Gulf spill fund chief tells lawmakers to blame him for problems, not Obama

Kenneth Feinberg, the administrator of BP’s $20 billion oil spill compensation fund, told House lawmakers Thursday that criticism of the program should be directed toward him, not the Obama administration.

“Any praise about this program or any criticism of this program really should be directed at me alone,” Feinberg said during a House Natural Resources Committee hearing, adding that the administration “has largely taken a hands-off attitude.”

Feinberg’s comments came shortly after Committee Chairman Doc Hastings (R-Wash.) took aim at President Obama for what the lawmaker sees as deficiencies with the compensation fund, known as the Gulf Coast Claims Facility (GCCF).

{mosads}“During the aftermath of the Deepwater Horizon, we constantly heard from President Obama that BP would be held “fully responsible” for the damages in the Gulf,” Hastings said. “Yet that is not the case with the claims filed with the compensation fund.”

Hastings criticized the administration for not monitoring the GCCF more closely.

“The fact that this initiative did come from the administration without any semblance of oversight is somewhat problematic,” he said.

BP agreed in June 2010 to set up a $20 billion fund to compensate victims of the oil spill. Obama later tapped Feinberg, who headed the 9/11 Victim Compensation Fund, as its independent administrator. The Department of Justice recently said it would conduct an independent audit of the GCCF.

Gulf Coast lawmakers have long criticized Feinberg’s handling of the GCCF, arguing payments have been slow and inconsistent. They continued their criticism of Feinberg at Thursday’s hearing.

“I’d have to say we’re frustrated. We’re tired. Many of us feel hopeless. But I’d have to say we also feel insulted,” Rep. Steven Palazzo (R-Miss.) said, arguing that compensation to spill victims has been “inconsistent.”

But Feinberg defended his performance as the administrator of the GCCF.

“There is a lot of support in the Gulf by residents who see that the program is working and are filing claims,” Feinberg said, noting that the GCCF receives about 2,000 additional claims each week.

The GCCF has doled out about $5.5 billion during the last 14 months to more than 200,000 victims of the spill.

Feinberg acknowledged that the GCCF has faults.

“The program is not perfect,” he said. “We’re doing our best.”

The massive number of claims that have been filed — almost 1 million over 14 months — has inevitably resulted in some inconsistency in compensation, Feinberg said. But he added that GCCF staff is working to correct the problem.

Feinberg also praised the administration for convincing BP to establish the $20 billion fund.

“I think the administration getting BP to do this was a major, positive step,” he said.