WASHINGTON, Oct 8, 2008 (AFP) - President George W. Bush's chief spokeswoman expressed outrage Wednesday at reports that AIG executives spent hundreds of thousands of dollars on a spa retreat after the US government rescued the firm.

'I understand why the American people would be outraged. I am. It's pretty despicable,' Dana Perino told reporters.

She spoke after reports surfaced that AIG spent more than 440,000 dollars for an executive getaway at a California beach resort just days after the insurance giant was rescued by an 85-billion-dollar US government loan.