U.S. Should Repay Millions to Iraq a U.N. Audit Finds

James Glanz
NYT's

An auditing board sponsored by the United Nations recommended yesterday that the United States repay as much as $208 million to the Iraqi government for contracting work in 2003 and 2004 assigned to Kellogg, Brown & Root, the Halliburton subsidiary.

The work was paid for with Iraqi oil proceeds, but the board said it was either carried out at inflated prices or done poorly. The board did not, however, give examples of poor work.

Some of the work involved postwar fuel imports carried out by K.B.R. that previous audits had criticized as grossly overpriced. But this is the first time that an international auditing group has suggested that the United States repay some of that money to Iraq. The group, known as the International Advisory and Monitoring Board of the Development Fund for Iraq, compiled reports from an array of Pentagon, United States government and private auditors to carry out its analysis.

A spokeswoman for Halliburton, Cathy Mann, said the questions raised in the military audits, carried out in a Pentagon office called the Defense Contract Auditing Agency, had largely focused on issues of paperwork and documentation and alleged nothing about the quality of the work done by K.B.R. The monitoring board relied heavily on the Pentagon audits in drawing its conclusions.

FULL STORY