WORLD / Middle East
Defense vows crackdown on fraud in Iraq
(AP)
Updated: 2007-03-21 10:52
WASHINGTON - Defense Department investigators said Tuesday they are going
to be more aggressive suspending or barring companies from doing US
contract work in Iraq if they are involved in war profiteering there.
A woman carries her child through the ruins of Saddam Hussein's
Republican guard barracks destroyed in the early stages of the US led
invasion on Iraq, in Baghdad, Iraq, Tuesday, March 20, 2007, on the
fourth anniversary of the invasion. [AP]
Stuart Bowen, special inspector general for Iraq reconstruction, said
taking such action is an effective tool, particularly when auditors are
struggling to come up with enough detailed evidence for criminal
prosecutions.
Bowen's comments came in testimony before the Senate Judiciary Committee,
as lawmakers complained that assessing fines is not enough to stop the
billions of dollars in waste, fraud and abuse plaguing Iraq
reconstruction projects. Auditors last month told Congress that about $10
billion has been squandered by the US government on Iraq reconstruction
aid because of contractor overcharges and unsupported expenses.
The US has appropriated more than $38 billion for Iraq relief and
reconstruction, including some money for security forces and economic
programs, according to the latest quarterly report from the special
inspector general, released in January.
Fining companies a million dollars, said Sen. Arlen Specter , R-Pa., can
simply amount to "an inexpensive license to cheat the taxpayers."
"This really is the cost of doing business," said Specter, noting that
the fraud can often be in the hundreds of millions of dollars.
According to Army spokesman Dave Foster, eight individuals or companies
have been barred from doing business with the Army, and another eight
have been proposed for debarment. Foster also said that as of Jan. 30, 16
companies or individuals have been suspended from doing business, based
on allegations of fraud and misconduct connected to Iraq reconstruction
contracts.
Bowen said that such administrative action against those who commit
misconduct can strip them of security clearances.
Iraqi officials are also investigating as many as 2,000 cases of fraud,
amounting to about $8 billion in unaccounted for Iraqi construction
funds, he said.
Committee Chairman Patrick Leahy , D-Vt., said more controls are needed
over how billions of dollars for Iraq reconstruction is spent and that
the Justice Department needs to move more aggressively in prosecuting
fraud in Iraq.
Deputy Assistant Attorney General Barry Sabin said his agency is devoting
significant resources to the effort, but he would not say how many
investigators are working full time on the Iraq fraud cases. He said the
prosecutions are complicated, and he would not say how many more people
will be charged this year.
So far, he said, 16 people have been convicted in connection with fraud,
kickbacks or other contracting violations.
Leahy is pushing legislation that would make war profiteering a specific
crime and would apply to all contract fraud, whether it occurs in the
United States or overseas.
Top World News
� Bush warns Dems to take offer in firings
� Russia pulling out of Iran nuke project
� Saddam's former deputy hanged
� Russia mine blast kills 106, 4 missing
� Mastermind of USS Cole attack confesses
Today's Top News
� Four overseas banks ready for renminbi business
� Measure adopted to cool stock market
� 2 Chinese workers kidnapped in Nigeria
� Houses cheaper than cars in Detroit
� 2 Chinese workers abducted in Nigeria
Most Commented/Read Stories in 48 Hours
Learn Chinese, Chinese School, Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, Beijing 2008 Olympics, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing, Travel to Tibet
No comments:
Post a Comment