DOD Report: Iraq hoarding billions in oil investment money

Getting Iraq's economy, and its oil industry, back on track is critical to that country's stability and day-to-day life.

A new report by the Pentagon suggests there's a long way to go.

The oil industry is not just hobbled by sabotage on pipelines and a crumbling infrastructure. The government is failing to make the capital investments it needs to get the oil fields and refineries healthy after more than a decade of neglect.

"Recently available data indicate that the Iraqi government executed 67 percent of its total budget in 2006. Although it effectively paid salaries, wages and pensions, the government executed only 22 percent of its capital investment budget and only 3 percent of its oil investment budget," states the Pentagon's latest quarterly report to Congress, "Measuring Stability and Security in Iraq."

The United States has spent $1.6 billion on oil sector reconstruction over the last four years but it is not enough to "offset the (government of Iraq's) failure to execute several billion dollars of its own funds in oil sector capital investments. In 2006 for example, the ministry of oil executed only $90 million of its $3.5 billion capital budget."

Read the rest at UPI

Related Link:
U.S. Draft Report: Billions in oil missing

Related Link:
U.S. Auditor: Corruption at $5 billion yearly; Maliki blocking probes

Related Link:
Iraq Official: $8 billion wasted or stolen in last 3 years

Related Link:
Report: Iraq could have twice as much oil as estimated

Related Link:
Perspective: Protecting Iraq's oil supply

Related Link:
Perspective: Missing billions

Related Link:
Auditors: Billions more may be squandered in Iraq

Related Link:
Analysis: Basra center of Iraq's oil smuggling, and a microcosm of the war

Related Link:
Analysis: $700 million a month lost in oil smuggling

Related Link:
Auditor's Office: Iraq corruption financing insurgents

Related Link:
Analysis: Iraq's oil industry in grip of despair

Related Link:
Report: Iraq oil industry in $16 billion shortfall over last 2 years