"Nagin has been gaining more federal funds"
I doubt very much Nagin knew about it.
I figure Nagin knew about it. This is kinda funny... he goes on television and slams the president repeatedly. Now the FBI is chasing him.... And all the time the president just lays low, quiet, reserved, want to help the American people etc. This is championship politics at it's best...
Nagin was put in to clean out the corruption, starting at the low end of the totem pole.
Much responsibility, very little power.
Insiders were doing all to keep the truth from him about the exact number of officers and where they were at any one time.
He was supposed to be concentrating on this problem when Katrina surprised them.
The GOVERNOR told him the FEDS would take care of everything, to keep him from digging too deep.