One Final GOP Rip-Off Before November

By Stephen Pizzo, News for Real. Posted May 12, 2006.

Remember the rampant looting that followed the fall of Saddam? You may have thought that was a pretty brazen display of thievery.

Forget about it. Those Iraqis were pikers compared to the Republican-engineered looting about to begin right here at home. Context being everything, let me set the stage.

The GOP can read the polls. They know the jig is up. Americans are onto them, and we fully intend to throw them out of power beginning with this November's midterm elections.

Which is why the rush is on to top off their booty accounts and those of their well-heeled friends. It's every man, woman and contractor for him or herself now -- and never mind appearances. Just start stuffing the cash into old duffel bags until they're dragged, kicking and screaming, away from the till.

Which brings me to the measure passed by the Republican Senate this week. When you're looking for loose cash these days, where better to look than Iraq and Afghanistan? And this week they went straight for it. The Senate was considering a supplemental bill to fund reconstruction in the countries we deconstructed during Bush's first term in office. The sum the White House requested: a lip-smacking $109 billion.

You might remember that soon after the wars in Iraq and Afghanistan began, Halliburton and other administration-connected contractors were caught stealing hundreds of millions. ("Stealing": such an ugly word. They prefer "billing disputes" and "cost overruns.")

The flap over those early capers resulted in the appointment of Stuart Bowen as special inspector for Iraq reconstruction. Bowen was given a $24 million annual budget and a staff of 55 junkyard dog auditors.

Apparently, the White House failed to conduct its usual background checks of Mr. Bowen. Because, if they had, he would have never been hired. Unlike the standard issue administration yes-men, Bowen turned out to be the real deal. He and his small auditors thought they were actually supposed to catch cheats. And, sure enough, they began catching contractors forcing them to put the cookies back in the jar.

Which explains this week's White House hat trick. The administration had GOP senators on the appropriation committee to make a tiny change in wording to the new $109 billion authorization. It was a tiny change and, I am sure, they hoped it would go unnoticed.

Under prior authorizations, Iraq and Afghanistan reconstruction funds were described as "relief and reconstruction" funds. Under the measure passed by the Senate this week, the newly authorized funds would fall under the description "foreign operation" funds.

Here's the rub: Under law, relief and reconstruction funds must be audited by Stuart Bowen's bean counters. But Bowen has no authority over appropriations designated as foreign operations funds. Those funds are audited by the State Department inspector general.

Now, remember … Bowen's annual budget is $24 million, and he has 55 seasoned auditors. (Auditors who have gotten to know the perps and their tricks very, very well.)

The State Department inspector general has a budget more like the Mayberry Police Department: $1.3 million and just 4 auditors.

"This is nothing more than a transparent attempt to shut down the only effective oversight of this massive reconstruction program, which has been plagued by fraud and mismanagement." (Sen. Pat Leahy, D-Vt.)

Stephen Pizzo is the author of numerous books, including "Inside Job: The Looting of America's Savings and Loans," which was nominated for a Pulitzer.

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