US authorities faulted over missing Iraqi
money
Mon Jan 31, 2005 19:39
64.140.159.107
US authorities faulted over missing Iraqi money
http://www.isn.ethz.ch/news/sw/details.cfm?id=10686
ISN SECURITY WATCH (31/01/05) - A US government audit has found that the US Coalition Provisional Authority (CPA) in Iraq led by Paul Bremer had not established proper financial controls, resulting in US$8.8 billion of Iraqi money being unaccounted for. From the US-led invasion of early 2003 to the transfer of sovereignty to an interim Iraqi government in mid-2004, the occupation authority was responsible for disbursing over US$20 billion of Iraq’s money. Those funds came from oil revenues, leftover receipts from Iraq's oil-for-food relief program, and seized assets, which were combined into the Development Fund for Iraq. According to the report issued by Stuart Bowen Jr., special inspector general for Iraq reconstruction, the provisional authority relied on Iraqi audit agencies to account for the funds, but those offices were not functioning between October 2003 and June 2004. Bremer defended the provisional authority, saying that Western-style accounting procedures could not be fully implemented in the midst of a war. According to Bremer, over a million Iraqi families depended on government salaries and there would have been an increased security threat if civil servants had not been paid until Western pay records were established. He also said since US policy was to build up the Iraqi force guarding government facilities, it was better to accept an imperfect payroll system than to stop payments to young men providing security. Bowen’s report rejected Bremer's defenses, finding that despite the war, the management of Iraq's national budget process and oversight of Iraqi funds was “burdened by severe inefficiencies and poor management". While not directly accusing Iraqi ministries of corruption, the report notes numerous examples of controversial payments, but some of the findings of the audit go beyond minor irregularities. For example, one ministry received money to pay 8’206 guards, while only 602 guards could be proven to work for the ministry. The report also found that money was handled carelessly, with millions of dollars often kept in unsecured places, and receipts were not taken or kept upon the transfer of funds. In addition, hundreds of millions of dollars were repeatedly given to ministries that had not presented detailed budget plans for how the money would be used. One US company was accused of sending out fake invoices and being paid without having those invoices checked for the services that were supposed to have been performed. Formal responsibility over Iraqi finances, which are regularly replenished by the country's large oil exports, shifted last year to the interim Iraqi government. (By Ustina Markus in Washington, DC)
======================================
News and Current Affairs
The ISN's news services offer security related news stories, reference and background information, and analyses every weekday. These resources are also collected in subject-specific dossiers
http://www.isn.ethz.ch/news/
Information and resources on all asepcts of terrorism and counterterrorism policy.
Counter terrorism policy after 9/11
The shift of US and allied military focus from Afghanistan to Iraq has permitted the reemergence of the Taliban and complements of al-Qaida fighters; the failure to seal Iraq’s borders with Syria and Iran has made possible an influx of militants, some Jihadist, some swelling the ranks of the Fedayeen Saddam, all rendering the task of containing multiple insurgencies more difficult; the withdrawal of the Israeli army from Lebanon has given Hezbollah an uncontested base of operations; the fiercely challenged fence separating the Palestinian occupied territories has drastically reduced the number of suicide attacks against Israeli civilians, while the elimination of Abdel-Aziz Rantisi and Sheikh Yassin has crippled the “inside” leadership of Hamas.
» More
http://www.isn.ethz.ch/news/dossier/terrorism/index.cfm
http://www.isn.ethz.ch/news/sw/details.cfm?id=10686
ISN SECURITY WATCH (31/01/05) - A US government audit has found that the US Coalition Provisional Authority (CPA) in Iraq led by Paul Bremer had not established proper financial controls, resulting in US$8.8 billion of Iraqi money being unaccounted for. From the US-led invasion of early 2003 to the transfer of sovereignty to an interim Iraqi government in mid-2004, the occupation authority was responsible for disbursing over US$20 billion of Iraq’s money. Those funds came from oil revenues, leftover receipts from Iraq's oil-for-food relief program, and seized assets, which were combined into the Development Fund for Iraq. According to the report issued by Stuart Bowen Jr., special inspector general for Iraq reconstruction, the provisional authority relied on Iraqi audit agencies to account for the funds, but those offices were not functioning between October 2003 and June 2004. Bremer defended the provisional authority, saying that Western-style accounting procedures could not be fully implemented in the midst of a war. According to Bremer, over a million Iraqi families depended on government salaries and there would have been an increased security threat if civil servants had not been paid until Western pay records were established. He also said since US policy was to build up the Iraqi force guarding government facilities, it was better to accept an imperfect payroll system than to stop payments to young men providing security. Bowen’s report rejected Bremer's defenses, finding that despite the war, the management of Iraq's national budget process and oversight of Iraqi funds was “burdened by severe inefficiencies and poor management". While not directly accusing Iraqi ministries of corruption, the report notes numerous examples of controversial payments, but some of the findings of the audit go beyond minor irregularities. For example, one ministry received money to pay 8’206 guards, while only 602 guards could be proven to work for the ministry. The report also found that money was handled carelessly, with millions of dollars often kept in unsecured places, and receipts were not taken or kept upon the transfer of funds. In addition, hundreds of millions of dollars were repeatedly given to ministries that had not presented detailed budget plans for how the money would be used. One US company was accused of sending out fake invoices and being paid without having those invoices checked for the services that were supposed to have been performed. Formal responsibility over Iraqi finances, which are regularly replenished by the country's large oil exports, shifted last year to the interim Iraqi government. (By Ustina Markus in Washington, DC)
======================================
News and Current Affairs
The ISN's news services offer security related news stories, reference and background information, and analyses every weekday. These resources are also collected in subject-specific dossiers
http://www.isn.ethz.ch/news/
Information and resources on all asepcts of terrorism and counterterrorism policy.
Counter terrorism policy after 9/11
The shift of US and allied military focus from Afghanistan to Iraq has permitted the reemergence of the Taliban and complements of al-Qaida fighters; the failure to seal Iraq’s borders with Syria and Iran has made possible an influx of militants, some Jihadist, some swelling the ranks of the Fedayeen Saddam, all rendering the task of containing multiple insurgencies more difficult; the withdrawal of the Israeli army from Lebanon has given Hezbollah an uncontested base of operations; the fiercely challenged fence separating the Palestinian occupied territories has drastically reduced the number of suicide attacks against Israeli civilians, while the elimination of Abdel-Aziz Rantisi and Sheikh Yassin has crippled the “inside” leadership of Hamas.
» More
http://www.isn.ethz.ch/news/dossier/terrorism/index.cfm
