 wuz "AD HOC" sic peaksay igpay atinlay ou yay? Look at Chrysler, bailed out, sold out, now ready for 'standby back up regroup shutdown start up' on the taxpayers dime............. It all boils down to the boiling point of the 'juice'. How invigorating a vig blend can be in the sunny mornings of strife and discontent...
Written by In the winds......................
on 3/19/2008
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If this or any other lending institutions are not allowed to take losses on ill-advised risky investments made to maximize their profits, then what mechanism is in place to prevent this from reoccurring ad infinitum? Surely there must be some negative outcome for a private institution whose incompetence and/or greed results in the removal of needed funds from working American families. It would seem the only entity whose money is “at risk” is the American taxpayer. Either limit how much these firms can invest so they can cover their own losses due to risky investment or allow them to fail. Written by kpf
on 3/19/2008
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Wendy, those are some valid questions, and Professor, I appreciate your observation of where this discussion has ‘migrated to’ but for an abstract, I like to look at square one……. And now it is becoming Louisiana ‘2 step’ policy………. The subject of IMAGE………… The road home is an instituted program that was an IMAGE ploy that was fundamentally based on ‘skim off the top, and let the proceeds land where they will land’. (Or is that the new approach to ‘trickle down economics’) IMAGE……. HMMMMMMM,,,,, IMAGE INDEED….. Or is it ‘Imagine what can be done if the real issues can be ‘white washed’ and swept under the carpet while profiting the few with the power to pull off sanctioned manipulations…..’ As an abstract, a very good example is the ceiling of the Memorial Hall at the State Capitol (or State Capital, I suppose how you want to spell it or define it..) When it comes to contemplating IMAGE which is pursued like rabbit is pursued by the hounds……… My oh my how Bab’s must have seethed over the paradigms thrown in her face, and whispered about in the hallowed hallways when a candid observation about ‘IMAGE’ was really first brought to the attention of the world following the storms……….. The ‘wonderful murals’ on the ceiling are now covered with gold leaf………………………….. Out of sight, out of view………….. Did this small ‘effect’ signify change in the air, a turning away from past motus operandi? No, it merely epitomizes how Louisiana Government operates………… Written by The Shadow Knows
on 3/19/2008
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OK - this story had nothing to do with bailouts or "too large to fail" companies, but it seems that this is where the discussion has migrated. So, let's talk about it. First off, and please remember this throughout my entire post, this is not a good situation. In terms of "alternate plans of action", federally guaranteed bailouts are towards the bottom of the list, right above "get imprisoned for imbezzlement". But, when the choice is between bankruptcy of a company such as this, and a bailout - the bailout is the best choice. Why? Because Bear Stearns was an investment bank. They held a gajillion shares of stock in thousands of companies around the world. Let's say that they held 10% of the shares in YOUR company. When they go bankrupt, that 10% that they hold is now worthless. Logic would dictate that, since 10% off your shares are practically worthless, the other 90% are worth more. However, that's not how it works in real life. Because Bear is bankrupt, its assets will be sold at deeply discounted rates to satisfy its debts. This means that, if your stock is normally trading at $5 per share, it will be sold at $0.10 per share. The other investors see this, and begin selling their shares. But, no one wants to buy their shares at $5, since they can buy them for $0.10! So, the other investors begin selling theirs at deep discounts to be competitive. For the sake of arguement, let's say that the price for your stock levels out at about $2.50 per share. In one day, your company is now worth exactly half as much money as it was yesterday! In other words, because Bear Stearns made terrible business decisions and went bankrupt, they have devalued your company by half, even though you have done nothing wrong. And, this has happened to hundreds or thousands of companies across the country. And, what happens when thousands of companies lose value, can't operate efficiently, cut back on workforce, and take profit losses? It's a recession - and a big one. We're not talking the little thing from 2001. We're not even talking that long-ish one in the early 90s. We're talking the size of the energy crisis of the 70s. This is not in the best interest of the country. And, it is the Federal Government's job to ensure what is best for the country. Which they did. Without spending a single dime. Written by Professor
on 3/19/2008
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Why should taxpayers who do not share these lending institutions profits, nor make unwise decisions (taking out mortgages they cannot afford) have to bail out either these institutions or these individuals? By taking away the prospect of loss should not - at the very least - the interest rate charged by these lending institutions be minimal since - with government guarantees of covering any losses - there is in actuality no such thing as a "high risk loan." Are these not - with the ever-ready government bailout on standby - in truth "no-risk loans?" Written by kpf
on 3/19/2008
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Hey, R.E.LEE, can you tell me exactly how much of your and my money the Federal Reserve has given to Bear Stearns? Go ahead - do a search - I'll wait. did you find it? Yup - exactly $0. They have guaranteed backing of JP Morgan Chase, such that if the JP Morgan bailout fails then they will get involved. But, as it appears that JP is doing just fine, this is increasingly unlikely. Written by Professor
on 3/18/2008
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If you want a true Watergate style investigation, Congress should do it. Afterall, this was Federal money that funded the program and Congress imposed a number of requirements on the state when the initial appropriation was made. The Bush Administration played a role as well. If ICF is from Fairfax Virginia, then the answers are more likely to be found in Washington rather than Baton Rouge. Written by David Quidd
on 3/18/2008
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The government shouldn't be "bailing out" anyone unless they are elderly or handicapped. Let those (individuals or businesses) who make bad choices suffer the consequences of their choices. This will serve as an example of "what not to do" and so we'll have less of that behavior. If you subsidize something (poor investment strategy, poor life-style choices, not having flood insurance) you will have MORE of it. Why should those of us who sacrifice and do without, work hard (hey, I'd rather spend MY TIME smoking dope and "playing around" all day too, truth be told) then have to not only provide for those who embrace stupid choices, but allow them to multiply and have more and more entities that need "help." This is not practical except for those politicians who profit from this practice. Oh... wait... our politicians will benefit when they take funds I could otherwise use for those I love and willingly slave for.... to buy votes which keep them in power. Ohhhhhhhh… okay…. that's all right then, I understand now. My bad. Written by kpf, excuse my excessive greed
on 3/18/2008
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I second your motion Jeff. Let's have an investigation of ICF, and let's trace it all the way back to Washington D.C. - where this whole mess began. Professor your bias is unlimited. Remember, that the Road Home was a second choice only after the Bush ADministration flatly rejected the Baker Plan - a plan that would have helped the citizens of Louisiana to recoup losses caused by Corps incompetence. Professor, you think that the taxpayers' money is better spent in a $trillion dollar BAIL-OUT for the New York Investment Banks! In resumen, Baker Plan which would have helped citizens = bad: Bernanke's Bear Stearns Bail-Out which helps the uber wealthy robber barons = good? You must live in Texas Professor. Written by R. E. Lee
on 3/18/2008
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Jeff,
Thanks so much for your insights. Despite the Road Home's early PR campaign, showing "happy customers" talking about how they got their money, were treated well by the ICF staff, had no complaints, etc., more and more mostly elderly homeowners were treated with a brazen callousness and disregard for their suffering, after the storms. The yellow letters with miscalculations, a lack of any real appeals process for those who needed more information or needed to challenge the results, an attempt to rush applicants into accepting inaccurate grant awards, and many other complaints are, I think, grounds to a more extensive investigation into why ICF got such a large increase in its contract when it clearly didn't deserve it, and had mistreated so many of our area's homeowners. Whose idea was it to "reward" this company for its mishandling of thousands of RH applications?
Early on when people started to complain about ICF and its approach to this project, the state legislature called all the principles up to BR, to hear from them, and the complainants, about why this process was going so badly. I think what they heard should have been enough for the Legislature to yank ICF's contract, and start the process all over again. Then, of course, Gov. Blanco wouldn't hear of ending this "second disaster", and insisted that the process would go much better next time. When I learned about this, and that the raise wasn't publicized until recently, I wondered if this was kept quiet to keep Gov. Blanco in office. If the public had learned about her decision while she was still Governor, there would have been calls for her resignation or impeachment, and a massive march to both the Capitol and the Governor's Mansion. The national media coverage would have been, to say the least, very embarrassing, and a stark reminder of how much our people have suffered over two and a half years after the storms. Written by Wendy King
on 3/18/2008
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Jeff, can we call the "Road Home" program by its complete and proper name? According to its founder and one-time champion, it is called "Governor Blanco's Road Home Program". I just want to make sure that people (on this site) who say "Blanco is getting a bad rap" remember that this was her little baby. Written by Professor
on 3/18/2008
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Travel costs money............. and to make money often times one needs to.......... Written by Cuban Sandwhichs in Havana anyone?
on 3/18/2008
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Something is very rotten in 
