US to shut down Iraq reconstruction watchdog

[David]

NEW YORK (AFP) - A US agency which has exposed corruption and mismanagement in Iraq reconstruction efforts will be shut down next year.

The New York Times reported on its website that a little-noticed provision in a recent military spending bill signed by President George W. Bush will close the Office of the Special Inspector General for Iraq Reconstruction in October 2007.

The move will end an operation that has embarrassed the US government at times by exposing corruption and poor performance among favored contractors for billion-dollar reconstruction missions, like Halliburton and Parsons.

The provision was inserted at the last minute into a large military authorization bill by Republicans in Congress.

"It has generated surprise and some outrage among lawmakers, who say they had no idea it was in the final legislation," the Times said.

The Office of the Special Inspector General has 55 auditors and inspectors in Iraq, according to the newspaper.

A number of its reports have exposed US companies involved in reconstruction work for poor performance, and one pointed out that the US military did not keep track of hundreds of thousands of weapons it was providing Iraq's military and police.

Earlier this week the agency issued a report saying that violence, corruption and bureaucratic red tape were hindering Iraq's reconstruction effort.

"The deteriorating security situation across Iraq continues to impede progress in the reconstruction program, causing project delays, preventing travel to many sites, increasing security costs and endangering contractors' lives," it said in a quarterly report.

"Sabotage of Iraq's infrastructure, particularly in the electricity sector, hindered reconstruction efforts this quarter," wrote Iraq Inspector General Stuart Bowen.