What the New York Times/AP report calls a "grim picture" is emerging from the latest quarterly audit of money spent for relief and reconstruction in Iraq.
Major U.S. companies with multimillion-dollar contracts for Iraq reconstruction are being forced to devote 12.5 percent of their expenses for security due to spiraling violence in the region, investigators said Wednesday.
Meanwhile, tens of millions of U.S. dollars have been wasted elsewhere in Iraq reconstruction aid, some of it on an Olympic-size swimming pool ordered up by Iraqi officials for a police academy that has yet to be used.
The quarterly audit by Stuart Bowen Jr., the special inspector general for Iraq reconstruction, is the latest to paint a grim picture of waste, fraud and frustration in an Iraq war and reconstruction effort that has cost U.S. taxpayers more than $300 billion and left the region near civil war.
The amount lost to fraud and corruption is bad enough. But what had to be paid out for security is what leaps out from the latest report. It doesn't bode well for the future of relief work in Iraq.
''The security situation in Iraq continues to deteriorate, hindering progress in all reconstruction sectors and threatening the overall reconstruction effort,'' according to the 579-page report.
Calling Iraq's sectarian violence the greatest challenge, Bowen said in a telephone interview with The Associated Press that billions in U.S. aid spent on strengthening security has had limited effect. He said reconstruction now will fall largely on Iraqis to manage -- and they're nowhere ready for the task.
Former Rep. Lee Hamilton, co-chairman of the Iraq Study Group, said Wednesday that the report shows the uphill battle for the United States and the international community in their efforts to bring stability in Iraq.
Apart from the security costs, however, is the money lost to fraud. An example:
The State Department paid $43.8 million to contractor DynCorp International for the residential camp for police training personnel outside of Baghdad's Adnan Palace grounds that has stood empty for months. About $4.2 million of the money was improperly spent on 20 VIP trailers and an Olympic-size pool, all ordered by the Iraqi Ministry of Interior but never authorized by the U.S.
U.S. officials spent another $36.4 million for weapons such as armored vehicles, body armor and communications equipment that can't be accounted for. DynCorp also may have prematurely billed $18 million in other potentially unjustified costs, the report said.
Note: Since starting this post, the New York Times has edited/revised its AP-source article and has removed further examples before this posting.
Stuart Bowen was interviewed today on NPR's "Fresh Air." As "Fresh Air" notes in its introduction to the discussion:
Next week Bowen will appear before a House Committee beginning hearings into waste and fraud in reconstruction. Formerly, Bowen served in the White House under George W. Bush, and was a partner at the Washington, D.C., law firm of Patton Boggs LLP. Bowen's ties to Bush go back to the early 1990s, when he worked in the Texas Governor's office. Bowen was also an intelligence officer in the U.S. Air Force, where he achieved the rank of Captain.
The interview:
Fresh Air: As Special Inspector General for Iraq Reconstruction, Stuart Bowen's office has been uncovering waste, fraud, and corruption. His office audits how private contracts in Iraq are using money from America's Iraq Relief and Reconstruction Fund (IRRF). Bowen has just released his 12th quarterly report. IRRF initial $21billion budget is all under contract and the funds-phase of reconstruction is coming to an end. But as part of President Bush's plan to stabilize Iraq, he is asking Congress to approve $1.2 billion in new reconstruction aid. We asked Bowen to talk with us about his latest findings.... Stuart Bowen... what would you say the headline of the new report is?
Stuart Bowen: The headline of this, our 12th quarterly report, is the end of the IRRF and the beginning of the next phase. The IRRF, as it's called, was appropriated by Congress in 2003 for the recovery of postwar Iraq. Amounting to $21 billion, it is now all under contract and over 80% is spent.
FA: So what does that mean? Why is that the headline?
SB: What that means is the largely US-supported phase of the recovery of Iraq is coming to a close. The next phase must include a larger multilateral component. Ultimately, it must transition rapidly to Iraq control and Iraqi funding.
FA: So our money is basically spent on reconstruction projects.
SB: That's right. The money that Congress appropriated for this program is basically spent.
FA: Now the ambassador from Iran to Baghdad recently said that Iran is prepared to offer Iraq training for its security forces as well as equipment and advisers. Iran is also ready to help with reconstruction. What can you tell us about the role that Iran plans to play in Iraq's reconstruction now that American money is coming to and end?
SB: We don't -- obviously -- have a role in reviewing issues like that. But what I can say is that support for Iraq must be multilateralized. An international compact for Iraq, which includes the Gulf states, the EU, and other nations will, we expect, realize the hope of Madrid. In 2003 known US pledges amounted to over $13 billion, but just over 3 have come in to date. That must change this year for Iraq to move into the next phase of its recovery.
FA: I don't it's not in your position to decide what's paradoxical, but do you find it a little paradoxical that as the US's relationship with Iran continues to deterioriate, Iran seems to be forging an alliance with Iraq.