Pentagon Cannot Account For $15 Billion In Iraq Payments

The Pentagon shelled out a whopping 95 percent of payments to U.S. and Iraqi contractors without following even basic accounting procedures. Pentagon Cannot Account For $15 Billion in Iraq PaymentsBy Cliff Montgomery – May 27th, 2008The Defense Department cannot account for almost $15 billion of U.S. taxpayer dollars intended to fund services and goods throughout Iraq, reveals a scathing internal audit which lawmakers cited Friday as yet another “shocking” proof of Bush Administration incompetence.A Pentagon audit of $ 8.2 billion in contracts to U.S. and Iraqi contractors discovered that the Defense Department could not account for $7.8 billion of funds.Though the funds were intended to purchase security services, weapons, construction equipment and vehicles, the Pentagon’s inspector general found that a whopping 95 percent of the Defense Department dollars had been spent without following even basic accounting procedures.”We estimated that the [U.S.] Army made $1.4 billion in commercial payments that lacked the minimum documentation for a valid payment, such as properly prepared receiving reports, invoices, and certified vouchers,” testified Deputy Inspector General Mary Ugone to a House panel on Thursday.”We also estimated that the Army made an additional $6.3 billion of commercial payments that met the 27 criteria for payments but did not comply with other statutory and regulatory requirements,” added Ugone.The Defense Department also doled out $1.8 billion of ‘seized and vested’ Iraqi assets “with absolutely no accountability,” stated House Oversight and Government Reform Committee Chairman Henry Waxman (D-CA) on Thursday.”Investigators examined 53 payment vouchers and couldn’t find even one that adequately explained where the money went,” said Waxman.Another $5 billion spent on aiding Iraq’s infamous ‘security forces’ were not properly documented and are considered missing, stated a November 2007 audit from the Pentagon inspector general.”Taken together, the inspector general found that the Defense Department did not properly account for almost 15 billion dollars,” added Waxman.The revelations have provided new evidence that American taxpayers are losing billions through the massive fraud and waste of a broken Pentagon contracting system.”The report has new shocking details of billions of dollars of American taxpayer money unaccounted for and likely wasted, which should be a wake-up call to Congress and the Bush Administration that the status quo is unacceptable,” declared senator and presidential hopeful Hillary Clinton (D-NY) in a statement.Other lawmakers were equally furious over the audit findings.”American taxpayers are picking up the tab for Iraqi ministries, coalition governments, U.S. and foreign contractors, Iraqi security forces, and Blackwater and other U.S. security companies,” said Waxman.”We are even giving hundreds of millions of dollars to local Iraqi tribal leaders in order to get them to stop fighting,” Waxman stated.Yet, Waxman pointedly continued, “our troops seem to be the only ones who are held to demanding standards. In fact, they often have to overcome mindless obstacles just to get what they are owed.”Soldiers wounded in battle have received letters demanding that they return signing bonuses because they didn’t complete their terms. In some cases, the Pentagon even wanted interest.Guard forces and Reservists [also] have waited months, even years, to get reimbursed for travel and meal expenses,” Waxman declared.The Defense Department so far has been appropriated $492 billion–almost half a trillion dollars–to continue George W. Bush’s fruitless nation-building in Iraq, according to numbers stated by Ugone during her testimony.But it seems the lion’s share of this sum is going to the wrong people.Like what you’re reading so far? Then why not order a full year (52 issues) of thee-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!