(From the "news we seemed to have missed" file and the AP/Chicago Tribune)
Audit: U.S. forced to cancel projects, divert funds into securityBy Jim Krane
Associated Press
Published February 2, 2006
DUBAI, United Arab Emirates --
American goals to repair Iraq's infrastructure will never be reached, in part because American intelligence failed to predict the country's potent insurgency, a U.S. government audit said.
Guerrilla attacks in Iraq have forced the cancellation of more than 60 percent of water and sanitation projects, mainly because insurgents have chased away contractors and forced the diversion of repair funds into security, according to an audit of the Iraqi Relief and Reconstruction Program released last week.
It is the latest in a series of auditing reports being issued by the special inspector general for Iraq reconstruction. An earlier report uncovered extensive fraud and incompetence involving millions of dollars. The latest report focuses on the complications caused by lack of security, saying that the rise of Iraq's insurgency was never envisioned by U.S. officials, who originally budgeted about 9 percent of reconstruction aid for project security.
As kidnappings, killings and sabotage drove local laborers and foreign technicians from the reconstruction program, U.S. administrators were forced to step up protection for workers. New measures such as armored vehicles, private security teams and blast walls absorbed as much as 22 percent of project costs, according to the audit. "The whole purpose of those attacks was to drive those contractors out," said Wayne White, who headed the State Department's Iraq intelligence team until last year. "Lots of them had to leave. They were terrified."
Planners "envisioned a much more permissive security environment than that experienced in 2004 and 2005. The Iraq insurgency has directly affected the cost of the reconstruction projects, increased the cost of materials and created project delays," the audit found. Pre-invasion U.S. intelligence reports said guerrilla attacks were likely, White said.
(more at link below)
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