Pentagon Violated Federal Rules Giving Taxpayers' Money to War Profiteers

Under the Bush administration, which has pushed US debt into the trillions of dollars stratosphere, the Pentagon had carte blanche to throw away American taxpayers' hard earned money without required documentation giving it to corporate crony war profiteers and other Americans, Iraqis, and foreign nationals.  It's like a free for all at the government trough.

Instead of being greeted with strewn flowers during the illegal invasion of Iraq, the Bushites were throwing billions of American taxpayers' dollars to greedy contractors and anyone standing in line to make big time fraudulent profits.

This was a crime of gigantic proportions.

The NYTimes reports: "A Pentagon audit of $8.2 billion in American taxpayer money spent by the United States Army on contractors in Iraq has found that almost none of the payments followed federal rules and that in some cases, contracts worth millions of dollars were paid for despite little or no record of what, if anything, was received.

"The audit also found a sometimes stunning lack of accountability in the way the United States military spent some $1.8 billion in seized or frozen Iraqi assets, which in the early phases of the conflict were often doled out in stacks or pallets of cash. The audit was released Thursday in tandem with a Congressional hearing on the payments.

"In one case, according to documents displayed by Pentagon auditors at the hearing before the House Committee on Oversight and Government Reform, a cash payment of $320.8 million in Iraqi money was authorized on the basis of a single signature and the words “Iraqi Salary Payment” on an invoice. In another, $11.1 million of taxpayer money was paid to IAP, an American contractor, on the basis of a voucher with no indication of what was delivered.

"Mary L. Ugone, the Pentagon’s deputy inspector general for auditing, told members of the committee that the absence of anything beyond a voucher meant that 'we were giving or providing a payment without any basis for the payment.'

“ 'We don’t know what we got,' Ms. Ugone said in response to questions by the committee chairman, Henry A. Waxman, Democrat of California.

"The new report is especially significant because while other federal auditors have severely criticized the way the United States has handled payments to contractors in Iraq, this is the first time that the Pentagon itself has acknowledged the mismanagement on anything resembling this scale.

"The disclosure that $1.8 billion in Iraqi assets was mishandled comes on top of an earlier finding by an independent federal oversight agency, the Special Inspector General for Iraq Reconstruction, that United States occupation authorities early in the conflict could not account for the disbursement of $8.8 billion in Iraqi oil money and seized assets.

“ 'This report is further documentation of the fact that the United States had absolutely no preparation to use contracting on the scale that it needed either at the military or aid level in going to war in Iraq,' said Anthony H. Cordesman of the Center for Strategic and International Studies in Washington.

"The Pentagon report, titled “Internal Controls Over Payments Made in Iraq, Kuwait and Egypt,” also notes that auditors were unable to find a comprehensible set of records to explain $134.8 million in payments by the American military to its allies in the Iraq war.

"The mysterious payments, whose amounts had not been publicly disclosed, included $68.2 million to the United Kingdom, $45.3 million to Poland and $21.3 million to South Korea. Despite repeated requests, Pentagon auditors said they were unable to determine why the payments were made.

“ 'It sounds like the coalition of the willing is the coalition of the paid — they’re willing to be paid,' said Mr. Waxman, who later in the day introduced what he called a “clean contracting” amendment to a defense authorization bill being debated on the House floor. The amendment, which was accepted by voice vote, would institute a number of reforms, including new whistleblower protections and requirements on competitive bidding.

"According to the report, the Army made 183,486 “commercial and miscellaneous payments” from April 2001 to June 2006 from field offices in Iraq, Kuwait and Egypt, for a total of $10.7 billion in taxpayer money. The auditors focused on $8.2 billion in so-called commercial payments to contractors — American, Iraqi and probably other foreign nationals — although the report does not give details on the roster of companies.

"When the results were compiled, they revealed a lack of accountability notable even by the shaky standards detailed in earlier examinations of contracting in Iraq.

"In another case, $6,268,320.07 went to the contractor Combat Support Associates with even less explanation. And a scrawl on another piece of paper says only that $8 million had been paid out as “Funds for the Benefit of the Iraqi People.”

The Pentagon needs a good housecleaning to sweep out Bush appointees and their followers, and there should be prosecutions of those who committed these extreme violations of Federal rules.

Bush's politicized Pentagon was led Donald Rumsfeld and filled with other Bushite loyalist, law breaking appointees.  They perpetrated a massive fraud on the American people and the buck stops with the worst president ever.

So, when does the impeachment begin?  It's way past time.

 

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