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Klobuchar Calls for Commission to Investigate Fraud and Abuse in Iraq Reconstruction Contracting

Cites whistleblower evidence that contractors wasted billions in taxpayer funds

April 28, 2008

Washington, D.C. – U.S. Senator Amy Klobuchar today renewed her call for a Wartime Contracting Commission to investigate fraud and abuse in Pentagon contract spending in Iraq after new reports emerged showing hundreds of millions of dollars in wasted materials, shoddy supplies and contracts cancelled for poor performance.

“American taxpayers have sent billions of dollars to help rebuild Iraq, and after five years we have little to show for it,’’ Klobuchar said. “When I served as a County Attorney in Minnesota we always said, ‘follow the money and you’ll find the bad guys.’ Today, we followed the money and we found billions of dollars in waste.’’

Klobuchar spoke at a special hearing called by the Senate Democratic Policy Committee and its chairman, Senator Byron Dorgan (D-ND).

At the hearing three whistleblowers who worked for private contractors in Iraq testified about the loss or destruction of millions of dollars of computers, construction equipment and other supplies that had been purchased by contractors under cost-plus agreements.

Also yesterday, Stuart Bowen, the special inspector general for Iraq, released a new report detailing hundreds of contracts worth millions of dollars that were never finished or were cancelled by American officials for excessive delays or poor performance – including some that were later described by U.S. government officials as having been completed.

“We are spending $12 billion a month in Iraq,’’ Klobuchar said. “The Congress has passed and the president has signed the authority for a Wartime Contracting Commission, and yet we are still meeting opposition from the Administration in implementing it. This is not going to stop us from demanding accountability from government officials and contractors charged with supporting our troops and important reconstruction projects.’’

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