It no longer comes as any surprise, but Senate hearings on the Katrina cleanup effort revealed more wasteful spending. You can read all about it here. This pretty much sums it up:
But the hearing also revealed in stark terms how the poor level of federal preparation and response carried more than an economic punch. As the questions from the elected officials gained momentum, it became clear that two themes especially bothered the Louisiana contingent. One was that, for all of the state's storied corruption and the defense its officials had to mount that relief money would not be squandered in Louisiana, the lion's share of waste occurred under the federal watch.
The second theme is that tens of millions of dollars were frittered away in layers of subcontractors. What Washington and the nation need to realize, the Louisiana contingent argued, is the totals bandied about as earmarked for relief are, in fact, grotesquely inflated by misspending.
The article has some outrageous details. Sadly, it is unlikely that anyone will be held accountable.