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Reconstruction Official on Iraqi Billions: "What Difference Does It Make?"
What happened to billions in Iraqi funds that were overseen by the Coalition Provisional Authority? That's not "important," according to David Oliver, the former Director of Management and Budget of the agency.
A recording of the unfortunately candid remarks, previously made by Oliver to the BBC, were played during this morning's oversight hearing by Rep. Diane Watson (D-CA). The hearing has focused on the CPA's administration of nearly $9 billion in Iraqi funds in 2003 and 2004 -- money that Stuart Bowen, Special Inspector General for Iraq Reconstruction, has said was inadequately accounted for.
"I have no idea, I can't tell you whether or not the money went to the right things or didn't - nor do I actually think it is important," Oliver says on the tape . "Billions of dollars of their money disappeared, yes I understand, I'm saying what difference does it make?"
At the hearing this morning, Oliver was more circumspect in his remarks:
That was a clip, as I recall, after a thirty or forty minute conversation, and it comes back to the essence of I hope what Stuart [Bowen] has pointed out several times, is a question of transparency. He believes that the CPA should have ordered the information, we decided the best way to make sure we could withdraw as quickly as possible and for the safety of the troops was to rely upon the Iraqi system to distribute that money. Therefore, we made sure that it was transparent what we were doing with the money to the ministries and then relied upon the ministries system, the entire financial system they had, to do that. We had about, I had four to ten people, the country’s population is about the same size as California, which I think has 800 people in the same office. We thought this was the best way to make sure that the country’s safety was performed.

Comments (53)
ohiomeister wrote on February 6, 2007 2:32 PM:Right, as if sending huge amounts of money to the American-reconstituted Iraqi ministries is transparent.
If you're going to just make stuff up, at least come with up with something remotely plausible.
Headline Junky wrote on February 6, 2007 2:43 PM:Last time I blew $9 bil of someone else's money, I had the exact same reaction. Funny, the other guy didn't seem to feel the same way.
Jeff B. wrote on February 6, 2007 2:43 PM:Somewhere, somehow, there ought to be a way to take the outrage generated Senator Grassley's previous lament about the 400 Dollar Hammer (or whatever the amount, we're going back to the 90s or possibly 80s here) and then contrast that little saga with this one about the Missing Billions. With a good writer and a good creative team, there's some real political kryptonite just waiting to be tapped into here.
Jimmmm wrote on February 6, 2007 2:48 PM:Hey, Congresswoman Watson, YOU fucked up. YOU trusted us!
Unmitigated Audacity wrote on February 6, 2007 2:49 PM:$9 Bil here and $9 Bil there; pretty soon you are talking about real money.
dave t wrote on February 6, 2007 2:55 PM:I'll wait for the rush and hannity to be as outraged at this as they were for the missing $ in the food for oil program. I'm sure we won't hear a peep.
Robert wrote on February 6, 2007 2:58 PM:There was a time when Republicans cared about Federal Spending waste... when a Democrat was President.
This is funny - the security code for this post is "w-a-s-t-e".
P J Evans wrote on February 6, 2007 2:58 PM:So if we-the-taxpayers don't send in eight or nine billion dollars in taxes in April, will that be 'not important' to them?
Didn't think so. It's only important when it's their paycheck.
tomboy wrote on February 6, 2007 3:02 PM:"we had billions of dollars and four people. It would have been pretty tough to, you know, hire some accountants and oversee their work. That might have cost hundreds of thousands of dollars."
What an asshole.
Sagrilarus wrote on February 6, 2007 3:12 PM:And New Orleans gets what?
Sargon wrote on February 6, 2007 3:24 PM:Ummm... note to commenters: it was Iraqi money that went unaccounted. Now granted, the war has since become much more expensive to the American taxpayer than a mere $9 billion, but that's not the main issue. The main issue is this: this sort of fiscal mismanagement, along with the ruinous civil mismanagement at the inception of the occupation, fueled the insurgency. Among my Iraqi-American friends, events like this rapidly spread concern about Anglo-American intentions in Iraq. Imagine how Iraqis in Iraq felt. This isn't mere fiscal irresponsibility, but given the rapid ascent of the insurgency in Iraq, it's tantamount to treason.
AJB wrote on February 6, 2007 3:38 PM:Sargon, yes, the funds were technically "Iraqi" in source, but every dollar (or at least a significant portion of every dollar) lost from theft or corruption has to be made up for from somewhere else.
Now, who do you suppose had to replace those funds?
goldberry wrote on February 6, 2007 3:41 PM:Wha? "We thought it was the best way to make sure the country's safety was performed"? How does one "perform" a safety? (Outside of football, that is.)
Joe wrote on February 6, 2007 3:49 PM:Besides being careless with taxpayer money, he is completely incoherent. Maybe that is part of the problem. When tasks are well planned, people performing them are a lot more intelligible about what the heck they are supposed to be doing.
This is just inexcusable.
As a matter of fact, I think I caught this BBC interview on the way to work one morning and I wondered how the most rabid GOPers would respond to someone just frittering away $9 billion in Iraq. They get incensed when poor children need medicine and they can't spend their own money they way they want. How do they feel about the gov't just throwing wads of their own money at some corrupt Iraqi Ministry? They're OK with that?
Sargon, check your facts. While this report may be about missing CPA money (and there is a question about whether the CPA was actually an arm of the US government, no matter what the Bushies claim), the defense contract audit agency (DCAA) has issued reports about missing money and questionable cost accounting in Iraq. The reports are available in pdf format at www.gao.gov.
Aaron G. Stock wrote on February 6, 2007 3:56 PM:dave t,
NO ONE, either defending the Bush Administration or attacking Democrats or both, in any blog where I've posted the question of why the Bush Administration hasn't cared about these missing billions, HAS EVER RESPONDED directly to my wonderment. (OK, one guy (republicrat on Washington Monthly's blog Political Animal) said "That would be a good topic for a dedicated thread.")
It's Ignoreland all the way on this one for the likes of Limbaugh and Hannity. That is, until someone finds a way to blame the then-powerless Democrats for not helping to find the money.
HeavyJ wrote on February 6, 2007 4:03 PM:That answer must be among the most incoherent in the history of congressional testimony. You have to read it a few times to believe it.
"it was transparent what we were doing with the money to the ministries and then relied upon the ministries system, the entire financial system they had, to do that." Not only that, but they had to "make sure that the country’s safety was performed."
He should've stuck with his original "go fuck yourself" stance.
jeffs wrote on February 6, 2007 4:19 PM:$8-$9 BILLION unaccounted for. And how much went to buy arms and ammo for use against US troops? And who the fuck is going to be held accountable? Pardon me, stupid question. Sigh.
randron wrote on February 6, 2007 4:43 PM:Had the government sent 9 billion dollars to Ray Nagin and Co. after Katrina (AS IF) and he made an asinine statement like David Oliver's, would Limp-bough, (INS)'annity, et al have said anything about it? You bet they would! But because it was on Georgie's incurious watch ... SILENCE! Fiscal responsibility, discipline and accountability are ONLY for Democrats!?
bjobotts wrote on February 6, 2007 5:48 PM:The key to knowing that this reconstruction money was never going to be used for its intended purpose is that the money came into Iraq in CASH. That's right ... billions in CASH. No wonder it disappeared and is unaccounted for. Are we to believe that the US team did not know what would happen when they gave the Iraq reps billions in cash. Did they even get a receipt. How inept and stupid. They also knew in advance that there would be nothing we would be able to do about it. If it was your personal money you would never let someone like this even touch it without a hundred safeguards Bush. God what our country could have done for Katrina victims with that money and all you can say is "oh well..." How did you get to be in charge of anything?
Harriett wrote on February 6, 2007 6:01 PM:What an evil man. No wonder we're hated globally. He is Contempt personified.
itwasntme wrote on February 6, 2007 6:45 PM:How come I'm never around when all this money is falling off of trucks. I guess I'm just that stoopid type of person who'd try to find out who lost it.
starwheel wrote on February 6, 2007 7:06 PM:Am I hearing this right? A conservative is blaming the $9 billion missing dollars because he only had 4-10 people working in his office when California has 800 people doing the same thing? No wonder why these guys love small government.
And to think Rush is talking about polar bears playing on floating icebergs like cats and Malkin is busy chastising Lara Logan.
horatio wrote on February 6, 2007 7:13 PM:See it wasn't about the oil. It was about the goddam money, and making sure that it only went to our friends from the College Young Republicans. Whatever.
wotzi wrote on February 6, 2007 8:13 PM:From what I'm reading here there is an assumption that this money went to "corrupt" Iraqis. But without oversight we don't know that.
This money could have gone to corrupt others and today - via the money laundry that war can create - be in use elsewhere. To the detriment of Americans at home and abroad.
Something we don't know either. Without oversight. But then if you believe the adage of 'following the money' to ascertain its use and/or value we could reasonably say that no oversight is in the perpetrators' interest..
An injustice worthy of chasing down as far as humanly possible..
vox clamantis in red state wrote on February 6, 2007 8:52 PM:Everyone knows California couldn't do it right no matter how many libruls worked in their office an got blowjobs from their interns.
johnd wrote on February 6, 2007 9:01 PM:Mr. Oliver, we expected more from you. We trusted you to take over in Iraq and run it according to a surefire plan to win once the mission were accomplished and everyone strutted so Bigtime could be righton as only he can be..
Because we have to win Mr. Oliver, so we can go on rehashing and remixing all the b-s you have piled on our librul congress platter.
$9 billion in cash - 4 to 10 people to divy it up. Wonder how you got picked for that duty?
Auditor- Were you one of the people in charge of handing out the 9 billion in cash? We only can find 4 people who were part of that effort?
Me- (from my island) No habla ingles.
ShorelineCT wrote on February 6, 2007 9:08 PM:For sure, huge amounts of this $9B came back to R leaning contractors who funded many, many conservative, righteous causes and an election or two. No chance for any of that to be tracked down since those 4-10 people were "well compensated" and would not consider alternative uses for the money - right?
Richard L. Adlof wrote on February 6, 2007 9:32 PM:I vote that Congress garnish Mr Oliver's pay and lein his family's assets for entire $9.8 billion . . .
Then wait two/three weeks and ask him again is the missing cash is important.
Oilwellian wrote on February 6, 2007 10:56 PM:I must confess, I have the money and am living very well.
Seriously though, isn't this the same Iraqi money our government froze when the first Gulf War began? And didn't several Gulf War veterans attempt to sue for part of that money due to their lifelong injuries and health problems? It appears the Bush crime family had other plans for that money...screw the troops.
Robin wrote on February 7, 2007 12:10 AM:Come on, people. These are Republicans we are talking about. Immediate experience and facts have no place in this discussion.
Repuiblicans are the only people that can be trusted with fiscal repsonsibility, it's so obvious!
So what if $9B was 'lost' in Iraq. Who cares? Certainly not American citizens!
Now if Democrats wanted to spend the $200M Scientists say we need to start sequestering Carbon to try to slow down catastrophic climate change, now there would be something the American citizens can understand and complain about. Those damn money-wasting Liberals want to blow $200M on my children's future?!
Accountability is NOT an option!
Darren7160 wrote on February 7, 2007 8:01 AM:Isn't it amazing? Conservatives who believe that they are fiscal, instead of social conservatives should be screaming bloody murder! They should be demanding that the Republican party take back its values from the right-wing social nuts...
But, nah, they just want to remain in power... even if the social conservatives destroy the very basis of their beliefs!
Who would you rather deal with? A Democrat who agrees that things are needed in our society and can negotiate a compromise on the cost? Or a Right-Wing Social Conservative who has no principle other than controlling the lives of fellow Americans?
johndoe wrote on February 7, 2007 10:05 AM:Come on guys, give him a little slack.
He only lost 9 billion, when you compair this to the 59 Billion that HUD lost in 2000, or the 2.3 Trillion that the Department of Defense lost in 2001, it's a paltry sum.
W.J. wrote on February 7, 2007 10:08 AM:Why'd they send the money cash? Even idiots know cash leaves no paper trail.
Jeremy wrote on February 7, 2007 10:59 AM:"Why'd they send the money cash? Even idiots know cash leaves no paper trail."
Question asked, question answered.
Rose wrote on February 7, 2007 11:39 AM:Hey, somebody gets to go to jail and be fined for this. Enough already. If a female govt employee made such a dumb decision, everybody would be screaming.
The country is going down the drain on fast forward. Time for real accountability--no more excuses.
Duncan Basson wrote on February 7, 2007 1:20 PM:The missing money is an embarrassment of poor accounting; it is also the result of the near-total lack of accounting systems in Iraq. But to characterize the problem as one of mere fiscal mis-management is to ignore the larger problem that we have created: by dumping truckloads of money into Iraqi ministries that are shot through with Mahdi Army and Badr Brigade militants means that we have essentially funded the Shiite militias that we are purportedly going to eliminate in the "Plus Up" manuver.
The problem is not merely that the money has disappeared into a vortex; the real problem is that the money has re-appeared in the hands of unknown sectarian interests, who are likely using it to fund the unspeakable violence we see in Iraq today.
Of course, I can't prove any of this. All of my evidence is cirucmstantial: the many, many reports of pervasive, high-level corruption; the mysteriously deep pockets of various Shiite militias; perhaps it is all a grand coincidence. The solution, obviously, is to "Plus Up" the cash transfusions to Iraqi ministries; obviously, the real reason this strategy didn't work the first time is that partisan anti-war types in the US were too vocal in their criticisms of this administration's forward-thinking policies. Let's not make the same mistake twice.
JB wrote on February 7, 2007 2:02 PM:"..we decided the best way to make sure we could withdraw as quickly as possible and for the safety of the troops.."
WTF? He's claiming his staff handed out billions in cash they can't account for because they were worried about the troops?
He was paying protection money to the local mob?
LSF wrote on February 7, 2007 2:08 PM:The whole way this war has been run is a crime. The incompetence and the corruption just boggles the mind. Hopefully the new congress will force some accountability.
Sinjohn wrote on February 7, 2007 3:18 PM:Damn! I feel sorry for all those people whose money has been flushed down the toilet or into Dick Cheney's bank account.
Hopefully, Congress will do something meaningful about this mess. When they do, I'll gladly pay taxes again.
Until then, I will use my tax money to help Americans who need help under this criminal regime
I saw this one coming for miles.
Maybe wisdom does come with age.
MontyCantsin wrote on February 7, 2007 6:18 PM:Does anyone know how the specific dollar amounts were determined, of the pallet shipments to Iraq? I wonder whether the methodology was "that's how much the planes could carry."
Extradite Rumsfeld wrote on February 7, 2007 8:00 PM:If it's not obvious to you all by now, that this TREASONOUS THEFT was the WHOLE POINT of the Bush Presidency from day 1, then you haven't been paying attention.
It's Norquist's "starve the beast" on steroids.
Not only will they bankrupt the Public Trust, but that money will be untracably placed into the hands of future supporters - either direct RNC cash contributions, or through think-tanks, who are probably already burning through that money writing anti-Democrat hit pieces, and Global Warming debunking reports.
The crime of the century, and it was pulled off in the first 4 years.
And the real perps will never see the inside of a jail cell.
Extradite Rumsfeld wrote on February 7, 2007 8:21 PM:Oh - and don't believe for one second that any Democrats will be working hard to track down this money.
They become the beneficiaries on the campaign-contribution side, so long as they toe the *cough* (Lieberman) *cough* (Hillary) *cough* line.
Any Dem who still supports the war, or does not support public campaign financing, is on the take in this scam.
Papa Schultz wrote on February 7, 2007 9:37 PM:It was $9B of Iraqi money -- you know, it's not real money when it doesn't have George Washington or Ben Franklin on it.
ProgressivePatriot wrote on February 8, 2007 2:30 PM:On an unrelated topic: Does anyone know where the "insurgents" are getting the money to buy all of these anti-aircraft weapons? Maybe they have about $9 billion worth of them.
Artist General wrote on February 8, 2007 11:31 PM:SLACKER MEDIA, SUCKER NATION:
The Martial Mirage of IRAN:
Wedgied PNAC Gallery Agasp @ the Prospect!
ADMINISTRATION NOT RESPONSIBLE FOR "INADEQUATE" ARMOR*
* ReNeoconfigured Moral Bankruptcy Laws Apply
"WHOA! takin' us to WAR? you forGOT to Recu$e yourselves! (for LIFE)
YES or NO
Surrender-on-Demand* any profit demonstrably-connected to any war on your watch
* to Veteran's Benefit Groups, College Funds for Children of the Fallen...
SUPPORT THE TROOPS--NOT THE CHICKENHAWK$!
Reposted July '06 @:
Sargon wrote on February 9, 2007 1:09 PM:http://www.kyndmusic.com/2006/07/01/artist-general-warning-recusal-question-bad-for-bush/
Hey AJB and Joe,
Read this:
http://www.truthout.org/cgi-bin/artman/exec/view.cgi/37/12066
Commence your defense of Bremer and Rumsfeld. It was Iraqi money that was "spent" yet unaccounted for. Iraqis are NOT responsible for how American money was spent by Americans; there ought to be no quid pro quo accounting here. Next thing you'll be advocating Iraq pay the U.S. war reparations for the failed war. This is why the war has failed - sheer arrogance. We need a dose of national shame.
Sargon wrote on February 9, 2007 1:10 PM:Hey AJB and Joe,
Read this:
http://www.truthout.org/cgi-bin/artman/exec/view.cgi/37/12066
Commence your defense of Bremer and Rumsfeld. It was Iraqi money that was "spent" yet unaccounted for. Iraqis are NOT responsible for how American money was spent by Americans; there ought to be no quid pro quo accounting here. Next thing you'll be advocating Iraq pay the U.S. war reparations for the failed war. This is why the war has failed - sheer arrogance. We need a dose of national shame.
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