American contractors swindled hundreds of millions of dollars in Iraqi funds, but so far there is no way for Iraq's government to recoup the money, according to US investigators and civil attorneys tracking fraud claims against contractors.
Courts in the United States are beginning to force contractors to repay reconstruction funds stolen from the American government. But legal roadblocks have prevented Iraq from recovering funds that were seized from the Iraqi government by the US-led coalition and then paid to contractors who failed to do the work.
A US law that allows citizens to recover money from dishonest contractors protects only the US government, not foreign governments.
In addition, an Iraqi law created by the Coalition Provisional Authority days before it ceded sovereignty to Iraq in June 2004 gives American contractors immunity from prosecution in Iraq.
More fine work from the administration that's (pardon me while I vomit) restored honor and dignity to the White House.Posted by armand at April 16, 2006 04:55 PM | TrackBack | Posted to Iraq