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View Full Version : US Inspector General For Iraq Paints Grim Picture Of Reconstruction



Hardrock69
11-03-2005, 09:43 AM
Report to Congress says problems exacerbated by lack of cooperation between State Department, Pentagon.

By Tom Regan csmonitor.com

In a report that paints a grim picture of the "violence, corruption and mismangement" that has beset the reconstruction effort in Iraq, The Wall Street Journal reports Stuart Bowen, the special inspector general for Iraq reconstruction, says that "the ambitious US reconstruction effort in Iraq is likely to fall far short of its goals because soaring security costs and poor management have slashed the amount of American money available for rebuilding projects."

The Journal also reports that although the US has allocated $50 billion for the project, the money available for actual reconstruction projects has been significantly reduced by "mounting security expenses, rising costs for materials and delays, and repeated bureaucratic reshuffling." Mr. Bowen says that while steady progress had been made, the "reconstruction gap" presents a "significant and growing threat" to American efforts to rebuild Iraq.

Bowen's report, which was released to Congress on Sunday, when many in the media were preoccupied with the resignation of Lewis Libby and the anticipated announcement of a new Supreme Court justice, also said that the US had "no comprehensive policy or regulatory guidelines." Bloomberg News reports that this lack of guidelines was exacerbated by a "general lack of coordination" between US government agencies charged with rebuilding Iraq, in particular the State Department and the Pentagon.

When planning began in mid-2002, Pentagon officials "were either unaware or chose to ignore" State Department assessments, and drew up a plan on their own, which wasn't finished until late January 2003, less than two months before the war began, US Inspector-General Stuart Bowen said.

"The lack of co-operation" in identifying qualified personnel well before the invasion "significantly hampered the early management of Iraq reconstruction", Mr Bowen wrote in his quarterly accounting to Congress of the reconstruction effort. Mr Bowen's assessment marks the first time a sitting inspector-general - in this case a former White House deputy assistant to President George Bush - has formally criticized the prewar planning process.

Bloomberg reports that this lack of planning process has hindered what has been "a generally positive effort by the State Department and Army officials in Iraq to put in place the management systems necessary to minimize waste in the $30 billion allocated for rebuilding the Mideast nation."

Corruption has also been a major problem in Iraq, according to Bowen. The Daily Times of Pakistan reports that corruption is costing Iraq billions of dollars each year, and that "Washington and Iraq" should be doing more to stop it. More than $2 billion a year is lost to stolen gasoline and fuel supplies, and Iraq's Bureau of Supreme Audit says that up to $1.27 billion from 90 contracts was lost from June 2004 to February 2005 because deals were given to "favoured suppliers" and cash was given to third-party firms to work out contracts.

$B!H(BCreating an effective anti-corruption structure within Iraq$B!G(Bs government is essential to the long-term success of Iraq$B!G(Bs fledgling democracy,$B!I(B Bowen wrote in his seventh quarterly report to Congress. It was released days after the United Nations concluded that 2,200 companies including DaimlerChrysler, Siemens and Volvo made illicit payments totaling $1.8 billion to Saddam Hussein$B!G(Bs government under the UN oil-for-food program.

Reuters reports that Bowen's office, which has 20 auditors and 10 investigators in Iraq, has made "significant progress" on cases involving US citizens and allegations of "bribery, fraud, and kickbacks." The report said investigators had gathered "an enormous amount of evidence" but contained no details on any possible indictments.

The New Zealand website Stuff.co.nz, a Fairfax media site, reports that Bowen has referred several cases from the south-central region of Iraq to the Justice Department. Bowen's spokeswoman Kristine Belisle said the Justice Department was looking at possible indictments linked to Iraqi reconstruction. She gave no details and declined to confirm if they were linked to cases in southern Iraq.

Bloomberg reports that Bowen also criticized former Coalition Provisional Authority head Paul Bremer for his decision to disband Iraq's army and defense ministry, and to pursue an "absolutist" policy of de-Baathification. Bowen said these decisions "exacerbated" reconstruction problems.


http://www.csmonitor.com/2005/1101/dailyUpdate.html