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The U.S. Defense Department cannot account for about $2 billion it was given to cover Iraq-related expenses and is not providing Iraq with a complete list of U.S.-funded reconstruction projects, according to two new government audits.
The Iraqi government in 2004 gave the Department of Defense access to about $3 billion to pay bills for certain contracts, and the department can only show what happened to about a third of that, the inspector general says in an audit published Friday. Although the Department of Defense (DoD) had "internal processes and controls" to track payments, the "bulk of the records are missing," the report says, adding that the department is searching for them. Other documents are missing as well, including monthly reports documenting expenses, the audit says.
The audit deals with a time when Iraq's government was undergoing a transition. The Coalition Provisional Authority ran the country for 14 months from 2003 to 2004. During that time, the authority awarded numerous contracts. When it dissolved in 2004, the Iraqi government gave the U.S. Defense Department access to the $3 billion to pay bills for contracts the provisional authority had awarded.
Originally posted by allprowolfy
Simply amazing, but if you or I would miss something on our taxes. We would have the IRS breathing down our neck until it was figured out.
reply to post by superman2012
Is it money that went to other projects and they were trying to hide it, or was it simply paperwork that went missing when Iraq's government was undergoing their transition?
DoD cannot account for about two-thirds of the approximately $3 billion in DFI funds made available to it by the GOI for making payments on contracts the CPA awarded prior to its dissolution. Most of these funds were held in the DFI sub-account at the FRBNY ($2.8 billion); the remainder was held in the presidential palace vault in Baghdad ($217.7 million).
FRBNY records show that DoD made about $2.7 billion in payments from the DFI subaccount. However, the FRBNY does not have specifics about the payments or financial documents, such as vendor invoices, to support them. It required only written approval from the GOI to issue payment.
Although it was DoD’s responsibility to maintain documentation supporting the full $2.7 billion in expenditures made from the FRBNY sub-account, it could provide us documentation supporting only about $1 billion. Although
DoD established internal processes and controls to report sub-account payments to the GOI, the bulk of the records are missing. As a result, SIGIR’s review was limited to the $1 billion in available records. SIGIR
examined 15 payments from this group and found most of the key supporting financial documents.
DoD continues to search for documents supporting the remaining $1.7 billion in payments. DoD’s problems with
DFI records management are not new, and both SIGIR and DoD have previously reported on them.
Originally posted by burdman30ott6
Well, that only leaves about $843 Billion the new Iraqi government owes the US taxpayer for putting them in power, training them, and keeping them relatively safe while they got their sea legs under them.