Missing Iraq billions could be 'greatest fraud in US history'
Stephen C. Webster
Published: Monday February 16, 2009
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The US Special Inspector General for Iraq Reconstruction (SIGIR), the Army's criminal Investigation Command and the Justice Department are investigating US soldiers and officials in the alleged misuse of a portion of the $125 billion initially sent to Iraq for reconstruction shortly after the fall of Sad
More..dam.
Monday, The Independent's Iraq correspondent Patrick Cockburn reported the inspectors believe misuse may account for over $50 billion, exceeding the scope of Bernie Madoff's massive Ponzi scheme and making it potentially the "greatest fraud in US history."
"In one case, auditors working for SIGIR discovered that $57.8m was sent in 'pallet upon pallet of hundred-dollar bills' to the US comptroller for south-central Iraq, Robert J Stein Jr, who had himself photographed standing with the mound of money," wrote Cockburn. "He is among the few US officials who were in Iraq to be convicted of fraud and money-laundering.
"Despite the vast sums expended on rebuilding by the US since 2003, there have been no cranes visible on the Baghdad skyline except those at work building a new US embassy and others rusting beside a half-built giant mosque that Saddam was constructing when he was overthrown."
The SIGIR auditor's report, entitled "Hard Lessons," was published in early February.
"'Hard Lessons,' a draft of which was leaked to the news media in December, concludes that the U.S. reconstruction effort in Iraq was a failure, largely because there was no overall strategy behind it," reported the Washington Post. "Goals shifted from 'liberation' and an early military exit to massive, ill-conceived and expensive building projects under the Coalition Provisional Authority of 2003 and 2004. Many of those projects -- over budget, poorly executed or, often, barely begun -- were abandoned as security worsened.
"In a preface to the 456-page book, Bowen writes that he knew the reconstruction was in trouble when he first visited Iraq in January 2004 and saw duffel bags full of cash being carried out of the Republican Palace, which housed the U.S. occupation government."
"As part of the inquiry, the authorities are taking a fresh look at information given to them by Dale Stoffel, an American arms dealer and contractor who was killed in Iraq in late 2004," reported the International Herald Tribune on Sunday.
"Before he was shot on a road north of Baghdad, Stoffel drew a portrait worthy of a pulp crime novel: tens of thousands of dollars stuffed into pizza boxes and delivered surreptitiously to the American contracting offices in Baghdad, and payoffs made in paper bags that were scattered in 'dead drops' around the Green Zone, the nerve center of the United States government's presence in Iraq, two senior federal officials said."
"Prosecutors have won 35 convictions on cases related to reconstruction in Iraq, yet most of them involved private contractors or midlevel officials. The current inquiry is aiming at higher-level officials, according to investigators involved in the case, and is also trying to determine if there are connections between those officials and figures in the other cases. Although Bell and Hirtle were military officers, they worked in a civilian contracting office."
So far, there have been just 35 convictions for the misuse of government funds during the reconstruction of Iraq. Less..
Added: Feb 17 2009 In: middle_east
By: ReadyRock2008
- Views: 1284 |
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- Comments: 35
Comments - sort by newest to oldest
Check Cheney's pockets.
Posted Feb-17-2009 by "DedHajiGoodHaji" (R)
yawn....
Posted Feb-17-2009 by "stan2285" (R)
who's surprised :)
Posted Feb-17-2009 by "figatova" (R)
We taxpayers are used to ineptitude and corruption from our government.
Posted Feb-17-2009 by "driedjello" Premium
we've known about this but the scope of the theft is new information to me. last i checked it was 8 billion. thanks
Posted Feb-17-2009 by "lasrever" Premium
Funny how hundreds of American LL%u2019ers complained about Russia taking the odd Hummer and Boat away from Georgia, But America can take $50 billion, and no one comments !
.
Posted Feb-17-2009 by "BritishMale" (R)
a duffel bag of cash would be very tempting
Posted Feb-17-2009 by "daboy233" (R)
If its not worth anything in the first place (monopoly money) who cares ?
Posted Feb-17-2009 by "sinner713" (R)
Id rather have the crooks have it than the Iraqi. Screw that place. Bring everyone home.
Posted Feb-17-2009 by "rockabilly" (R)
We know it went into the shadow governments and private contractors pockets.
Posted Feb-17-2009 by "Souldown" (R)
More to add to the George Bush's legacy.
Inept bumbling idiots.
Posted Feb-17-2009 by "smyle" (R)
yawn....
Very intelligent response there Stan. no wonder you have been able to achieve such a margnalized status here.. Take care.
Posted Feb-17-2009 by "DedHajiGoodHaji" Premium
.
(ahem)
from what political spectrum are most americans on this site from? how many Americans have you seen praising Republicans and bashing Democrats here?
i expect the answer to come to you very quickly
Posted Feb-17-2009 by "lasrever" Premium
yawn....
Very intelligent response there Stan. no wonder you have been able to achieve such a margnalized status here.. Take care.
that's what happens when you go around calling people "moonbats" and "conspiracy theorists" all the time
Posted Feb-17-2009 by "lasrever" (R)
It led to a new term for "half a billion dollars" - "a black hawk's worth" because that's how much money they found they could stuff into a Black Hawk helicopter.
Posted Feb-17-2009 by "Ergastule"