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US suspends funding for US Virgin Islands' housing authority and accuses it of corruption

  • HUD suspended funding for the U.S. Virgin Islands' Housing Finance Authority after an investigation found widespread financial mismanagement, fraud risks and alleged kickbacks.
  • Nearly nine years after Hurricanes Irma and Maria and $1.9 billion in disaster aid, the territory has spent only $570 million and most recovery housing projects remain stalled.
  • Investigators say officials inflated contracts and wasted materials; a former housing authority COO was convicted of fraud and money laundering.
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