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That last sentence seems a little fishy.
U.S. lost track of $9 billion in Iraq funds
WASHINGTON (CNN) -- Nearly $9 billion of money spent on Iraqi reconstruction is unaccounted for because of inefficiencies and bad management, according to a watchdog report published Sunday.
An inspector general's report said the U.S.-led administration that ran Iraq until June 2004 is unable to account for the funds.
"Severe inefficiencies and poor management" by the Coalition Provisional Authority has left auditors with no guarantee the money was properly used," the report said.
"The CPA did not establish or implement sufficient managerial, financial and contractual controls to ensure that [Development Fund for Iraq] funds were used in a transparent manner," said Stuart W. Bowen Jr., director of the Office of the Special Inspector General for Iraq Reconstruction.
The $8.8 billion was reported to have been spent on salaries, operating and capital expenditures, and reconstruction projects between October 2003 and June 2004, Bowen's report concluded.
The money came from revenues from the United Nations' former oil-for-food program, oil sales and seized assets -- all Iraqi money. The audit did not examine the use of U.S. funds appropriated for reconstruction. (Full story)
Auditors were unable to verify that the Iraqi money was spent for its intended purpose. In one case, they raised the possibility that thousands of "ghost employees" were on an unnamed ministry's payroll.
"CPA staff identified at one ministry that although 8,206 guards were on the payroll, only 602 guards could be validated," the audit report states. "Consequently, there was no assurance funds were not provided for ghost employees."
The Defense Department, which was in charge of the reconstruction effort, and former Iraq civil administrator Paul Bremer have disputed the findings.
Pentagon spokesman Bryan Whitman told CNN that the provisional authority was operating under "extraordinary conditions" and relied on Iraqi ministries to manage development money that was transferred to them.
"We simply disagree with the audit's conclusion that the CPA provided less-than-adequate controls over Iraqi funds that were provided to Iraqi ministries through the national budget process for hundreds of projects, essential services, Iraqi salaries and security forces," Whitman said.
The occupation government established "major reforms" in Iraq's budgeting system, setting up a transparent mechanism for decision-making and beginning efforts to fight corruption, Whitman said.
Under a U.N. Security Council resolution, the Development Fund for Iraq was to be used for humanitarian needs, economic reconstruction and repair of infrastructure, continued disarmament, costs of civilian administration and other programs benefiting Iraqis.
Bremer, in a written response included in the report, said Bowen's report failed to recognize the difficulties of operating in wartime.
"The IG auditors presume that the coalition could achieve a standard of budgetary transparency and execution that even peaceful Western nations would have trouble meeting within a year, especially in the midst of a war," Bremer wrote.
Bremer, who received a Presidential Medal of Freedom in December for his work in Iraq, stated that auditors did not interview him, any of his budget directors or deputies in preparing their draft report.
That last sentence seems a little fishy.
Thousands of guards from the time-period, covered by the audit, are dead. Attrition through war casualty was a real booger during that time...it's possible payments were made not to "ghost employees" but employees that are now ghosts.
That right there makes the starting numbers suspect. You can't conduct a very thorough audit when you don't have an accurate benchmark from which to start.
Also, I hasten to point out, this is all about Iraqi funds...it doesn't involve (as is stated in the second sentence) and U.S. appropriations. I say let the new Iraqi government root out their own corruption.
Excellent observation.
In the rigors of war money tends to get thrown at problems, in desperation, from which no fruits are ever realized and for which no accountability will ever be produced because all involved are dead or, otherwise, indisposed.
Yeah, that too. I didn't get that far after encountering the three statements, I've already addressed, that made the whole report suspect.
uh most likely the amount of money seized was counted at that time. an audit would be examining what happened to the loot after that.
Houston (API) War profiteering company Halliburton reports an unheard of $9B surplus for the fourth quarter of 2004. Halliburton CEO David Lesar said "It was almost like it landed in our laps! A profit lapdance!"
That fits right in with the article.
I'd like to read the whole article, please link.
So, now that mainstream news (CNN) is telling you things you don't want to hear, it's invalid? I thought you were a cut above the Yonis of the board, User.That fits right in with the article.
I guess those bad Europeans weren't the only ones skimming the O.F.F. proceeds now, were they? Either the provisional authority established by the Bush admin, or the "friendly" Iraqis, of which the new government will be composed, are corrupt as . Maybe both.
Still no link?
Ex could have the 9 billion in his lap and you'd still try to spin it into something positive.
The President could take a dump in your mouth and you'd still be singing sunshine.
I want my cut of that 9 billion Ex. I have some oil and food on hand.
I'll take the silence as a sign there is no link to that fabricated story.
Maybe if you read the last sentence you'll understand what I mean. How can you audit someone with out ever talking to them or working with them to collect any records or information? In that case I could audit you right now. Ok, let's see, Exstatic took 9 billion from the Iraq's. There, I proved you took the money! Ask SW if she thinks you can do an audit without obtaining the person being audited's records.
The article is real. But the content is questionable.
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