FOR IMMEDIATE RELEASE March 15, 2005

CONTACT: Brendan Daly/Jennifer Crider 202-226-7616

Pelosi: Independent Committee Needed to Ensure Taxpayer Money Spent Wisely in Iraq

Washington, D.C. – House Democratic Leader Nancy Pelosi spoke today on the House floor in support of an amendment to the $82 billion supplemental funding request for Iraq.  The amendment would create an independent committee that would ensure that government contracts in Iraq are rewarded and carried out properly and that taxpayer money is effectively spent.  Below are Pelosi’s remarks:

“Mr. Chairman, all of us in our country want our troops to have what they need when they go into harm’s way.  Sadly that was not the case for the last two years.  I hope that the $82 billion in this bill will redress some of those shortfalls that our troops have had to suffer because they didn’t have the proper equipment.  Never again should America send our troops into harm way without the equipment they need to keep them safe and to bring them home as soon as they finish their job.

“I rise today, Mr. Chairman, to commend Mr. Tierney and Mr. Leach for putting forward this critical amendment to appropriate funds for a select committee to study the awarding and carrying out of government contracts in Iraq and Afghanistan.  In their bipartisan work, Mr. Tierney and Mr. Leach have made clear that accountability in government is not a partisan issue.  Their leadership has set the right tone for this vital debate. 

“In 1941, Senator Harry Truman got in his car and drove all across the United States, making unannounced visits to defense plants and corporate offices.  The people running the plants didn’t recognize then Senator Truman.  They didn’t bother to hide the corruption and waste that characterized their operations. 

“This was at a time when Senator Truman was in a Democratic majority Senate; there was a Democratic majority in the House; there was a Democrat in the White House; and our country was in a World War.  But when he returned to Washington, Senator Truman called the trip ‘an eye-opener.’  And he soon introduced the resolution to create the Special Committee to Investigate the National Defense Program.

“It was estimated that, while spending only $400,000 at the time, this ‘Truman Committee’ saved $15 billion.  And it earned Senator Truman the gratitude of the entire nation.

“Today, we are considering whether to appropriate another $82 billion to the war effort in Iraq and Afghanistan.  This is in addition to the more than $200 billion that has already been made available.  Spending of this magnitude demands a strict accounting.

“Today, it would be impossible to walk into a defense plant unannounced.  But while security measures have changed, our American value of accountability has not.  There are honest differences about defense policy, but we should all agree, in a bipartisan way, that taxpayer money should always be spent efficiently and effectively.

“Sadly, the stories of abuse on contracts in Iraq are everywhere.  Nearly $9 billion spent on Iraq reconstruction is unaccounted for because of inefficiencies and bad management.

“The Pentagon's own auditors have now concluded that Halliburton overcharged by more than $100 million under its no-bid Iraqi oil contract.  A firm was paid $15 million to provide security for civilian flights into Baghdad even though no planes flew during the term of the contract.

“This is a disgrace.  This may be just the tip of the iceberg, though.  We simply don’t know.  That’s what we want to find out.  We do know who is paying the price for this waste and corruption: American troops and American taxpayers.

“Our first priority must always be force protection.  Yet sloppy contracting has meant that money has been wasted that could have been spent to provide our troops the equipment they need to do their jobs and protect themselves.  Recently, we learned that a contract for bulletproof ceramic plate inserts was awarded to a contractor who had no practical means of producing them.  It took 167 days for troops in Iraq to start receiving the inserts.  167 days.  How many injuries?  How many deaths?  We don’t know.

“For taxpayers, every dollar that is wasted on corruption, profiteering, and incompetence is one less dollar to pay down record deficits or to make Social Security solvent.

“Harry Truman led the way for a Democratic Congress to conduct oversight of a Democratic Administration.  In doing so, he created a bipartisan consensus that gave the public confidence in the war effort.  We can and we must do the same today.

“The amendment offered by Mr. Tierney and Mr. Leach would allow Congress to monitor the contracting process better, to meet the needs of our troops better, and to safeguard taxpayer dollars better.  I urge my colleagues to support this amendment and in doing so, support accountability in government spending and stop the profiteering in Iraq.”

“ Democrats are united in presenting a New Direction for America, one that will make our nation as strong as its people, one that brings opportunity, security, and prosperity to all Americans. ”

Democratic Leader Nancy Pelosi