It's a feature of bureaucracies that they waste and steal money, and no bureaucracy is better at it than a government. It's no surprise whatsoever to discover that up to 85% of government subsidized 9/11 recovery loans were improperly awarded to businesses who weren't touched by the attack. Some of the problem is undoubtedly incompetence by bureaucrats who can never be fired, but I'm sure there's plenty of graft and outright theft going on as well.
WASHINGTON (Reuters) - A Texas golf course, a Nevada tanning salon and an Illinois candy shop were among small businesses that may have improperly received U.S. subsidized loans intended for firms hurt by the September 11 attacks, an internal government watchdog has found.
The Small Business Administration's inspector general said in a report made public on Wednesday that in 85 percent of the sample of loans it reviewed, a company's eligibility to receive the money through the program could not be verified.
"Could not be verified" is a politico-speak for "lie".
At least with charities, if there's graft it can be criminally prosecuted when discovered and donors can redirect their contributions to less wasteful organizations. When it comes to government corruption there are rarely prosecutions because no politician wants to admit that his appointees are a problem, and bureaucrats protect their own. What's more, us "donors" (at gun-point) don't have many options for redirecting our contributions unless we want to move to another country.