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By Michael Bowman
Washington
07 February 2007
Three U.S. military officers are being charged with steering1 lucrative2 Iraq reconstruction3 projects to a U.S. contractor4 in return for cash, vehicles and other kickbacks5. VOA's Michael Bowman reports, federal authorities announced the charges in Washington at a time when Congress is probing overall U.S. spending in Iraq since Saddam Hussein was toppled in 2003.
Paul McNulty (2006 photo)
Deputy Attorney General Paul McNulty says the accused Army reserve officers used funds allocated6 for the former Coalition7 Provisional Authority in Iraq as "their own personal ATM [bank] machines" from late 2003 through 2005.
In a news conference, McNulty alleged9 that the officers conspired10 to award reconstruction projects worth millions of dollars to a single contractor, who, according to a federal indictment11, rewarded his benefactors12 with lavish13 gifts.
"More than $1 million [dollars] in cash, a Cadillac Escalade [luxury vehicle], a Lexus [luxury vehicle], a Porche [sports car], a Cessna airplane, real estate, a motorcycle, jewelry14, computers, business-class airline tickets, and even future employment," he said.
The contractor in question has already pled guilty to taking part in the scam.
In addition, authorities allege8 that large sums of cash were smuggled15 out of Iraq to pay for improvements to the U.S. home of one of the accused. Two American civilians16 are also named in the indictment.
The deputy attorney general stressed that all the accused are innocent until proven guilty in court. But he added that fraud cannot be tolerated.
"We cannot allow a mission as important as the reconstruction of Iraq to fall victim to fraud, corruption17, and theft," he said. "Thousands upon thousands of courageous18 and patriotic19 soldiers and civilians of the United States have devoted20 themselves to the mission of creating a free and democratic society in Iraq."
Paul Bremer
The indictment comes at a time of heightened scrutiny21 of U.S. spending habits in Iraq. Tuesday, the former administrator22 of the Coalition Provisional Authority testified before a congressional committee that is probing how billions of dollars were disbursed23 to support Iraqi government agencies.
Paul Bremer acknowledged that inadequate24 safeguards were in place to keep track of the funds and ensure they were spent properly. But he insisted that rapid revenue disbursement25 was essential at a critical time in the mission when Iraq's financial infrastructure26 lay in ruins and the country's government agencies needed to pay their employees.
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