'$100m gap' in US Iraq spending

Money? What Money? Where?

US civilian authorities in Iraq have been unable to account properly for nearly $100m (£53m) earmarked for rebuilding, US financial auditors say.

Two audits found signs of potential fraud regarding the money, which includes oil revenue and assets seized from Saddam Hussein's government. A third questioned the use of almost $18bn in US taxpayers' money for reconstruction projects in Iraq. The audits found "no assurance that fraud, waste and abuse did not occur".

US civilian authorities in Iraq have been unable to account properly for nearly $100m (£53m) earmarked for rebuilding, US financial auditors say.

Two audits found signs of potential fraud regarding the money, which includes oil revenue and assets seized from Saddam Hussein's government. A third questioned the use of almost $18bn in US taxpayers' money for reconstruction projects in Iraq. The audits found "no assurance that fraud, waste and abuse did not occur".

'Washing accounts'

According to the Sigir, of nearly $120m in cash paid out in south-central Iraq more than $7m is unaccounted for and payments worth $89m do not have the proper paperwork. It refers to significant problems, accusing managers of "simply washing accounts" to try to make the books balance.

Examples of failures include:

• More than 600 transfers of more than $23m using the wrong form
• A contractor being paid twice for the same job
• Ten payments of more than $300,000 submitted for cancelled contracts
• Two payment officers leaving Iraq with balances of more than $700,000 without clearance.

One US senator criticised the "sloppy" management of the funds. "Billions of dollars, the success of the stabilisation mission, and US credibility are at stake, and these reports inspire very little confidence in the competence and transparency of US efforts to date," said Democrat Russ Feingold. "The US risks fostering a culture of corruption in Iraq."

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