The stunning debacle on Iraq ‘reconstruction’

I’d seen a few initial reports last year on the breathtaking fraud and mismanagement with Iraqi reconstruction funds, but I honestly can’t wait to hear the vaunted Bush political operation try and spin results like these.

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.

The audit, released yesterday by the office of the Special Inspector General for Iraq Reconstruction, expands on its previous findings of fraud, incompetence and confusion as the American occupation poured money into training and rebuilding programs in 2003 and 2004. […]

Agents from the inspector general’s office found that the living and working quarters of American occupation officials were awash in shrink-wrapped stacks of $100 bills, colloquially known as bricks.

One official kept $2 million in a bathroom safe, another more than half a million dollars in an unlocked footlocker. One contractor received more than $100,000 to completely refurbish an Olympic pool but only polished the pumps; even so, local American officials certified the work as completed. More than 2,000 contracts ranging in value from a few thousand dollars to more than half a million, some $88 million in all, were examined by agents from the inspector general’s office.

There’s more in the article; it’s rather stunning.

I wanted to add some context, however, that the NYT didn’t get to. The office of the Special Inspector General for Iraq Reconstruction has been led by Stuart Bowen. When the White House tapped Bowen for the job in January 2004, Bush critics were deeply disappointed — Bowen was widely recognized as a close Bush ally, so few expected him to be thorough and aggressive.

The critics were wrong.

As Bush confidants go, Bowen was in tight. He was a senior member of Bush’s gubernatorial campaign team in 1994, he served alongside Alberto Gonzales in Bush’s office in Austin, and during the Florida recount debacle in 2000, it was Bowen who spent 35 days in the state, serving as deputy counsel to the Bush transition team. From there, Bowen was an associate counsel in Bush’s White House before becoming a powerful DC lobbyist. For Dems hoping for a strong, independent voice to exercise real oversight of Iraqi reconstruction, Bowen’s resume offered little encouragement.

And yet, as the NYT report makes clear, Bowen has not only taken his job as inspector general seriously, he’s been the leading figure in exposing fraud and corruption. The Wall Street Journal reported in July that Bowen “has become one of the most prominent and credible critics of how the administration has handled the occupation of Iraq,” and considering his record, it’s a more-than-fair description. The guy even took on Halliburton.

In a November 2004 report, Mr. Bowen took on the big contractor Halliburton Co. in two separate reports. He urged the Army to withhold nearly $90 million in payments to Halliburton because the company couldn’t justify what it had charged the government. The report added that “weakness in the cost-reporting process” was such a problem that his investigators couldn’t do a standard audit of Halliburton’s bills to the CPA.

I’m left with the impression that giving Bowen this job is about the only thing the White House has done right in Iraq since the war began.

What else to expect from the “CEO” administration. Iraq is the Enron (or insert your own US corporate scandal company here) of the Middle East.

  • A Bush style “screw up” is to actually select someone in a position of public trust who will honestly accept that responsibility over cronie loyalty.
    So that’s why he really meant it when he said,
    “Brownie, you’re doing a heck of a job.”
    Bush appointees are NOT supposed to follow the job description.

  • First Bowen will feel an immedate and urgent need to spend more time with his family. Then an unqualified bootlick (possibly a K-Street Haliburton lobbyist?) will be appointed to take over and review the work thus far. He will conclude that Bowen was wrong and that in fact it is all Bill Clinton’s fault. Que Bill O’Reilly. Mission Accomplished!

  • I’m left with the impression that giving Bowen this job is about the only thing the White House has done right in Iraq since the war began. —– Done right by total accident, however.

    This is probably a case of yet another person who once believed in what these people claimed they would do when in office, and is now disillusioned to the point that he is happy to turn on them. We’ll here many more of those soaring powerful plans too in the STOU, and rest assured, they will all come to naught as well.

  • When read this article I was reminded of the story of Saddam, or perhaps it was one of his sons, running around Iraq with suitcases full of money.

  • It’s a sad thing. We blow up their country, then we promise to rebuild ( which is proudly pounded into the U.S. population about how godly and good we are ) except those rotten liberals don’t believe it. Then we hand out money to the Bush cronies like a drunken sailer. Bush is such a godly and great man. This Bowen guy has got to be in trouble. Do you think we will hear about any of this in Bush’s speech?

  • Cue the right-wing smear campaign accusing Bowen of being a Dem hack as well as a child molester. Bush will announce that he’s doing “a heck of a job”, and, despite great success and interest in an engaging job, Bowen will mysteriously tender his resignation to pursue more time with his family. Followed by a tell-all insider book ala Paul O’Neill and Richard Clarke about how he was stymied and shoved out by the administration who wasn’t interested in governing so much as playing politics.

  • LOL, I should have known I wasn’t the only one to think of that. Sorry, kali and MNProgressive.

    It’s sad to see that, as hard as Bush tries to fill government with completely incompetent partisan hacks, sometimes some honest civil servants sneak in, and more sad to see that they keep getting singled out for being too competent and not partisan enough.

  • Stuart’s not kidding around, either. From last October:

    Bowen’s office, which has 20 auditors and 10 investigators in Iraq plus staffers in the United States, has made significant progress on cases charging fraud, bribery and kickbacks involving U.S. citizens — government officials and contractors — in Iraq, he said.

    The report said investigators had gathered ‘an enormous amount of evidence’ in these investigations but gave no details on any possible indictments.

    Bowen said his office, created by Congress in November 2003 to oversee the Iraq Reconstruction and Relief Fund, recently transferred $2 million to the Justice Department to fund prosecution efforts, and four prosecutors were now working full-time on Iraq reconstruction cases.

    From last November:

    In what is expected to be the first of a series of criminal charges against officials and contractors overseeing the rebuilding of Iraq, an American has been charged with paying hundreds of thousands of dollars in bribes and kickbacks to American occupation authorities and their spouses to obtain construction contracts, according to a complaint unsealed late yesterday.

    The first in a series? Get out your comfy chair.

  • CB,

    Do you have a list of ex-Bush admin officials that got the axe (resigned) for being too competent, or at least calling Bush out on issues?

    I can think of a few off the top of my head:

    Christine Todd Whitman, EPA http://www.chron.com/disp/story.mpl/editorial/3604524.html

    Paul O’Neill, Treasury Secretary
    http://www.opensecrets.org/bush/cabinet/cabinet.oneill.asp

    Larry Lindsey, Economic Advisor
    http://www.j-bradford-delong.net/movable_type/archives/001234.html

    Flynt Leverett, Senior Director for Mid-East Affairs
    http://www.democracynow.org/article.pl?sid=04/04/02/1516227

    Any more??

  • The difference between Bowen and the other Administration officials who saw the light, such as Clarke, O’Neill, Whitman, Shinseki, etc., is that these other officials were reasonably nonpartisan professionals not close to the President, while Bowen was a true insider, albeit a competent one (after all, he helped Bush grab the 2000 election).

    So:

    Did Bowen have a genuine epiphany? Has he come over from the Dark Side?

    Or was the sheer volume of corruption and mendacity so great that even the most hardened Bush crony could not avoid dealing with it?

    Are there any articles out there titled something like “The Long Strange Journey of Stuart Bowen” that could perhaps fill us in?

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