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Report: Is Iraq Pulling its Weight?
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ShareAugust 05, 2008 12:23 PM
ABC News' Z. Byron Wolf reports from Capitol Hill: The high price of oil has created a budget surplus in Iraq, positioning the war-torn nation, already in the black for the past two years, to post up to a $50 billion surplus this year, according to an audit released today by the U.S. Government Accountability office.
Sen. Carl Levin, who chairs the Armed Services Committee and Sen. John Warner, who has been acting as ranking Republican on the committee in the absence of Sen. McCain, had asked for the GAO audit of the Iraqi books back in March amid growing discontent on Capitol Hill with the financing of Iraq's reconstruction.
"The Iraqi government now has tens of billions of dollars at its disposal to fund large scale reconstruction projects. It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves," Levin said today in a written statement. "We should not be paying for Iraqi projects, while Iraqi oil revenues continue to pile up in the bank including outrageous profits from $4 a gallon gas prices in the U.S. We should require that U.S. taxpayers be reimbursed for the cost of large projects."
While the fledgling Iraqi government brought in nearly $96 billion from 2005 to 2007, almost all of it from oil revenues and is on course to bring in $80 billion or more in 2008, they have spent less than 30 percent of the $12.2 billion budgeted for capitol improvements this year.
The US Government has allocated $48 billion for stabilization and reconstruction in Iraq since 2003 and spent $42 billion of that. The Iraq government, according to the report, has allocated $28 billion for similar improvements, but spent less than $4 billion.
A proposed $22 billion in supplemental, including $8 billion for capitol improvements would change the surplus numbers, according to the report.
When he and Gen. Petraeus testified before Congress in April, US Ambassador to Iraq Ryan Crocker told lawmakers that "there is very much an interest in moving the financing from us to the Iraqis. . . In terms of the United States no longer being involved in the physical reconstruction business."
But Crocker made a distinction between funds used for reconstruction and discretionary funds used by commanders on the ground for smaller scale reconstruction projects that are deemed necessary to stabilize certain areas
There is obviously a gray area here. Earlier this month, Levin and Warner wrote to the Pentagon to complain that $33 million in US taxpayer money was being allocated through the Commander's Emergency Response Program (CERP) to create an "economic zone" near the Baghdad Airport - more reconstruction than emergency, they said.
"Despite Iraq earning billions of dollars in oil revenue in the past five years, U.S. taxpayer money has been the overwhelming source of Iraq reconstruction funds," said Warner. "It is time for the sovereign government of Iraq, using its revenues, expenditures and surpluses, to fully assume the responsibility to provide essential services and improve the quality of life for the Iraqi people."
August 5, 2008 in Veepstakes | Permalink | User Comments (143)
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Ask Obama if they are pulling their weight.
Posted by: oil man | Aug 5, 2008 12:54:19 PM
So what does Obama have to say about this???
Posted by: Fernando | Aug 5, 2008 1:25:50 PM
Better yet, ask McCain if this is the surge he was talking about? A surge of money into Iraqie pockets.
Posted by: JR | Aug 5, 2008 1:27:25 PM
hey oilman, ask GW. He's pulling the strings right now.
Posted by: shek | Aug 5, 2008 1:29:55 PM
I say let's send Iraq our bill for services rendered.
Posted by: hang | Aug 5, 2008 1:30:46 PM
You mean Iraq is not sticking to the delusional NeoCON plan of them repaying us for the devastation we have reeked upon their country? Shame on them!
Posted by: Allan J Krueger | Aug 5, 2008 1:32:18 PM
If Iraq has surplus it is reasonable then that they should be funding their country's reconstruction efforts. I am a republican that supports the US being in Iraq until they can stand on their own. No time table...but this is encouraging to see that Iraq, even with its battered infrastructure, has a surplus available for its rebuilding. Let's get to it and maybe by doing so get the American economy going too!
Posted by: Matt | Aug 5, 2008 1:32:47 PM
Bush borrowed billions for this war and the American Taxpayer is facing another record deficit, weak dollar, inflation etc.. Why are we rebuilding Iraq when they have more money than we do????? We have debt they have cash!
Posted by: Hegel | Aug 5, 2008 1:39:41 PM
Why are we, the USA citizens, supporting Iraq. Our government needs to be brought to the table and answer WHY! Our government cannot win the world powers with our money - this needs to stop.
Posted by: Luis Young | Aug 5, 2008 1:41:00 PM
How stupid. An unprovoked invasion of a country is evil and immoral, but then failing to plunder their wealth after invading is just dumb.
Posted by: Moron | Aug 5, 2008 1:41:09 PM
Why are we, the USA citizens, supporting Iraq. Our government needs to be brought to the table and answer WHY! Our government cannot win the world powers with our money - this needs to stop.
Posted by: Luis Young | Aug 5, 2008 1:41:12 PM
Great! They have enough money to take care of their own DAMN country. Now let's pull out and start reinvesting and rebuilding OURS for once. We could learn something from Iraq. Or is it that they have learned from us. On how to scavenge and profit off another countries wealth without distributing any of it back into your own lands. Yeah I'd have to say Iraq was paying attention and learned how to do that quite well from us, wouldn't you say...
Posted by: ick! | Aug 5, 2008 1:43:38 PM
So how do we get all those billion sback that we gave to American contractors who completely ripped us off...
Iraq has money, the contractors have money, the oil companies have broken profit records, but the real American people are being fist ---ked in the u know what.
Posted by: Pete | Aug 5, 2008 1:43:56 PM
Get off that left wing crap . . . America's economy is certainly not in "shambles". Furthermore, it's great that Iraq has enormous wealth with which to build a workable and secure democracy. It is remarkable how the perspective from the leftist media always portrays gloom for America.
Posted by: rplat | Aug 5, 2008 1:46:32 PM
I'm not an Obama fan, but I'm confused as to why people are acting as if somehow he's responsible for this. The current administration should be billing Iraq for any monies we put into the reconstruction or working something out for reduced cost of oil exports, etc. That our deficit is at an all time high (thanks to the CURRENT ADMINSITRATION) and they have a huge surplus is just a ridiculous situation.
Posted by: Wendy | Aug 5, 2008 1:48:00 PM
One more detail...I was born in Michigan where Levin is from too and am a republican. Though I disagree on many of his stances I believe that Sen. Carl Levin is stating something very good in his statement above. A cautionary note though is to make sure that the US does not appear as being "paid back" from the costs of "Invading Iraq" but is seen from the position of genuinely wanting to turn over to a sovereign country the responsibility it should now shoulder for its own good. The US decided to help Iraq and the US should pay for that decision. Now that the country is manageable by its own citizens and government let Iraq invest in its future. Though the cost of oil is hurting many around the world...US included, what great timing, from Iraq's perspective, for a country to have a budget surplus when it most desperately needs it from the world oil prices. They have the same opportunity to rebuild their country completely - With Cash. How great is that!
Posted by: Matt | Aug 5, 2008 1:48:31 PM
He failed in business. His DADY was threatend. He was angry and Chaney HELPED. we get what we get. Wake up people....
Posted by: art | Aug 5, 2008 1:51:00 PM
rplat - "Get off that left wing crap . . . America's economy is certainly not in "shambles"." - No kidding! Jeesh. Just because we have the worse rate of mortgage defaults since the great depression, many financial institutions that have either failed or in dire straights, massive job losses, a bear market, etc, etc, who's to say it's in shambles?
Posted by: jmengate | Aug 5, 2008 1:53:55 PM
If you guys will recall we were told in the beginning they would pay us some of this back.
Posted by: Sandra | Aug 5, 2008 1:53:58 PM
One comment, "do you think that America will ever learn"??? Thanks to our great leaders with their worldly skills that all this has happened.
Remember America we are not the "Super Power" of yesterday..
Posted by: Wally J | Aug 5, 2008 1:54:26 PM
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