From today’s Washington Post:
UNITED NATIONS, July 15 — The Bush administration is withholding information from U.N.-sanctioned auditors examining more than $1 billion in contracts awarded to Halliburton Co. and other companies in Iraq without competitive bidding, the head of the international auditing board said Thursday.
Jean-Pierre Halbwachs, the U.N. representative to the International Advisory and Monitoring Board (IAMB), said that the United States has repeatedly rebuffed his requests since March to turn over internal audits, including one that covered three contracts valued at $1.4 billion that were awarded to Halliburton, a Texas-based oil services firm. It has also failed to produced a list of other companies that have obtained contracts without having to compete.
The Security Council established the IAMB, which includes representatives from the United Nations, the World Bank and the International Monetary Fund, in May 2003 to ensure that Iraq’s oil revenue would be managed responsibly during the U.S. occupation. The council extended its mandate in July so it could continue to monitor the use of Iraq’s oil revenue after the United States transferred political authority to the Iraqis in June.
The dispute comes as the board released an initial audit by the accounting firm KPMG on Thursday that sharply criticized the U.S.-led coalition’s management of billions of dollars in Iraqi oil revenue. The audit also raised concerns about lax financial controls in some Iraqi ministries, citing poor bookkeeping and duplicate payments of salaries to government employees.
The Pentagon did not specifically answer questions about withholding information to auditors, but released a statement saying the Coalition Provisional Authority worked hard to manage Iraq’s oil resources.