Exclusive
23 February 2004, Jim Hoffer, WABC-NY
As New York City scrambles to cover security costs to protect against another terror attack, Eyewitness News has found millions in taxpayer dollars going to protect some of the nation's wealthiest companies.
It is an allocation of scarce Homeland Security funds that, some say, defies common sense.
The Investigators' Jim Hoffer joins us now with his exclusive story.
We know that recently the Department of Homeland Security cut millions of dollars in grants to help improve communications between New York City's emergency responders.
But you'll never guess who is getting millions in security dollars. Our investigation has found recipients of these limited funds are among the world's richest corporations.
Be it New York City's subway, its fire department or police -- they use every penny they can to prepare for a terrorist attack. But millions of dollars in security grants that New York sorely needs is helping protect one industry: big oil.
Jim Hoffer: "Citgo has received over $17 million, Conoco-Phillips $10 million, Shell $9-million."
Danielle Brian, Project on Government Oversight: "Wow, that's just extraordinary."
Our investigation has discovered that since 9/11, the Department of Homeland Security has given oil companies tens of millions of dollars to secure their port refineries, many of those facilities in New York and New Jersey.
Danielle Brian: "This is clearly corporate welfare ... And the idea that millions of dollars are going to multi-billion dollar industries that have tremendous profits is really an outrage."
Documents show that Citgo got more than $17 million in port security grants. Some of that money will go to build barriers and fences at its Linden, New Jersey, refinery.
And another huge refinery also in Linden will get nearly $700,000 in taxpayer funded security upgrades, even though its owner Conocco Phillips made $4.7 billion profit last year.
Another refinery in Woodbridge will be getting $175,000 in security upgrades, thanks to taxpayers. We've also footed the bill for another million dollars in security at five other Motiva refineries in the tri-state area.
We asked the company why it was dipping into these limited government funds. A Motiva spokesman said when the Department of Homeland Security made these grants available, the company applied for them.
Andrew Spano, Westchester Co Executive: "I think if you're making a lot of money, you don't go after that money."
Westchester County Executive Andrew Spano says that's money he could use. He's got numerous high-risk targets including the Indian Point nuclear plant and New York City's reservoirs, yet has only received a couple hundred thousand in direct security grants.
Andrew Spano: "Why the federal government would give us something like $200,000 -- which is what we have gotten -- and they give millions and millions to companies that are making exceptional amounts of money this year is beyond me."
Our analysis of Port Security documents show that some of the nation's most profitable oil companies received $66 million in grants. Money from the Department of Homeland Security to pay for fencing, cameras, and gates around big oil's refineries.
Jim Hoffer: "I mean these are some of the most profitable companies on the planet. Do they need our help paying for their security?"
Mark Hatfield, Transportation Security Administration: "If you look at the distribution of those grants, first of all, by recipient the distributions is far and away balanced towards, or it's biased towards, public entities, municipalities, port authorities, police departments."
True, only 15 percent of the half billion dollars in grants go to oil companies. Still that's $66 million that could go to those who really need it, like the local police chiefs we spoke with. None of whom say they have received any money from Homeland Security.
Andrew Spano: "It is absurd ... When you are dealing with a government that seems to have a penchant for assisting corporations before it assists governments, it makes you wonder."
The American Petroleum Institute declined our request for a on-camera interview. Most oil companies told us they don't comment on security issues.
We should note that the nuclear power industry, which has spent hundreds of millions of dollars on its own security, has not received any grants from Homeland Security.
