Monday, October 18, 2004

Follow the money

Yeah. If you can, suckers!

About half of the roughly $5 billion in Iraq reconstruction funds disbursed by the US government in the first half of this year cannot be accounted for, according to an audit commissioned by the United Nations, which could not find records for numerous rebuilding projects and other payments.

...The audit, released yesterday, found serious gaps in how the Development Fund for Iraq -- a pool of money drawn from Iraqi oil revenues and international aid, including some from the United States -- was handled by American occupation officials responsible for funding reconstruction projects and the operations of Iraqi ministries and provincial governments. The development fund is separate from the $18.4 billion in US reconstruction funds set aside last year to rebuild the country.

All the funds -- more than $5 billion -- were spent between Jan. 1 and June 28, 2004, during the period when the US-led Coalition Provisional Authority ran the country.

...Hundreds of projects worth more than $100 million covered by the Commander's Emergency Response Program, designed to allow US military officers to quickly fund small reconstruction projects around the country, had either no contracts on file, no evidence that bids were obtained through competition, no purchase invoices, or no payment vouchers.

Weapons were paid for under a buyback program with funds specifically prohibited for such use.

The coalition authority gave money to the Iraqi Ministry of Finance, which then maintained two different sets of records. The report said a ''reconciliation between these two sets of accounting records was not prepared and the difference was significant."

Checks were made payable to the coalition authority's senior adviser to the Ministry of Health, rather than to suppliers, raising questions about whether the money was spent for its intended purposes.

A number of projects were awarded without bids ''without justification" by treasury officials in one Iraqi province.
  Boston.com article

Hey, it's the American way. Capitalism cannot flourish without a little help.

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