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Thursday
Feb172005
Thursday, February 17, 2005 at 03:01AM
The Coalition Provisional Authority, the US-led agency that ran Iraq
after the fall of Saddam Hussein, has been accused of wasting millions
of dollars. Speaking to a Senate panel, former CPA official
Franklin Willis said the processes for handling contractors were as
chaotic as the Wild West. Almost two years after the war, 80% of
the $18bn set aside by the US Congress for rebuilding Iraq remains
unspent. A Pentagon spokesman said the CPA had worked under very
difficult conditions. Democratic senators called the hearing into the
management of the reconstruction funds, saying the Republicans who run
Congress have declined to investigate fraud in Iraq. What they
heard did not please them. Mr Willis told the US Senate Democratic
Policy Committee there was widespread abuse and waste of money at the
authority. He showed pictures of himself and other US officials holding
up plastic-wrapped bundles of $100 notes, worth $2m. They were used to
pay a security contractor. Mr Willis said a combination of
inexperienced officials, fear of decision-making, lack of
communications, minimal security, no banks and lots of money to spend
led to a Wild West type of chaos. These allegations of
incompetence come just weeks after an audit of the CPA's handling of
more than $20bn of Iraq's own money found that a lack of oversight had
left the funds open to corruption. A Pentagon spokesman said the
CPA had striven for sound management and transparency under extremely
difficult conditions. [more]