
Federal auditors have found that the U.S. Bureau of Reclamation (USBR) wasted $32.2 million intended for fish and wildlife and drought relief in the Klamath Basin on subsidies for irrigators.
This scandal takes place as the Yurok, Karuk and Hoopa Valley Tribes, recreational anglers, commercial fishing families and river and coastal communities are suffering from the big cultural and economic loss caused by low numbers of returning salmon on the Klamath River this year, the result of decades of mismanagement by the state and federal governments.
The misspending is revealed in a new audit report that confirms charges leveled last year by the Public Employees for Environmental Responsibility. In a news release, PEER described the arrangement between Reclamation and KWAPA as the Klamath Irrigators’ Illegal Piggy Bank.
“We found that USBR did not have the legal authority to enter into the cooperative agreement, resulting in $32.2 million in wasted funds spent by KWAPA (Klamath Water and Power Agency) under the agreement,” wrote Mary L. Kendall, Deputy Inspector General for the Office of Inspector General, in the audit report dated October 11, 2016.
The report found that the program had done little to help endangered coho salmon, Lost River suckers and shortnose suckers, as it was intended to do.
The IG report details how Reclamation diverted $32.2 million in federal funds intended for drought contingency planning and helping struggling fish populations:
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In a waste of funds wholly lacking in any legal authority
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Paying for KWAPA salaries, fringe benefits, rent, travel and other expenses whose benefits flowed primarily to irrigator contractors rather than fish and wildlife, including $4.2 million for uses that could not be supported with documentation or were outright unallowable
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By modifying the KWAPA contract 19 times to expand the scope of activities and extend the original payment program from 2008 through September 30, 2015
Reclamation disputes