PayPal-ing the war in Iraq
by Bill Berkowitz

In early September, the Los Angeles Times reported that the deteriorating situation on the ground in Iraq has forced the U.S. to divert money, originally earmarked for construction of some water and power plants in Iraq, to security projects. "Security costs have cut into the money available to complete some major infrastructure projects ..." the newspaper reported. "As a result, the United States is funding only those projects deemed essential by the Iraqi government."

The heavy price paid to secure the country is not the only financial issue in Iraq that is raising eyebrows these days: According to recent reports, one billion dollars was stolen from Iraq's defense ministry, money that was intended to train and equip Iraqi troops in its fight against the insurgency. In addition, another $500 to $600 million disappeared from the electricity, transport, interior and other ministries, Iraq's Finance Minister, Ali Allawi, told London's The Independent.


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