July 28, 2010Accountants called in to track missing Iraq funds
Senior officials criticised for poor book-keeping
The US Department of Defence has called in forensic accountants to help track $8.1bn (£5.2bn) of $9.1bn in Iraq’s oil revenue entrusted to it after the fall of Baghdad, following an official audit that revealed the money is missing.
The funds were to be used for spending on reconstruction from 2004-07, when the country was under transitional rule, reports The Guardian.
The report was issued by the Special Inspector for Iraq Reconstruction, which has criticised poor book-keeping by senior officials in the past seven years.
Iraq officials they knew nothing about the missing billions and had no means of finding out where they had been spent.
The Pentagon pledged to undergo a process of ‘archival accounting’ to track missing funds, some of which is thought to be the result of shoddy book-keeping.
However, the audit could not find any documentation to substantiate how the Pentagon spent $2.6bn.
An additional $53bn has been allocated by Congress to rebuilding Iraq and the audit committee is examining whether those funds can be accounted for.
http://www.accountancymagazine.com/croner/jsp/Editorial.do?channelId=-305535&contentId=1627326
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