Army Official Ousted For Refusing To Approve $1 Billion In Questionable Iraq Funds

New York Times:

The Army official who managed the Pentagon's largest contract in Iraq says he was ousted from his job when he refused to approve paying more than $1 billion in questionable charges to KBR, the Houston-based company that has provided food, housing and other services to American troops.

The official, Charles M. Smith, was the senior civilian overseeing the multibillion-dollar contract with KBR during the first two years of the war. Speaking out for the first time, Mr. Smith said that he was forced from his job in 2004 after informing KBR officials that the Army would impose escalating financial penalties if they failed to improve their chaotic Iraqi operations.

Army auditors had determined that KBR lacked credible data or records for more than $1 billion in spending, so Mr. Smith refused to sign off on the payments to the company. "They had a gigantic amount of costs they couldn't justify," he said in an interview. "Ultimately, the money that was going to KBR was money being taken away from the troops, and I wasn't going to do that."

But he was suddenly replaced, he said, and his successors -- after taking the unusual step of hiring an outside contractor to consider KBR's claims -- approved most of the payments he had tried to block.

Army officials denied that Mr. Smith had been removed because of the dispute, but confirmed that they had reversed his decision, arguing that blocking the payments to KBR would have eroded basic services to troops. They said that KBR had warned that if it was not paid, it would reduce payments to subcontractors, which in turn would cut back on services.

Read the whole story: New York Times

Comments

[JTyroler]

I am so glad that a corporation has the ability to basically steal $1,000,000,000.00 from taxpayers and the military is doing everything it can to abet KBR (and other corporations) in their theft. I can't believe that no one is being charged with felonies. If just about any individual falsified records for tax breaks, that person would probably be facing charges - however if a defense contractor does it, our government bends over backwards to help them swindle the same government.

[alfrede]

Hi,

The Bush Administration's use of contractors to perform work which Federal employees could be performing is unprecedented in US history.

We will have to "wait till next year" (and a new administration) to find out what is really going on.

When elected officials leave office, are they still liable for wrongdoing when they were in office?

Inquiring minds would like to know.

[LiberalBuzz]

This should be AT THE TOP OF THE PAGE.

And this isn't the first time this has happened. Lord but I cannot wait until we get rid of these criminals running this administration.

AND the people let go should be rehired as BOSSES.

[sandiegowoman]

Feel my BP rising as I read. This man should be honored and whoever fired him should be tried as a war profiteer.

[incontempt]

Definitely should be reinstated with back pay and a commendation for exposing the enemies within.