Audit: Iraq Contracts Skirted Fraud Rules
An internal audit of some $8 billion paid to U.S. and Iraqi contractors found that nearly every transaction failed to comply with federal laws or regulations aimed at preventing fraud, in some cases lacking even basic invoices explaining how the money was spent.
Of the money paid during a five-year period - from 2001 through 2006 - $7.8 billion in payments skirted billing rules with some violations egregious enough to invite potential fraud, warned the Defense Department's inspector general.
The findings provided fresh fodder for anti-war Democrats, who say President Bush's administration has turned a blind eye to the problem of corruption and fraud by relying too heavily on contractors to manage the war.
"There is something very wrong when our wounded troops have to fill out forms in triplicate for meal money while billions of dollars in cash are handed out in Iraq with no accountability," said Rep. Henry Waxman, chairman of the House Oversight and Government Reform Committee.
Results of the investigation were released at a committee hearing on Thursday, the same day the House approved legislation by Waxman intended to strengthen anti-fraud measures and increase transparency in contracting. Waxman's bill was passed as part of a major military policy bill, which authorizes $601.4 billion in defense spending.
In its report, the IG estimated the Army made more than 180,000 commercial payments from stations in Iraq, Kuwait and Egypt in the five-year period. The payments were made for various supplies and services, including bottled water, food and trucks.
In one example, $11 million was paid to a U.S. company without any record of what goods or services were provided, the IG wrote.
Overall, investigators estimated that the Army made some $1.4 billion in commercial payments that lacked even minimum supporting documentation, such as a certified voucher or invoice.
"Payments that are not properly supported do not provide the necessary assurance that funds were used as intended," the IG concluded.
© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Of the money paid during a five-year period - from 2001 through 2006 - $7.8 billion in payments skirted billing rules with some violations egregious enough to invite potential fraud, warned the Defense Department's inspector general.
The findings provided fresh fodder for anti-war Democrats, who say President Bush's administration has turned a blind eye to the problem of corruption and fraud by relying too heavily on contractors to manage the war.
"There is something very wrong when our wounded troops have to fill out forms in triplicate for meal money while billions of dollars in cash are handed out in Iraq with no accountability," said Rep. Henry Waxman, chairman of the House Oversight and Government Reform Committee.
Results of the investigation were released at a committee hearing on Thursday, the same day the House approved legislation by Waxman intended to strengthen anti-fraud measures and increase transparency in contracting. Waxman's bill was passed as part of a major military policy bill, which authorizes $601.4 billion in defense spending.
In its report, the IG estimated the Army made more than 180,000 commercial payments from stations in Iraq, Kuwait and Egypt in the five-year period. The payments were made for various supplies and services, including bottled water, food and trucks.
In one example, $11 million was paid to a U.S. company without any record of what goods or services were provided, the IG wrote.
Overall, investigators estimated that the Army made some $1.4 billion in commercial payments that lacked even minimum supporting documentation, such as a certified voucher or invoice.
"Payments that are not properly supported do not provide the necessary assurance that funds were used as intended," the IG concluded.
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Posted by cornbiker
Brilliant and thoughtful commentary. Thank you for your contribution!
Or is this your own fantasy cornhollio?
* US military spending accounts for 48 percent, or almost half, of the world%u2019s total military spending
* US military spending is more than the next 46 highest spending countries in the world combined
* US military spending is 5.8 times more than China, 10.2 times more than Russia, and 98.6 times more than Iran.
* US military spending is almost 55 times the spending on the six %u201Crogue%u201D states (Cuba, Iran, Libya, North Korea, Sudan and Syria) whose spending amounts to around $13 billion, maximum. (Tabulated data does not include four of the six, as the data only lists nations that have spent over 1 billion in the year, so their budget is assumed to be $1 billion each)
* US spending is more than the combined spending of the next 45 countries.
* The United States and its strongest allies (the NATO countries, Japan, South Korea and Australia) spend $1.1 trillion on their militaries combined, representing 72 percent of the world%u2019s total.
* The six potential %u201Cenemies,%u201D Russia, and China together account for about $205 billion or 29% of the US military budget.
http://www.globalissues.org/Geopolitics/ArmsTrade/Spending.asp#InContextUSMilitarySpendingVersusRestoftheWorld
With one hand they give tax cuts to the rich and with the other they wave in their thieving friends to rob the American taxpayer blind.
It is absolutely amazing to see how Bush fell for it. How in the world do you end up spending trillions of dollars in the pursuit of a criminal matter???
Because, after all, what Bin Laden and his bunch of Arab hillbillies did was a CRIMINAL act and not a war act.
Can you imagine if the UK decided to invade Pakistan after the terror bombings they suffered at the hands of Pakistanis?
Good ol'' police work is all that''s needed to capture Bin Laden and dismantle his organization.