Originally Posted by patriot2342001

Like pouring water into a rusty bucket


Graft probe halts city's rebirth -- chicagotribune.com


Corruption 'staggering'
Although the U.S. has been trying to pursue reconstruction projects in Iraq since the early months of the war, the effort has taken on greater urgency since Gen. David Petraeus assumed command of the U.S. mission in 2007.

Once U.S. and Iraqi troops subdue militants in a town or district, the next step is to begin programs to improve the quality of life to undermine support for the militants among the civilian population.

Last month, however, Democratic Sens. Byron Dorgan of North Dakota and Sheldon Whitehouse of Rhode Island asked the Treasury Department to investigate whether Iraqi officials have embezzled or misspent billions of U.S. tax dollars intended for the country's reconstruction. Both senators called the scope of corruption within the Iraqi government staggering.

Such allegations have not been limited to the Iraqis. The Pentagon's inspector general reported last month that an internal audit of about $8 billion paid to U.S. and Iraqi contractors found that nearly every transaction failed to comply with U.S. laws or regulations aimed at preventing fraud.

The investigation in Hit began this year after allegations that Gaoud, the police chief, was involved in a scheme to divert oil illegally from a storage area at Kubaisa, about 6 miles southwest of the town.

Officials familiar with the probe said the police chief allegedly provided false papers authorizing tanker drivers to load fuel at Kubaisa. The fuel was then sold on the black market.

In April, Gaoud was forced out of his job. Officers from the Marine Corps' Regimental Combat Team 5, which helps train Iraqi security forces throughout Anbar, witnessed his resignation.