The Follow the Money Project is investigating where the money appropriated for the Iraq and
Afghanistan wars is going -- especially money that should be going to the Troops.
Besides posting new developments in oversight and our investigative releases, check out our
sections on current investigations, reports and other information resources. Also sign up with our mailing list at the
bottom of this page to get our releases and most recent investigations.
LOGCAP Oversight Team issues Stunning After-Action Report
A startling example of dysfunctional and ineffective oversight was revealed at the Senate Subcommitte hearing
on "Management and Oversight of Contingency Contracting in Hostile Zones" Thursday, January 24, 2008. A 2005 LOGCAP
Support Unit Team Detachment after-action report, written by team members who were on duty in Iraq between June 2004 and June
2005, was submitted to their chain of command that documented a lack of support and such issues as LOGCAP Program Managers
"leading the charge" for KBR and supporting their "boondoggles."
There was no doubt that LOGCAP program officials were upset with the report and its unknown if it was eventually
edited and trashed so that it would never see the light of day. Click on the After-Action Report at the left side
of this site to read the full report.
Check out our blog to see what is new in oversight of the money for our soldiers.
Thursday, November 29, 2007
50 Percent Annual Growth: That's Where the President Can Find Some Pentagon Money
The President and the Congress are having a boxing match on the Iraq war money. Bush just went on television today with a
grim face saying that if the Congress does not fund his $196 billion request for next year, the Pentagon will have to start
laying off civilians and closing operations on American bases. He says that there is only so much money that the DOD can move
around. Congressman John Murtha, chair of the subcommittee that appropriates defense money, had the House pass a $50 billion
for the troops in Iraq for next year with the caveat that the White House has to have a troop withdrawal plan if more money
is to come. He asked reporters last week, "Because the Pentagon says it, you believe it?"
I don't have a dog in this fight about troop withdrawal. I am staying out of that fight because I am too busy trying to follow
the money in this war and trying to reform and prevent more damage done to the troops by an over-privatization of this war.
I have been looking at defense spending fraud and waste since 1979 and I do know that there is plenty of regular defense funds
sloshing around the DOD to fuel the Pentagon for quite a while. But instead of arguing about that, I have an idea of where
the President can get some walking around money while he is fighting the Congress about funding: the Iraq war service industry
billings are hemorrhaging.
Bush needs to tell the Pentagon to stop paying these contractors without seriously scrubbing the costs and force the contractors
to definitize (finalize or make definite the costs) their contracts. Right now these contracts have little oversight and the
billings are running like an out-of-control meter on the Iraq supplemental spending. Bush could use this money now and save
the taxpayers money later. He then could have the DOD auditors (he needs more of them) to go back over the past four years
and recapture the overbilling costs.
You don't think that would be a lot of money? Think again. According to an excellent report just put out by the Center for
Public Integrity, "U.S. government contracts for work in Iraq and Afghanistan have grown more than 50 percent annually,
from $11 billion in 2004 to almost $17 billion in 2005 and more than $25 billion in 2006."
Has the amount of troops in Iraq grown 50 percent in each of those years? Has the mission grown 50 percent each of those years?
Has the construction grown 50 percent in each of those years? No, but the billings have. It is the oldest defense scam on
the books...run up the costs on the first contract or task order, that becomes the new normal and then the next contract or
task order will have those inflated billings and more. It is especially easy to do this during a war when the Army is counting
on you for supplies and security and those few pesky DOD auditors are way behind the lines without access to the necessary
books. It also helps to have chaotic book keeping (it is a war, sir) so that the commander just has to take your word on how
much things are costing.
So Mr. President, if you need some money while you and the Congress settle your differences, take a look at the contractors.
Their excesses could fund your war effort for quite a while. If the President won't do it, perhaps the Congress could make
that another mandate for their next funding bill.
Comments are encouraged. Contact us at admin@followthemoneyproject.org
Troops! We need to hear from you about what you saw in Iraq or Afghanistan on supplies and
equipment. We also want to hear from contractor employees who have returned and troubled by what they saw in Iraq or Afghanstan.
We will keep all letters confidential. Email us at admin@followthemoneyproject.org .
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