· Projects behind schedule despite massive outlay
· Roadside bomb kills 3 contractors, wounds 2
A US congressional inspection team set up to monitor reconstruction in Iraq today publishes a scathing report of failures by contractors, mainly from the US, to carry out projects worth hundreds of millions of dollars. In one case, the inspection team found that three years after the invasion only six of 150 health centres proposed for Iraq had been completed by a US contractor, in spite of 75% of the $186m (£100m) allocated having been spent.
The report says: "Fourteen more will be completed by the contractor, and the remaining facilities, which are partially constructed, will have to be completed by other means." The inspectors blame the failure in this instance on management problems and security concerns. The danger facing foreigners in Iraq was highlighted yesterday when a roadside bomb 30 miles south of Baghdad killed three private security firm staff and wounded two others. One of the wounded is British, the Foreign Office said.
The detailed and lengthy report on work projects in Iraq has been drawn up by Stuart Bowen, the special inspector general for Iraq reconstruction (Sigir). Mr Bowen's office was set up after Congress expressed concern about the slow rate of reconstruction and the misuse of funds on a massive scale. The report says Mr Bowen's inspection team is investigating 72 cases of alleged fraud and corruption, and is pursuing leads not only in the US but in Europe and the Middle East.
In March, investigators conducted a successful sting operation which led to the arrest of a contractor who offered a bribe to one of its undercover agents. The report says many completed projects "have delivered positive results, but there exists a gap between US project outputs and the delivery of essential services to Iraqis". While progress has been made in the construction of schools and police stations, many Iraqis still have no access to clean water, and electricity supplies in Baghdad are still below pre-invasion levels. The inspectors say that economic recovery is being hampered by the failure to restore Iraq's oil production to levels before 2003. The report says that corruption in the oil and gas sector is a continuing problem that could have "devastating effects" on reconstruction in Iraq.
more
http://www.guardian.co.uk/Iraq/Story/0,,1765048,00.html