Posts Tagged ‘shrink-wrapped $100 bills’

The billions nobody bothered to keep track of

October 16, 2014

Between $1.2 billion and $1.6 billion in shrink-wrapped $100 bills, earmarked for Iraq reconstruction, reportedly turned up in a bunker in Lebanon, along with $200 million in Iraqi gold.

bagdad-money-palette-300x200

“Bricks” of cash in Baghdad

Stuart Bowen, a special inspector general appointed by President Bush to keep track of waste and corruption in Iraq, reported that he has been unable to persuade anybody in either the U.S. or Iraqi governments to check it out.  The U.S. embassy in Beirut denied him permission to go to Lebanon to look for himself.

The stacks of money are part of $12 billion to $14 billion in shrink-wrapped “bricks” of currency, provided by the Federal Reserve Bank.  The money was flown to Iraq on wooden pallets, to be handed out as needed. An additional $5 billion was sent via electronic transfer.

Bowen said most of the money was probably spent for legitimate purposes, but $6.6 billion is unaccounted for.  This is a staggering amount.

Notice the $2 billion margin for error in the estimate of what was sent.  That, too, is a staggering amount.

Why the lack of interest in what become of the money?

One possible explanation is that the U.S. government and the Iraqi government have a very good idea of who got the money, and don’t want it made known to the public.

Another is that they don’t know, and don’t want the public to be reminded that they don’t know.

 LINKS

Billions set aside for post-Saddam Iraq turned up in Lebanese bunker by Rory Carroll for The Guardian.

$1.6 billion in Iraqi cash seized in Lebanon by Ahmed Hussein for Iraqi News.  A good article with an inaccurate headline. The money was never seized and nobody knows whether it is still there.

Special Report: The Pentagon’s doctored ledgers conceal epic waste by Scot J. Paltrow for Reuters.  The bigger picture is that it’s simpler for the Defense Department to order new stuff than keep track of what they’ve got.  Hat tip for this link to Peter Van Buren.  He also had a post on the Lebanon bunker, but for some reason I can’t link to the post.  I’ll add the link when and if I can.

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“The biggest theft of funds in national history”

“The largest theft of funds in national history”

June 14, 2011

The Los Angeles Times reported that the U.S. Defense Department officials still can’t account for $6.6 billion in Iraq reconstruction funds – some of it distributed in shrink-wrapped pallets of $100 bills.  Some or all of it may have been stolen, the Pentagon says.

It wasn’t American money.   The $6.6 billion came out of Iraq oil sales, seized Iraqi assets and surplus funds from the United Nations oil-for-food program, and not from the $61 billion appropriated by Congress for Iraq reconstruction.

After the U.S.-led invasion of Iraq in March 2003, the George W. Bush administration flooded the conquered country with so much cash to pay for reconstruction and other projects in the first year that a new unit of measurement was born.

Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $2.4 billion in shrink-wrapped bricks of $100 bills.  They sent an initial full planeload of cash, followed by 20 other flights to Iraq by May 2004 in a $12-billion haul that U.S. officials believe to be the biggest international cash airlift of all time.

This month, the Pentagon and the Iraqi government are finally closing the books on the program that handled all those Benjamins.  But despite years of audits and investigations, U.S. Defense officials still cannot say what happened to $6.6 billion in cash — enough to run the Los Angeles Unified School District or the Chicago Public Schools for a year, among many other things.

For the first time, federal auditors are suggesting that some or all of the cash may have been stolen, not just mislaid in an accounting error.  Stuart Bowen, special inspector general for Iraq reconstruction, an office created by Congress, said the missing $6.6 billion may be “the largest theft of funds in national history.”

via latimes.com.

The excuse for the haste was the urgency of getting reconstruction started.   The excuse might have some merit if reconstruction had actually taken place.

Rep. Henry A. Waxman of California, the senior Democrat on the House Government Reform Committee, deserves credit for his perseverance in investigating this scandal.  But I think it is safe to predict that no individual is going to be held accountable, and nobody’s career will suffer.

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