Iraqi Reconstruction Plaqued by Fraud Says Inspector General

Today, the Special Inspector General for Iraqi Reconstruction issued its Quarterly Report to U.S. Congress, outlining the results of its audit of U.S. spending and fraud investigation related to the Iraqi reconstruction effort. The report identified multiple overbillings, including tens of millions of dollars wasted on charges such as nearly $200 for a package of 10 washers that retails for less than two bucks ($19.65 per washer). The Inspector General’s audit also found “hundreds of suspicious transactions, leading to the opening of 6 investigations involving 15 subjects.” Progress in other ongoing investigations was also reported, including seizing nearly $2 million in cash from a safety deposit box related to a “wide-ranging conspiracy to defraud the United States out of millions of dollars.” To date, investigation of the Iraqi reconstruction effort has led to 24 criminal convictions, 31 indictments and almost $50 million in recovered fraud. 96 investigations remain open; so, there is every reason to expect more indictments in the future. Read the full report below:

Special Inspector General for Iraqi Reconstruction
Quarterly Report to U.S. Congress, October 31, 2009
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