Inspectors Find Rebuilt Projects Crumbling in Iraq

April 29, 2007
Inspectors Find Rebuilt Projects Crumbling in Iraq

In a troubling sign for the American-financed rebuilding program in Iraq, inspectors for a federal oversight agency have found that in a sampling of eight projects that the United States had declared successes, seven were no longer operating as designed because of plumbing and electrical failures, lack of proper maintenance, apparent looting and expensive equipment that lay idle.

The United States has previously admitted, sometimes under pressure from federal inspectors, that some of its reconstruction projects have been abandoned, delayed or poorly constructed. But this is the first time inspectors have found that projects officially declared a success — in some cases, as little as six months before the latest inspections — were no longer working properly.

Ex-envoy says Iraq rebuilding plan won't work

February 17, 2007
Ex-envoy says Iraq rebuilding plan won't work

WASHINGTON (Reuters) - Kiki Munshi was showcased by the media in September as a seasoned U.S. diplomat who came out of retirement to lead a rebuilding group in
Iraq.

Now she is back home, angry, and convinced that
President George W. Bush's new strategy of doubling the number of such groups to 20 along with a troop surge of 21,500 will not help stabilize Iraq.

A diplomat for 22 years, she quit her job last month as leader of a Provincial Reconstruction Team -- groups made up of about 50 civilian and military experts that try to help Iraqi communities build their own government while strengthening moderates.

Halliburton cited: #10 billion were either excessive or undocumented

February 18, 2007
Halliburton cited: #10 billion were either excessive or undocumented

WASHINGTON -- A top Pentagon auditor told Congress on Thursday that $10 billion in defense contracts for Iraq reconstruction and troop support were either excessive or undocumented, including $2.7 billion for contracts held by Halliburton or one of its subsidiaries.

William Reed, director of the Defense Department's Defense Contract Audit Agency, told the House Oversight and Government Reform committee that his agency discovered the problems --$4.9 billion in "questioned" or overly expensive charges, and $5.1 billion in "unsupported" or undocumented expenses-- after auditing $57 billion in Pentagon contracts.

$10 billion squandered in Iraq

February 15, 2007
$10 billion squandered in Iraq

More than one in six dollars charged by U.S. contractors were questionable or unsupported, nearly triple the amount of waste the Government Accountability Office estimated last fall.

According to their testimony, the investigators:

• Found overpricing and waste in Iraq contracts amounting to $4.9 billion since the Defense Contract Audit Agency began its work in 2003. Some of that money has been recovered. An additional $5.1 billion in expenses were charged without proper documentation.
• Pointed to growing Iraqi sectarian violence as a significant factor behind bloated U.S. contracting bills. Iraqi officials, they said, must begin to take primary responsibility for reconstruction efforts. That is an uncertain goal, given the widespread corruption in Iraq and the local government's inability to fund projects.
• Urged the Pentagon to reconsider its growing reliance on outside contractors in wars and reconstruction efforts. Layers of subcontractors, poor documentation and lack of strong contract management are rampant and promote waste even after the GAO first warned of problems 15 years ago.