Pentagon promises crackdown on Iraq fraud, profiteering

This $1 million building for the Mosul police headquarters was supposed to contain 10 showers, 12 toilets, 10 urinals, 10 sinks and a changing room.

WASHINGTON (March 22) - Defense Department investigators said Tuesday they are going to be more aggressive suspending or barring companies from doing U.S. contract work in Iraq if they are involved in war profiteering there.

Stuart Bowen, special inspector general for Iraq reconstruction, said taking such action is an effective tool, particularly when auditors are struggling to come up with enough detailed evidence for criminal prosecutions.

Bowen's comments came in testimony before the Senate Judiciary Committee, as lawmakers complained that assessing fines is not enough to stop the billions of dollars in waste, fraud and abuse plaguing Iraq reconstruction projects. Auditors last month told Congress that about $10 billion has been squandered by the U.S. government on Iraq reconstruction aid because of contractor overcharges and unsupported expenses.

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