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| Iraq |
| Iraq jobs program suspended after probes |
| 2009-07-28 |
| [Al Arabiya Latest] A U.S. aid agency had to suspend a $644 million jobs program in Iraq after two reviews raised concerns about misspending. Among concerns raised in a report was evidence of phantom jobs and money being steered to insurgents instead of jobs projects, USA Today reported Monday. The Community Stabilization Program, meant to thwart insurgent activity by paying Iraqis cash for public works projects, was run by the International Relief and Development, a non-profit corporation in Virginia that runs similar programs for the U.S. government. Funded through the U.S. Agency for International Development, the stabilization program 'is generally thought of as one of the most effective counterinsurgency efforts in Iraq,' Deputy Secretary of State Jacob Lew told USA Today. In the first audit in March 2008, USAID's inspector general reported evidence that the program was defrauded through overbilling and payments to nonexistent Iraqi employees. While not alleging corruption, the inspector general said it found IRD's records were riddled with 'irregularities that call into question not only' the reported jobs 'but also the validity of payments made to project contractors.' That report led USAID and IRD to implement new financial monitoring mechanisms. An outside company reviewed the program's youth component in February and in June reported 'inconsistencies' in Mosul, Iraq, USAID said in a statement to USA Today. |
| Posted by:Fred |