"The US has been a poor role model in how to keep corrupt practices at
bay"
Transparency International
The body is critical of the United States' handling of the
reconstruction process, arguing that its process for awarding public
contracts was secretive and favoured a small number of large firms.
From The BBC, 3/16/05:
http://news.bbc.co.uk/2/hi/business/4353491.stm
Iraq 'facing corruption threat'
The reconstruction of post-war Iraq is in danger of becoming "the
biggest corruption scandal in history", Transparency International has
warned.
The anti-corruption body said urgent steps were needed to ensure that
corruption did not become endemic.
Publishing its annual report, TI said there was evidence of "high
levels" of corruption in post-war Iraq.
The Iraqi government, coalition forces and foreign donors must be more
"aggressive" on corruption, it said.
'Strong measures'
Foreign contractors should be bound by anti-corruption laws while the
management of Iraq's oil revenues needed to be much more transparent
and accountable, Transparency International said in its Global
Corruption Report 2005.
"Strong and immediate measures must be taken to address corruption
before the real spending on reconstruction starts," it said.
Iraq has so far failed to learn the lessons of post-war reconstruction
in Cambodia, Congo and Afghanistan, TI said, where a combination of
weak government, thriving black markets, and a legacy of patronage
allowed corruption to flourish.
Since the overthrow of Saddam Hussein, bribery has taken place at all
levels of government while officials within the Coalition Provisional
Authority, contractors and ministry staff have admitted to corruption.
According to Transparency International, the former regime's control
of the economy left a legacy of corruption which survived its
collapse.
'Secret process'
However, the body is critical of the United States' handling of the
reconstruction process, arguing that its process for awarding public
contracts was secretive and favoured a small number of large firms.
Its comments echo those of the International Advistory and Monitoring
Board, a United Nations body, which in December criticised the CPA for
awarding contracts to oil services firm Halliburton and other firms
without a competitive process.
"In its procurement strategies, the US has been a poor role model in
how to keep corrupt practices at bay," the report says.
Attempts to tackle corruption, such as independent auditing of
government ministries and new laws to protect whistleblowers, had only
had a modest impact.
Failure to address corruption threatened to push up the cost of
rebuilding Iraq and hold back its economic development.
"Corruption doesn't just line the pockets of political and business
elites, it leaves ordinary people without essential services and
deprives them of access to sanitation and housing," said Peter Eigen,
Transparency International's chairman.
Blacklisting
Tougher penalties are needed to stamp out the corruption blighting
public procurement, not just in Iraq but worldwide, TI said.
Companies found guilty of bribery should forfeit the relevant contract
and should be prevented from bidding for similar work.
Tendering processes should be open to public scrutiny and independent
oversight.
The World Bank - which since last year has required all companies
awarded large-scale projects under its control to sign an anti-bribery
agreement - said the report highlighted issues of "deep concern".
"The diversion of funds from publicly financed projects represents an
unacceptable tax on the poor," said World Bank president James
Wolfensohn.
"In the construction sector, it represents a deplorable opportunity
lost for the delivery of essential services and it undermines citizen
trust in government."
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You're not surprised, are you? Well, are you? How could you be? The
Bush Crime Family is involved. That says it all.
Harry
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