WASHINGTON, April 28, 2008
Audit: Millions Wasted In Iraq Contracts
Investigator Gives Snapshot Of The Uneven Reconstruction Effort That Has Cost U.S. Taxpayers $100B
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The audit released Sunday by Stuart Bowen Jr., the special inspector general for Iraq reconstruction, provides the latest snapshot of an uneven reconstruction effort that has cost U.S. taxpayers more than $100 billion. It also comes as several lawmakers have said they want the Iraqis to pick up more of the cost of reconstruction.
The special IG's review of 47,321 reconstruction projects worth billions of dollars found that at least 855 contracts were terminated by U.S. officials before their completion, primarily because of unforeseen factors such as violence and excessive costs. About 112 of those agreements were ended specifically because of the contractors' actual or anticipated poor performance.
In addition, the audit said many reconstruction projects were being described as complete or otherwise successful when they were not. In one case, the U.S. Agency for International Development contracted with Bechtel Corp. in 2004 to construct a $50 million children's hospital in Basra, only to "essentially terminate" the project in 2006 due to monthslong delays.
But rather than terminate the project, U.S. officials modified the contract to change the scope of the work. As a result, a U.S. database of Iraq reconstruction contracts shows the project as complete "when in fact the hospital was only 35 percent complete when work was stopped," said investigators in describing the practice of "descoping" as frequent.
"Descoping is an appropriate process but does mask problem projects to the extent they occur," the audit states.
Responding, USAID in the report said it disagreed that its descoping of the hospital project was "effectively a contract termination," but that it had changed the work because of escalating costs and security problems. Mark Tokola, the director of the Iraq transition assistance office, also responded that the database the IG's office reviewed of Iraq reconstruction contracts was incomplete.
Bowen's office said its review was preliminary and that it planned follow-up reviews to investigate descoping more closely. Investigators said they were also looking into whether contractors whose projects were terminated by the U.S. government due to inadequate performance might have been awarded new contracts later despite their poor records.
Investigators said the database they reviewed lacked full data on projects such as those done by USAID, the State Department, and those completed before 2006. But they said the figures cited in the report offered a baseline in terms of unfinished Iraq reconstruction contracts.
"Adding contract terminations from these (other) sources would certainly raise the number of terminated projects," the report states.
The audit comes amid renewed focus in recent months on potential abuse in contracting government-wide, such as Iraq reconstruction. Last year, congressional investigators said as much as $10 billion - or one in six dollars - charged by U.S. contractors for Iraq reconstruction were questionable or unsupported, and warned that significantly more taxpayer money was at risk.
In recent weeks, Sen. Ben Nelson, D-Neb., has been working with Sen. Evan Bayh, D-Ind., and Susan Collins, R-Maine, on legislation that would restrict future reconstruction dollars to loans instead of grants; require that Baghdad pay for fuel used by American troops and take over U.S. payments to predominantly Sunni fighters in the Awakening movement.
Danielle Brian, executive director of the watchdog group Project on Government Oversight, said the latest audit report points to significant U.S. taxpayer waste in current reconstruction efforts.
"The report paints a depressing picture of money being poured into failed Iraq reconstruction projects - contractors are killed, projects are blown up just before being completed, or the contractor just stops doing the work," she said.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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See all 119 CommentsWhat pile of CBS junk journalism!! If you just read the story it is obvious that it was
BILLIONS WASTED
And of course the whole friggin WAR BASED ON LIES is a complete waste of $1 TRILLION dollars at least!
CBS, just who are you trying to protect? The emperor has no clothes. Figure it out, you can tell the truth now - the NeoCon Nazis aren''t going to cart you off to gitmo.
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A while back, the Republicans introduced an amendment which would have eliminated Mr. Bowen''s job. The Democrats defeated that after a partisan vote in the House.
The American electorate should take note of this report. If we want out of stuff like this, we have to withdraw. If we elected McCain, this sort of thing will continue.
Ain''t it funny how they invent words to codify and legalize theft and corruption?
Its like when we used to play touch football as children, "I called no pitty-pat", making up the rules as we went along.
"Descope this, Bush!" i said, grabbing my crotch.
More corruption, failure, and cover up by the Bush administration and Republicons.
Besides, who DIDN''T know already about the abuses, especially with a firm by the name of Northrup Grumman, who *** Cheney is very closely associated with?
With this much bleeding from the taxpayers here, I would guess Mr. Bush expects the newly formed Iraqui government to refer to itself as the ''Iraqui States of America.'' I don''t see that happening, and I certainly haven''t seen any oil benefit for ''saving their country'' when we were supposed to be there only for WMDs.
Mr. Bush has bankrupted our country and ruined our economy over this ridiculous excuse to fulfill his daddy''s dreams. What a total disgrace. Glad I didn''t vote for him either time.
to give the government of Iraq the breathing space to assert it''s authority, to start reconstruction plus return output of the utilities back to pre-war levels. The relative peace and job creation this could set it motion; would surely make the quality of life for the dwellers in these cities so much better -- than it was of recent -- that there would be no incentive for them to fight the occupation.
After a few years of rehabilitating the urban areas successfully , we could be confident, therefore, about pacifying the rural tribal towns and villages, without chaos filtering back into the built up areas, as a consequence.
However-- can anyone see... how we can still pull this off now, after this latest and costly display of incompetence and corruption?
Posted by NonayaBiness at 05:34 AM : Apr 28, 2008
The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.
Ernest Hemingway
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Couldn''t have put it better myself!
Posted by bgwinnett at 05:54 AM : Apr 28, 2008
In case you haven''t noticed, the administration has been trying to effect your "best hope" for over 5 years now, wihout success....
Posted by samrensho at 05:51 AM : Apr 28, 2008"
A careful scrutiny of the failed contracts might surprise you. Check them out, and you''ll find a great many of those companies donate to the Democratic fund raising for Clinton and Obama.
Someone is being modest.
Posted by Nancy_Naive at 06:15 AM : Apr 28, 2008"
And to you I say, read the story, and the posts contained therein for enlightenment. For surely that is the way to learn....Since you obviously never got past the first paragraph before responding to the article.
Posted by formrusmcsgt at 06:07 AM : Apr 28, 2008
Not really, The "surge"-- is the the first wholehearted attempt, and that has only been going on for just over a year. Either way the surge looks, destined it seems for failure.
Vote Failure! Vote for More of the McSame!
Posted by FloydZepp at 06:46 AM : Apr 28, 2008
Yes...But *** are the Demomcrats doing?... Are they deliberately shooting themselves in the foot?-- because they know that they are inheriting a poisoned chalice?
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Posted by bgwinnett at 06:54 AM : Apr 28, 2008
+ report abuse
Don''t be rediculous! ALL this corruption and ALL the failure was well in place and most of it alread done BEFORE the Democrats came into power. This investigations and the knowledge we have of the corruption is BECAUSE of the Democrats. You can''t honestly think the Fascist would allow such things to go forward if they had the power to prevent it do you? The Party that sat back and allowed people like Brownie and Gonzo to become LEADERS in our Government? LOL Sieg Heil Bush
Posted by Nancy_Naive at 06:15 AM : Apr 28, 2008
Nancy, This is not SearingTruth it is sear 1 ing Truth, another neo con works his worthless magic. Of course neo con or neo moron you end is in site just a few more months and you will not only lose more Senators in Congress (that is where it makes a difference) you will also lose the white hourse.
Each day higher gas prices, more news from Iraq, health care in a mess. Oh yea we are going to vote for those that cause the problems. NOT.
Posted by jamesm12341
I think jwind11 has always wanted to be a teacher, or someone in a postion of telling other people what to do..What a failure, he is no more successful than his idiotic posts than in his pitiful life.
Shooo jwind11, you contribute nothing and certainly not a person to be admired for any scrap of knowledge or respect.
This is the best line from the whole story!! They had "unforeseen violence" -- THAT IS why these projects weren''t completed.
"Unforeseen violence" in a war zone -- who WOULDN''T have thought that there would be VIOLENCE in a war zone?!?!
Posted by hungry1968 at 08:42 AM : Apr 28, 2008"
Certainly not McCain. Remember how safe was the Baghdad market ?
Finally a subkect i agree with yiou on 100%. I don''t care why they didn''t finish the project, they should be charged with fraud and made to repay the money they took from the govt. This again looks like something bush has his hand in.
Posted by hungry1968 at 08:42 AM : Apr 28, 2008
Hungry these are Republicans they can''t factor in more than one thing at a time. I mean it is hard for dumber than dirt to think past 1.
The American voting public that cast their ballots for George W, only have themselves to blame. In his first term he started off as a lack luster president and only 09/11 brough him to the forefront. Of course that did not last very long, because he could not hide the incompetence this Administration has displayed. The War in Iraq will go down as one of the biggest blunders the US has ever made.
In power ? As somebody rightly said, they don''t have a 60% majority in congress. And the last time I checked, the veto pen was still republican.
"I tyhink we need to elect a whole new congress as well as a president and cabinet."
Posted by ranger1948 at 08:53 AM : Apr 28, 2008
At least part of it ...
Posted by fedupwithit1 at 09:04 AM : Apr 28, 2008
Easy -- We will just give them paper and ourselves hyperinflation in return!!!
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Posted by ranger1948
Here is one thing I totaly agree with. None of these idiots have the people''s intrest at heart only their own.
Well, the right wing neo con didn''t get rid of big government afterall, they simply got the government they wanted, an unaccountable to the taxpayer open wallet one for them.
For all those comments that if it''s so bad here why to people immigrate here all the time?
Answer: To take the last bit of wealth out of this place before the lights get turned out.
The worst, most corrupt, failure-prone administration in history.
It will take decades to erase this stain...
"McVet And what have the democrats done to retify the situation since they have been in power ? I tyhink we need to elect a whole new congress as well as a president and cabinet."
What can they do?
The Dems may have the majority, but they don''t have enough of a majority to push anything through without Republicans stopping them dead in their tracks.
The Republicans would rather support that idiot GW Bush and his corrupt administration then defend the US against those a$$holes.
And then we have the fact that most politicians - Republican and Democrat - don''t give a d@mn about us anyway.
Posted by cornbiker at 09:16 AM : Apr 28, 2008
They only control the funding - fund the troops or cut them off - that''s their two choices.
Bush directs the funding into the military and the state department, and THEY decide how best to kick it back to the politically connected contractors.
State and defense report to bush - NOT to congress.
Posted by samrensho at 05:51 AM : Apr 28, 2008"
A careful scrutiny of the failed contracts might surprise you. Check them out, and you''''ll find a great many of those companies donate to the Democratic fund raising for Clinton and Obama.
Posted by Sear1ngTruth at 06:15 AM : Apr 28, 2008
What''s ur point?? I don''t care who they contribute to. The buck stops with the Shrub and his team of idiots.
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Posted by cornbiker at 09:16 AM : Apr 28, 2008
Condi Rice and the State Department, Bush''s right hand girl is responsible for all these no-bid contracts that can''t even get started! These people haven''t a clue about reconstruction! Unless it''s an oil rig! Incompetence abounds in the Bush administration!
Posted by cornbiker
It never ceases to amaze, the absolute denial and unaccountability of those who have supported decades not months or one year of but decades of republican right wing neo con economic meth orgy. The dems are in power? Geeze, whatever, multinational corporations and right wing republican h*oes have been driving this bus spewing out propaganda selling the people on ideas that have padded the wallets of a few. Get it people, right wingers are anti-human, you know, anti-social. Strength to them means, totalitarianism, domination, every man, woman and child for themselves, social isolationism, factionalism, a divided and conquered people.
It''s the right wing neo con republicans who pride themselves in applying terms like "do-gooder", "bleeding heart liberal" to any group or individual with concern for the human condition in a derogatory manner. What else but a character disorder, an anti-social individual, a sociopath would have such pride in that? The Klingons had more dignity.
Judge Scalia''s family, all are successful. These people could not cope with a child with Downs syndrome. They would will it dead.
What so ever you do to the least of them...
I see the wheels of anarchy slowly turning...
We will eventually have to pay this back to places like China ir the UAE.
Posted by fedupwithit1 at 09:04 AM : Apr 28, 2008
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fedupwithit1;
It is so easy to simply state the obvious.
Yes, the debt will have to be repaid. But what is not so obvious to (the average reader/citizen) is the fact that the national debt has reached the point of perpetuation.
The interest on the $9.33 trillion dollar national debt has reached $1/2 trillion annually and will go on for decades.
Even with an annually balanced budget over the next several years, that $1/2 trillion interest payment will be made EACH and EVERY year, without actually reducing the national debt one cent.
Without a balanced budget the national debt will be increased by the amount of each years interest.
The bottom line is we have one of two choices for the future, either raise taxes sufficient to pay both the interest AND pay down the debt or continue the certain slide into total bankruptcy.
This is, and always has been, the true meaning/result of the Reagan-Bush (republican) %u201C%u201Dtrickle down %u201D policy from the beginning.
All of the money has been directed to those who were originally supposed to receive the money, which was part of the ultimate plan, well before the convenient 9/11 attacks on America.
Why do you think conservatives want LESS government. The Libs out there are the first to complain about the government *** up when it comes to Katrina, the Vet Hospitals, wasteful spending (but only in the military) etc. But they want even MORE government.
Libs really are "useless idiots".
Posted by ritewingman at 10:45 AM : Apr 28, 2008
I think the thing you need to look at is the proportion of our federal budget. You can cry about lefty accountability, but they are chump change in comparison to the amount that goes into the military defenses (around 50%) budget.
Just a spoonful of higher taxes
And the debt will go down... the debt should go down
Just a spoonful of higher taxes
And the debt should go down...
In the most democratic way!
Why do you think conservatives want LESS government. The Libs out there are the first to complain about the government *** up when it comes to Katrina, the Vet Hospitals, wasteful spending (but only in the military) etc. But they want even MORE government.
Libs really are "useless idiots".
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You know what is truly useless? Your uneducated delusional biased neocon opinion. You''re alone dude! You are an army of one!
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