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Monday, June 5, 2006 9:48 a.m. EDT

NY Squandered Billions in 9/11 Aid

New York politicians allowed up to one-third of the $20 billion in federal aid awarded to the city in the aftermath of the 9/11 attacks to be squandered right under their noses, an analysis by the New York Daily News found last December.

But that hasn't stopped some of the same politicians from complaining all weekend about a mere $80 million cut in New York City's federal anti-terrorism budget.

Senators Hillary Clinton, Charles Schumer and Rep. Peter King say they're outraged over the new cuts, with Clinton and King teaming up to launch a post-card writing campaign against the Department of Homeland Security.

The bipartisan duo sounded a lot less angry six months ago, when the News uncovered evidence that billions in 9/11 cash had been misspent, gone unaccounted for and, in at least one case, was awarded to the Mafia.

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  "I pledge to do whatever has to be done to find out what happened and why," an uncharacteristically meek-sounding King said at the time.

Mrs. Clinton sounded similarly unruffled, offering only: "I think we need to pursue some of the leads . . . to make sure every penny is properly used."

The News study found that:

• Up to one-third of the $21.4 billion in 9/11 cash awarded to New York by the White House had been earmarked for major transportation projects that had no connection to the devastation caused on 9/11.

• $150,000 was awarded to a securities firm that had gone out of business before the 9/11 attacks - plus millions more from the fund was earmarked for formerly self-supporting projects.

• $10 million in 9/11 cash was embezzled by a senior member of the New York medical examiners office.

• A 9/11 "clean air program" ended up giving away 118,000 air conditioners, when its original budget covered only 5,000 units. Total cost overrun - $115 million.

• An "associate" of the Luchese crime family allegedly got a piece of the 9/11 pie, dividing up anticipated reconstruction contracts with other New York City crime families. One mobbed-up 9/11 worker was listed as a $58,000 per year employee - even though he was in jail at the time.

• A whopping $154 million in grants and tax exempt Liberty Bonds was awarded to a single business - the Bank of New York. That small piece of the 9/11 jackpot represents nearly twice the amount of cuts in New York City's federal anti-terrorism budget.

Perhaps Mrs. Clinton can take some time away from her efforts to browbeat the DHS into restoring the $80 million in anti-terror cuts - and give New Yorkers an update on what happened to the billions in 9/11 aid that was squandered on her watch.

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Read more on this subject in related Hot Topics:

9/11 Commission
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