Pentagon approves disputed Iraq costs

July 17, 2007
Pentagon approves disputed Iraq costs

Through last October, almost two-thirds of costs challenged by Pentagon auditors as inflated, erroneous or otherwise improper — more than $1 billion — were eventually approved by project managers. That compares with 44% for all defense contracts in 2005.

The low rate of withholding payments to Iraq contractors is evidence the Pentagon is turning a blind eye to waste and fraud, says Sen. Byron Dorgan of North Dakota, who has chaired several hearings into Iraq reconstruction problems for the Senate Democratic Policy Committee.