Shady Iraq $$$ dealings

The United States handed out nearly $20 billion of Iraq’s funds, with a rush to spend billions in the final days before transferring power to the Iraqis nearly a year ago, a report said on Tuesday.

The report, by Democratic Rep. Henry Waxman of California, said in the week before the hand-over on June 28, 2004, the US-led Coalition Provisional Authority ordered the urgent delivery of more than $4 billion in Iraqi funds from the US Federal Reserve in New York.

One single shipment amounted to $2.4 billion — the largest movement of cash in the bank’s history, said Waxman.

Cash was loaded onto giant pallets for shipment by plane to Iraq, and paid out to contractors who carried it away in duffel bags.

“The disbursement of these funds was characterized by significant waste, fraud and abuse,” said Waxman.

An audit by the US Special Inspector General for Iraq Reconstruction said US auditors could not account for nearly $8.8 billion in Iraqi funds and the United States had not provided adequate controls for this money.

Contractors were told to turn up with big duffel bags to pick up their payments and some were paid from the back of pick-up trucks.

One picture shows grinning CPA officials standing in front of a pile of cash said to be worth $2 million to be paid to a security contractor.

Rep. Christopher Shays of Connecticut, a Republican, said the photograph disturbed him. “It looks a little loose to me,” he said, of the smiling officials.

“I share your concern,” said Bowen.

from the article US Was Big Spender in Days Before Iraq Handover