Tuesday, October 23, 2007

US-Iraqi contract 'in disarray'

BBC

A $1.2bn (£590m) contract for training Iraqi police was so badly managed that auditors do not know how the money was spent, the US state department says.

The programme was run by a private US company, DynCorp. It insists there has been no intentional fraud.

Auditors have stopped trying to audit the programme because all the documents are in disarray and the government is trying to get back some of the money.

Training Iraqis to take over security is a key part of US strategy.

The US government audit, due to be released in Washington, says the state department cannot say "specifically what it received" for most of the money paid to DynCorp, the largest single contractor to the department.

Correspondent say this case is the latest to highlight problems linked to private companies being awarded lucrative government contracts in Iraq.

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