Gov’t Panel Uncovers $60 Billion Lost to Waste and Fraud in Iraq, Afghanistan
- Posted on August 31, 2011 at 8:29am by
Jonathon M. Seidl
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WASHINGTON (The Blaze/AP) — As much as $60 billion in U.S. tax dollars has been lost to waste and fraud in Iraq and Afghanistan over the past decade due to lax oversight of contractors, poor planning and corruption, according to an independent panel.
This comes after earlier this month it was revealed $360 million in U.S. tax dollars has ended up in the hands of people the American-led coalition has spent nearly a decade battling: the Taliban, criminals and power brokers with ties to both.
In its final report to Congress, to be publicly released Wednesday, the Commission on Wartime Contracting said the waste could grow as U.S. support for reconstruction projects and programs wanes, leaving Iraq and Afghanistan to bear the long-term costs of sustaining the schools, medical clinics, barracks, roads and power plants already built with American money.
Government agencies should overhaul the way they award and manage contracts in war zones so they don’t repeat the mistakes made in Iraq and Afghanistan, the commission said. Among the report’s 15 recommendations are the creation of an inspector general to monitor contracting and the appointment of a senior government official to improve planning and coordination.
The Associated Press obtained a copy of the commission’s 240-page report in advance of its public release. The commission was established by Congress in 2008 and ceases operating at the end of September.
Overall, the commission said spending on contracts and grants to support U.S. operations in Iraq and Afghanistan is expected to exceed $206 billion by the end of the 2011 budget year. Based on its investigation, the commission said contracting waste in Afghanistan ranged from 10 percent to 20 percent of the $206 billion total. Fraud during the same period ran between 5 percent and 9 percent of the total, the report said.
Styled after the Truman Committee, which examined World War II spending six decades ago, the commission was vested with broad authority to examine military support contracts, reconstruction projects and private security companies. But the law creating the commission also dictated that it would cease operating at the end of September 2011, even as the U.S. operations in Iraq and Afghanistan continue to be heavily supported by contractors.
Sen. Claire McCaskill, D-Mo., who co-sponsored legislation to establish the commission, said in a statement emailed Tuesday that “it is disgusting to think that nearly a third of the billions and billions we spent on contracting was wasted or used for fraud.”
The commission cited numerous examples of waste, including a $360 million U.S.-financed agricultural development program in Afghanistan. The effort began as a $60 million project in 2009 to distribute vouchers for wheat seed and fertilizer in drought-stricken areas of northern Afghanistan. The program expanded into the south and east. Soon the U.S. was spending a $1 million a day on the program, creating an environment ripe for waste and abuse, the commission said.
“Paying villagers for what they used to do voluntarily destroyed local initiatives and diverted project goods into Pakistan for resale,” the commission said.
The Afghan insurgency’s second largest funding source after the illegal drug trade is the diversion of money from U.S.-backed construction projects and transportation contracts, according to the commission. But the report does not say how much money has been funneled to the insurgency. The money typically is lost when insurgents and warlords threaten Afghan subcontractors with violence unless they pay for protection, according to the report.
The Associated Press reported earlier this month that U.S. military authorities in Kabul believe $360 million in U.S. tax dollars has ended up in the hands of people the American-led coalition has spent nearly a decade battling: the Taliban, criminals and power brokers with ties to both. The military said only a small percentage of the $360 million has been garnered by the Taliban and insurgent groups. Most of the money was lost to profiteering, bribery and extortion by criminals and power brokers.
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Comments (72)
Fernyyy
Posted on August 31, 2011 at 12:21pmConsidering the waste and abuse in every other single government agency, this is considered a problem? Even in departments where they know where and how the money is wasted, nothing is done. Why should the DoD be considered any different?
Go with the government solution and throw more money at it. It will eventually go away or turn into yet another government agency.
Report Post »Strait Talk Express
Posted on August 31, 2011 at 11:56amFreedom Isn’t Free! ha ha ha
Report Post »chazman
Posted on August 31, 2011 at 3:37pm… and we are paying taxes because …? Because we like being screwed up the wazoo? Maybe we should stop paying taxes for awhile as we clean house. Lot’s of politicians need to pay up …
Report Post »Opino1984
Posted on August 31, 2011 at 11:26amIt doesn’t really matter though, what are you going to do about the waste? Is someone really going to call for cutting the defense budget? Politicians are dumb but not that dumb. Even $60 billion in waste is still defense spending and if you cut it, then you risk being called unpatriotic.
Report Post »HKS
Posted on August 31, 2011 at 3:07pmNow that buys a lot of $6,000 dollar hammers. Did anyone expect anything else?
Report Post »You da man
Posted on August 31, 2011 at 11:20amSo 20% of what the government has spent in Iraq and Afghanistan has been waste and fraud? Sounds about right. Maybe even a little low. I’d say that those same percentages would also apply to all government spending. In our current $ 3.8 trillion dollar annual budget that’s a total of $ 760 billion a year being lost to waste and fraud. So where’s the blue ribbon committee to study and report to us on the $ 760 billion waste and fraud for the entire budget? No where to be seen. That type of report would make a whole lot of people in Washington DC look very bad. There wouldn’t be enough rocks available for all of them to crawl under.
Report Post »IntegrityFirst08
Posted on August 31, 2011 at 11:19amThis is rediculous. There are no other words to describe this. How and what are you spending this money on. There is nothing our troops cant do, why do you need ourside agencies from other countries doing anything??????? I know when I was in (I just recently separated) they used afghan nationals for work all the time. Moving things, buiding walls, low skill things. Im sure they used a lot more then just them. But WHY??????????? If thats where the fraud is then eliminate then from working. The troops would easily do their work if they knew the money stayed in the right hands and not the hands of terrorists.
Report Post »JRook
Posted on August 31, 2011 at 11:28amWhat is ridiculous is that it is US companies that are managing the projects and hiring the Afghan nationals, paying them $2 an hour and billing $50 an hour. Figures are not exact but probably reasonable representations.
Report Post »You da man
Posted on August 31, 2011 at 12:11pmLet’s use your example of building a wall. The governent says they want to build a wall around a compond that’s a total of 400 yards. A company tells some egg head government offical who has no idea how much a wall like that should cost they will build it for $ 2 million dollars. The egg head approves the contract. The company then hires 20 local Afghan workers to build the wall. They pay the local workers $ 1.00 an hour or less to do most of the labor. It takes 90 days to build the wall. Total Afghan labor costs to the company.$ 14,400 (90×20x8×1). The company saves a minimum of $ 500,000 in labor costs by using cheap local labor. Does the company factor cheap labor into the price they charge the government? No. The cheap labor only enhances their profit by $ 500,000.. Is this fraud or waste or just smart business on the part of the company? Maybe it’s just government stupidity. The Army Corp of Engineers could have built this wall and used Afghan workers. When you take out the mark up for materials, the inflated labor costs and the private company’s profit margin they could have built it for a lot less than $ 2 million.
Report Post »abbygirl1994
Posted on August 31, 2011 at 12:35pm$60 billion and Obama was threatening not to pay our armed services recently! I am thinking one or two of his friends in these places have this money in a bank somewhere..its time to bring our soldiers home to protect our borders! And let the corruption in Iraq and Afghanistan take its course.. if they want to kill off their own then so be it.. we have been there to long now! .
Report Post »JRook
Posted on August 31, 2011 at 2:10pm@You da man Sorry I’m old school and my father taught me better. Lack of integrity, lack of ethics and overcharging the government is not smart business. And when the excess profit is used to hire Ex government officials and lobbyists to influence future contracts, we the people are getting ripped off. We need to look internal first. Too easy to focus on the Afghan government, particularly when we know they were corrupt from the beginning. I think the American people would be surprised to see what US companies are being paid for what. Good example is Blackwater or whatever they are called now. As mentioned by IntegrityFirst08 Blackwater is paid 10 times what a US military member is paid to provide security in Iraq. How does that make any sense at all.
Report Post »techengineer11
Posted on August 31, 2011 at 3:23pmI’m surprised the Blaze would even run this article which may cast even more doubt on the Neo-Con’s lust for eternal War and Occupation.. I suppose sooner or later some real Patriots will begin to consider the cost/benefits analysis of these absurd Wars for IPAC.
Such a disgrace. There’s probably more money wasted and outright stolen in the DOD then any other Federal agency including SS!
Report Post »Americanius
Posted on August 31, 2011 at 10:23amNo surprise here. The U.S. government has been wasting billions abroad for over a century. How many psychopathic brutal dictators has the State Department turned into billionaires or assisted them in absolute control by supplying free weapons to rape, pillage and murder?
One of the first billion wasted in Iraq was a truck load of freshly printed shrink wrapped cash handed over to some Kurds in the middle of the night after the Iraq war began. The exchange took place in the desert and no questions were asked. Estimated to have been $1 billion according to witnesses. I’m sure it was all put to good use in a Swiss bank account or buried in a cave. While we have to work until we die to pay it off.
Report Post »smithclar3nc3
Posted on August 31, 2011 at 10:44amIt‘s not waste it’s theft the fedearl gov’t stole 60 billion dollars from tax payers. Time to take back the check book and get some serious oversight into where and when tax dollars can be spent. It’s also time to start prosecuting the heads of government agencies that are involved in thesae thefts. We also need to start dragging the theives out of Congress and into the justice system as well.
Report Post »hud
Posted on August 31, 2011 at 11:18amProbably took about 5 minutes what did they do the rest of that hour, waste it?
Report Post »Bluebonnet
Posted on August 31, 2011 at 2:54pmEverything our government does ends up in corruption. Even our congress, many come to office poor as dirt and leave rich beyond belief. Hmmmm? A Coincidence? I think not. Some people are bent to lie, steal and cheat in every aspect of their lives while they talk pretty words to deceive us. Hmmmm?\
Do you recognize any of this?
Fraud and waste is what our government does best. Funny how the IRS can find some poor sucker who cheated a few hundred dollars on their taxes, but they can’t find the blatant theft from the people who run government offices and programs. hmmm? Must be some conspiracy theory me thinks!
The old story I’ve heard is: Let an accident happen and the worms come out of the woodwork to file a claim against that accident (even tho they could not have been there.) Some people have no conscience about anything thing, even when they know it’s a lie and theft. The same type people are first in line to get any freebees given out by the government or charities. They want theirs by dam.
Report Post »What makes some so corrupt? God isn’t in them obviously. So, the rest of us keep paying for them and their corruption.
JRook
Posted on August 31, 2011 at 10:22amWhy the focus on the $360 million lost to criminals and corruption in Afghanistan. Let’s here about the other $55 + billion and who that was paid to. Most of the work is done by US contractors.
Report Post »Dale
Posted on August 31, 2011 at 9:31amNote to Sen Claire McCaskill – you’re just learning about fraud and abuse – how long have you been in DC?
Report Post »Gonzo
Posted on August 31, 2011 at 9:29amI wish the feds would misplace a couple of measly millions in my account…I promise not to use it to blow anything up too.
Report Post »tifosa
Posted on August 31, 2011 at 9:21amIt’s worse than that. Read Jeremy Scahill. “They’re going to blame Bushhhhhhhhhhhhhhhhhhh, waaaaaaaaaaaaaaaaaaaaaaaaaaahhh!” Yep.
Report Post »let us prey
Posted on August 31, 2011 at 9:35amOnly a dirty progressive makes a living doing interviews on Democracy Now. So, is being published in magazines like The Nation supposed to make me jealous? This traitor is a tool just like you.
Report Post »13th Imam
Posted on August 31, 2011 at 9:38amDickie Trumpka was the recipient of countless billions of Actual Taxpayers Stolen money, The soviet Unions will now siphon most of that stolen cash into barry’s “Screw America Reelection Bus Tour”.
Report Post »JRook
Posted on August 31, 2011 at 10:20amNo they should blame the US corporations who knowingly rip off their own government. I am reminded of the $10,000 per truck paid to Haliburton for empty trucks put on convoys in Iraq.
Report Post »13th Imam
Posted on August 31, 2011 at 10:27amBlame America First. Last refuge of a scoundrel.
Report Post »JRook
Posted on August 31, 2011 at 11:17am@13th Imam Avoid the truth, purview of the ignorant. Follow the money Sir.
Report Post »13th Imam
Posted on August 31, 2011 at 11:37amFrom Actual Taxpayers pockets thru DC to ?? Barry’s reelection
Report Post »JRook
Posted on August 31, 2011 at 12:02pm@13th Imam yep my case in point. So Cheney was from what corporations…oh yea Haliburton. To assert that Obama as a democrat dumps more money to corporations or other governments to buy influence than Republican Presidents have done is just too ignorant to even take seriously.
Report Post »13th Imam
Posted on August 31, 2011 at 2:12pmDon’t give a rats === what you think. Barry has Stolen money on an unprecedented scale. Dick Cheney was already wealthy as were the Bushes, Halliburton was and is a business used by both party’s to do contract work . Barry‘s stolen Taxpayers Dollars were given to the unions that funnel most back to Barry’s Reelection fund.
Report Post »JRook
Posted on August 31, 2011 at 2:28pm@13th Imam Oh ok Tiger. Keep chasing the pennies.
Report Post »db321
Posted on August 31, 2011 at 9:20amAt least their wont be any waste in Obama Care.
Report Post »CarolinaGirl
Posted on August 31, 2011 at 9:20amTime to pull out of these countries and let them fend for themselves.
Report Post »Vechorik
Posted on August 31, 2011 at 10:19amAgreed. It’s irrational to believe the US can “buy the Middle east into the 21st century.”
Report Post »JRook
Posted on August 31, 2011 at 11:34amOf course it is. Now go find out what companies are lobbying and influencing Congress not to do that. Hint it is the same ones that are advocating we continue in the useless wars. Blowing things up and rebuilding them is big business for many US companies. Clearly it is stupid to give corrupt governments money and think you can buy their loyalty….our foreign policy for the last 50 years. But the real waste and fraud here is how much money is being paid to US companies who charge for work not done and overcharge for that which is done.
Report Post »13th Imam
Posted on August 31, 2011 at 2:40pmClearly the Most transparent ever presidency will have this cleared up in the first 3 months, no, 6 months, no, 1 year, No, 2 years NO, 2 1/2 years Still no. Weren’t we going to be out of AFG. and Iraq ???? Same timetable.. Close Gitmo, Nope , still open.
Report Post »techengineer11
Posted on August 31, 2011 at 3:31pmNo way says the Neo-Con and IPAC… We need more War!! To protect the homeland.. our freedoms and our Liberties depend upon us conquering Iraq, Afghanistan, Pakistan, Iran, Libya and we must put some boots on the grounds too in order to teach them Democracy because Democracy is working out so well for a rotting America…
As the economy continues to deteriorate watch the administration turn up the pressure and propaganda against Iran.. Iran is their ace in the hole.. They erroneously believe that the Nation will all rally around Obama if he launches an attack against Iran.
Too bad. The War card has been played to the point that the American person is sick and disgusted with it.. Your Wars are coming to an end Neo-Cons!
Report Post »landofaahs
Posted on August 31, 2011 at 9:18amKeep digging until you find the other $600 billion wasted.
Report Post »TomFerrari
Posted on August 31, 2011 at 9:07amThe sick part is, they have been dealing in CASH!!!
TRUCKLOADS of cash have disappeared!!
Not checks, not money orders, not bank drafts – CASH !
Ask yourself, who in our government approved sending aircraft filled with CASH ?!?!
And they STILL do it!!
The ONLY sincere reason would be to make it untraceable.
Sure, they may have demanded cash. But, we can say, “No”
You want our money? You can use OUR accounting standards via legitimate banks to which we have auditing access.
What a joke!
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techengineer11
Posted on August 31, 2011 at 3:34pmI thought that you were a big advocate for these Wars? Surely you don’t believe in the Integrity of our Federal officials prosecuting the Wars do you? lol
Report Post »cntrlfrk
Posted on August 31, 2011 at 9:04am$60 Billion out of what? $2 Trillion?
I’d say pretty average for government work.
Report Post »hauschild
Posted on August 31, 2011 at 9:01amThe leftists must be beside themselves over this because just think of all the food stamps that could have been issued instead.
Report Post »Sleazy Hippo
Posted on August 31, 2011 at 9:07amLike Don Rumsfeld and Paul Wolfowitz always said, “It is best to spend it over there so we will not have to spend it here.”
Report Post »MONICNE
Posted on August 31, 2011 at 10:59amHippo that is just too funny.
Report Post »Darla_K
Posted on August 31, 2011 at 8:58amWe need someone who can look out for the peoples money and make sure it gets to the right place. How hard can it be? I am waiting to see the over spending report where we are duplicating alot of payments. We need to cut foreign aide money and take care of ourselves first instead of trying to impress people who hate us. How much in donations did the USA get from other countries helping us out for the storm that just hit?
Report Post »Stalinist from Balkan
Posted on August 31, 2011 at 8:57amEnd up in the pockets of Halliburton,Koch brothers,Dick Cheney ,and other “honest” AmeriKKKan anticommunist.They use that blood money to fund Tea Party,and others proto-fascist organisations in US.So much about “honesty” of the right-wing members
Report Post »Sleazy Hippo
Posted on August 31, 2011 at 9:04amIt is interesting that these so called “findings” are coming out just before the next Republican Debate. Hmmmm. I wonder if this is going to try and make neo-con war hawks “look bad.” WTF.
Report Post »grandmaof5
Posted on August 31, 2011 at 9:09amYou are so right! I’m sure the governments were given a shopping list and told what to spend our billions of dollars on and whom they should send it back to in the U.S. “You can fool some of the people all of the time and all of the people some of the time” but then there is ‘stupid’. Try to figure out which one you are, unless the assignment is too difficult.
Report Post »JRook
Posted on August 31, 2011 at 2:38pmAbsolutely correct. Our economy would be a lot stronger if we had not deluded ourselves for the past 50+ years in thinking the military spending is anything more than an inefficient stimulus program or that sending billions and billions to countries would make us stronger in the world. Individuals like Sleazy Hippo need to take a look at who is on the board of the major benefactors of military, CIA and State Department spending. Also look at how much they are paying to ex military, CIA and State department staff who join lobbyist firms. It is time to shut down the federal ATM for these companies and start investing in sustained economic growth.
Report Post »13th Imam
Posted on August 31, 2011 at 2:45pmBarry‘s Solar Panel Co’s are dropping like flies. Millions invested and 14 yes fourteen JOBS were created,, now they are in Barry’s unemployment army.
Report Post »Sleazy Hippo
Posted on August 31, 2011 at 8:54amI recommend you buy some copies of Dick Cheney’s new book IN MY TIME and have this silly panel read up on the Real Truth.
Our VP and his daughter explain that there were no actual mistakes, it is just wimps and whiners trying to undermine the efforts of the word’s finest Contractor workforces, and to some extent our military (who were overworked and outclassed in Afghanistan so they really did not improve things there until the current surge).
Report Post »martinrnelson
Posted on August 31, 2011 at 8:52amDUH. You’ll understand why this stuff happens once you watch the Pat Tillman Story on Showtime. It’s a must watch. It will show you just how evil our government really is. Heck, I’m a conservative and when I watched it last night…it sickened me that these people are holding me accountable. Showtime..Pat Tillman Story…watch it. It’s a must!!
Report Post »Sleazy Hippo
Posted on August 31, 2011 at 9:01amShowTime is a Liberal outfit like the Rolling Stone, who targeted General Stanley A. McChrystal with a revealing article that caused him to lose his job running Afghanistan War, and led to his resignation. That Tillman story claims McChrystal covered up what happened (implying he LIED to the public) when he was just being a good soldier and patriotically keeping things steady for Don Rumsfeld sake.
Report Post »barber2
Posted on August 31, 2011 at 10:01amAgree with Sleazy: the media has a huge impact on opinions and the media is largely infested with Liberals who twist “facts” to push their political agenda. ( remember Soros put his Big Bucks into these mysterious “media groups” for this election) Too bad the entertainment industry doesn’t stick to just entertaining and leave their political biased messages on the cutting room floor. Amazing how many “movie stars” think they know anything about politics and think that we care what they think! Egos run amuck!
Report Post »louise
Posted on August 31, 2011 at 8:49amRon Paul 2012
Report Post »ddg7
Posted on August 31, 2011 at 8:48amThe only difference between getting out of Iraq and Afghanistan now instead of 10 years from now is the number of our men and women killed and more billions thrown down a bottomless hole! Get out now!
Report Post »JRook
Posted on August 31, 2011 at 2:29pmAbsolutely
Report Post »DanWesson455
Posted on August 31, 2011 at 8:43amI want my stinkin tax dollars back. This is ridiculous. That is a good start to a balance budget. Cripes. OMG give me a break!
Report Post »barber2
Posted on August 31, 2011 at 8:42amGee, what a surprise: the government wastes our tax money! ( Always easy to do when you are spending someone else’s money ) Am sure the Democrats will cry Blame Bush. Truth is Blame Big Daddy when the federal government is “redistributing” your tax dollars.
Report Post »kickagrandma
Posted on August 31, 2011 at 8:37amLet me guess…. “It was Bush’s fault!”?
Doesn’t even compare to the expense of having the illegal alien in OUR HOUSE and his commie, marxist friends trying to destroy our country. How much have they wasted on jet fuel, transportation, their buds, food, drink (muslimes don’t, remember?), lodging? The thought of it makes me want to throw up…. all over them!
Report Post »Snowleopard {gallery of cat folks}
Posted on August 31, 2011 at 8:41amOf course Mr Obama and his cronies and marxist, socialist, communist buddies will blame Bush for all of it. They are such a narcisstical bunch of delusional and paranoid followers after the model of Woodrow Wilson that they will do anything to remain in power.
Report Post »trolltrainer
Posted on August 31, 2011 at 8:54am“Let me guess…. “It was Bush’s fault!”?”
In this case…Actually yeah, he does shoulder much of the blame.
Report Post »Sleazy Hippo
Posted on August 31, 2011 at 9:11amHey, when you passionately believe in your cause, and you have the rare condition that the opposition is actually agreeing with you, you need to exploit all that energy to “Go Big.” No time for sissies.
When you are ramming Invasions of Countries through there will always be death and waste. Grow Up!
Report Post »JRook
Posted on August 31, 2011 at 4:02pmFor those who can actually differentiate which political party or government official that has wasted and/or benefited more from Federal spending than you are a much smarter person than me. I would welcome a report here about the major lobbyist firms and there staff….a who’s who in terms of influencing federal policy and spending. I think everyone here would be shocked and have a different understanding of what is really going on in Washington and what is so terribly wrong. We have the best politicians, agency staff and lobbyists that money can buy. You really think that is gonna result in rational and responsible spending of other people’s money?
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