Mystery Over $1bn of Iraq Funding

The chaotic relationship between the US and private contractors in Iraq and Afghanistan is highlighted by a congressional investigation published today into more than $1bn allocated for police training.

The investigation found the state department could not account for most of the $1.2bn (£600m) paid to DynCorp, the Virginia-based company that is the biggest recipient of state department funding.

Previous investigations into the work of contractors have highlighted alleged corruption, waste and lack of oversight.

DynCorp won the contract in February 2004 to provide housing, food, security, facilities and staff for police training.

The congressional report, by Stuart Bowen, inspector general for Iraq reconstruction, says the state department bureau that awarded the contract - the Bureau of International Narcotics and Law Enforcement Affairs (INL) - admitted it has had a problem with invoices and other paperwork.

"As a result, the INL does not know specifically what it received for most of the $1.2bn in expenditures under its DynCorp contract for the Iraqi police training program," the report reads. "INL's prior lack of controls created an environment vulnerable to waste and fraud."

Mr Bowen was appointed by Congress to look at what happened to the billions the US has spent since the 2003 invasion.

His team of auditors has temporarily suspended the DynCorp investigation because of a lack of invoices and other paperwork needed to carry out an audit.

The investigation found examples of "duplicate payments, the purchase of a $1.8m x-ray scanner that was never used and payments of $387,000 to house DynCorp officials in hotels in Iraq rather than in existing living facilities".