Disaster profiteers make millions while local companies and laborers in New Orleans and the rest of the Katrina-devastated Gulf Coast region are systematically getting the short end of the stick, according to a major new report from the nonprofit CorpWatch.

A CorpWatch analysis of FEMA's records shows that "fully 90 percent of the first wave of (the post-Katrina reconstruction) contracts awarded - including some of the biggest no-bid contracts to date -- went to companies from outside the three worst-affected states. As of July 2006, after months of controversy and Congressional hearings, companies from Louisiana, Mississippi and Alabama had increased their share of the total contracts to a combined 16.6 percent." The CorpWatch analysis shows that more federal reconstruction contracts have gone to Virginia and Indiana - usually large, politically connected corporations -- than to any of the three Katrina-devastated states.