From the New York Times:

The State Department agency in charge of $1.4 billion in reconstruction money in Iraq used an accounting shell game to hide ballooning cost overruns on its projects there and knowingly withheld information on schedule delays from Congress, a federal audit released late Friday has found.

The agency hid construction overruns by listing them as overhead or administrative costs, according to the audit, written by the Special Inspector General for Iraq Reconstruction, an independent office that reports to Congress, the Pentagon and the State Department.

Where we see accounting irregularities, the local population sees a failure to commit to the people and reconstruction. The example of the Basra Children’s Hospital, a pet project of both First Lady Bush and Secretary Rice, with its cost-overruns, delays, and mismanagement ultimately demonstrates a lack of leadership to accomplish the task.

This isn’t about the Executive Branch (State Department) misleading Congress or the American people. This is about fundamental failings in our project “to bring democracy” to Iraq. By what example are we leading? How are these actions perceived by the population? 

Following this theme, back in April healthcare reconstruction projects were also in the news: U.S. Pays for 150 Iraqi Clinics, and Manages to Build 20.

Disagree? Which major capital building project in Iraq is still apparently on-time?