Landstar Denies It Was Overpaid for Katrina Relief Services

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andstar System denied it was overpaid $32 million for services the truckload carrier rendered in the wake of Hurricane Katrina, the Associated Press reported.

The Department of Transportation’s inspector general said in a report issued Friday that a bill for busing evacuees from New Orleans in the aftermath of the storm was $32 million more than it should have been, AP reported.

The report said the government overpaid Landstar for two of six tasks it preformed “with no documentation showing the actual amount of services provided to that date.”



Landstar Chief Executive Officer Henry Gerkens told AP that Landstar needed an advance to pay its contractors for the services, AP reported.

He said characterizing the payments as an overpayment was a “gross inaccuracy” and said the government still owed Landstar about $200 million, AP reported.

Landstar is ranked No. 14 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.

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