The PNM administration allocated over $118 million to flood relief efforts last month.
But 40% of that figure was siphoned away by fraudsters.
Last night at a political meeting in Port-of-Spain, Prime Minister Dr Keith Rowley disclosed the results of an audit conducted by the Ministry of Social Development.
He described the situation as unacceptable and said it is now in the hands of the police.
Hema Ramkissoon has more.