Waste of US aid in Iraq blamed on poor security

WASHINGTON -- As much as 15 percent of $21.8 billion in US reconstruction aid for Iraq may have been wasted, largely because of the poor security situation, the US inspector for rebuilding projects said yesterday.

The revelation comes as President Bush planned to send 21,500 more US troops into Iraq and to ask Congress for another $1.2 billion for rebuilding and jobs programs as part of his strategy to end sectarian violence in Iraq.

"The potential loss could be 10 to 15 percent, but we are waiting until we finish the large analysis," Stuart Bowen, the special inspector general for Iraq reconstruction, told the House Armed Services Committee.

That figure was only an estimate and "it very well could be higher," he said during a break.

Bowen said the analysis included examinations of the three largest contractors hired for reconstruction projects, KBR Inc., Bechtel Corp., and Parsons Corp., which he expected to be completed this year.

Representative Ike Skelton, chairman of the panel and a Missouri Democrat, criticized the lack of progress in increasing the electricity supply -- a constant complaint among many Iraqis -- and that oil production has fallen short of goals.

"The story on reconstruction is that it is not a total failure, but it is not by any means a success," Skelton said. "We must do better."

Bowen said audits by his office had saved or recovered $50 million and had identified another $106 million that potentially could be recovered. But he noted that oversight was difficult because of the security problems.