100 Fraud Claims Probed

U.S. investigators have opened more than 100 cases this year into alleged abuse involving the billions of dollars in U.S. and Iraqi funding to rebuild Iraq, says an auditors’ report that is to be released today.

The report says most allegations involve fraud, waste and abuse of funds, and 40% are linked to reprisals, theft and other issues. It says 75 cases have been closed or referred to other U.S. agencies and 38 remain open.

The report was prepared for Congress by the inspector-general’s office of the Coalition Provisional Authority, the U.S. occupying power dissolved in June.

The inspector-general’s office said it expected to release an audit this month on the CPA’s handling of money from the Development Fund for Iraq.

The fund includes proceeds from Iraqi oil sales, frozen assets from foreign governments and surplus money from the U.N. “oil-for-food” program.

A leaked draft of that audit says at least $8.8 billion in Iraqi funds given to Iraqi ministries by the CPA cannot be accounted for.

In addition to the CPA investigations, the FBI has at least five open and pending cases involving Iraq, with two recent ones focusing on public corruption and government fraud, the report says. It gives no details.