By Glenn Kessler
Washington Post Staff Writer
Friday, November 16, 2007; Page A28
The Justice Department is conducting a criminal probe into the awarding of the contract and related subcontracts in the troubled construction of the massive $736 million U.S. Embassy in Baghdad, according to sources and congressional testimony this week.
The probe came to light Wednesday during a House Oversight and Government Reform Committee hearing into the actions of State Department Inspector General Howard J. Krongard. Though lawmakers appeared careful not to mention names of people under investigation, Krongard mentioned two people during his testimony, both of whom are key figures in the building of the embassy, as he defended his practice of meeting with people under investigation.
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Krongard also said Justice has "three investigations" involving Iraq, apparently referring to previously reported probes into alleged labor trafficking by First Kuwaiti General Trading & Contracting Co. -- the construction company awarded the embassy contract -- and alleged weapons smuggling by Blackwater Worldwide, which supplies security for the State Department.
A Justice Department spokesman declined to comment.
The embassy, which will be the largest U.S. diplomatic mission in the world, was originally budgeted at $592 million. But, amid accusations of poor planning and workmanship, the State Department recently announced that additions and changes to the original design will add $144 million to the cost.
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