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Audits say $100M in Iraqi funds missing due to US mismanagement or fraud

[JURIST] US audits released Wednesday show that at least $100 million dollars from the Development Fund for Iraq [CPA backgrounder] are unaccounted for due to mismanagement or possible fraud. The US Special Inspector General for Iraq Reconstruction [SIGAR website] filed two audit reports pinpointing flaws in the US handling of Iraqi money from oil sales after the 2003 Iraq war, including contracters paid twice, misplaced files, and cash payments that were not recorded properly; problems magnified by Iraq's lack of proper banking and the resultant abundance of cash transactions. A January SIGIR report [PDF text] also attacked US handling of Iraqi funds, after at least $8.8 billion dollars was unaccounted for, spawning an investigation which is still ongoing. Iraq Revenue Watch, an initiative of George Soros' Open Society Institute, has attempted to track the mismanagement of the Development Fund for Iraq and has a comprehensive listing of past reports. Reuters has more.

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