http://www.tompaine.com/feature2.cfm/ID/9377

Halliburton Hangover

Chellie Pingree, President of Common Cause and former majority leader 
of the Maine Senate, is the author of Maine Rx, a landmark program to 
reduce prescription drug costs in that state.

In terms of sheer size, the $87 billion Iraq spending bill recently 
approved by Congress is the nation's largest ever for war, bigger 
than the budgets of the Homeland Security and Education Departments 
combined. With so much at stake, you would think that Congress would 
have done all it could to ensure that these tens of billions of 
dollars are scrupulously monitored and wisely spent, with no 
opportunity for waste, fraud or abuse.

But you would be wrong. While the Iraq spending bill makes some 
modest progress on accountability, House and Senate leaders who 
negotiated the final bill eliminated or weakened more stringent 
reform measures passed by their colleagues in both chambers. And 
given the influence of the White House on the final bill, one could 
reasonably conclude that the Bush administration was wary of many of 
the accountability measures that Congress originally intended to 
require.

This spending plan has too little accountability and too few 
financial controls.

Stripped From The Bill

Consider the reform measures that never made it into the final bill:

GAO audits. The Senate originally voted 97 to 0 to have the General 
Accounting Office (GAO)- Congress' investigative arm-conduct audits 
of the Coalition Provisional Authority (CPA) in Iraq. The CPA 
oversees the entire rebuilding effort in Iraq, and is in charge of 
dispensing billions of dollars in reconstruction contracts. That 
audit provision was stripped in the conference committee on a party 
line vote. Another provision that would have required the GAO to look 
at the profits made by U.S. contractors in Iraq was accepted by the 
Senate, but also never made it into the final bill.

Competitive bidding on oil contracts. Responding to the uproar about 
non-competitive bidding in Iraq, the House passed an amendment 
requiring competitive bidding on all oil contracts. The provision 
eliminated exceptions for emergencies and other extenuating 
circumstances, such as national security, that might make competitive 
bidding prohibitive. Every Democrat, plus 47 Republicans, supported 
it. Rep. Brad Sherman (D-Calif.), who sponsored the amendment, said 
that it was necessary because "Democrats and many Republicans do not 
trust the administration to use the government contracting exceptions 
rarely and fairly." Still, the Sherman provision was removed during a 
conference committee vote.

Penalties for war profiteers. Perhaps most astounding, Congress in 
its final Iraq spending bill did not even include language to 
penalize war profiteers for defrauding American taxpayers. The Senate 
Appropriations Committee unanimously approved the provision, 
sponsored by Sen. Patrick Leahy (D-Vt.), to ensure that contractors 
who cheated the American taxpayer would face fines of up to $1 
million and jail time of up to 20 years. Senators of both parties 
supported it, but Republican House negotiators refused to include it 
in the final bill. "Congress is about to send billions and billions 
of dollars to a place where there is no functioning government, under 
a plan with too little accountability and too few financial 
controls," Sen. Leahy said after his provision was stripped from the 
final bill. "That's a formula for mischief. We need strong 
disincentives for those who would defraud taxpayers. It baffles me 
why House members would not want to provide this protection to 
taxpayers."

The inspector general would be appointed by the secretary of defense 
and would not have to be confirmed by the Senate.

Lax Oversight

And even when House and Senate negotiators did see their way clear to 
approving reform provisions, what they approved was often flawed. For 
example, the final bill provides for a much needed inspector general 
to monitor the Coalition Provisional Authority. But that inspector 
general would be appointed by the secretary of defense and would not 
have to be confirmed by the Senate-which has historically used the 
confirmation process to assure the American public of a nominee's 
integrity and credentials.

"I am dismayed that this individual is not subject to Senate 
confirmation," Sen. Robert Byrd said. Byrd also noted that the bill's 
congressional negotiators rejected his amendment that would have 
required the inspector general to testify before Congress when 
requested. "Could it be that the president's supporters in Congress 
are afraid to hear what the inspector general might tell them?" Byrd 
asked. And while the inspector general would be required to submit 
periodic reports to Congress, the President would have the right to 
waive those reporting requirements for certain reasons, such as 
national security.

Why the White House and key Republican leaders would be opposed to 
more accountability for this huge spending bill is hard to 
understand. But we at Common Cause will continue to monitor the 
spending in Iraq, to work in coalition with other groups to press the 
government to report what it is doing fully and completely. We will 
watch to see if the inspector general named to monitor spending in 
Iraq is well qualified for the job, and we will keep track of how 
well or poorly government officials report on the progress of Iraq 
reconstruction to Congress and the American people. Too much is at 
stake for us to do any less.


Published: Nov 12 2003

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