WASHINGTON, May 23, 2008

Audit: Iraq Contracts Skirted Fraud Rules

Probe Finds Pentagon Paid Nearly $8 Billion With Little Or No Oversight, Or Even Proof Of Work

  • Defense Secretary Robert M. Gates, right, listens to Joint Chiefs Chairman Adm. Michael G. Mullen testify before the Senate Appropriations Committee, Tuesday, May 20, 2008, on Capitol Hill in Washington. Photo

    Defense Secretary Robert M. Gates, right, listens to Joint Chiefs Chairman Adm. Michael G. Mullen testify before the Senate Appropriations Committee, Tuesday, May 20, 2008, on Capitol Hill in Washington.  (AP Photo/Haraz N. Ghanbari)

  • Interactive Battle For Iraq

    The government, the insurgency, key players, background and photos.

(AP)  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.

© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Video and Galleries from World

Add a Comment See all 165 Comments
by truth832-2009 May 23, 2008 4:32 AM PDT
I wonder how much of that unaccountable money went to Halliburton or its subsidiaries??? And indirectly to Vice-President Chaney???
Reply to this comment
by closethippy1 May 23, 2008 5:47 AM PDT
IS THERE ANYTHING THE US HAS DONE RIGHT IN IRAQ? THIS IS A TRUE CATASTROPHE. HOW ARE ARABS SUPPOSE TO LOOK AT IT???
IS THERE ANYTHING GOOD THE ARABS CAN LEARN FROM IT AND ABOUT THE US?
IT IS NOW MORE THAN CLEAR THAT AMERICANS WERE UPSET ABOUT 9/11 AND WANTED TO GET A HOLD OF ARABS, ANY ARABS, AND IRAQ WAS THE EASIEST PLACE TO TAKE OVER AND SEEK REVENGE EVEN IF IT IS ON THE WRONG ARABS.
IT IS MORE THAN CLEAR THE US DOESN''T GIVE A *** ABOUT IRAQ AND THEY''RE THERE TO HELP MAKE MONEY FOR SOME WELL CONNECTED PEOPLE IN WASHINGTON AND TO MAKE IT LOOK AS IF SOMETHING IS BEING DONE TO FIGHT TERRORISM.
WHAT A PATHETIC SHOW. THAT FREAKING BUSH NEEDS TO HAVE HIS DAY IN COURT.
Reply to this comment
by r9119111 May 23, 2008 5:55 AM PDT
Enjoy this interesting reading:

Copy and paste:

http://www.harpers.org/archive/2004/09/0080197
Reply to this comment
by thee0racle May 23, 2008 6:02 AM PDT
OK, so now that the ''audit'' has proven what was postulated 4 or 5 years ago, it''s past time to put some people in jail and take all their assets. Or is that something reserved only for people that violate music copyright laws? Well, all you Repglican pillagers can kiss your jobs g''bye. Come November, anybody with a conscience is gonna pull the big D lever.
Reply to this comment
by stn_sage May 23, 2008 6:07 AM PDT
IS THERE ANYTHING THE US HAS DONE RIGHT IN IRAQ? THIS IS A TRUE CATASTROPHE. HOW ARE ARABS SUPPOSE TO LOOK AT IT???
Posted by closethippy1 at 05:47 AM : May 23, 2008
------------
My response: In a word, ''NO!'' The first thing will be when we withdraw! It is very much a catastrophy! Bush & Co. have destroyed the reputation of America in the world! I think it''s safe to say, the majority of the Arab world hates our guts! Thanks, Bush! Thanks, Cheney! Thanks, GOP!
Reply to this comment
by bluestardad May 23, 2008 6:11 AM PDT
RESEARCH HOW MANY POLITICIANS HAVE TIES TO THIS LOST MONEY!

WHERE ARE THE COUNTRIES BASED THAT GOT THESE CONTRACTS!

ON MANY OIL FACILITIES IN IRAQ THERE ARE STILL NO METERS ON THEIR PIPELINES! SO THERE IS NO AUDIT TRAIL OF THE OIL GOING OUT OF IRAQ!

START WAR CRIMES TRIALS NOW....

AMERICA STAND UP OR SHUT UP!
Reply to this comment
by shanev137 May 23, 2008 6:19 AM PDT
Does this really surprise anyone?

This administration has been raping us blind for 8 years straight.

What''s another $8 billion p|ssed into the wind.
Reply to this comment
by smirk5 May 23, 2008 6:24 AM PDT
2001-2006. Wonder who had the majority for nearly all that period? Could it have been.............the Republicans?
Reply to this comment
by drinuk May 23, 2008 6:37 AM PDT
This will get the usual Snow Job, soon covered up and forgotten. These crooks have the upper hand because we allow all of them to get away with this C R A P !

There is nothing to choose between either party, they have each been vaccinated with the Washington Greed Serum, they do as they wish and continually treat us with contempt, it is an illegal epidemic which requires drastic and dracionian treatment.

AND we are going to have at the very least another four years of this behaviour unless we put a stop to it now.

We have missed the best chance we had with Ron Paul, we need alternative measures and soon.
Reply to this comment
by crater7 May 23, 2008 6:40 AM PDT
THE WORLDS GREATEST MILITARY BLUNDER OF ALL TIME CONTINUES. THE INCOMPETENT, ARROGANT, LYING BUSH ADMINISTRATION''S GOOD OLE BOY CONTRACTORS, ARE STILL "FLEECING" THE AMERICAN PEOPLE.

BUSH AND HIS BAND OF CROOKS, SHOULD BE HELD ACCOUNTABLE.

GOD "BLESS" AMERICA. NOT "G D" AMERICA.
Reply to this comment
by chefjohn4 May 23, 2008 7:18 AM PDT
Ron Paul????? Are you drinuk
Reply to this comment
by barbaraf4 May 23, 2008 7:23 AM PDT
"Audit: Iraq Contracts Skirted Fraud Rules"
"Probe Finds Pentagon Paid Nearly $8 Billion With Little Or No Oversight, Or Even Proof Of Work"
~~~~~~~~~~~~~~~~~~~~~~
All those bigwigs at the Pentagon need to give up their retirement benefits until this debt is repaid to the American people.

Actions with no consequence are a dangerous scenario.
Reply to this comment
by chefjohn4 May 23, 2008 7:23 AM PDT
A friend of mine lost his house when he couldn''t pay all his taxes. The IRS went after everything he had. They didn''t garnish his check...they just took it. My point is that the government does know how to look after there money when it comes to us! So why do they turn around and just hand it to people like this without even getting friggin'' reciepts?
Reply to this comment
by omnibus66 May 23, 2008 7:23 AM PDT
"The findings provided fresh fodder for anti-war Democrats"

Does this mean that this kind of criminality is OK with Republicans? I suppose it is with the hard-core nut job Bush base, but what about the rest of the people who call themselves Republicans, but who feel that Bush has betrayed them?

These criminals are robbing all of us, regardless of party affiliation, and it''s time somebody put a stop to it.
Reply to this comment
by neoconrcrazy May 23, 2008 7:30 AM PDT
bush & henchmen aren''t those silly "trickle-down" economic types -

no, they believe in putting real money, albeit ours, into the hands of those who deserve it! No strings attached.

The worst in US history - nothing a surprise anymore



Reply to this comment
by byeneocons May 23, 2008 7:35 AM PDT
Oh what a surprise! You mean this was all just a financial heyday for Friends of D/ck and George?
I''m sure the families of our lost troops will be heartened by this article.

Thanks again to all the neocon evangelists. Your pro-life voting pattern gave us death, deficits and destruction. Now, go fill your tank and praise the Lord!
Reply to this comment
by expat5 May 23, 2008 7:38 AM PDT
It''s not other countries, it is companies like Blackwater, KBR, and Haliburton who reaped this bounty of taxpayer money.
Reply to this comment
by sleepyric May 23, 2008 7:39 AM PDT
The $$ no doubt went into the Rumsfeld/Cheney/Bush retirement slush fund. These guys are criminals that need to be proscecuted.
Reply to this comment
by ssgt12 May 23, 2008 7:40 AM PDT
the contract of a company should show the bill the invice the listing the job or the total of the items used and the cost. or they are at a time of frud to the goverment, and they should npay back the amount the due not have a recipe for. no ands ifs or buts about it.
Reply to this comment
by truthyness May 23, 2008 7:42 AM PDT
What''''s in Obamas Passport file that he doesn''''t want anyone to see anyway??

What''''s the big deal??

Show us your PASSPORT FILE Obama!!!
Reply to this comment
by bluestardad May 23, 2008 7:43 AM PDT
IT IS TRULY TIME FOR WAR CRIMES TRIALS!
Reply to this comment
by panhandlpete May 23, 2008 7:44 AM PDT
So what information would Congress have to get in order for SOMEONE, ANY ONE OF THOSE ELECTED REPRESENTATIVES, to have the crystals to hold somebody responsible for all this fraud??????

Everything is just fine now that the stimulus checks are arriving......so we are told. So when they start handing out the "chips" (Soylent Green), we will still believe the scoop.

So, please help out all those greedy, hard-working, highly patriotic contracters who want this war to go on for a hundred years, and you can do so by voting for "McSame as GWB."
Reply to this comment
by formrusmcsgt May 23, 2008 7:51 AM PDT
More of the same inept, asleep at the wheel administrative bungling of this administration.

Absolutely disgusting.
Reply to this comment
by haoli25 May 23, 2008 7:54 AM PDT
Heckuva job there, Bushy administration!
Reply to this comment
by antoniof123 May 23, 2008 7:57 AM PDT
Well, America you bought into the lie now you are angry but most of you will just vote for the same ones who did this too you.

For years the GOP set themselves up as the fiscal family value party of god. How much more do you stand for this bunch of down out right crimanals.

Had enough think and take action. KY took action against one of it GOP members remember the governor he is now a Democrat. I am guessing the true Repulbicans do take a stand against those that put party before country.
Reply to this comment
by r9119111 May 23, 2008 8:07 AM PDT
Audit: Iraq Contracts Skirted Fraud Rules


Of course they did.
Reply to this comment
by bluestardad May 23, 2008 8:10 AM PDT
Obama Seeks Red Cross Help On War Crime Charges Against Bush, Cheney, Rumsfeld
Posted by Sorcha Faal, and as reported to her Western Subscr on Wednesday, May 21st at 11:59 AM

May 20, 2008

Obama Seeks Red Cross Help On War Crime Charges Against Bush, Cheney, Rumsfeld

By: Sorcha Faal, and as reported to her Western Subscribers (Traduccisn al Espaqol abajo)

Russian Foreign Ministry reports to President Medvedev are stating today
that US Presidential candidate Barack Obama has sent one of his top aides
named Valerie Jarrett to meet with officials from the International
Committee of the Red Cross, in Geneva, Switzerland, to what is being
described in these reports as the %u2018preliminary stage%u2019 to begin actions in
the International Court of Justice charging the present United States
President, Vice President and former US Defense Secretary with war crimes.

As we had previously written about in our October 15, 2005 report, the
International Committee of the Red Cross opened in that year a War Crimes
Portfolio alleging that President Bush, Vice President Cheney and Defense
Secretary Rumsfeld, and other US Officials, were in violation of Articles 3
and 4 of the Geneva Convention and could be tried for Crimes Against
Humanity.


Reply to this comment
by ajaxtheleast May 23, 2008 8:14 AM PDT
We know that if two Republicans die in a stall

they receive 72 versions and a trouble-shooting

manual so the Larry Reublicans have an alibi

as to what they''ve been up to . .So let''s

head straight for the top and clean house!!

CLEEEAAANN HOUSE MAN!!!!
Reply to this comment
by tbweb May 23, 2008 8:33 AM PDT
Probe Finds Pentagon Paid Nearly $8 Billion With Little Or No Oversight, Or Even Proof Of Work

$8 Billion just went *poof* disappeared into thin air with no track record, audit trail or history? ROTFLMAO

Look at those faces in that picture above! The owners come home, the bird cage somehow fell to the floor, the door to the bird cage is open, the bird is missing but a few bird feathers are scattered around and the house Cat is sitting there looking innocent with a piece of bird feather hanging off its beek! These guys have that look!! lol $8 Billion is a lot of dough!

Reply to this comment
by rwassel May 23, 2008 8:38 AM PDT
How are you going to spin this, right-wing bloggers? I suppose you''ll somehow try to pin it on Clinton, the "liberal" press, Obama, the Democrats, etc.

How can anyone supporting this administration still live with themselves, after they have raped this country?
Reply to this comment
by singingrick May 23, 2008 8:41 AM PDT



This is just one more example of Republicons ripping off the taxpayers. They talk about tax cuts and then they take turn around and charge up the national credit card doubling the national debt and leaving Americans to pick up the tab. I''d say that''s just a deferred tax hike with interest.






Reply to this comment
by libh8er May 23, 2008 8:48 AM PDT
We should negotiate with the Iraqi gov''t an oil ''pay back'' program. They owe us more than they will EVER be able to repay, so they may as well offer us free oil.

If they did, the Saudis would shiit bricks and the futures price would drop like a rock.
Reply to this comment
by dogband May 23, 2008 8:51 AM PDT
How much evidence needs to pile up before we impeach this POS administration?

Beyond belief.

Absolutely the worst adminsration in the history of our country.
Reply to this comment
by geminijlw1 May 23, 2008 8:51 AM PDT
Agree, but most of it was done that way on purpose, to rip us off. It is done in every department, just look what the AG''s office found on CDC, and State Department, and what was already done to us by Haliburton, but we keep going on and on. Borrowing from China, to make others rich.
Reply to this comment
by singingrick May 23, 2008 8:52 AM PDT



Iraq is the single biggest ripoff ever perpetrated on the American people. Three trillion dollars and counting with no bid contracts and no accountability or oversight by Republicans.



Reply to this comment
by txlakeside May 23, 2008 8:56 AM PDT
Impeach the current administration. Lies, deceit and just plain old greed and corruption runs rampant.

Dumya is not the decider, we are, and we will vote the crooked GOP straight into HELL for being such crooked money hungry ****** that they are!
Reply to this comment
by cattlekate May 23, 2008 8:56 AM PDT
Iraq For Sale is an interesting documentary people might want to rent.
Reply to this comment
by dinkydog1 May 23, 2008 9:00 AM PDT
This is just one more example of an assclown pretending to know what it''''s talking about. It democrats fault too. Do the words fair an balanced mean anything in your nosepicking lib dream world?

Posted by LibH8er at 08:44 AM : May 23, 2008
............

Yes, fair and ballanced means you are unimaginative, gullavible and watch too much watch fox news. And your name calling post indicates you are not intellegent enough to respond with reason or fact.
Reply to this comment
by godseyesore-2009 May 23, 2008 9:07 AM PDT
Pentagon should have to repay the US treasury 8 Billion or have it permanently reduced from their funding in future.
Reply to this comment
by singingrick May 23, 2008 9:09 AM PDT



Republicans came to power saying that Washington was a cesspool of corruption and no longer worked for the American people. When they got into office, they proved it by selling out the halls of government to the highest bidders and bankrupting the national treasury.





Reply to this comment
by demslie May 23, 2008 9:21 AM PDT
Boy, CBS (Communist Broadcast System) has been busy this week publishing all the Democrats Talking Point stroies for O''Bama. CBS has covered ever subject that O''Bama and the Democrats have been Bitcching about. This 2 year OLD Story about contractors is just another for the screaming. And the Democrats are right her to take the bait and scream hate, rage and anger at Bad old America while O''Bama laughs all the way to the Convention. As you can see, the debate has shifted from O''Bama right back to the politically proper subjects of "We Hate Bush". And as usual, O''Bama does not have to answer any question about himself or how he will accomplish the thousand impossible promises, because the Democrat controlled News Media will always change the subject away from the Anointed One. This is the type of Lies and Cheats that we have come to expect from the Democrats who want to rule this nation.
Reply to this comment
by singingrick May 23, 2008 9:23 AM PDT



demslie


Squawwk...squawwk...

Care to comment on the content of the story?



Reply to this comment
by hungry1968 May 23, 2008 9:27 AM PDT
"Audit: Iraq Contracts Skirted Fraud Rules
Probe Finds Pentagon Paid Nearly $8 Billion With Little Or No Oversight, Or Even Proof Of Work"





This became clear as soon as the news broke that ALL of the Iraq contracts were going to be "no bid" - awarded to politically favored contractors / buddies / friends with little or no oversight.
Reply to this comment
by watcher269-2009 May 23, 2008 9:27 AM PDT
Is that all - or is this more Republican Math and the real total here is 80 Billion!

Boy did Bushit bend this Country over and Dicck us!
Reply to this comment
by donbl1 May 23, 2008 9:31 AM PDT
These unmanaged expenditures are nothing compared to WWII "fraud" that was in the name of patriotism.

War and contract management are like oil and water. You can try to mix them but they just seem to separate.........
Reply to this comment
by superdem May 23, 2008 9:31 AM PDT
It''s incredible how the right wingers won''t man up to their own *** about being the "adults" who run things "like a business" - simple invoices are the most basic elements of transactions and accountability - there is NO ACCOUNTABILITY with this Administration, certainly not in the way they''ve conducted this war, but over and over the right wing supporters, who investigated every cent of the Whitewater deals five times, don''t care at all that billions are being peed down the drain in Iraq. They cry and cry about their taxes - but support flagrant waste, fraud and abuse in Iraq. That''s the Republican way - SWEEP OUT ALL REPUBLICANS in November. ALL OF THEM.
Reply to this comment
by hungry1968 May 23, 2008 9:32 AM PDT
Boy, CBS (Communist Broadcast System) has been busy this week publishing all the Democrats Talking Point stroies for O''''Bama. CBS has covered ever subject that O''''Bama and the Democrats have been Bitcching about. This 2 year OLD Story about contractors is just another for the screaming. And the Democrats are right her to take the bait and scream hate, rage and anger at Bad old America while O''''Bama laughs all the way to the Convention. As you can see, the debate has shifted from O''''Bama right back to the politically proper subjects of "We Hate Bush". And as usual, O''''Bama does not have to answer any question about himself or how he will accomplish the thousand impossible promises, because the Democrat controlled News Media will always change the subject away from the Anointed One. This is the type of Lies and Cheats that we have come to expect from the Democrats who want to rule this nation.

Posted by demslie at 09:21 AM : May 23, 2008






That''s because EVERYTHING the Bush regime has touched has turned to *****.

The fact that McCain supports ALL of those failed policies and plans, just plays right into Obama''s hands.

Name a news story this week having to do with finances, the war, terrorism, the economy, or sky high gas prices that HASN''T been FUBAR by this administration.
Reply to this comment
by hungry1968 May 23, 2008 9:34 AM PDT
These unmanaged expenditures are nothing compared to WWII "fraud" that was in the name of patriotism.

War and contract management are like oil and water. You can try to mix them but they just seem to separate.........

Posted by donbl1 at 09:31 AM : May 23, 2008






You''re right - the Bush family made money off those wars too.
Reply to this comment
by demslie May 23, 2008 9:41 AM PDT
demslie
Squawwk...squawwk...
n
Care to comment on the content of the story?

Posted by singingrick

CBS did not print the content of the Story. They only printed what was necessary for Democrat (WE ARE SMARTER THAN EVERYBODY) Elitists in order to show their anger and superiority. In the report there are many explanations as to how complicated the dealings with international agencies, customs and transportation issues are. But none of that was important to CBS just as none of the reasons are important to Democrats. If any Democrat were interested, they could read the report but, instead they just read the purposely altered and out of context story and scream at Republicans for not "telling the truth". The purpose Democrats live for is Hate Rage and Anger at Bush or America. Atheist Immoral Democrats have no interest in the truth. Just partial, self written stories that support the Left Wing Anti-American Hateful Political Agenda.
Reply to this comment
by rafterman1 May 23, 2008 9:43 AM PDT
===It''''s incredible how the right wingers won''''t man up to their own *** about being the "adults" who run things "like a business"===
posted by superdem

That''s because Republicans won''t accept responsibility for anything they do. The media, the liberals, it''s always someone else''s fault when things turn to s h i t.
Reply to this comment
See all 165 Comments
  • MOST POPULAR
  • Viewed
  • Commented
Latest News
Featured Blogs