In a letter sent to DHS Secretary Chertoff, Rep. Waxman raises concerns based on data from an internal 2002 “Financial Review” of three Carnival Cruise Line ships, the
Sensation, the
Ecstasy, and the
Holiday, now under federal contract to provide housing for Hurricane Katrina evacuees.
A comparison between the internal financial review and the $236 million federal contract reveals that the government appears to be paying Carnival significantly more under the federal contract than the ships earned on their own, while Carnival’s expenses appear to be significantly less under the federal contract than the ships normally incur.
This new information raises serious questions about whether the Carnival contract is a responsible use of taxpayer funds.