11/12/06

New audit hunts Iraq's lost millions

A new audit examining 15 contracts signed in Iraq has found new evidence of massive corruption and mismanagement by the US government. The audit of 15 noncompetitive contracts paid for by US government agencies with Iraqi oil money was unable to account for $22.4 million in funds, a UN-led watchdog said.

"In view of these findings, the IAMB International Advisory and Monitoring Board recommends that the Iraqi government seek resolution with the US government concerning the use of resources of the [Development Fund for Iraq], which might be in contradiction with the UN Security Council Resolution 1483," the board said in a statement posted on its website.

The IAMB, which also includes officials from the World Bank and International Monetary Fund, was created by the UN Security Council in 2003 to oversee the use of Iraqi oil money while the country was under an interim US administration.

In 2004 an audit, ordered by the Coalition Provisional Authority (CPA) which governed Iraq after the US-led invasion, found that more than $8.8bn of Iraqi money was missing. The CPA found that the money had been paid for goods and services that were never provided.

In other cases, millions of dollars were paid by the CPA in salaries for thousands of security guards who did not exist. In other cases the money simply vanished.

[Aljazeera]

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