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Minority-Owned Businesses Fail To Get Katrina Contracts

HeadlineOct 05, 2005

Meanwhile, the Government Accountability Office is being asked to investigate whether minority-owned businesses have been given a fair opportunity to compete for Hurricane Katrina reconstruction contracts. Republican Senator Olympia Snowe of Maine and Congressman Donald Manzullo and Illinois R-Ill., called for the investigation on Tuesday. So far, the Federal Emergency Management Agency has awarded $1.6 billion in contracts. But less than 2 percent of the contracts have gone to minority-owned business. This despite the fact that the region has a higher percentage of blacks and minority-owned businesses than other areas of the country. Following the hurricane, the Bush administration waived government contracting rules that required at least five percent of government contracts to go to minority-owned businesses. Rules forcing contractors to pay prevailing wages have also been waived. Harry Alford, president of the National Black Chamber of Commerce said “What they’re basically saying to the minority in New Orleans is, ’We’ll make it harder for you to find a job. And if you do, we’ll make sure you get paid less.’”

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