Auditors want rules for Iraq aid

[Ron Burgundy]

Auditors want rules for Iraq aid

By LOLITA C. BALDOR, Associated Press Writer 40 minutes ago

Federal auditors are recommending that the Iraqi government meet specific milestones of progress to receive any future aid for reconstruction, according to a report released Monday that echoes a message the Bush administration has delivered to Iraqi leaders.

The study, issued by the special inspector general who audits U.S. work in Iraq, also concluded that reconstruction is being blocked by violence, and efforts to empower Iraqis to do more are fraught with problems 3 1/2 years after the U.S. invaded the country.

The Iraqis should "meet concrete milestones and political and economic benchmarks as a condition of future aid," the report recommended. It said U.S. relief and reconstruction aid could be provided through conditional loans and be tied to specific actions by the Iraqi government.

During the past two weeks U.S. officials have pressed the Iraqis to begin to meet milestones of progress, an effort that has revealed rifts in the relationship between the two governments.

Last week Prime Minister Nouri al-Maliki complained publicly after U.S. Ambassador Zalmay Khalilzad said the Iraqis had agreed to meet specified benchmarks for progress. Bush later voiced confidence in al-Maliki, but warned that the U.S. will not have "unlimited patience" with the Iraq government's failure to quell sectarian violence.

The strains have surfaced in the run-up to the Nov. 7 elections for control of Congress, a campaign in which voters' dissatisfaction with Bush administration policy in Iraq has become a significant weak point for Republicans.

The quarterly audit report by the inspector general said the "deteriorating security situation across Iraq continues to impede progress," causing construction project delays, increasing costs and preventing repairs to critical power supplies.

The report underscores the persistent problems faced by the Iraqi government as it struggles to rebuild and take control of its own security in the face of a stubborn insurgency and a populace on the brink of civil war.

"The U.S.-funded phase of Iraq's relief and reconstruction has entered its concluding stages," the report said. "The government of Iraq's success in building on the foundation established by the U.S. relief and reconstruction program will now depend in part on (Iraq's) ability to attract more support from other donors and the private sector."

A consistent theme in the audits is that the escalating violence in Baghdad is stalling reconstruction. For example, auditors found that "repairing power lines is nearly impossible because of sniper attacks and death threats to repair crews." As a result, on one day earlier this month there was only enough power to generate a few hours of electricity.

The audit also said corruption continues to exist in a number of the Iraqi government ministries, and that building up a system of inspectors general is the most important initiative to fight such wrongdoing.

It said the Iraqi government must improve its ability to spend and manage its own money on capital projects, or international aid could dry up. The budget available for capital projects is about $6 billion, the audit said.

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