Wednesday, March 18, 2009

Iraq reconstruction waste: $ billions; $13 million returned to Iraq

The scandal of Iraqi reconstruction continues, as detailed by Iraq Oil Report.
Stuart Bowen, head of the Special Inspector General for Iraq Reconstruction (SIGIR), said that between 15 percent and 20 percent of the $21 billion in Iraq Reconstruction and Relief Funds, appropriated by Congress, was lost due to waste. The blame falls on U.S. leadership, he said. A much smaller number was chalked up to fraud, though he called the instances “egregious” and touted the 35 people convicted.
The $13 million Bowen said he returned to Prime Minister Nouri al-Maliki during a recent trip to Iraq was found by SIGIR staff following a tip. The $13 million was found as a place-holder, awaiting future reconstruction contracts. Bowen said it was not criminal, but still should not have taken place. Bowen said he hopes to return “tens of millions of dollars in DFI (Development Fund for Iraq) dollars improperly held by the United States,” as his caseload increases.
Ben Lando notes that "Nearly $9 billion was lost by the U.S. Coalition Provisional Authority to the black hole of the early days in Iraq, highlighted in a January 2005 audit, the most explosive of SIGIR’s findings." See the report by CNN in January 2005.

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