The NewStandard ceased publishing on April 27, 2007.

Yet another report says U.S. has spent little on Iraq reconstruction

by Chris Shumway

July 5, 2004 – The US has spent only 2 percent of the $18.4 billion allocated by Congress for the badly needed reconstruction of Iraq, according to figures released by the White House budget office. Administrators of the US-led occupation had pledged to spend $10 billion on rebuilding projects in Iraq by June 30, but the White House figures show that officials actually spent only $366 million as of June 22.

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Those statistics are part of the Bush administration’s first detailed audit of reconstruction spending since the occupation began more than 14 months ago. The audit indicates that US occupation authorities spent no Congressional money repairing Iraq’s crumbling healthcare system or its water and sanitation infrastructure, two of the most pressing needs in the country. By contrast, US administrators spent more than $11 billion from an account holding Iraq’s oil revenues, most of it going to run Iraqi government ministries.

A spokesperson for the budget office said the figure of $366 million was misleading because occupation authorities had approved, but not yet spent, $5.3 billion in spending on reconstruction projects, a number that is still well short of the promised $10 billion.

The spending figures released by the White House don’t include the war-fighting and military occupation costs, which had reached $97 billion two months ago.

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The NewStandard ceased publishing on April 27, 2007.

Chris Shumway is a contributing journalist.

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