WASHINGTON - Defense Department investigators said Tuesday they are going to
be more aggressive suspending or barring companies from doing US contract work
in Iraq if they are involved in war profiteering there.
![](xin_0903042110565932866545.jpg) A woman carries her child through the ruins of Saddam
Hussein's Republican guard barracks destroyed in the early stages of the
US led invasion on Iraq, in Baghdad, Iraq, Tuesday, March 20, 2007, on the
fourth anniversary of the invasion. [AP]
![](http://www.chinadaily.com.cn/image_e/insertphotomore.gif) |
Stuart Bowen, special inspector
general for Iraq reconstruction, said taking such action is an effective tool,
particularly when auditors are struggling to come up with enough detailed
evidence for criminal prosecutions.
Bowen's comments came in testimony before the Senate Judiciary Committee, as
lawmakers complained that assessing fines is not enough to stop the billions of
dollars in waste, fraud and abuse plaguing Iraq reconstruction projects.
Auditors last month told Congress that about $10 billion has been squandered by
the US government on Iraq reconstruction aid because of contractor overcharges
and unsupported expenses.
The US has appropriated more than $38 billion for Iraq relief and
reconstruction, including some money for security forces and economic programs,
according to the latest quarterly report from the special inspector general,
released in January.
Fining companies a million dollars, said Sen. Arlen
Specter , R-Pa., can simply amount to "an inexpensive license to cheat the
taxpayers."
"This really is the cost of doing business," said Specter, noting that the
fraud can often be in the hundreds of millions of dollars.
According to Army spokesman Dave Foster, eight individuals or companies have
been barred from doing business with the Army, and another eight have been
proposed for debarment. Foster also said that as of Jan. 30, 16 companies or
individuals have been suspended from doing business, based on allegations of
fraud and misconduct connected to Iraq reconstruction contracts.
Bowen said that such administrative action against those who commit
misconduct can strip them of security clearances.
Iraqi officials are also investigating as many as 2,000 cases of fraud,
amounting to about $8 billion in unaccounted for Iraqi construction funds, he
said.
Committee Chairman Patrick Leahy , D-Vt., said more
controls are needed over how billions of dollars for Iraq reconstruction is
spent and that the Justice Department needs to move more aggressively in
prosecuting fraud in Iraq.
Deputy Assistant Attorney General Barry Sabin said his agency is devoting
significant resources to the effort, but he would not say how many investigators
are working full time on the Iraq fraud cases. He said the prosecutions are
complicated, and he would not say how many more people will be charged this
year.
So far, he said, 16 people have been convicted in connection with fraud,
kickbacks or other contracting violations.
Leahy is pushing legislation that would make war
profiteering a specific crime and would apply to all contract fraud, whether it
occurs in the United States or overseas.