US authority in Iraq can't account for $9 bn: Official
Associated Press
Washington, January 31, 2005
The US occupation authority in Iraq was unable to keep track of nearly $9 billion it transferred to Government ministries, which lacked financial controls, security, communications and adequate staff, an Inspector General has found.
The US officials relied on Iraqi audit agencies to account for the funds but those offices were not even functioning when the funds were transferred between October 2003 and June 2004, according to an audit by a special US Inspector General.
The findings were released on Sunday by Stuart Bowen Jr, Special Inspector General for Iraq Reconstruction.
Bowen issued several reports on the Coalition Provisional Authority (CPA), the US occupation Government that ruled Iraq from June 2003 to June 2004.
The official who led the CPA, L Paul Bremer III, submitted a blistering, written reply to the findings, saying the report had "many misconceptions and inaccuracies", and lacked professional judgement.
Bremer complained the report "assumes that western-style budgeting and accounting procedures could be immediately and fully implemented in the midst of a war".
The Inspector General said the occupying agency disbursed $8.8 billion to Iraqi ministries "without assurance the monies were properly accounted for".
US officials, the report said, "did not establish or implement sufficient managerial, financial and contractual controls".
There was no way to verify that the money was used for its intended purposes of financing humanitarian needs, economic reconstruction, repair of facilities, disarmament and civil administration.
© HT Media Ltd. 2004.