NOT GETTING BP'S MONEY?
The people affected by one of the worst disaster, are criticizing BP's distribution of compensation over the spill of millions of barrels of oil into the Gulf of Mexico a year ago, which threatened their livelihood. What is the problem here, and what is the oil giant's response?
It's been over a year since the BP oil spill in the Gulf of Mexico, which was caused by an explosion of Deepwater Horizon. The explosion killed 11 men working on the platform and injured 17 others. The leak was finally stopped in July last year, after releasing an estimated 4.9 million barrels of crude oil into the water, which is equivalent to 53,000 barrels per day.
The spill was not only the largest environmental disaster in the gulf, but also the worst financial disaster ever for people living along the coast. As time passes by, local fishermen, seafood processors, hoteliers and others continue to wait for the oil giant to carry out their promise to "make it right", including compensating for those who lost work during the disastrous incident. Out of BP's $20 billion fund of compensation,
many of the victims said that they received less than one-third of what they requested.
In response, the Gulf Coast Claims Facility said that they have paid nearly $5 billion in claims to about 200,000 claimants.
However, claimants continue to criticize the facility for its slow and random distribution of compensation, with some boat owners fully compensated while some business owners, who presented full documentation only received a percentage of their losses.
They said, quote, It's a game, the game is: Starve these poor (fishermen) out until they're ready to take whatever's offered."
Last week, Attorney General Eric Holder ordered an independent audit of the fund. Kenneth Feinberg, the fund's administrator, has agreed to the audit, while emphasizing that the program has worked as intended. Feinberg also believes that most of the fund could be spent before his contract ends with BP in August of 2013.
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