SMRs and AMRs

Monday, July 31, 2006

The "Enroning" of Iraq

U.S. Agency Hid Cost Overruns in Iraq, Audit Finds

The report says expenses in projects that exceeded budgets were concealed in unrelated accounts.

By Greg Miller, Los Angeles Times Staff Writer
July 30, 2006

WASHINGTON — The U.S. agency responsible for administering $1.4 billion in reconstruction funds in Iraq has sought to hide major cost overruns on high-profile projects from Congress by engaging in questionable accounting maneuvers, according to a federal audit released late Friday.

The agency has masked budget spillovers on a children's hospital in the southern city of Basra and other facilities by hiding the expenditures in seemingly unrelated accounts, the report from the Special Inspector General for Iraq Reconstruction says.

Overall, the report found a "lack of effective program management" by the State Department and the U.S. Agency for International Development, which oversees U.S. reconstruction spending in Iraq and other countries.

The accounting issues are the latest in a series of problems, including fraud allegations and the soaring costs of protecting work sites and crews from attacks, that have beset the massive rebuilding effort in Iraq.

(The article is here.)

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