Billions Wasted In Iraq

Stuart Bowen, special inspector general for Iraq reconstruction, says $8.8 billion is unaccounted for because oversight on the part of the Coalition Provisional Authority, the entity governing Iraq after the war, "was relatively nonexistent."

The former No. 2 man at the Coalition's transportation ministry, Frank Willis, concurs. "I would describe (the accounting system) as nonexistent." Without a financial infrastructure, checks and money transfers were not possible, so the Coalition kept billions in cash to pay for its multitude of projects. "Fresh, new, crisp, unspent, just-printed $100 bills. It was the Wild West," says Willis.

Such an atmosphere made it possible for billions to go missing and companies to defraud the Coalition. Custer Battles, a company quickly formed after the war to get reconstruction contracts, goes on trial next week, accused in a whistleblower suit by an ex-employee of bilking the U.S. government out of $50 million

http://www.cbsnews.com/stories/2006/02/09/60minutes/main1302378.shtml