Louisiana Road Home, ICF Mess Needs Cleaning

The eyes are on ICF and Road Home and based upon comments by current Louisiana Executive Director, Paul Rainwater, the investigation is underway to determine payments to ICF, if any.

According to the Louisiana Recovery Authority, the (LRA) Executive Director Paul Rainwater today “called for an investigation by the Louisiana Inspector General into the contract of ICF International, the private contractor that runs the Road Home program. ICF International received a $156 million raise in December.

Rainwater has previously called for an investigation by the Legislative Auditor into ICF's contract. LRA staff have already started meeting with the Legislative Auditor about the issue. Rainwater issued the following statement today about the IG's investigation:

"It's troubling that ICF International was given a pay raise (emphasis by Bayoubuzz) in spite of their poor performance history and that it was done through a process that seemingly excluded the notification of the state legislature or the general public.

"Today, I have requested that State Inspector General Stephen Street join the legislative auditor in investigating how the amendment to the ICF contract was negotiated, what notification process, if any, occurred, and what our possible options are for renegotiating the contract."

"We owe it to the people of Louisiana, and especially those continuing to recover from the 2005 storms, to ensure that every taxpayer dollar is fully accounted for and dedicated toward its rightful purpose of aiding our state's recovery and rebuilding."

However, in association with the controversy, Governor Blanco’s office forwarded the following to Bayoubuzz:

"The number one priority must be to complete the Road Home Program so the homeowners who have waited so patiently have their money in hand. It was my understanding and belief that any contract change would be publically noticed. I encourage Steve Theriot, the Legislative Auditor, whose office was consulted during negotiations, to continue to audit ICF and to hold them accountable for every dollar of their contract. This contract is not a pay raise. (Enphasis by Bayoubuzz) As I understand it, the contract provides for a unit cost based on actual closings. I applied personal pressure every day to reach the pace of a minimum of 10,000 closings per month. At this rate, ICF would need to close a minimum of 120,000 closings by the end of March. Anything less is unacceptable, and it is my hope that the current Administration holds ICF's feet to the fire. They can and should renegotiate performance standards. ICF has been given every opportunity to deliver."

Obviously, there are a number of questions that need answering.

If I were investigating, the following would be a list of questions I would be asking to try to ascertain the facts. The longer the issue linger, the more people feel that there was wrongdoing, so answer to the questions are essential:

1. Was the Louisiana Recovery Authority noticed about any changes in the ICF contract and if so, who was noticed and what procedure was utilized disseminate information to the organization.

2. When was Steve Theriot, the legislative auditor first notified about any changes?

3. What knowledge or information did Bobby Jindal have? In December, he and his chief of staff met with Governor Blanco and they discussed a variety of issues including Road Home and making certain that the transition would be smooth. Jindal commissioned tasks forces such as “Veterans Affairs” and so obviously the question is did he have a point person on the most important program in Louisiana history? Everyone knows that towards the end of one administration, contracts are extended or modified or terminated, so, was the Road Home contract even questioned during this period and if not, then why not?

4. What actual knowledge did Governor Blanco have during this time period. Her statement has references to “it was my understanding” and “as I understand it”. Was there a liason between Governor Blanco and other individuals and agencies, was she being provided erroneous information or did she have a legitimate misunderstanding. Or, is her understanding exactly what are the facts and that somebody dropped the ball in providing notice to those individuals and entities who should have been involved?

5. Why is Rainwater calling the payments “pay raises” and Governor Blanco is denying a pay raise?

Without question, it appears that much that occurred with the ICF contract happened during the transition period. There is a possibility that nothing untoward occurred during the last weeks of the administration. It is possible that due to the flurry of individuals leaving the administration and others overseeing operations, matters, notices and communications fell through the government cracks.

Without doubt, there should be an investigation open to the public and on the Internet and that all individuals who would had any role in the transaction testify in a non-partisan environment. The Road Home has been a nightmare for a variety of reasons. Perhaps had the Baker plan been implemented, we would not have had such delay. But, today, we must fix what is broken, move on with the efficiency of the new administration and if anyone performed any acts of misfeasance or even malfeasance, the state should know with certainty and justice should be done.

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