Possible fraud seen in Iraq contracts -
U.S. report
Wed Oct 26, 2005 6:22 PM ET
By Andrea Shalal-Esa
WASHINGTON, Oct 26 (Reuters) - U.S. officials and members of Iraq's provisional government bungled the management of $24 million in reconstruction grants in early 2004, and some cases may have involved fraud, according to a report released on Wednesday.
The U.S. Inspector General for Iraq Reconstruction, Stuart Bowen, said his office had referred several cases of potential fraud in reconstruction grants for the South-Central region for further investigation.
Those investigations were still ongoing, according to Bowen's report -- the latest in a series of detailed audits of over $30 billion in U.S. funds for Iraq reconstruction.
Bowen's spokeswoman Kristine Belisle said the Justice Department was looking at possible indictments linked to Iraqi reconstruction. She gave no details and declined to confirm if they were linked to cases in southern Iraq.
The report said personnel working for the Coalition Provisional Authority for the South-Central Region, which includes the cities of cities of Najaf and Karbala, could not account for $20.5 million in funds.
The money was provided for a program to help Iraqis or assist in reconstruction after the March 2003 U.S. invasion.
The offices disbursed almost $23.5 million through 74 grants from February to June 2004. They handed out $2.6 million more than the value of the grants awarded, for projects ranging from media work to road repair to women's rights issues.
The report recommended the U.S. ambassador Iraq initiate action to seek reimbursement for the overpaid grant amounts..........
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