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Special IG for Iraq Reconstruction – July 2012 Quarterly Report and Semiannual Report

Office of the Special Inspector General for Iraq Reconstruction, July 2012: Quarterly Report and Semiannual Report To Congress – “SIGIR has published 214 audits since 2004.”

  • “U.S. Agencies’ Reviews of Contractor Business Systems. In its review of the U.S. government’s monitoring of the business system used by DoD contractors that operated in Iraq from 2004 to 2011 (and whose work amounted to less than $100 million annually), SIGIR found multiple oversight gaps. For example, U.S. agencies reviewed one or more of the four key business systems used by 21 of the 35 contractors included in SIGIR’s sample. Of these, however, the government reviewed all 4 key systems for only 5 of the contractors.
  • SIGIR Forensic Audit Findings. Pursuant to the congressional mandate of P.L. 108-106, as amended, this report summarized how SIGIR’s oversight work has found serious weaknesses in the U.S. government’s controls over Iraq reconstruction funds, thereby placing billions of taxpayer dollars at risk of being wasted, misused, or stolen. Although the precise amount lost to waste and fraud can never be known because of gaps in the financial and management data, SIGIR believes it is significant.”
  • Against this backdrop of continued violence in a nation also stressed by political turmoil, the Department of State (DoS) announced several significant changes this quarter to the size and scope of its efforts in Iraq. These include the closure of the U.S. consulate in Kirkuk, the cessation of all Police Development Program (PDP) activities in Basrah, the departure of police advisors from the largest PDP site in Baghdad, and the continued downsizing of the number of U.S. civilian and contractor personnel in Iraq.”

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