Guest guest Posted August 23, 2004 Report Share Posted August 23, 2004 > Rense.com > Demand Rumsfeld Account > For Missing 8.8 Billion > 'Staggering Amount' Of Cash Missing In Iraq > > By Emad Mekay > InterPress > 8-22-4 > > > WASHINGTON - Three U.S. senators have called on > Defense Secretary Donald > Rumsfeld to account for 8.8 billion dollars > entrusted to the Coalition > Provisional Authority (CPA) in Iraq earlier this > year but now gone > missing. > > In a letter Thursday, Senators Ron Wyden of Oregon, > Byron L Dorgan of > North Dakota and Tom Harkin of Iowa, all opposition > Democrats, demanded > a " full, written account " of the money that was > channeled to Iraqi > ministries and authorities by the CPA, which was the > governing body in > the occupied country until Jun. 30. > > The loss was uncovered in an audit by the CPA's > inspector general. It > has not yet been released publicly and was initially > reported on the > website of journalist and retired U.S. Army Col > David Hackworth. > > The CPA was terminated at the end of July to make > way for an interim > Iraqi government, which is in turn scheduled to be > replaced by an > elected body early in 2005. > > " We are requesting a full, written account of the > 8.8 billion dollars > transferred earlier this year from the CPA to the > Iraqi ministries, > including the amount each ministry received and the > way in which the > ministry spent the money, " said the letter. > > The senators also requested that the Pentagon > designate a date by which > it will install adequate oversight and financial and > contractual > controls over money it spends in Iraq. > > They accused the CPA of transferring the " staggering > sum of money " with > no written rules or guidelines to ensure adequate > control over it. > > They pointed to " disturbing findings " from the > inspector general's > report that the payrolls of some Iraqi ministries, > then under CPA > control, were padded with thousands of ghost > employees. They refer to an > example in which CPA paid the salaries of 74,000 > security guards > although the actual number of employees could not be > validated. > > The report says that in one case some 8,000 guards > were listed on a > payroll but only 603 real individuals could be > counted. > > " Such enormous discrepancies raise very serous > questions about potential > fraud, waste and abuse, " added the letter. > > This is not the first time that U.S. financial > conduct in Iraq has come > under fire, specifically over funds slated for > reconstruction after the > U.S.-led attack in March 2003, which then went > unaccounted for. > > In June, British charity Christian Aid said at least > 20 billion dollars > in oil revenues and other Iraqi funds intended to > rebuild the country > have disappeared from banks administered by the CPA. > > > Watchdog groups have complained before about the > opaque nature of the > CPA's handling of Iraqi money and the lack of > transparency of U.S. and > Iraqi officials. > > Halliburton, a giant U.S. company that has been > awarded 8.2 billion > dollars worth of contracts from the Defense > department to provide > support services such as meals, shelter, laundry and > Internet > connections for U.S. soldiers in Iraq, has been > targeted for allegedly > overcharging for those services. > > " Continued failures to account for funds, such as > the 8.8 billion > dollars of concern here - and the refusal, so far, > of the Pentagon to > take corrective action are a disservice to the > American taxpayer, the > Iraqi people and to our men and women in uniform, " > the senators wrote. > > Groups critical of the lack of transparency in the > CPA's spending have > been particularly angry that the authority used > Iraqi money to pay for > questionable contracts -- some awarded without a > public tendering > process -- with U.S. companies. > > Washington initially restricted the most lucrative > reconstruction > contracts in Iraq to gigantic U.S. firms that > appeared able to reap huge > profits, fueling accusations the Bush administration > was seeking to > benefit a select few U.S. companies rather than find > the best, and > possibly the cheapest, options to help rebuild Iraq. > > > After loud complaints, the contracting process was > officially opened to > firms from other nations, but many of them still > insist they are not > competing on a level playing field with U.S. > businesses. > > A Pentagon spokeswoman told IPS that the CPA > administered the money > transparently and that Iraqi ministries used the > eight billion dollars > in ways that directly " benefited the people of > Iraq. " > > " The CPA provided these funds to Iraqi ministries > from the Development > Fund for Iraq through a transparent and open budget > process, " said Lt > Col Rose-Ann L Lynch of the Office of the Assistant > Secretary of Defense > for Public Affairs. " This is Iraqi money -- revenue > from such sources as > oil sales -- not U.S. funds. " > > The official added that the money was used to pay > the salaries of > hundreds of thousands of government employees, > teachers, health workers, > administrators and government pensioners, as well as > to fund the Iraqi > Defense ministry and police forces. > > © Copyright 2004 IPS - Inter Press Service > > Disclaimer > Email This Article > MainPage > http://www.rense.com Quote Link to comment Share on other sites More sharing options...
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