Smith Silent While Taxpayer Dollars "Dumped into Quicksand"

Michelle Neumann

It is clear that Senator Smith and rest of Bush's rubber-stamp Republican Congress failed to exercise the required oversight for the reconstruction process. They put party loyalty over success in Iraq. They did not want to embarrass the Administration - no matter the consequences to rest of the world.
"In another shocking instance in south-central Iraq, with little or no accounting for results, managers of the Coalition Provisional Authority funds could not account for nearly $100 million in cash and receipts. Where did the rest of the money go? It is as if the CPA were dumping suitcases of taxpayer dollars into quicksand."

-Rep. Tom Lantos (D-CA), Hearing Before The Committee On International Relations, House Of Representatives, Review Of Iraq Reconstruction, June 8, 2006

Senator Gordon Smith, your presence is required in the public debate regarding the Iraq reconstruction effort.

A CBS News report dated April 29, 2007, confirms, in an article entitled "Iraq Rebuild: Your Tax $ At Work (Not)" that the Bush Administration's gross mismanagement of the Iraq reconstruction effort continues to result in the waste of tens of millions of taxpayer dollars:

(CBS/AP) A severe lack of maintenance appears to be threatening the future usefulness of some of the facilities renovated during the effort to rebuild Iraq, says a new report from the U.S. inspector general monitoring reconstruction.

Inspectors from the Office of the Special Inspector General for Iraq Reconstruction, which is charged with reviewing Iraqi reconstruction projects that are financed by the U.S., visited eight facilities throughout the country, to determine whether the buildings were operating at full capacity.

What the inspectors discovered is that, even though those facilities had been completed and declared to be successes, and subsequently met the stated "objectives" of reconstruction, they were not functioning properly.

Continued...

Sites suffered from deterioration, poor or no maintenance, or were not even being used by the people for whom they were built, at a cost to U.S. taxpayers of approximately $150 million.

And these were sites that the United States had previously declared to be signs of Iraq's rebirth: police stations, a military base, a maternity hospital, a recruiting center.

While officials said the eight sampled projects could not be the basis for solely judging the success or merits of U.S.-backed reconstruction efforts in Iraq, the functionality of the facilities raised serious concerns about the rebuild effort, which to Washington has been almost as important as a military victory.

Millions of taxpayer dollars allocated to the Iraq reconstruction effort have been wasted due to fraud, theft and negligence. This money was meant to provide basic safety, health care and education for the people of Iraq, who have been living in a war zone for the past four years. As Rep. Barbara Lee stated at the Hearing linked above, "…given the fact that we bombed the heck out of that country and in many ways destroyed it, we have a duty and a responsibility to help rebuild it."

It is clear that Senator Smith and the rest of Bush's rubber-stamp Republican Congress failed to exercise the required oversight for the reconstruction process. They put party loyalty over success in Iraq. They did not want to "demean" the Administration - no matter the consequences to rest of the world. Their failure inarguably prolonged the suffering of, and danger to, the Iraqi people, and allowed insurgents the opportunity to further destabilize the country by exploiting the lawless and dangerous conditions. Not to mention the additional unnecessary danger that consequently resulted for American forces in the region. Allowing the treasury to be depleted by waste and fraud also puts important domestic programs, including those critical for Oregon, at risk. This is utterly inexcusable.

Once again, we have the situation where Oregon's elected representative, Senator Gordon Smith, seeks to avoid responding to his constituents about critically important issues. He was there in Congress as a second-term Senator and a member of the majority party. We expected him to be a prudent manager of taxpayer dollars. (After all, Smith repeatedly touts his own business acumen.) We expected him to exercise the basic Constitutional oversight duties of his office. He did not do that, and now he doesn't want to talk about it.

Nor does Senator Smith show any interest in trying to put things right after the fact by getting rid of bad contractors, recovering misspent/stolen funds or putting procedures in place to prevent this type of abuse in the future, as exemplified by Smith's vote to table the Dorgan Amendment. For an explanation, I could not have said it better than Bob Geiger in this article:

GOP Kills Bill to Police Halliburton
By Bob Geiger
AlterNet
Tuesday 20 June 2006

Republicans in Congress have made it clear they're willing to fight for military contractors' right to lie, cheat and defraud taxpayers.


And, while Democrats have been complaining for years about the GOP-led Congress abandoning its oversight of the executive branch's wrongdoing, a vote that took place in the Senate last week shows how the Republican desire to ignore fraud and abuse extends right into killing legislation that would help stop defense contractors from ripping off the American people.

In an effort to stop companies like Halliburton and its subsidiaries from cheating our troops and stealing from Americans, Senator Byron Dorgan (D-ND), introduced S.AMDT.4230 and attached it to the Defense Authorization bill currently being debated in the Senate. The bill was intended to improve contracting "by eliminating fraud and abuse and improving competition in contracting and procurement."

"I think when you are at war, when a massive quantity of money is being pushed out the door, that we ought to decide to get tough on those who would be engaged in war profiteering," said Dorgan in fighting for his amendment last week.

Dorgan's bill - cosponsored by 17 Democrats and called the Honest Leadership and Accountability in Contracting Act of 2006 - was tabled by a roll call vote of 55-43, effectively rejecting the amendment. Every single Senate Republican voted against the measure to make the contracting process honest and impose penalties on those who break the law.

And just what were the stern rules that the GOP didn't think their buddies at Halliburton should have to live with? The text of the legislation spelled out that Bush and Cheney's defense-contractor buddies would be in trouble if they did any of the following:

"Executes or attempts to execute a scheme or artifice to defraud the United States or the entity having jurisdiction over the area in which such activities occur."

"Falsifies, conceals, or covers up by any trick, scheme, or device a material fact."

"Makes any materially false, fictitious, or fraudulent statements or representations, or makes or uses any materially false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry."

"Materially overvalues any good or service with the specific intent to excessively profit from the war or military action."

The measure called for those found guilty of violating the law to be imprisoned for up to 20 years and be subject to a fine of up to $1,000,000 - a drop in the bucket for these guys - or a percentage of their ill-gotten gains.

And Senate Republicans still saw fit to reject penalizing companies engaging in overt war profiteering and fraud despite Dorgan spending a considerable amount of time on the Senate floor trotting out example after example of the hideous abuse that has been occurring in Iraq.

The best the Republicans could offer in response to Dorgan was a lame statement by Senator John Warner (R-VA), Chairman of the Armed Services Committee, who said that his committee is on the case and that "the organization is now in place to try to monitor the situations the Senator has enumerated."

There was no mention from Warner of where the hell his committee - and the GOP - have been for the last four years with all of this going on.

I guess that's fiscal conservatism Republicans can truly embrace.

When I called Smith's office to ask why he voted to kill the amendment, I was told that the Senator believes "other measures are in place" to avoid fraud and abuse. Given today's CBS report, that certainly does not seem to be the case.

Smith's vote to kill the Dorgan amendment is not acceptable, especially in light of the fact that Smith felt free to exploit the "success" of the reconstruction effort when it suited his purposes - to launch an attack on presidential candidate and fellow sitting Senator John Kerry from the Senator floor weeks before the November 2004 election. Smith restates Kerry's Iraq-plan points and then mocks them one by one:

The third point: The President must carry out a reconstruction plan that brings tangible benefits to the Iraqi people.

Yet the United States has already spent more than a billion dollars on urgent reconstruction projects in areas threatened by the insurgency. In the next several months, over $9 billion will be spent on contracts that will help Iraqis rebuild schools, hospitals, bridges, as well as upgrade the electricity grid and modernize the communications system.
-Sen. Gordon Smith, Congressional Record, Senate, Sept. 30, 2004

And what happened to that $9 billion? It was lost and remains unaccounted for, as you will see if you read the transcript of the 2006 Congressional hearing above. No oversight. No follow up. No answers. No accountability. And hopefully in 2009, no Senate seat.


  • 17yearoldwithanopinion (unverified)
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    what have the democratic members of our congressional delagation done on this issue. I have no idea so I just am curious

  • Phil Jones (unverified)
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    I'm so sick of hearing how $Billions of our tax dollars are sent to Iraq to continuously tear it down, then rebuild it. I don't care if the Iraqi's kill each other, let's pull our military and civilian forces out and let nature take its course. I simply don't give a rip about the "freedom and security" of undeserving people halfway around the world. Our own country needs infrastructure repairs and security augmentation.

    Throwing more money into the pit of Iraq is pure insanity. We are governed by idiots.

  • MNeumann (unverified)
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    17yearoldwithanopinion -

    For what the Democrats have done generally, read through the transcript of the 2006 hearing and read the entire Geiger article on the Dorgan amendment, as a start. The majority Republicans were certainly determined to block any effort by the minority to put a stop to this abuse.

    Also, see this for another example of how determined the Republicans were to stymie all efforts at oversight - they had one of their sychophants at the GSA try to cut the OIG's budget to intimidate him/stop him from pursuing further investigations: link

    GSA Chief Seeks to Cut Budget For Audits Contract Oversight Would Be Reduced By Scott Higham and Robert O'Harrow Jr. Washington Post Staff Writers Saturday, December 2, 2006; A01 The new chief of the U.S. General Services Administration is trying to limit the ability of the agency's inspector general to audit contracts for fraud or waste and has said oversight efforts are intimidating the workforce, according to government documents and interviews. GSA Administrator Lurita Alexis Doan, a Bush political appointee and former government contractor, has proposed cutting $5 million in spending on audits and shifting some responsibility for contract reviews to small, private audit contractors. Doan also has chided Inspector General Brian D. Miller for not going along with her attempts to streamline the agency's contracting efforts. In a private staff meeting Aug. 18, Doan said Miller's effort to examine contracts had "gone too far and is eroding the health of the organization," according to notes of the meeting written by an unidentified participant from the Office of Inspector General (OIG). .. Doan compared Miller and his staff to terrorists, according to a copy of the notes obtained by The Washington Post. "There are two kinds of terrorism in the US: the external kind; and, internally, the IGs have terrorized the Regional Administrators," Doan said, according to the notes. Through a spokesman, Doan said she respects the inspector general's role and is not doing anything to undercut his independence. She also denied that she had referred to Miller, a former terrorism prosecutor, or his staff as terrorists. ... "By law, she can't reduce the IG's independence, and she's aware of that." Doan, who was confirmed as administrator May 26, has publicly criticized Miller on other occasions. .. Doan also complained in the annual report that Miller was being "unsupportive of recent changes" and said vendors and government contracting officials had reported that his auditors and investigators were exerting "undue pressure." [WAAAAH! Oversight!] ... Before joining the GSA in August 2005, Miller served as a federal prosecutor and worked on the government's case against al-Qaeda terrorist Zacarias Moussaoui. Sen. Charles E. Grassley (R-Iowa), chairman of the Senate Finance Committee, has written to Doan expressing his concerns. "The primary mission of the IG in your agency and every other government agency is to be a sentry standing guard against fraud, waste, and abuse wherever it occurs regardless of circumstances," Grassley wrote on Oct. 20. "This cannot be accomplished if the IG's independence is impaired or hindered by the agency in any way, shape, or form." Doan responded by acknowledging his concerns and saying she was mainly focusing on balancing her agency's budget. "Please be assured that I do not -- and should not -- decide which audits or investigations the IG pursues," she wrote to Grassley. "That would be inappropriate." Inspector general's offices were given by Congress a mandate to operate as independent watchdogs in the executive branch, working on behalf of taxpayers to guard against wasteful spending. The Inspector General Act of 1978 stated: "Neither the head of the establishment nor the officer next in rank below such head shall prevent or prohibit the Inspector General from initiating, carrying out, or completing any audit or investigation." The GSA inspector general's office's audits have helped the agency recover billions of dollars in recent years from flawed or fraudulent contracts. Some vendors and government workers have complained that the audits have made contracting more cumbersome than necessary. Soon after Doan was nominated to lead the GSA this spring, she promised outside vendors that she would make contracting with the agency much easier for both government bureaucrats and corporations. After she assumed the post, she began trimming the budget proposal of the inspector general's office. She wrote in her annual report that the office's budget and staff had "grown annually and substantially" in the past five years. Since 2000, the number of employees in the inspector general's office has grown from 297 to 309, according to the office. In August, a budget official in the inspector general's office described Doan's efforts to cut funding and to limit the number of audits as "unprecedented," according to an e-mail obtained by The Post. The official, John C. Lebo, said that "for the first time in memory, the Budget Office changed or deleted portions of our budget without notifying us prior to their changes." Lebo, who has since left the agency, said the changes were troubling. "The Administrator's Office wants to change the IG's overall approach from independently rooting out crime, fraud and abuse, to one in which the OIG is a team player working with GSA," he wrote.

    Doan - we all know what hapened when she testified before Waxman's Committee (re Hatch Act violations).

    4/23/07 - Wyden and Dorgan have demanded Doan's resignation. Smith has not, as far as I know.

    Elections have consequences - one of the most important in this case being the restoration of Congressional oversight.

    Smith pushed the bogus "successful" reconstruction talking point as an attack on Kerry, when Smith, as the successful frozen pea magnate, should have known/did know what was really happening. It is Smith's job to know the facts about the reconstruction effort, especially before making public pronouncements about it.

    Also, if you have a question about what our delegation has done, you are free to avail yourself of The Google or submit a guest column just like anyone else. I really don't like when people dump a loaded question into the blogosphere and expect someone else to do something about it. Do your own research if you have a question.

    -MN

  • MNeumann (unverified)
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    Phil, I certainly do care - I absolutely do not want to see any more death and destruction in Iraq or anywhere. But this is what Bush's policies have wrought, he and his enablers are responsible, and they seem powerless to stop it.

  • Bill Bodden (unverified)
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    I simply don't give a rip about the "freedom and security" of undeserving people halfway around the world.

    Unfortunately, the Bush Administration, their neocon buddies, Senator Smith and his Congressional colleagues, and other moral bankrupts share this attitude and took delight in the shock-and-awe, slaughter-and-mayhem inflicted on hundreds of thousands of innocent Iraqis. Despite this, the same people can't figure out why "they" hate us. There are, no doubt, some Iraqis that could be considered "undeserving" but anyone paying attention to what has been going on in Iraq should know that there are many good and decent people trying to survive there and deserve the right to life, liberty and the pursuit of happiness.

  • MNeumann (unverified)
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    Thank you Bill. At the peace rally a few weeks ago someone had a great sign that said "Violence is a Weapon of the Weak". I agree. They cannot obtain the desired result through diplomacy, study, "hard work", smarts, patience. Instead, they just start destroying things and expect others to bend to their will.

  • Richard (unverified)
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    Did I read this right?

    "Where did the rest of the money go?"

    I wonder when BlueOregon will be applying this useful curiosity to local matters such as no bid contracts to Bechtel, Cascade Station, Urban Renewal, SoWa or any of the hundreds of millions spent around here which never gets any authentic oversight?

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    I wonder when BlueOregon will be applying this useful curiosity...

    You know where the guest columns link is.

  • Phil Jones (unverified)
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    Bush never should have sent ground troops into Iraq. He was warned during the leadup to war that he would be opening a Pandora's Box of problems. But, like a bull in a china shop, he plowed ahead with his diabolical plans for regime change even though he had no exit strategy or contingency plans if insurgents began resisting. It was a totally failed foreign policy action motivated by huge oil profit fantasies.

    It sickens me to see so many good Americans on both ends of the political spectrum profess to "care" about the livelihood and welfare of the Iraqi people. They fall right into the sympathy trap Bush promulgates as his latest reason for continuing to fund this immoral military activity.

    When so many of our own people are living below poverty level, with no heath insurance and rapidly rising costs of living, it is no less than criminal to send billions of dollars each month to Iraq while ignoring the plight of the American populous. Wake up!

  • Bill Bodden (unverified)
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    It sickens me to see so many good Americans on both ends of the political spectrum profess to "care" about the livelihood and welfare of the Iraqi people.

    People who "profess to 'care' about the livelihood and welfare of the Iraqi people" are probably people who were persuaded by the intent of documents such as the Universal Declaration of Human Rights that embrace all people. The opposite of the that is to concern oneself with one's own nation, or if that is still too large in scope, then one's own state, or to keep reducing the focus of interest to one's own family which might ultimately lead to one's own self.

    They fall right into the sympathy trap Bush promulgates as his latest reason for continuing to fund this immoral military activity.

    Without the benefit of a poll, I would bet the majority of people with sympathy for the plight of average Iraqis have little in common with Bush and his administration who have no problem continuing the carnage they unleased. Having concern about the welfare of the Iraqis or other non-Americans does not mean we don't also have concern for the welfare of fellow Americans.

  • Bill Bodden (unverified)
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    It sickens me to see so many good Americans on both ends of the political spectrum profess to "care" about the livelihood and welfare of the Iraqi people.

    <h2>Let's not forget that the American government is the primary culprit responsible for the ongoing misery in Iraq. As the fortunately-ex secretary of state Colin Powell put it about the pottery barn rule, "If you break it, you own it." Which means, the decent thing is to take responsibility for the damage you do or have done.</h2>

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