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September 19, 2007

Inspector General Blocked Investigations re: Waste & Fraud?

Bustcrux52Posted by The Crux | Our laws are only as good as those who enforce them. Based on info from current and former staffers, State Department  Inspector General Howard Krongard stands accused of impeding investigations into contractor waste/fraud in Iraq and Afghanistan and of censoring reports that might embarrass the Bush Administration (Washington Post and NY Times).

The House Oversight Committee listed accusations in a 14-page letter ( press release is shorter). Among other thingsKrongard is accused of:

* Refusing to send investigators to Iraq/Afghanistan re: waste/fraud

* Stopping investigators from helping the Justice Department

* Using "irregular" procedures to exonerate a contractor

* Interfering in the investigation of a friend of Karl Rove

* Refusing to publish negative audits re: State Department finances

* Censoring reports to Congress.

Coincidences abound. In 2005, former Defense Department Inspector General Joseph Schmitz was accused of impeding investigations; he resigned.  Last year, congressional Republicans tried to eliminate the Office of the Special Inspector General for Iraq Reconstruction, after it uncovered contract-related violations (NY Times).

The details of this tangled web are unpleasantly fascinating.  For example,...

WaPo cites the following email exchange between Deputy Inspector General William Todd and State Department investigator John DeDona regarding waste and fraud re: the $592 million U.S. Embassy project in Iraq:

[Todd wrote]: "I know you are very frustrated. John, you need to convey to the troops the truth, the IG told us both Tuesday to stand down on this and not assist, that needs to be the message."

[DeDona replied]: "Unfortunately, under the current regime, the view within INV [the office of investigations] is to keep working the BS cases within the beltway, and let us not rock the boat with more significant investigations."

The Oversight Committee's investigation may also involve Blackwater USA, a Halliburton-tied contractor that was banned from working in Iraq earlier this week. Committee Chairman Henry Waxman's letter accused Krongard of impeding the probe of an unnamed security company suspected of "illegally smuggling weapons into Iraq" (NY Times).  The Associated Press reported that Blackwater USA is that company: Waxman's office neither confirmed nor denied.

Problems with contractors (and failure to properly monitor them) are not new and are not limited to defense contractors. For examples, see the following BN-Politics' posts:

   * Gov. Contractors: Driving up War's Costs? 

   * Contractor Fraud: Driving Up Healthcare Costs?

   * How the Energy Dept. Incinerated Tax Dollars

   * New Orleans Still Suffering after 2 Years and Billions of Tax Dollars

   * How the Defense Dept. Flushes Dollars Down Latrine

   * Insurance Companies Get Away with Over-billing Medicare

   * Billions over Baghdad: Poor Accounting Allowed Waste & Fraud 

   * U.S. Embassies: Still More Examples of Contractor Problems

   * Contractors Offering Bribes to Army Personnel?

   * Taxpayers Losing Money to Engorged Contractors

   * Audit Red-Flags Contractor in Iraq

   * Defense Dept. Rewarding Bad Contractor Performance?

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