-Caveat Lector-

The Christian Science Monitor

World > Terrorism & Security
posted September 9, 2005 at 12:00 p.m.

Lack of funds slows Iraqi reconstruction

Key projects 'grinding to a halt' as funds diverted to increased security 
needs.

By Tom Regan | csmonitor.com

Key reconstruction projects in Iraq are "grinding to a halt" because of lack 
of funds. The Guardian reports that this is the word from US officials in 
Iraq. On Wednesday, they told the Subcommittee on Foreign Operations of 
Appropriations that plans to "overhaul" the country's infrastructure have 
been "downsized, postponed or abandoned" because the $24 billion that 
Congress authorized for the task has turned out to be not nearly enbough.
Water and sanitation have been particularly badly hit. According to a report 
published this week by Government Accountability Office, the investigative 
branch of Congress, $2.6bn has been spent on water projects, half the 
original budget, after the rest was diverted to security and other uses.

The report said 'attacks, threats and intimidation against project 
contractors and subcontractors' were to blame. A quarter of the $200m-worth 
of completed US-funded water projects handed over to the Iraqi authorities 
no longer worked properly because of 'looting, unreliable electricity or 
inadequate Iraqi staff and supplies,' the report found.


Reuters reports that Stuart Bowen, the US special inspector general for 
Iraqi reconstruction, told the House Appropriations Committee that he was 
hesitant to ask for more money at a time when it was needed so badly for 
Hurricane Katrina relief. Mr. Bowen said non-US sources might be asked to 
fill the funding gap.
"It is an issue that we need to address at the right time," Bowen told 
Reuters after a hearing of the Foreign Operations Subcommittee of the House 
Appropriations Committee.
"In order to complete the plan we initially developed, we'll need more 
money. Whether that money can come from donor sources, World Bank loans or a 
supplemental is yet to be decided," said the former White House lawyer, who 
has traveled to Iraq nine times during the past 18 months.
He also said that he is currenting conducting 58 criminal investigations 
into the misuse of funds in Iraq, although only a "handful of companies" 
have been charged so far.

The Los Angeles Times [reg. required] reports that members of Congress from 
both parties are "starting to lose patience," and that while Democrats have 
always been critical of the Bush administration efforts in Iraq, more 
Republicans are starting to question the effort.
"It seems sort of almost incomprehensible to me that we haven't been able to 
do better on" restoring power to Iraq, said Rep. Don Sherwood (R-Pa.), who 
recently visited areas damaged by Katrina. "Coming back up through 
Mississippi and Louisiana after being down on some relief effort, you know, 
when power shuts down, everything shuts down."

Three government reports released in July also said that the US has been 
able to achive only "limited progress" in key sectors despite the billions 
of dollars spend in Iraq. The reports also blamed extra money spent on 
security as the main reason for the lack of progress.
In mid-August Reuters reported that the International Monetary Fund released 
its first economic review of Iraq in 25 years, and said that "insurgent 
violence had dampened the country's growth prospects and tied up funds meant 
for reconstruction."
'The lack of a secure environment has [also] impeded the effectiveness of 
reconstruction spending, with contractors and donors reporting security and 
insurance outlays in the range of 30-50 percent of total costs,' it said.

The Daily Telegraph reports that the Iraqi government may try to expel 
"thousands of heavily armed private security contractors." There are over 
25,000 private security guard in Iraq. Most of them are British, American 
and South African ex-servicemen lured by wages of up to $1000 a day, and 
they are extremely "unpopular" with local Iraqis.
Adorned in sunglasses and bullet-proof vests, they travel in white 
four-wheel-drive vehicles with gun barrels protruding from the windows. Many 
refuse to obey road signs and consider traffic jams a security risk so barge 
through the lines of vehicles which are often forced to pull over rapidly on 
to pavements.

Their lack of official status has long been a concern and those operating on 
US department of defence contracts are free from risk of legal penalty under 
the Iraqi judicial system if they killed anyone in a firefight. But under 
the new rules confirmed yesterday [Thursday] all such firms will be brought 
under the authority of the Baghdad government.
Meanwhile, USA Today reported Wednesday that August saw one of the highest 
levels in the past year of attacks on contractors working on US-funded 
projects. Insurgents killed seven contractors, and injured 11. Sixteen 
others were suspected or confirmed kidnapped.
Almost all of those killed were Iraqis, who "rarely have security," unlike 
American contractors who travel with the kind of security personel mentioned 
above.

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