Audit Criticizes Iraq’s Handling of Oil Sales After Power Transfer

The audit, conducted by accounting firm KPMG, covered the period from the June 28, 2004, transfer of sovereignty to the new interim government until Dec. 31.

While the audit makes no accusations of fraud or wrongdoing, it notes that Iraqi ministries and U.S. agencies awarded numerous noncompetitive contracts with development money. At one point, U.S. agencies bought armored vehicles with $988,000 that was supposed to be used for Iraq’s development. In one case a $6.1 million contract “was advertised on a subscription only Web site and therefore not publicly tendered,” the report found. “Only two bids were received for the contract.”
USA Today