Breakdown in Controls Opens Door to Corruption

Losing track of billions of dollars is an invitation to corruption and abuse. But the U.S. Department of Defense seems to have done just that with Iraqi reconstruction funds set aside for the benefit of the people of Iraq. Last week, the Office of the Special Inspector General for Iraq Reconstruction (SIGIR), an independent government agency, issued a devastating audit of DOD's handling of $8.7 of the $9.1 billion targeted for reconstruction, humanitarian and other needs of the Iraqi people, describing a total "breakdown in controls" that "left the funds vulnerable to inappropriate uses and undetected loss."

Given the SIGIR's finding, how is the American or Iraqi public to know how much of the $8.7 billion was spent on building schools, highways, water mains or electric substations, as intended -- and desperately needed -- or whether some or all of it ended up in the pockets of corrupt contractors or government officials? There is plenty of reason to wonder, given that SIGIR's previous criminal investigations into the use of Iraqi reconstruction funds resulted in eight convictions of U.S. officials for bribery, fraud and money laundering. While the SIGIR report makes prospective recommendations, it fails to insist on accountability and sanctions as warranted.

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