- Military bans troops from Baptist church event honoring ‘God’s Rescue Squad’
- ‘Pocket drones’: U.S. Army developing tiny surveillance tools for the next big war
- Belgian cafe posts sign: Dogs allowed, but Jews stay out
- Gen. Dempsey: Pentagon studying Russian readiness plans not viewed ‘for 20 years’
- John McCain: Botched, two-hour execution of murderer is ‘torture’
- House GOP ready to move border bill
- Bomb squad called after live WWII artillery washes on Cape Cod beach
- HAYDEN: Intelligence, evidence and the case against Russia
- Ohio university quiz implies atheists are naturally smarter than Christians
- Rep. Henry Cuellar on border crisis: ‘Playing defense on the one-yard line’
Audit finds Pentagon can’t account for $8.7B in Iraqi funds
Question of the Day
BAGHDAD (AP) — The U.S. Defense Department is unable to properly account for over 95 percent of $9.1 billion in Iraqi oil money tapped by the U.S. for rebuilding the war ravaged nation, according to an audit released Tuesday.
The report by the U.S. Special Investigator for Iraq Reconstruction offers a compelling look at continued laxness in how such funds are being spent in a country where people complain basic services like electricity and clean water are sharply lacking seven years after the U.S.-led invasion that toppled Saddam Hussein.
The audit found that shoddy record keeping by the Defense Department left the Pentagon unable to fully account for $8.7 billion it withdrew between 2004 and 2007 from a special fund set up by the U.N. Security Council. Of that amount, Pentagon “could not provide documentation to substantiate how it spent $2.6 billion.”
The funds are separate from the $53 billion allocated by Congress for rebuilding Iraq.
The report comes at a critical time for Iraq.
Despite security gains made since 2008, bombings remain near a daily occurrence that compound the frustrations and fears of Iraqis increasingly weary of the current political crisis — one many say reflects how the country’s politicians are more interested in their own interests than those of the nation.
Politicians have hit an impasse since inconclusive parliamentary elections were held March 7, unable to form a new government as Prime Minister Nouri al-Maliki, a Shi’ite, appears determined to stay in office when influential Shi’ite parties want to see him go.
The audit cited a number of factors that contributed to the inability to account for most of the money withdrawn by the Pentagon from the Development Fund for Iraq. It said most of the Defense Department organizations that received DFI money failed to set up Treasury Department accounts, as required.
In addition, it said no Defense Department organization was designated as the main body to oversee how the funds were accounted for or spent.
“The breakdown in controls left the funds vulnerable to inappropriate uses and undetected loss,” the report said.
The audit found that the U.S. continues to hold about $34.3 million of the money even though it was required to return it to the Iraqi government.
The audit did not indicate that investigators believed there were any instances of fraud involved in the spending of these funds.
The DFI includes revenues from Iraq‘s oil and gas exports, as well as frozen Iraqi assets and surplus funds from the now-defunct, Saddam Hussein-era oil-for-food program. With the establishment of the Coalition Provisional Authority, which ran Iraq shortly after the start of the U.S. invasion in 2003 until mid-2004, about $20 billion was placed into the account.
The Iraqi government had agreed to allow the U.S. continued access to the funds after the CPA was dissolved in 2004, but it revoked that authority in December 2007.
TWT Video Picks
Second- and third-stringers eye 2016 if front-runner stumbles
- 'We're coming for you, Barack Obama': Top U.S. official discloses threat from ISIL terrorists
- Russia shipping sophisticated weapons systems to Ukraine separatists
- NAPOLITANO: What if our democracy is a fraud?
- 'Pocket drones': U.S. Army developing tiny spies for the next big war
- Michelle Obama says money in politics is bad, asks donors for 'big, fat check'
- EDITORIAL: Detroit's water 'spigot bigots'
- John McCain: Botched, two-hour execution of murderer is 'torture'
- Brian Kelly, Notre Dame ready for different route to title
- White House readies for House GOP impeachment push: 'Foolish' to ignore
- Presidents of Honduras, Guatemala blame U.S. for border children crisis
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq