Coalition Provisional Authority
Retired United States Army Lieutenant General Jay Garner was appointed as the Director of ORHA, along with three deputies, including British Major-General Tim Cross, in 2003.The Council membership consisted largely of Iraqi expatriates who had previously fled the country during the rule of Saddam Hussein and also with many outspoken dissidents who had been persecuted by the former Ba'athist regime.In order to defeat possible insurgent planning and under pressure from the Bush White House which wanted the occupation to end by the 2004 presidential election, the CPA transferred power to the newly appointed Iraqi Interim Government at 10:26 AM local time on 28 June 2004.The United States hoped that Iraq could be reconstructed and democratized in much the same way as Japan and Germany were after the Second World War, using them as "examples or even models of successful military occupations.The Notes on Internal Control from KPMG's audit of DFI expenditures was particularly critical of PRB record-keeping's failing to fulfill the CPA's transparency obligation.Critics assert that the CPA drastically altered Iraq's economy, allowing virtually unlimited and unrestricted foreign investment and placing no limitations on the expatriation of profit."[18] According to critics, this order was designed to create as favorable an environment for foreign investors as possible, thereby allowing American and multinational corporations to dominate Iraq's economy.These Inspectors General were to be "appointed to a 5-year term by the Administrator [Paul Bremer]," and were given sweeping powers "to conduct investigations, audits, evaluations, inspections, and other reviews...."[26] Critics contend this is a mechanism for ensuring continuing American influence in Iraqi governance even after the transfer of all sovereignty to the country.The $18.4 billion authorized by the U.S. congress was intended to finance large reconstruction projects such as power and sewage plants, not to provide the day-to-day operating expenses of the Iraqi government.What has been troubling to auditors and inspectors general is that large amounts of DFI funding is as yet unaccounted for and was expended in reconstruction projects that failed to provide a return on investment for the Iraqi people.It is also pertinent that expenditures under IRRF were also not administered strictly according to USFARS thereby causing severe waste, fraud and abuse as documented by SIGIR and other auditing agencies.[38] On 20 June 2005 the staff of the Committee on Government Reform prepared a report for Congressman Henry Waxman on the CPA's expenditures from the DFI that raised additional causes for concern.[36] The cash deliveries were described in a memo prepared for the United States House Committee on Oversight and Government Reform, which concluded that "Many of the funds appear to have been lost to corruption and waste....Some of the funds could have enriched both criminals and insurgents...." Henry Waxman, the chair of the House committee commented, "Who in their right mind would send 363 tons of cash into a war zone?"Special Inspector General for Iraq Reconstruction Stuart Bowen said that "Any doubts about how the money was handled after it left U.S. control is an Iraqi -- not U.S. government -- question".This insurgent activity significantly slowed reconstruction and required adjustment of project goals due to funds consumed by providing necessary security in excess of that originally planned.
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