Auditors: Billions wasted in Iraq war

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By HOPE YEN, Associated Press Writer 8 minutes ago

WASHINGTON - The U.S. government is at risk of squandering significantly more money in an Iraq war and reconstruction effort that has already wasted or otherwise overcharged taxpayers billions of dollars, federal investigators said Thursday.

According to their testimony, the investigators:

_Found overpricing and waste in Iraq contracts amounting to $4.9 billion since the Defense Contract Audit Agency began its work in 2003, although some of that money has since been recovered. Another $5.1 billion in expenses were charged without proper documentation.

_Urged the
Pentagon to reconsider its growing reliance on outside contractors to run the nation's wars and reconstruction efforts. Layers of subcontractors, poor documentation and lack of strong contract management are rampant and promote waste even after the GAO first warned of problems 15 years ago.

_Pointed to growing Iraqi sectarian violence as a significant factor behind wasted U.S. dollars. Iraqi officials must begin to take primary responsibility for reconstruction efforts, an uncertain goal given widespread corruption in Iraq and the local government's inability to fund projects.

Rep. Henry Waxman (news, bio, voting record), D-Calif., who chairs the panel, has pledged scores of investigations of fraud, waste and abuse — with subpoenas if necessary — on the Bush administration's watch. He decried the overpricing identified by the DCAA, a figure that has tripled since last fall.

Of the $10 billion in overpriced contracts or undocumented costs, more than $2.7 billion were charged by Halliburton Co., the oil-field services firm once headed by Vice President
Dick Cheney.

http://news.yahoo.com/s/ap/20070215/ap_on_go_ot/iraq_reconstruction_waste;_ylt=A0WTUcixiNRFTjYAgCGyFz4D
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