Development Fund for Iraq: U.S. Army Corps of Engineers Has Missing Receiving Reports and Open Task Orders
Abstract
The Coalition Provisional Authority (CPA) was established in May 2003 to provide for the temporary governance of Iraq following the conclusion of major combat operations in that country. United Nations Security Council Resolution 1483 created the Development Fund for Iraq (DFI) in May 2003 and assigned the CPA full responsibility for managing the fund. Resolution 1483 specified the DFI should be used in a transparent manner and for: (1) the humanitarian needs of the Iraqi people, (2) the economic reconstruction and repair of infrastructure, (3) the continued disarmament of Iraq, (4) the costs of civilian administration, and (5) other purposes benefiting the Iraqi people. The DFI accrued revenues from ongoing Iraqi oil and gas sales, unencumbered Oil for Food deposits, and repatriated national assets. Federal Reserve Bank of New York (FRBNY) records show that the U.S. Army Corps of Engineers (USACE) received about $2.4 billion in DFI funds that were electronically transferred from the DFI main and sub-accounts for reconstruction activities in Iraq. Most of these funds were provided in the form of reimbursements for money USACE paid to contractors for completed work. A much smaller amount was provided to USACE in advance of contractors submitting claims or invoices for work performed.1 Background Four DFI-funded contracts accounted for about $2.3 billion, or 96%, of the funds USACE received. SIGIR initiated this audit to determine whether: (1) USACE properly accounted for the $2.4 billion in DFI funds it received for reconstruction activities in Iraq, (2) USACE properly managed the contract closeout process for the DFI-related task orders that it administered, and (3) contractors completed work as planned under the DFI-funded contracts.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 26, 2012
- Accession Number
- ADA570437
Entities
People
- Benjamin H. Comfort
- James Shafer
- L. M. Welsh
- M. G. Knoepfle
Organizations
- Special Inspector General for Iraq Reconstruction