Audit Studies U.S. Dollars Spent In Iraq

Cites $16B In Lost Oil Revenue, Waste, Corruption, Incompetence

(CBS/AP)  Congressional Democrats on Wednesday decried tens of millions dollars of waste in Iraq reconstruction aid, as a new government report underscored a need for closer scrutiny of how the costly war is being handled.

Lawmakers in both the House and Senate said they planned hearings or legislation to address what they say is a growing problem of abuse as the Bush administration struggles to get a handle on both a spiraling war and the contractors who help run it.

"Our troops are going without - even as government funds go to pay for such boondoggles as an Olympic-size swimming pool in an unused training camp," said a statement issued by the Senate Democratic Communications Center directed by Majority Leader Harry Reid, D-Nev.

"As the president is planning to send 21,500 more American service members into Iraq and asking for $1.2 billion in new reconstruction aid, Americans have every reason to question his spending priorities," it said.

The quarterly audit released Wednesday by Stuart Bowen Jr., the special inspector general for Iraq reconstruction, found the $300 billion U.S. war and reconstruction effort continues to be plagued with waste, spiraling violence and corruption.

Oil production — the backbone of the Iraqi economy which was supposed to pay the reconstructions bills — remains below prewar levels, reports CBS News national security correspondent David Martin. By the inspector general's estimate, $16 billion in potential oil revenues have been lost through a combination of violence, incompetence and corruption.

In the House, at least two committees said they planned hearings to examine spending waste and abuse.

The new report "shows that Congress' work examining Iraqi reconstruction is far from finished," said Rep. Ike Skelton, D-Mo., chairman of the House Armed Services Committee. "The billions of U.S. taxpayer dollars sent for reconstruction have clearly not always been spent as we intended."

Rep. Henry Waxman, D-Calif., who chairs the House Oversight and Government Reform Committee, plans three days of hearings next week on Iraq contracts. One area of focus: Halliburton Co., the oilfield-services company that Vice President Dick Cheney once headed that has received millions of dollars of government contracts.

According to Bowen's report, 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 United States.

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.

Meanwhile, nine major U.S. companies with multimillion-dollar contracts for Iraq reconstruction — including Bechtel National and Kellogg, Brown & Root Services — say they are being forced to devote 12.5 percent of their expenses for security due to spiraling violence in the region.

Calling Iraq's sectarian violence the greatest challenge, Bowen said in a telephone interview 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 not ready for the task.

The State Department and other agencies say they are working to improve spending controls.

But former Rep. Lee Hamilton, co-chairman of the Iraq Study Group, said Bowen's report illustrates the uphill battle for the United States and the international community in their efforts to bring stability in Iraq.

"There are very, very few things that hurt our effort more in trying to succeed in Iraq than that kind of performance, because it turns all people off," Hamilton told the Senate Judiciary Committee on Wednesday.

[randalds]

If they're making so much money, where is it all going? Ask Teddy where all his money came from. Ask Pelosi too.
Posted by bigwhtpony at 04:31 PM : Feb 01, 2007

Off shore bank accounts for Bush or into land investments in South America in his daughters names. As for Cheney, he doesn't have to declare deferred compensation and, after he leaves office, Haliburton legally can (and probably will) give him his cut of the billions they have made for the business (read "war") he sent their way.

[randalds]

I remember when Hillary turned $10,000.00 in to $100,000.00 in a year in comodities investing (which she claimed to know very little about.)

I'll bet you left wing, socialist Dems really got your panties in a wad over that, too....didn't you?

Oh sorry....I forgot.....only Dems can break the law and get away with it. My bad.
Posted by bigwhtpony at 04:28 PM : Feb 01, 2007

Excellent investment, though hardly a big return for the commodities exchange. Much more money has been made in much shorter times by many more people then that on the exchange.

Oh and yes sometimes democrats break the law. Hey it happens and we never claim to be perfect (unlike the christian right wing), but when republicans break the law and get caught, they just try to change the law to make their crimes legal, like Bush has tried to do.

[bigwhtpony]

Oh, one more thing......to all you Haliburtin conspiracy theory idiots out there......the Prez & Vice Prez have to release financial statements every year at tax time. Remember? The give more to charity than your beloved Dems do.....and their income is in the 4 to 8 million range.

If they're making so much money, where is it all going? Ask Teddy where all his money came from. Ask Pelosi too.

[bigwhtpony]

I remember when Hillary turned $10,000.00 in to $100,000.00 in a year in comodities investing (which she claimed to know very little about.)

I'll bet you left wing, socialist Dems really got your panties in a wad over that, too....didn't you?

Oh sorry....I forgot.....only Dems can break the law and get away with it. My bad.

[randalds]

This war is doing exactly what it was intended to do, transfer huge sums of money from the hands of the taxpayers into the hands of the wealthy elite. This is a strictly for profit war. Too many people look at the money spent on this debacle and say that doesn't make sense because America is losing $500 billion, but they miss the point that the American middle and lower class are losing $500 billion dollars, not the rich. The richer are getting mind-bogglingly richer! That $500 billion dollars is not just disappearing into thin air you know. It's going into the bank accounts of the military contractors, big oil and the politicians they OWN like Cheney and Bush. This is not a war, it's grand theft of our money by those who control our government. It's open class warfare at it's slimiest!

[dallison7]

Last year, for example, a secret task force in the Bush Administration picked Halliburton to receive a noncompetitive contract for up to seven billion dollars to rebuild Iraq%u2019s oil operations. According to the Times, the decision was authorized at the %u201Chighest levels of the Administration.%u201D

[bluestardad]

If we follow the money trail straight to cheney we should be able to impeach him for it.

[olebd]

"Operation Debit Storm"

[dallison7]

Sen. Frank Lautenberg (D-NJ) asserts that Cheney's options -- worth $241,498 a year ago -- are now valued at more than $8 million.

[bluestardad]

It is common knowledge that Iraqi units are infiltrated by all types of Insurgents, Terrorist, and Execution Death Squads members of Both Religions. The Sunni supported by Saudi Arabia who are killing most of American troops, and Shiite supported by Iran. Those people who support this Surge of Troops in Iraq are forcing American Soldiers to sleep with the enemy in small units exposing them to undue kidnap threat. Americans soldiers who are captured by these enemies are without mercy, tortured and mutilated beyond recognition by their captors. Still our political leadership is planning to send these Brave Men and Women in to this environment. Would those Neocons or Chicken Hawks that pushed so hard for America to go into this war like to volunteer to live with death squad members? If American proceeds with this deployment our troops will be kidnapped and America will see such beheadings, torture and captivity that have never been seen before on Cable, Internet, and National Television. If you support this surge in troops and the tactics it brings you are responsible for every one of these deaths. Be prepared to watch American men and women begging for their lives on television while they are decapitated. Here is the contact address for your Senator! Send them a message of your opinion. All Class Two Senators are up for Reelection in 2008. http://www.senate.gov/general/contact_in
formation/senators_cfm.cfm

[karlimhof]

What to know how much blood money Cheney is making?

Check out the stock price of Halliburton jan 2000
and compare to today and multiply it by the number of shares cheney holds in escrow.....

upsetagain wrote:

"I know Cheney technically is not connected with Halliburton anymore, but I still wonder how much he has earned for steering the country towards war in wich Halliburton (his old company)has made a ka-jillion dollars. You can't tell me he hasn't made money from all of this...I am certain of it."

Cheney has definitely made money from Halliburton and this war.

He still retains stock options (unexercised) and has a deferred salary.

Of course, Cheney denies this.

http://www.cbsnews.com/stories/2003/09/26/politics/main575356.shtml

[ramos937]

Bush intends to ask for billions more for reconstruction. In light of the waste involved, I sincerely hope Congress will not allocate more funds for this until the GAO-Iraq guarantees that the funds will actually be used for reconstruction.

As a matter of fact, we desperately need the money here especially for disaster relief.

I am also reminded that all of the funds above are borrowed using federal securities. This is such a dumb thing. We need the money here. We need to borrow it. Bush wants to send the money to Iraq where it will not be used for reconstruction but for unknown purposes.

[phareis]

I find it hard to believe that no one reads History anymore. Iraq is currently in a civil war though no one will admit it. A secular one that we have no business in! It needs to run its course as all civil wars have done in the past. Also the future is not too hard to predict. Even if we get these people on their feet they will turn on us, they have no loyalty to the US, so why give them our money and our blood?

[upsetagain]

I know Cheney technically is not connected with Halliburton anymore, but I still wonder how much he has earned for steering the country towards war in wich Halliburton (his old company)has made a ka-jillion dollars. You can't tell me he hasn't made money from all of this...I am certain of it. By the way, did anyone notice during the state of the union address that Cheney and Bush took a drink of water PRECISELY at the same time (almost looked like a mirror image).....they must have been both listening to the SAME spin control ear microphone.

[bluestardad]

The Democrats will never hold the majority in congress if they do not take decisive action to extricate America from Iraq. No smoke screen of a gradual draw down or four year plan introduced in the summer of 08 will do. The American People voted for immediate change in Iraq policy and expect to see their wishes materialize. Congressional members that let three American Soldiers die a day during political indecisiveness is criminal, and is not worthy of another term in office. The Republicans will do what ever they have to in order to stop the Democrats from getting America out of Iraq.

Russ Feingold is the only Senator with a BINDING bill to stop funding this fiasco and get our guys out of there. War profiteers should be jailed along with bush and cheney and the entire whitehouse PNAC cabal.

[bluestardad]

The entire waste of Iraq is the Lives, the Neocons and Chicken Hawks cannot even explain to America to this day who the enemy is! WMD, Saddam, Iran, Saudi Arabia, Syria, insurgents, Bin Laden and the boys, it just keeps changing.

[antoniof123]

Thank you conservatives for all you have done to this country. I will never vote for a Republican as long as I live I have seen twice now Nixon and Bush enough is enough. They can not be trusted I hope they go the way of the wigs.

[davek455]

random_radar - excellent points! Add to that, we could use the $$ to clean up contaminated lakes and rivers. Our fish and shellfish are contaminated, cannot eat many of them. A third of our lakes and rivers are not swimmable due to contamination. One out of every four Americans will get cancer, largely from contamination in their food and air and water. I feel sorry for those getting cancer and other diseases, they probably have no health insurance to pay for treatment. Thanks Bush - helluva job!