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. 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. [more]
- Real Deception Dollars [here] Big Up to Dr. Blynd!