IRAQ: WASTE, FRAUD, THEFT

AP just came out with an article reporting on just one audit of the Iraq reconstruction process and it tells us pretty much what we could expect: it was a miserable failure. You can get the audit reports themselves here and here's a bit of the AP article:


Audit: U.S.-led occupation squandered aid
By JIM KRANE
Associated Press Writer
Jan 29, 4:26 PM EST

DUBAI, United Arab Emirates (AP) -- Iraqi money gambled away in the Philippines. Thousands spent on a swimming pool that was never used. An elevator repaired so poorly that it crashed, killing people.

A U.S. government audit found American-led occupation authorities squandered tens of millions of dollars that were supposed to be used to rebuild Iraq through undocumented spending and outright fraud.

In some cases, auditors recommend criminal charges be filed against the perpetrators. In others, it asks the U.S. ambassador to Iraq to recoup the money.

Dryly written audit reports describe the Coalition Provisional Authority's offices in the south-central city of Hillah being awash in bricks of $100 bills taken from a central vault without documentation.

"Tens of millions of dollars in cash had gone in and out of the South-Central Region vault without any tracking of who deposited or withdrew the money, and why it was taken out," says a report by the Special Inspector General for Iraq Reconstruction, which is in the midst of a series of audits for the Pentagon and State Department.

Much of the first audit reports deal with contracting in south-central Iraq, one of the country's least-hostile regions. Audits have yet to be released for the occupation authority's spending in the rest of Iraq.

The audits offer a window into the chaotic U.S.-led occupation of Iraq of 2003-04, when inexperienced American officials - including workers from President Bush's election campaign - organized a cash-intensive "hearts and minds" mission to rebuild Iraq's devastated economy.

In some cases, auditors could find no trace of cash, much of which came from Iraqi oil revenues overseen by the occupation authority.

"Those deficiencies were so significant that we were precluded from accomplishing our stated objectives," the auditors said of U.S. officials in Hillah being unable to account for $97 million of the $120 million in Iraqi oil revenues earmarked for rebuilding projects.

An October 2005 audit found documentation for the spending of just $8 million of that money.