US efforts to rebuild Iraq failing, says report

US efforts to rebuild Iraq are so beset with daily violence, corruption and poor maintenance that Iraqis will soon not be capable of managing reconstruction, investigators say.

The latest audit by the special inspector general for Iraq reconstruction found that uncertainty and delays plague a US-led war and rebuilding effort that has already cost nearly $400bn (€293.87).

Echoing what US military commanders have acknowledged in recent days, the 210-page report being released today found that security remained highly volatile.

Rates of attacks were lower, but attacks were more devastating, meaning greater disruption of services and public works.

Corruption among Iraqi officials also appeared to be worsening. Iraq's annual financial loss now exceeds $5bn (€3.67bn) due to fraud and abuse that "afflicts virtually every Iraqi ministry," according to the report. It cites the ministries of oil, interior and defence as the biggest offenders.

"Persistent attacks on US-funded infrastructure projects and sustainment challenges could jeopardise the completion of projects by their planned end-dates of mid- to late-2008," according to the report.

In a cover letter, Inspector General Stuart Bowen said the Iraqi government was assuming more of the financial burden for the recovery effort, but US support "will remain relatively robust for the foreseeable future".

Responding to specific portions of the audit, William Lynch, acting director of the State Department's Iraq Reconstruction Management Office, indicated that it was unfair for investigators to hold the US responsible for several of the cited problems, such as maintenance issues that he said were the Iraqis' responsibility.

"Recommendations such as how much water to use in cleaning floors or disposal of medical waste could be deemed as an intrusion on, or attempt to micro-manage operations of an Iraqi entity that we have no controlling interest over," Lynch wrote.

The report comes out as President George Bush and the Democratic-controlled Congress struggle to chart the future of the war and reconstruction effort.

Bush has pledged to veto a $124.2bn (€91.24bn) war spending bill this week that would require the beginning of US troop withdrawals by October 1. Both sides are now laying the groundwork for post-veto negotiations that Democrats hope will lay down benchmarks.