Jan. 5, 2007
Contractor Fraud Unchecked In Iraq
CBS News Takes A Closer Look At Allegations Of Contractor Waste And Fraud In Iraq
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Play CBS Video Video Misuse Of Your Tax Dollars? The U.S. has spent billions of your tax dollars on the war in Iraq and plans to spend about $170 billion more this year. Armen Keteyian reports on how some of this money is actually being spent.
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The Pentagon and Congress are investigating about 80 cases of alleged contractor waste, fraud and abuse by civilian contractors in Iraq. (CBS)
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Interactive Iraq: A Turning Point? New Congress, change at the Pentagon, study group report; what does the future hold?
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Blog Primary Source Armen Keteyian and his investigative team keep you informed daily on their blog.
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E-MAIL US CBS News Investigates E-mail Armen Keteyian and the investigation team with your story ideas.
But recently, the Pentagon admitted it has a hard time accounting for how billions of your tax dollars are being spent — and the billions that may be lost to contractor waste, fraud and abuse, CBS News investigative correspondent Armen Keteyian reports.
A document — part of a whistleblower lawsuit obtained by CBS News — alleges a blueprint of contractor abuse in Iraq, detailing how the government was billed 10 times more than it should have been when U.S. troops used a recreation facility in Iraq.
That's because they were not billed once per visit, but rather billed repeatedly, every time a soldier used:
The contractor in question, Kellogg Brown and Root, denies any wrongdoing.
"Eventually we're going to have a bill for about $1 trillion, and people are not going to be able to account for a very, very large part of it," says Sen. Patrick Leahy, D-Vt.
The Pentagon and Congress are investigating about 80 cases of alleged contractor waste, fraud and abuse in Iraq. To date, 26 have been referred to the Justice Department for possible prosecution.
So far a few individuals have been charged, most from a single case, and a few million dollars has been paid back. After 3 1/2 years of war, not a single criminal case has been filed against any large corporation doing work in Iraq.
"The Bush administration doesn't give a damn about contractor fraud in Iraq," attorney Alan Grayson says.
Grayson has filed dozens of civil "whistleblower" lawsuits against contractors, and he says with no help from the government because of what describes as the administration's ties to major military contractors.
"After 3 1/2 years, shouldn't they actually have brought some of these people to justice? What is the big problem?" Grayson said.
A Justice Department spokesperson says contractor fraud and corruption allegations are taken "seriously" and it's "aggressively" pursuing "a number ... of investigations."
In addition, a senior Justice Department official tells CBS News that it takes two to three years to investigate civil fraud cases and, even then, only about one in five meet the standards necessary for prosecution.
As the incoming chairman of the Senate Judiciary Committee, Leahy just isn't buying it. He plans to get to the bottom line ... of just how hundreds of billions of U.S. dollars have been spent in Iraq.
"This is not going to be a game of 'gotcha,'" Leahy said. "This is going to be a game of being responsible if we are going to spend taxpayer dollars, the taxpayers have a right to know where the money is going."
Just yesterday, Leahy introduced a bill mandating criminal penalties for those who exploit the war effort.
If you have information you'd like to contribute to this story we want to hear from you. Email us at investigates@cbsnews.com.
© MMVII, CBS Interactive Inc. All Rights Reserved.
Michelle Obama tells how her role as the First Lady has changed her perspective.
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See all 21 CommentsThe oversight of the Iraq contracts has been non-existant, and the lack of overdight has had the Whitehouse support.
This administration has contracted out every military function it could, except for dying. The days of KP are over, contractors are feeding the troops over in Iraq, lord only knows what this costing us on a per meal basis.
After all of the investigations are complete no one will be found responsible, because of the Whitehouse connection.
The first thing I would want to know is how Halliburton was awarded these contracts with out having to bid on them, that would make the co-president squirm a little.
Bend over and spread 'em for the good old USA!
Are you kidding or what with your idiotic: "Is U.S. Wasting Money On Iraq Contracts?" What's with the question mark?!
Like, come out from under your rock, you so called news organization. DUH! The Haliburtons and so many other well-connnected corporations have sucked in BILLIONS of our taxpayer $$ in no bid, cost plus contracts. Are you STILL trying to act as Bush's War Cheerleaders? Thought you'd given it up.
Did you forget to report that over 600 "contractors" have been killed in Iraq? These are folks working for the sleazy War Profiteering corporations, trying to get some quick pay for their kids college tuition.
You corporate media cheerleaders are as much of the problem as our fascist leaders. Why to 1/2 of the Amercans still believe Cheney LIES that Saddam and Al Quaeda connections? CBS.
Could they just want to get all they can while no one is looking because of their real fear. Their real fear is that enough people will become sufficiently fed up with violations of our rights and officially condoned theft that we may unreasonably demand governmental responsibility. The administration thinks the idea that the old "constitution" thing is supposed to mean something after all this time is absurd, it wasn%u2019t even initialedsigned by K or W.
Iraq Contracts?
Does a bear sh*t in the woods?
What a SHAME. What a shame...
Just to say it's never enough to remind people of the rightly earned money tax paid to the government is abusively spent like this. What about the billions (not to say trillions) of dollars abusively spent on armement, without any control at all, pretexting National Security reasons.
This is the political Lynching of President Bush he was waiting for. There we go. It's just the beginning.
Remember when Norm MacDonald used to do WeekEnd Update on Saturday Night Live and he would follow up a story that was totally obvious with "...from the pages of "Duh" magazine"?
Nice going CBS. What a "scoop".
Gee no surprise there why BUSH wants to stay over there huh?
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