Auditors that accuse the US government of squandering billions in Iraq miss the key point: why pay for the reconstruction at all? Wars are meant to inflict damage. Much-touted Marshall Plan wasn’t critical for post-WWII reconstruction of Germany. Nazi, politically and economically isolated and threatened with reparations, cornered rampant inflation and built powerful economy from scratch in only six years.
The US even pays the companies like Halliburton to rebuilt Iraq’s oil infrastructure. That’s supposed to be a profitable business not in the need of subsidies. Paying American contractors American salaries with large wartime surcharges to do the job the Iraqi could lousily do themselves is outrageous. The outsourcing to America builds resentment among Iraqi entrepreneurs who see their income flowing elsewhere.
The announced overcharge of 17% is surprisingly small. Given the Iraqi mess and near-impossibility of verifying the performed work, one would expect half to two-thirds of the contract payments stolen. Auditors work only with papers: proper documentation clears the charges. Quality of work and even the fact of performing the work are not checked during audit. Wages, unreasonable by Iraqi and very high by American standards, are not questioned. The amount of work in terms of man-hours is not thoroughly verified.
The Iraqi reconstruction recalls killing of a huge elephant for his tusks. For the kickbacks of less than 0.5%, often merely for gifts, Pentagon and the Department of State’s officials squander dozens of billions of dollars, and shape the US policies in Iraq to the detriment of American troops and taxpayers.
Iraqi guerrillas are doing the job of American auditors. The US could run out of dishonest contractors.