Boston Globe: US firms suspected of bilking Iraq funds

[Eugene]

US firms suspected of bilking Iraq funds

Millions missing from program for rebuilding

By Farah Stockman, Globe Staff | April 16, 2006

WASHINGTON -- American contractors swindled hundreds of millions of dollars in Iraqi funds,
but so far there is no way for Iraq's government to recoup the money, according to US
investigators and civil attorneys tracking fraud claims against contractors.

Courts in the United States are beginning to force contractors to repay reconstruction funds
stolen from the American government. But legal roadblocks have prevented Iraq from recovering
funds that were seized from the Iraqi government by the US-led coalition and then paid
to contractors who failed to do the work.

<snip>

In addition, an Iraqi law created by the Coalition Provisional Authority days before it ceded
sovereignty to Iraq in June 2004 gives American contractors immunity from prosecution in Iraq.

"In effect, it makes Iraq into a 'free-fraud zone,' " said Alan Grayson, a Virginia attorney
who is suing the private security firm Custer Battles in a whistle-blower lawsuit filed
by former employees. A federal jury last month found the Rhode Island-based company liable
for $3 million in fraudulent billings in Iraq.

<snip>

Full article: http://www.boston.com/news/world/middleeast/articles/2006/04/16/us_firms_suspected_of_bilking_iraq_funds
(Boston Globe - free registration may be required)

In the case in point, Custer Battles has to return $3 million swindled directly
from U.S. taxpayers, but it can keep $12 million it swindled from the Iraq CPA.

There's no money left for rebuilding while hundreds of millions (if not billions)
of dollars of development funds are unaccounted for.

[saigon68]

1. Custer Battles has to return $3 million

i wonder how many children their thugs killed?

[Oversea Visitor]

2. 23 or 24 billions

Maybe they cant now
But hey its US responsibility
Money from food for oil programme which UN give over to US
:puke:

Hope this dont end up making US taxpayer pay for it
Which the crooks get to keep the money

[Disturbed]

3. Coalition Provisional Authority

This scam led by Bremmer should have been confronted hard by Dems in Congress but as usual they just ignored this crap.

[TheCowsCameHome]

4. I hope that radio jerk-off Herman Cain In Atlanta reads this

He stated flatly one day while filling in for Kneel Boortz that there was absolutely NO graft or stealing of funds in Iraq. None, zip, nada. I could have kicked the radio I was so pissed. And his caller believed him, to make matters worse.

How ignorant are these people?

[izzie]

5. We knew this years ago. When Bush came in it was a going to be

Bush him self did some odd things with money from other people and got away with it. One knows the bad cop always pays off the good cop so no one talks.Iraq was a cash cow and we all knew it would be.

[malaise]

6. Duh?

We knew this was the plan.