Gulf of Mexico Oil Spill Blog BP Spill Fund At Risk For Fraud

BP Spill

bp spill claims

Kenneth Feinberg, independent administrator of BP Gulf Oil spill fund admitted that there is no doubt that the $20bn (£12bn) fund is subject to risk of fraudulent claims.  Feinberg promised to be vigilant over claims and that those who receive compensation from the fund are legitimate.

To date about $1.3bn has been paid in emergency disbursements and another 160,000 claims for damages resulting from the spill are pending.  BBC reported that over half of the claims were filed in the last 14 days.

Feinberg admitted that there was a belief that people believe the fund is there to pay them generously and that fraud is a always hovering over a programme such as this.  He pledged to scrutinize each claim carefully saying that fraud would do the most to undermine the credibility of this fund.

The fund was established by BP to compensate residents and business in damaged by the Gulf of Mexico spill for damages and personal injury.  Those receive benefits from the claim waive all rights to sue BP in the future.

The disaster began with the explosion and sinking 20 April of BP Deepwater Horizon drilling platform.  The resulting spill caused widespread damages to wildlife, coastal area and seafood fisheries.  It has been estimated that as much as 206 million gallons of crude gushed into the Gulf before the well could be capped.

The claim and the Gulf Coast Claims Facility, setup to administer the funds, was established in June.  It was feared if that  BP did not put up the funds to be held and administered by an independent body that the company may not compensate people for their losses as a result of the spill.

The claims process requires claimants to fully document all losses and injuries in their application for reimbursement.

Source: CarRentals News UK

Posted by: Andrew Roberts

This entry was posted in BP Spill, Follow the Money, Gulf Coast Claims Facility, Gulf of Mexico Oil Spill, Gulf of Mexico Oil Spill 2010, Gulf of Mexico Oil Spill Blog, Gulf oil spill, Kenneth Feinberg and tagged , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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