Special to WorldTribune.com

WASHINGTON — The United States has determined that hundreds of
millions of dollars in government funding was relayed to militias in Iraq.

A U.S. government report asserted that 10 percent of $4 billion in
relief and reconstruction aid was siphoned to unidentified Iraqi militias,
including tribal groups.

The report, quoting U.S. commanders, said the money
was meant to avoid attacks on American and Iraqi employees of the
Commander’s Emergency Response Program.

“Money … was found during raids on insurgents [along with] admission from contractors that they paid money ‘for protection,’ ” the report by the U.S. Special Inspector General for Iraq Reconstruction said. “Some commanders indicated that the diversion of CERP project funds may have benefited insurgents.”

The inspector-general examined the Commander’s Emergency Response Program, administered by the U.S. military to generate support in Iraq. The nearly $4 billion allocated to the program, begun in 2004, was at the discretion of U.S. field commanders and usually invested in areas with the greatest American military presence.

The report said at least 10 percent of U.S. contracts were funneled to
tribal leaders or insurgents to prevent attacks. The money was usually
relayed to the insurgents through local Iraqi officials.

“About 76 percent of those surveyed estimated that at least some of the
money their battalions spent on CERP was lost to fraud and corruption,” the
report, dated April 30, said.

Commanders said Iraqi governors, particularly in such Al Qaida-dominated
provinces as Anbar and Diyala, were demanding significant kickbacks to
ensure U.S.-financed reconstruction projects. The governors then relayed
much of the U.S. funds to insurgents, believed to include Al Qaida.

“There was substantial evidence that the local authorities were stealing
right off the top,” the report said. “Additionally, governors were offering
insurgents money that was to pay for CERP activities to NOT attack certain
CERP-funded programs.”

Those commanders who resisted paying protection money said U.S.-financed
projects were sabotaged and workers attacked. The report said the insurgents
coordinated with local Iraqi officials to extort contractors.

“I believe that contractors that were used for certain projects were
required to pay off Iraqi officials,” the report said. “Incidents occurred
when these contractors did not pay off officials, such as threats and
attacks. Additionally, some Iraqi officials, political and military,
attempted to force us to use certain contractors.”

  $4 billion in relief and reconstruction aid, Anbar and Diyala provinces, Commander’s Emergency Response Program, insurgents, Iraqi officials paid off, Some U.S. aid to Iraq bought ‘protection’ from militias