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Corruption Shadows Iraq Rebuilding

US investigates dozens of fraud cases as pricey projects disintegrate

By Heather McPherson,  Newser User

Posted Jul 30, 2007 2:48 PM CDT

(Newser) – US auditors monitoring the rebuilding process in Iraq are battling forces they compare to "a second insurgency"—corruption and economic mismanagement. The Iraqi government is refusing to handle reconstruction projects worth billions of dollars, and US officials are now investigating more than 50 fraud cases, the BBC reports.

Stuart Bowen, the inspector general overseeing Iraq reconstruction, describes the corruption as endemic and an "enemy to democracy." Last year, Iraq PM Nouri al-Maliki's government nearly exhausted its budget allocation for salaries but spent less than a quarter of the money set aside for rebuilding projects.

ncies said Monday. Those Iraqis are in urgent need of water, sanitation, food and shelter, said the report by Oxfam and the NGO Coordination Committee network in Iraq.(AP Photo/Wisam Sami)
ncies said Monday. Those Iraqis are in urgent need of water, sanitation, food and shelter, said the report by Oxfam and the NGO Coordination Committee network in Iraq.(AP Photo/Wisam Sami)   (Associated Press)
Iraqi soldier shoots in the air as people, waving Iraqi flag, celebrate in streets of central Baghdad, Iraq, Sunday, July 29, 2007. Iraqi national soccer team defeated Saudi Arabia 1-0 in the Asian Cup soccer final played in Jakarta. (AP Photo/Khalid Mohammed)
Iraqi soldier shoots in the air as people, waving Iraqi flag, celebrate in streets of central Baghdad, Iraq, Sunday, July 29, 2007. Iraqi national soccer team defeated Saudi Arabia 1-0 in the Asian Cup...   (Associated Press)
Rear Adm. Mark I. Fox, Deputy Spokesman for Multinational Force-Iraq, front, and Maj. Gen. David Edgington, director, Air Component Coordination Element, Multi-National Force-Iraq are seen on Monday, July 30, 2007 during a news conference at the heavily fortified Green Zone area in Baghdad, Iraq.( AP Photo/ Pool)
Rear Adm. Mark I. Fox, Deputy Spokesman for Multinational Force-Iraq, front, and Maj. Gen. David Edgington, director, Air Component Coordination Element, Multi-National Force-Iraq are seen on Monday,...   (Associated Press)
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