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| UN slams US over spending Iraq funds |
| 2004-06-21 |
| United Nations-mandated auditors Didn’t Kofi tell them the UN was out of the loop on this one? In an interim report, obtained by the Financial Times, KPMG The same bunch of whores who can’t finish the oil for food audit. They learned the bribery lesson well from Kofi. Or was it the other way around? says the Development Fund for Iraq, which is managed by the US-led Coalition Provisional Authority and channels oil revenue into reconstruction projects, is "open to fraudulent acts". Unlike every public company whose books KPMG audits? Can KPMG demonstrate an accounting system that is not open to fraudulent acts? Can KPMG make a statement that is not a fraudulent act? The auditors criticise the CPA’s bookkeeping and warn: "The CPA does not have effective controls over the ministries’ spending of their individually allocated budgets, whether the funds are direct from the CPA or via the ministry of finance." Perhaps the UN should enact a version of Sarbanes Oxley for use in war zones. The findings come after US complaints about the UN’s administration of the oil-for-food programme under Saddam Hussein. What a coincidence! According to the CPA, the Development Fund for Iraq has taken in $20.2bn since last May and has disbursed $11.3bn, with $4.6bn left in outstanding commitments. One adviser to a member of the recently disbanded Iraqi Governing Council auditioning for a job on Iraq’s new UN delegation said the report raised the fear that no audit of the CPA’s work would ever be completed. "If the auditors don’t finish by June 30, they never will, because the CPA staff are going home," he said. "I lament the lack of transparency and lack of involvement by Iraqis." The KPMG auditors are answerable to the same Security Council that wouldn’t vote for the war but does vote to nit pick all actions a day late in May last year to oversee coalition spending from the development fund. The account contains oil revenues, frozen assets and money left over from the UN’s oil-for-food programme. The Sounds reasonable to me. Don’t the account staffs of all KPMG’s clients’ them this? We call it Response #1. The UN decided this month that responsibility for the Development Fund for Iraq will pass to the Iraqi interim government and be monitored by the the IAMB. The panel also intends to widen its scrutiny of past CPA spending by examining reports and audits by the Pentagon’s inspector general and the General Accounting Office, an official said. IAMB officials were meeting in Paris on Monday and were not available for comment. Some of KPMG’s most damning criticisms were of the State Organisation for Marketing Oil, responsible for the sale of Iraq’s most crucial asset. Oil sales, which go into the US-controlled fund, have topped $10bn since the overthrow of Saddam Hussein. Somo’s only record of barter transactions was "an independent database, derived from verbal confirmations gained by Somo staff", the report found. The CPA declined to address the KPMG report, saying only that it "has been and will continue to discharge its responsibilities under the Iraqi Development Fund". One Iraqi minister due to take office on June 30 told the FT he and many colleagues felt "let down by how the CPA has controlled resources". Obviously the CPA is not paying enough bribes. |
| Posted by:Mr. Davis |
| #4 |
| Posted by: Long Hair Republican 2004-06-21 11:33:42 PM |
| #3 |
| Posted by: Robert Crawford 2004-06-21 10:52:23 PM |
| #2 |
| Posted by: Super Hose 2004-06-21 10:40:18 PM |
| #1 |
| Posted by: Frank G 2004-06-21 7:35:23 PM |