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Pentagon managed Iraqi reconstruction fund lacked financial control.
A recent audit of Iraqi reconstruction funds shows that 8.7 billion of 9.1 billion in funds. The account managed by the Pentagon and not part of the 53 billion authorized by congress for rebuilding in Iraq.
The committee in charge of the audit, Special Inspector General for Iraq Reconstruction issued the report accusing the Defense Department of lax oversight and weak controls, though not fraud. “Iraq should take legal action to get back this huge amount of money” said Sabah al-Saedi Chairman Parliamentary Integrity Committee Chairman.
“The breakdown in controls left the funds vulnerable to inappropriate uses and undetected loss,” the report said. The Pentagon has been under constant fire as has the Iraqi government for the repeated lack of management in rebuilding funds.
Iraq has been hit hard by the plunging of oil prices in the past. Over 90 percent of the Iraqi government budget is made from oil revenues. Their economy has been hit with high unemployment and spotty civil services such as lack of electricity all of which contribute to an increase of insurgency and lack of foreign investment.
The Pentagon said that it would take steps to correct the deficiencies listed in the report and have a better system in place by November.
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