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Huge fraud exposed in Iraq contracts
Guardian ^ | 5/1/6 | Ewen Macaskill

Posted on 05/01/2006 10:11:52 AM PDT by Crackingham

A US Congressional inspection team set up to monitor reconstruction in Iraq has published a scathing report on failures by contractors to carry out projects worth hundreds of millions of dollars. In one case, the inspectors found that three years after the invasion only six of 150 health centres proposed for Iraq have been completed by a US contractor, in spite of 75 per cent of the $US186 million allocated having been spent.

The report says: "Fourteen more will be completed by the contractor, and the remaining facilities, which are partially constructed, will have to be completed by other means." The inspectors blame the failure in this instance on management problems and security concerns.

The report on work projects in Iraq is by Stuart Bowen, the special inspector-general for Iraq reconstruction (Sigir). Mr Bowen's office was set up after Congress expressed concern about the slow rate of reconstruction and the misuse of funds on a massive scale. The US allocated $US21 billion for reconstruction, of which 67 per cent has been spent. The report says Mr Bowen's inspection team is investigating 72 cases of alleged fraud and corruption, and is pursuing leads not only in the US but in Europe and the Middle East. In March, investigators conducted a successful sting operation that led to the arrest of a contractor who offered a bribe to one of its undercover agents.

The report says "there exists a gap between US project outputs and the delivery of essential services to Iraqis".

While progress has been made in the construction of schools and police stations, many Iraqis still have no access to clean water, and electricity supplies in Baghdad are still below pre-invasion levels. The inspectors say that economic recovery is being hampered by the failure to restore Iraq's oil production to levels before 2003.

The inspectors audited Task Force Shield, established in September 2003 to build Iraq's capacity to protect its oil, gas and electrical infrastructure, and found significant shortcomings. The report concludes the project "failed to meet its goals because it was burdened by a lack of clear management structure and poor accountability. There were also indications of potential fraud, which are now under review by Sigir investigators."

Until last month, Washington had invested more than $US265 million to improve the protection of energy infrastructure across Iraq.

In a separate section, the report notes a former contractor and former senior staff member of the now defunct US-led coalition government are facing jail sentences of 30 to 40 years on corruption charges. The contractor will have to pay $US3.6 million in restitution and forfeit $US3.6 million in assets.


TOPICS: Crime/Corruption; Extended News; Foreign Affairs; Government; News/Current Events
KEYWORDS: abuse; congress; corruption; fraud; gummintgiveaways; iraq; waste

1 posted on 05/01/2006 10:11:56 AM PDT by Crackingham
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To: Crackingham

It's Cheney and Halliburton's fault.


2 posted on 05/01/2006 10:15:27 AM PDT by b4its2late (If it's treason, there's no doubt a democrat is standing behind it.)
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To: Crackingham

Well, if the Iraqis will dedicate 1 or 2 oil well to just financing their Hospitals, they can build all they want with $$ to spare!


3 posted on 05/01/2006 10:18:23 AM PDT by theDentist (Qwerty ergo typo : I type, therefore I misspelll.)
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To: Crackingham

Sounds like the Feds have a big fat refund coming to them (to squander elsewhere).


4 posted on 05/01/2006 10:20:22 AM PDT by DTogo (I haven't left the GOP, the GOP left me.)
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To: Crackingham

And to think that some people believe that everything would be dandy if the government were in charge of health care. It's incredible.


5 posted on 05/01/2006 10:26:19 AM PDT by mvpel (Michael Pelletier)
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To: Crackingham
And what do you think about the article you posted?
6 posted on 05/01/2006 10:39:43 AM PDT by Coop (Proud founding member of GCA - Gruntled Conservatives of America)
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To: Crackingham
While progress has been made in the construction of schools and police stations, many Iraqis still have no access to clean water, and electricity supplies in Baghdad are still below pre-invasion levels. The inspectors say that economic recovery is being hampered by the failure to restore Iraq's oil production to levels before 2003.

No mention that anti-Iraqi terrorists are destroying the infrastructure.

7 posted on 05/01/2006 11:42:41 AM PDT by weegee ("Season's Greetings and Happy Holidays")
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To: Coop
And what do you think about the article you posted?

Probably nothing. This poster has posted lots of acticles for a newbie, but only one post to an existing thread. That was only a link to additional informantion, but no comment of their own.

8 posted on 05/01/2006 11:49:24 AM PDT by ASA Vet (Those who know don't talk. Those who talk don't know.)
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To: Coop

I misread the posters sign up date. He/She a yearling not a newbie.


9 posted on 05/01/2006 11:51:23 AM PDT by ASA Vet (Those who know don't talk. Those who talk don't know.)
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To: Crackingham

Hard to focus on draining the swamp when you're up to your ass in alligators.


10 posted on 05/01/2006 11:58:37 AM PDT by CedarDave (If it wasn't for double standards, DemocRATS would have NONE)
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To: Crackingham; eyespysomething

Why couldn't we ship the 11 million illegal immigrants to Iraq to finish up the contracts? Then when we bring them home the ship can dock in a Mexican port.


11 posted on 05/01/2006 12:00:54 PM PDT by SittinYonder (That's how I saw it, and see it still.)
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To: Coop
And what do you think about the article you posted?

Crackingham only starts threads, never finishes them.

12 posted on 05/01/2006 12:03:12 PM PDT by SittinYonder (That's how I saw it, and see it still.)
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To: Crackingham
the inspectors found that three years after the invasion only six of 150 health centres proposed for Iraq have been completed by a US contractor, in spite of 75 per cent of the $US186 million allocated having been spent.

This is UN level of corruption here.

13 posted on 05/01/2006 12:06:11 PM PDT by Centurion2000 (If you can read, thank a teacher. If you read English, thank a soldier.)
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To: Crackingham
[ Huge fraud exposed in Iraq contracts ]

Surprise surprise..
Huge fraud is exposed in Domestic Contracts, regularly..
With Federal, State, County, and local givernment contracts..
Socialism attracts and makes corruption permanent..
Thats what socialism IS... bribery..

14 posted on 05/01/2006 12:06:44 PM PDT by hosepipe (CAUTION: This propaganda is laced with hyperbole..)
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To: Centurion2000
This is UN level of corruption here.

Well, it would be if it were a complete statement. In a writing about that particular a few months ago, it was pointed out that the centers were a particular target of bombings, and thus even when the people brought there to work on them were able to actually do so, they had to redo quite a bit of work due to damage.

15 posted on 05/01/2006 12:58:04 PM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: Crackingham
"Huge fraud exposed in Iraqi contracts . . . There were also indications of potential fraud, which are now under review by Sigir investigators . . . In a separate section, the report notes a former contractor and former senior staff member of the now defunct US-led coalition government are facing jail sentences of 30 to 40 years on corruption charges."

Notice how the headline regarding "huge fraud" - with the implication that it is U.S. companies perpetrating the fraud - is unsupported by the article. The article merely mentions "potential fraud," and in the two instances of actual fraud the perpetrators remain suspiciously un-named. My guess for the latter is that they were Iraqis who were under contract to the coalition. By far the main reason for the relative lack of progress is the insurgency, not fraud, which has made it impossible to complete many projects, or tore-do projects that have been sabotaged by the insurgents. The headline should say, "Insurgency hinders Iraqi recovery," putting the blame where it belongs, rather than creating the misleading impression that it is major fraud by American companies that is the problem.
16 posted on 05/01/2006 1:10:23 PM PDT by Steve_Seattle
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To: weegee
"No mention that anti-Iraqi terrorists are destroying the infrastructure."

Yep. The overwhelming problem is not fraud, but insurgent violence. THAT is what has kept projects from being completed. Many have to be done over again because of insurgent sabotage. By leaving out a key element - THE key element - the author shows either bias or laziness or stupidity, or perhaps all three.
17 posted on 05/01/2006 1:13:56 PM PDT by Steve_Seattle
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To: Steve_Seattle

That is pretty much my take on it also.


18 posted on 05/01/2006 9:43:30 PM PDT by jospehm20
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