51 Billion

From AP:

WASHINGTON (AP) – After years of following the paper trail of $51 billion in U.S. taxpayer dollars provided to rebuild a broken Iraq, the U.S. government can say with certainty that too much was wasted. But it can’t say how much.

In what it called its final audit report, the Office of the Special Inspector General for Iraq Reconstruction Funds on Friday spelled out a range of accounting weaknesses that put “billions of American taxpayer dollars at risk of waste and misappropriation” in the largest reconstruction project of its kind in U.S. history.

“The precise amount lost to fraud and waste can never be known,” the report said.

The auditors found huge problems accounting for the huge sums, but one small example of failure stood out: A contractor got away with charging $80 for a pipe fitting that its competitor was selling for $1.41. Why? The company’s billing documents were reviewed sloppily by U.S. contracting officers or were not reviewed at all.

With dry understatement, the inspector general said that while he couldn’t pinpoint the amount wasted, it “could be substantial.”

Asked why the exact amount squandered can never be determined, the inspector general’s office referred The Associated Press to a report it did in February 2009 titled “Hard Lessons,” in which it said the auditors – much like the reconstruction managers themselves – faced personnel shortages and other hazards.

“Given the vicissitudes of the reconstruction effort – which was dogged from the start by persistent violence, shifting goals, constantly changing contracting practices and undermined by a lack of unity of effort – a complete accounting of all reconstruction expenditures is impossible to achieve,” the report concluded.


Robert Burns can be followed on Twitter at http://twitter.com/robertburnsAP


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  • RobS

    Makes me wonder how much due dilligence on the contractors was done beforehand. If they’re established companies with a desire to stay in business, they could certainly be sued, blacklisted from future business, etc that would help recover something or ruin their future ability to work with the government.

    The small fly-by-night organizations may emerge anytime millions (& billions) of dollars is just being spent with little regard to controls or accounting. The most money with the worst oversight seems to be the government, so there will always be those ready to line up for sordid gain from the backs of the taxpayers.

    Let’s hope some of the projects were done right at the minimum so THAT isn’t also an issue!?

  • paul darilek

    That’s just the $51 billion spent rebuilding. Conducting the war and maintaining the debt incurred by it have been a lot more more expensive. http://costofwar.com/.

  • RobS

    I just had to look… $51 billion just thrown out of car windows in Iraq and then re-distributed evenly to the people would give them each about $1550.

    Given that the annual GDP per person is around $4200, this would be a good sum of cash.