Watchdog: Corruption Hinders US-Funded Reconstruction Projects

AP

The latest audit report to Congress on Iraq reconstruction says corruption in the country, including fraud, theft and skimming amounts to a “second insurgency” is hindering the rebuilding effort.

Stuart Bowen, who wrote the quarterly report, tells The Associated Press that except for security, corruption is the biggest challenge for the Iraqi government to overcome.

Failure to maintain projects, once transferred to the Baghdad government, also figures in the report. As an example, an Iraqi power plant in Dora rebuilt with tens of millions of U.S. dollars fell into disrepair once transferred to the Baghdad government.

Bowen also notes bright spots like increased oil production. And Iraq is generating more electricity despite problems at the Dora plant.

Bowen says it’s still too early to say whether the rebuilding effort will produce lasting results.