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Waste attributed to Iraq war 'can never be known,' inspector general says

An estimated $6 billion to $8 billion was wasted in long and costly conflict

Stuart Bowen, the special inspector general for Iraq reconstruction for the past eight years, in an interview with the Center for Public Integrity released a new summary of disheartening discoveries his office made since starting in 2004. Bowen says the billions lost to fraud and waste "can never be known," largely because of poor record-keeping by the U.S. agencies involved.

A lack of manpower dedicated to reviewing and overseeing government contracts is being blamed for the waste.

A lack of manpower dedicated to reviewing and overseeing government contracts is being blamed for the waste.

LOS ANGELES, CA (Catholic Online) - Bowen estimated that $6 billion to $8 billion of that amount was lost to waste, fraud and abuse.

Auditors repeatedly found that the State Department and Defense Department failed to review invoices from government contractors, often approving billions of dollars in services without checking if costs were cost effective.

"I think the consistent theme throughout our eight years of oversight work has been the inconsistent availability of records and information on contracts and costs," Bowen, a former Texas lawyer said.

Bowen said his efforts were hindered from the outset by the ineptitude of a clearinghouse created in Iraq for government departments to submit reconstruction bills and contracts for review and oversight.

Known as the Iraq Reconstruction Management System, the system was often disregarded, the result being that nearly a third of all the contracts could not be monitored adequately.

"Agencies often inconsistently used it -- such as USAID. Sometimes projects were put in there, sometimes they weren't," Bowen said.

Bowen's deputy inspector general, Glenn Furbish, said separately that the cost of many contracts was steadily increased due to frequent modifications. "Once U.S. agencies started down this road, they rarely stopped and said, 'This is getting out of hand,'" Furbish said.

Furbish also said that many agencies sometimes skipped appropriate review of their bills in an effort to spend money within a deadline, so they did not have to return it to the Treasury.

SIGIR investigated $635 million in spending, resulting in $176 million in "fines, forfeitures, and other monetary results."

The recent report demonstrated the continuous poor handling of government contracts. "In some instances, invoices were reviewed months after they were paid," according to the report. "Poor and/or delayed invoice reviews add risk that the government may overpay, or pay unallowable and unreasonable costs."

A lack of manpower dedicated to reviewing and overseeing government contracts is being blamed for the waste.

DynCorp spokeswoman Ashley Burke confirmed that her company returned funds to the government but said it had not engaged in misconduct.

SIGIR's investigation also uncovered instances of bid-rigging and bribe-taking by State and Pentagon officials.

© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.

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Keywords: Iraq war, waste, bookkeeping, budgeting, agencies

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1 - 1 of 1 Comments

  1. Jack Mooney
    10 months ago

    We will probably never know the possible long term beneficial effects on history either!

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