U.S. Defense Department can't account for billions for Iraq, audit finds

LA · Jan 29, 2012

(CNN) -- The U.S. Defense Department cannot account for about $2 billion it was given to cover Iraq-related expenses and is not providing Iraq with a complete list of U.S.-funded reconstruction projects, according to two new government audits.

The reports come from the office of the Special Inspector General for Iraq Reconstruction.

The Iraqi government in 2004 gave the Department of Defense access to about $3 billion to pay bills for certain contracts, and the department can only show what happened to about a third of that, the inspector general says in an audit published Friday.

Although the Department of Defense (DoD) had "internal processes and controls" to track payments, the "bulk of the records are missing," the report says, adding that the department is searching for them.

Other documents are missing as well, including monthly reports documenting expenses, the audit says.

"From July 2004 through December 2007, DoD should have provided 42 monthly reports. However, it can locate only the first four reports."

A letter accompanying the report is signed by Stuart Bowen, the inspector general. The audit was overseen by Glenn Furbish, assistant inspector general for audits.

In a response letter also contained in the report, Defense Under Secretary Mark Easton acknowledges "a records management issue."

The audit says it believes records management is to blame, and "has been an ongoing problem for DoD in Iraq. By all accounts, DoD established good internal processes and controls to account for and report on" the funds it was given after the Coalition Provisional Authority dissolved.

Where the records did exist, they matched other records and contained "good financial documentation supporting individual payments." Also, there is "sufficient evidence" that required monthly reports were sent to the government of Iraq, even though they can't be found, the audit said.

The audit deals with a time when Iraq's government was undergoing a transition. The Coalition Provisional Authority ran the country for 14 months from 2003 to 2004. During that time, the authority awarded numerous contracts. When it dissolved in 2004, the Iraqi government gave the U.S. Defense Department access to the $3 billion to pay bills for contracts the provisional authority had awarded.

The Defense Department letter from Easton -- the department's deputy chief financial officer -- thanks the inspector general's office for "the collaborative effort and professional courtesy" in a series of audits.

Separately, the inspector general's office sent a letter Sunday to the U.S. ambassador to Iraq complaining that the U.S. government is not providing Iraq with a complete list of reconstruction projects.

The U.S. criteria for selecting which projects to report to Iraq -- which include only those valued at $250,000 or more -- is a central part of the problem, the letter says.

The U.S. Embassy says the system is designed to help Iraq "focus its limited resources on sustainment of infrastructure and other large capital projects done through U.S. reconstruction efforts," the report notes.

The inspector general's office argues that the limited list -- which is also "hampered by unreliable data and other data entry problems" -- does not allow Iraq to decide where to focus its resources, and notes that the country might consider some smaller projects more important than those that are reported.

"Without more comprehensive knowledge about reconstruction projects the (Iraqi government) will not be in a position to maximize the use of its resources," the report says.

Billions of dollars in spending are not reported to Iraq under the current system, the report says.

In a response letter, Peter Bodde, assistant chief of mission for the U.S. Embassy in Iraq, says that while the current system is incomplete, "it does capture the vast majority of reconstruction projects and there is no other alternative that captures more."

He also notes that the Iraq reconstruction effort "is now in its very last stages, and all remaining capital projects will be reported through the asset transfer process."

The Office of the Special Inspector General for Iraq Reconstruction was created in 2004 to continue oversight of Iraq reconstruction programs.
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http://www.cnn.com/2012/01/29/world...n=Feed:+rss/cnn_topstories+(RSS:+Top+Stories)

The Dark King · Jan 29, 2012

Why is this news? Those fuckers steal, that's what they do.

pettyofficerj · Jan 29, 2012

The Dark Knight said: ↑

Why is this news? Those fuckers steal, that's what they do.
Click to expand...

what's that age-old saying?

power corrupts; absolute power corrupts absolutely

this government isn't as great as some of you people think it is. they lie, cheat and steal just like any other. take a political science course or two just for the hell of it. Get some credits and learn how flakey this country can be. Or, keep digging for articles from reliable sources that illustrate this. Either way, open your eyes and fight, because while we get poorer, these politicians and their cohorts are getting much richer.

it's like depending on cops to never skim from seized drug money. sure, that's wishful thinking inline with their 'protect and serve, honor above all' motto...but that's not always the case

fuck..look at the explosion of internet piracy....everybody steals when the opportunity arises, and when the reward outweighs the risk

KingAesop · Jan 30, 2012

pettyofficerj said: ↑

what's that age-old saying?

power corrupts; absolute power corrupts absolutely
Click to expand...

You hit the nail on the head. Governments operate with a gang mentality. All societies are a microcosm of the larger governmental structure they operate within. All organizational entities are created with the sole purpose of fighting for resources. Governments fight other governments for resources and territories like local street gangs fight other gangs or sets for local territory and monetary resources. Will it ever stop? I doubt it as long as mankind chooses to manifest its' animal instincts over its' rational instincts. You either "ride with'em" or "collide with'em" unless you want to become a martyr or a revolutionary, but that's another story.

KingAesop · Jan 30, 2012

The Dark Knight said: ↑

Why is this news? Those fuckers steal, that's what they do.
Click to expand...

"You must spread some reputation around before giving it to The Dark Knight again."

andreboba · Jan 30, 2012

THe DOD is the most corrupt agency in the federal government, because of the fact they're given tens of billions in tax payer dollars every year with no strings or accountability.

The real scandal is how many former generals miraculously become multi-millionaires after retiring from the Pentagon.:smt103

DOD contracts are blood sucking leaches on the federal budget. It's an entirely hidden shadow economy sucking at the teat of DOD.

If you live in the DMV like I do, you meet literally dozens of people whose entire careers are built upon procuring and fulfilling DOD contracts.

If any other federal agency routinely 'lost' a few billion dollars, there would be Senate subcommittee hearings daily on Capitol Hill.

DOD gets a slap on the wrist and it's business as usual.

Ike was right.
'Beware the congressional-military-industrial complex.'

They are the enemies of democracy whether they meant to be or not, because at some point they feel that are BIGGER and more IMPORTANT than governance of the people, by the people and for the people.

For those who say Obama wants to gut the military, understand he's not talking about eliminating critical weapons systems or reducing this nation's fighting capacity.
There are estimates that nearly a third of the DOD budget is spent on WASTE.

When you've got a few billion dollars to blow in a sand bowl like Iraq, it's time that the American taxpaxer put a freeze on Pentagon spending to find out exactly what that money is being spent on.

Bliss · Jan 31, 2012

The Thief of Baghdad

Check here..^^^

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U.S. Defense Department can't account for billions for Iraq, audit finds

LA Well-Known Member

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pettyofficerj New Member

KingAesop Active Member

KingAesop Active Member

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