The Report
of the Iraq Inquiry
703.
The fraud is
described in more detail in Section 10.2.
In contrast
to the UK Government, the US Government established new bodies to
oversee
US
expenditure on reconstruction in Iraq.
When the US
Congress appropriated £18.4bn for Iraq relief and reconstruction
in
November
2003, it also passed legislation to create a specialised Inspector
General
– the
Inspector General of the Coalition Provisional Authority (CPA‑IG) –
to provide
accountability
for the use of those funds.438
The CPA‑IG
was re‑designated as the Special Inspector General for Iraq
Reconstruction
(SIGIR),
with a modified mandate, in October 2004.439
SIGIR’s
mandate was, with respect
to US
relief and reconstruction plans, programmes, and operations in
Iraq, to provide
independent
and objective:
•
oversight and
review through comprehensive audits, inspections and
investigations;
•
advice and
recommendations on policies to promote economy, efficiency
and
effectiveness;
•
prevention,
detection and deterrence of fraud, waste and abuse;
and
•
information
and analysis to Congress, the US Secretary of State, the
US
Secretary
of Defense and the American people.440
SIGIR’s
jurisdiction extended to the Iraq Relief and Reconstruction Fund
(IRRF), the Iraq
Security
Forces Fund, and the Commanders’ Emergency Response Program
(CERPs),
and
assistance for the reconstruction of Iraq under the Economic
Support Fund, the
International
Narcotics Control and Law Enforcement account or any other
provision
of law.
SIGIR
published its final report in March 2013.441
It recorded
that:
•
SIGIR had
undertaken 220 audits and 170 inspections, which had led
to
82 convictions
and over US$191m in financial penalties.
•
Those audits
had questioned US$641m in costs and identified an
additional
US$974m in
funds which could be put to better use – a combined
potential
financial
benefit of US$1.61bn. As at September 2012, the savings to the
US
Government
from renegotiated contracts, refunds and operational
savings
resulting
from SIGIR’s work were US$645m.
•
At its peak in
2008, SIGIR had 35 auditors permanently stationed in
Baghdad.
•
SIGIR’s budget
was on average US$25m a year over its lifetime.
438
Public Law
108‑106, Emergency Supplemental Appropriations Act for Defense and
for the
Reconstruction
of Iraq and Afghanistan, 2004.
439
Special
Inspector General for Iraq Reconstruction website, About
SIGIR.
440
Special
Inspector General for Iraq Reconstruction, Quarterly
Report and Semiannual Report to the
US
Congress, 30 July
2009.
441
Special
Inspector General for Iraq Reconstruction, Learning
from Iraq, March
2013.
562