Coalition Provisional Authority Loses .8B in Iraqi Oil Revenue

The Coalition Provisional Authority under Paul Bremer lost track of .8 billion in Iraqi oil revenues during the 14-month occupation period (May 2003-June 2004), representing one of the largest financial oversight failures in U.S. history. Nearly 2 billion in cash (363 tons) was shipped on C-130 cargo planes, including the largest single Federal Reserve payout of .5 billion on December 12, 2003. Special Inspector General Stuart Bowen found the CPA lacked adequate managerial, financial, and contractual controls for cash distribution, with billions handed to Iraqi ministries ‘without assurance the money was properly used or accounted for.’ Systematic fraud included payments to ghost employees, 00 million shipments without arrival documentation, and 50 million improperly given directly to the Iraqi Finance Minister. Halliburton/KBR received over .4 billion in ‘questioned’ and ‘unsupported’ costs while companies like North Star (run from someone’s house) received millions in no-bid contracts. Money was ‘stashed in basement of CPA headquarters’ and released to contractors with minimal oversight. The GAO found hundreds of millions stolen by senior Iraqi officials, with .2-1.6 billion discovered moved to a bunker in rural Lebanon.