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Iraq-Jordan
Iraqi, Not U.S., Cash Spent on Rebuilding
2004-07-04
The U.S. government has spent 2 percent of an $18.4 billion aid package that Congress approved last year after the Bush administration called for a quick infusion of cash into Iraq to finance reconstruction, according to figures released Friday by the White House.
This a WP hit piece. It gives the impression that the CPA was incredibly inept. It does so by implying that money disbursed is the same as money obligated. They are either incredibly ignorant or incredibly mendacious. Take your pick.
Only $366 million of the $18.4 billion U.S. aid package had been spent as of June 22, the White House budget office told Congress in a report that offers the first detailed accounting of the massive reconstruction package. U.S. officials involved in the reconstruction blame security concerns and bureaucratic infighting between the Pentagon, the State Department and the White House for delays in the allocation of funds. By the time the Pentagon’s contracting office in Baghdad began awarding contracts, the risk of kidnapping and other attacks aimed at foreign workers was so dire that many projects never began. Several Western firms that won contacts have summarily withdrawn their employees from Iraq.
More WaPo spin. See, the idea is that the US is incompetent. Actually, the key measure of the amount of funds on contract is not mentioned.
Fewer than 140 of the 2,300 reconstruction projects that were to be funded with the U.S. aid package are underway, the officials said. Officials with the contracting office contend the amount of money actually spent does not reflect the full scope of work being performed. A more accurate figure, they said, is the amount of money allocated for reconstruction work. Just over $5.2 billion had been allocated as of June 22, according to the White House budget report. "The money that is disbursed is typically not disbursed until the work is completed, so it doesn’t give the best picture of what’s going on," said John Proctor, a spokesman for the contracting office. "Some of our projects take months, or even years, to complete."

Spending patterns have been different with the Iraqi money. The Coalition Provisional Authority, the now-dissolved U.S.-led occupation administration, spent or locked in for future programs more than $19 billion from the $20 billion Development Fund for Iraq, which was established by the U.N. Security Council to manage Iraq’s oil revenue, said Joseph A. Christoff, director of international affairs and trade at the General Accounting Office, the watchdog arm of Congress. Two former CPA officials involved in contracting issues said the CPA spent money from the development fund faster because it was not governed by the same rules requiring competitive bidding as the money from Congress was.
Posted by:RWV

#1  I'll take "incredibly mendacious" for $200, Alex.
Posted by: Barbara Skolaut   2004-07-04 12:30:38 AM  

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