![]() BOWEN: Well, they didn't have much to say because the lack of records spoke volumes, and the investigators are now talking to them and those who've worked on this and are learning much more. INSKEEP: What did the US government officials and these contractors have to say for themselves when you came and asked them about this? And so there was a push to execute projects with Development Fund for Iraq funds. BOWEN: Well, that was certainly the policy spring of '04 and the summer of '04 because the turnover was coming on June 30th, and with that, the sovereignty over the Development Fund for Iraq would also turn over to the Iraqi government. The lives of American soldiers and the future of the project in Iraq could be at stake here. INSKEEP: When you say rapid response construction, this is a situation where it's an unstable city and American officials want to spend a lot of money in the community rather quickly in order to build up good will. In other words, they were sent to Hillah to accomplish quick-turn projects like, for instance, a police station in Karbala or a library in Hillah, and we found out that not only were the projects not completed, the money that was allocated for these projects is missing. BOWEN: These were rapid response construction dollars. INSKEEP: Let's talk about what the contractors were supposed to be doing. That's an ongoing case that is with the Department of Justice. BOWEN: I'm not at liberty to identify those now. INSKEEP: Is this fraud on the part of US government officials or on the part of American contractors? And unfortunately there were possible fraudulent activities occurring. It was the Iraqi oil revenue money that the Coalition Provisional Authority was in charge of administering. BOWEN: No, it's Development Fund for Iraq money. INSKEEP: So this is $7 million of US government money. There were $7 million in Development Fund for Iraq money for which there was no accountability, no records. We did in our last quarterly report identify issues in Hillah, a town about 90 miles south of Baghdad. BOWEN: In our latest report, we've looked at four water projects, and as you might expect, the results are all over the map. INSKEEP: Can you talk us through a specific project that has caught your attention and what you found in recent months? A thousand more are ongoing and thus, oversight is a necessary component now more than ever. STUART BOWEN (Special Inspector General for Iraq Reconstruction): The reconstruction program is peaking. His last report on reconstruction pointed to criminal activity, waste and fraud among US contractors in Iraq. Stuart Bowen's aggressive analysis has surprised both supporters and opponents. ![]() Bush's first gubernatorial campaign team talked with Steve Inskeep about rebuilding work in Iraq and whether US taxpayers are getting their money's worth. I'm Renee Montagne, with Steve Inskeep.Ī special inspector general who is reviewing reconstruction in Iraq is set to release a new report this weekend.
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