While some people are fixated on 1968, we've got some problems here and now... __________________ Audit shows $8.8 billion in Iraq funds missing Coalition official cites body for lax ‘stewardship’ Reuters Updated: 6:06 p.m. ET Aug. 19, 2004 WASHINGTON - At least $8.8 billion in Iraqi funds that was given to Iraqi ministries by the former U.S.-led authority there cannot be accounted for, according to a draft U.S. audit set for release soon. The audit by the Coalition Provisional Authority’s own inspector general blasts the CPA for “not providing adequate stewardship” of at least $8.8 billion from the Development Fund for Iraq that was given to Iraqi ministries. The audit was first reported on a Web site earlier this month by David Hackworth, a journalist and retired colonel. A U.S. official confirmed that the contents of the leaked audit cited by Hackworth were accurate. The development fund is made up of proceeds from Iraqi oil sales, frozen assets from foreign governments and surplus from the U.N. oil for food program. Its handling has already come under fire in a U.N.-mandated audit released last month. Ghost workers Among the draft audit’s findings were that payrolls in Iraqi ministries under the control of the Coalition Provisional Authority were padded with thousands of ghost employees. In one example, the audit said the CPA paid for 74,000 guards even though the actual number could not be validated. In another, 8,206 guards were listed on a payroll but only 603 people doing the work could be counted. Three Democratic senators — Ron Wyden of Oregon, Tom Harkin of Iowa and Byron Dorgan of North Dakota — demanded an explanation from Defense Secretary Donald Rumsfeld over the use of the funds by the CPA, which handed over authority to the Iraqis in June. “The CPA apparently transferred this staggering sum of money with no written rules or guidelines for ensuring adequate managerial, financial or contractual controls over the funds,” said the letter sent by the senators on Thursday. ‘Serious questions’ “Such enormous discrepancies raise very serious questions about potential fraud, waste and abuse,” said the senators. A spokesman for the CPA inspector general’s office confirmed “field work” had been completed on the audit but declined to give specifics. He said auditors were awaiting comment from the Pentagon before releasing the final report, probably later this month. The Pentagon did not immediately respond to questions. An international audit report released last month that was requested by a U.N.-mandated monitoring body chided the CPA for oversight of spending of Iraq’s oil revenue. Halliburton also benefited While the International Advisory and Monitoring Board said the audit found no evidence of fraud in spending by the CPA after the U.S. invasion in March 2003, it said oversight was insufficient to ensure money was used for its intended purposes. One of the main benefactors of the Iraq funds was the Texas-based firm Halliburton, which was paid more than $1 billion out of those funds to bring in fuel for Iraqi civilians. The monitoring board said despite repeated requests it had not been given access to U.S. audits of contracts held by Halliburton, which was once run by Vice President Dick Cheney, and other firms that used the development funds. Copyright 2004 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. URL: http://msnbc.msn.com/id/5763483/
If they had held the money until a myriad of rules and regulations could be enforced the headline would have been (US holding 8.8 billion from needy Iraqis - proves US hates Iraqis). Not saying this is a good thing, but you can look at any program of this size and find staggering problems with the accounting. Look at DoD contracts, for example, with our own corporations.
Staggering problems indeed... 74,000 guards on the CPA payroll? That number is equal to half of our troops in the country. Amounts this large don't just disappear due to fraud and waste... it takes some serious planning to make $8.8 billion disappear.
No it doesn't. All it takes is a lack of an after-war plan, and idiots in leadership positions in both Iraq and the United States.
Both the peaceniks and the hawks should be concerned about this. "Not accounted for" doesn't necessarily mean misappropriated (though the ghost employee allegation is troubling) but still, as the senators said -- lots of potential for fraud, waste and abuse. Them's big bucks.
Maybe no-plan was part of the plan... and I don't think they are all idiots... some of them are very smart. By the way, one of the reasons Kerry voted against the Administration's version of the $87 billion is because the Repubs stripped the accounting oversight out of the bill. I think they also stripped a provision that would have made war-profiteering a crime.
The Department of Education's budget request for 2005 from the President is $14.3 billion. They would have to lose over half of their appropriation to come close to the $8.8 billion missing in Iraq. Oh yes, there are accounting procedures in place for the Dpeartment of Education.
You know, for this 8.8 billion dollars, nearly 400,000 students could be given a full ride to a four year college. Personally, I think it would be better spent that way rather than simply disappearing as it seems that it has.
yeah or we could have opend a bunch of non smoking restaurants and bars in houston and not be concerned with a ban it aint our money dude...its not like it owuld hav been earmarked for anything else
so if you give your friend $10,000 to get his life back together and he loses $2,000 gambling in Vegas you wouldn't be upset?
Its more like your friend gave you $10,000 to keep safe for him and asked for it back. It is his to spend as he pleases. If we ever want to get out of Iraq, we need to let them make thier own mistakes like this. They can learn from them and move on. We all know that we aren't perfect either.
