U.S. report: Iraq government fails in reconstruction projects, budget management
Iraq's government failed to take responsibility for reconstruction projects and is struggling to administer its budget for oil, public works and education, a U.S. special inspector general said on Monday, according to Reuters.
Looking at how $44 billion in U.S. funds has been spent in Iraq for relief and reconstruction since 2003, the inspector general found "troubling concerns" in the last quarter about the process meant to transfer control of projects to the Iraqi government. "My auditors found that the asset-transfer process is broken: since June 2006, the GOI (government of Iraq) has not formally accepted a single IRRF (Iraq Relief and Reconstruction Fund) project," Stuart Bowen, the inspector general, said in a message released with the report.
The U.S. government is unilaterally transferring many projects to Iraq without the Iraqi government's consent, the report said. "The failure of the asset-transfer program raises concerns about the continuing operation and maintenance of U.S.-constructed projects," the report said. "In some cases, the United States has continued to pay for maintaining complete projects that have not been accepted" by Iraq.
The U.S. funds for Iraq reconstruction have been largely expended, which means the Iraqi government now has the responsibility for managing the financing of the country's recovery, according to the report.
Iraq failed to manage effectively its capital budget in 2006, spending only 22 percent of it, the report said.
The Oil Ministry leads all others in total spending this year, executing $538 million or 23 percent of its capital budget, followed by public works, $174 million or 52 percent, and education, $87 million or 30 percent, the report said.
"The problems addressed in the Bechtel audit include reduction in scope, cancellations, costs that outstripped planned budgets and significant delays in the completion of projects," the report said.