MAY 14, 2010
Weeks after rampant fraud was exposed in a welfare program to make low-income houses energy efficient in
Both states’ “weatherization” projects were funded with tax dollars allocated nationwide through a $5 billion stimulus infusion. The goal is to make the homes of poor folks more efficient by offering them free insulation, sealing and even new central heating and cooling systems compliments of Uncle Sam. Some people even get new refrigerators, water heaters and furnaces.
The U.S. Department of Energy distributes the cash to local “community groups” that usually subcontract companies to do the actual work. The problem is that there is virtually no oversight and plenty of corruption has been documented in various states while the Obama Administration keeps pouring cash into the scandal-plagued program.
This week a
Additionally, the so-called community group (Sheltering Arms Senior Services of Houston) illegally spent nearly half of its federal funding on administrative costs even though the legal limit is 5%. In dozens of cases the work could not be documented and in at least 33 of 53 cases, corrections must be made—at taxpayer expense—because the work was done incorrectly.
Less than a month ago a Wisconsin nonprofit called La Casa de Esperanza (The House of Hope) spent a chunk of its $20 million weatherization budget to buy gift cards for its employees, Christmas decorations, Halloween candy and to pay parking tickets. The husband of a charity employee also got $10,000 worth of U.S. taxpayer-financed work on his home and much of the weatherization done on houses that actually qualified was faulty or didn’t meet the federal standards.
Instead, tens of millions of dollars have gone to companies under criminal investigation for defrauding the government and tens of millions more have funded wasteful projects including multi million-dollar turtle crossings, abandoned train stations and Social Security stimulus checks for 10,000 dead people.
Sign Up for Updates!
Sign Up for Updates!