by hilzoy
Via Kevin Drum and the Carpetbagger Report, an article in the WSJ (sorry, subscription wall):
“The Senate last week approved $109 billion in additional spending for the wars in Iraq and Afghanistan, including $1.5 billion in added Iraq reconstruction money. The administration has spent $20.9 billion to reconstruct Iraq’s infrastructure and modernize its oil industry, but the effort hasn’t restored the country’s electricity output, water supply or sewage capabilities to prewar levels.
A behind-the-scenes battle among legislators has made a crucial distinction between the new reconstruction money and that already spent: The new funds won’t be overseen by the government watchdog charged with curbing the mismanagement that has overshadowed the reconstruction.
The administration’s main vehicle for rebuilding Iraq has, in the past, been designated “Relief and Reconstruction” funds, which by law are overseen by a special inspector general, Stuart Bowen. The new money going toward similar reconstruction goals will be classified as coming from “Foreign Operations” accounts. The State Department is responsible for spending both pools of money.
By law, Mr. Bowen can oversee only relief and reconstruction funds. Because the new money technically comes from a different source, Mr. Bowen, who has 55 auditors on the ground in Iraq, will be barred from overseeing how the new money is spent. Instead, the funds will be overseen by the State Department’s inspector general office, which has a much smaller staff in Iraq and warned in testimony to Congress in the fall that it lacked the resources to continue oversight activities in Iraq.
Exactly how and why the change was made isn’t clear. Republican Appropriations Committee aides say legislators shifted the Iraq money to the foreign operations accounts at the request of the White House, not to curb oversight. They say administration officials sought the change to streamline accounting so the Iraq reconstruction would be incorporated into the State Department’s operations and budget rather than kept in stand-alone accounts. (…)
A fight in Congress over the money flared in the final hours before the spending bill was approved, when a group of senators wrote an amendment that would have given Mr. Bowen oversight responsibility for the new money.
What happened next is a matter of dispute. The measure’s sponsors say they asked Republican Sen. Thad Cochran of Mississippi, chairman of the Senate Appropriations Committee, to allow the measure to be brought to a vote but were turned down. Mr. Cochran denies receiving such a request and says the amendment’s sponsors could have formally introduced the measure but chose not to, according to his spokeswoman, Margaret Wicker.
The bill passed the Senate without the amendment. As the House version of the spending bill makes the State Department inspector general responsible for the new money, it is likely the funds ultimately will be treated that way. “This is nothing more than a transparent attempt to shut down the only effective oversight of this massive reconstruction program which has been plagued by mismanagement and fraud,” said Sen. Patrick Leahy (D., Vermont).”
Some background on Bowen (from the WSJ again):
“Mr. Bowen is a Texas lawyer who parlayed a job on George W. Bush’s first gubernatorial campaign into senior posts in Austin and Washington. He began the Iraq war lobbying for an American contractor seeking tens of millions of dollars in reconstruction work. Last October, California Democratic Rep. Henry Waxman singled him out in a report on “The Politicization of Inspectors General” in the Bush administration. The report suggested that such auditors wouldn’t be “independent and objective.”
Instead, Mr. Bowen has become one of the most prominent and credible critics of how the administration has handled the occupation of Iraq. In a series of blistering public reports, he has detailed systemic management failings, lax or nonexistent oversight, and apparent fraud and embezzlement on the part of the U.S. officials charged with administering the rebuilding efforts.”
So, to recap: Bush appoints someone from his campaign to an important job: auditing Iraq reconstruction funds. That person turns out to be surprisingly independent, and discovers a lot of fraud. I discussed one of his reports earlier; here’s a summary of what it found:
“A new audit of American financial practices in Iraq has uncovered irregularities including millions of reconstruction dollars stuffed casually into footlockers and filing cabinets, an American soldier in the Philippines who gambled away cash belonging to Iraq, and three Iraqis who plunged to their deaths in a rebuilt hospital elevator that had been improperly certified as safe.”
Our government’s response? Recategorize Iraqi reconstruction funds so that he doesn’t get to audit them anymore. Opponents try to introduce an amendment that would prevent this; it vanishes under suspicious circumstances. Result: no more of those inconvenient reports about what this administration is doing with our money.
Which brings us to the question of investigations.
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