Iraq War’s ’Missing’ $6.6 Billion Is Discovered in Central Bank

Iraq War’s ’Missing’ $6.6 Billion Is Discovered in Central Bank
October 26, 2011, 12:24 AM EDT

By Tony Capaccio and David Lerman
Oct. 26 (Bloomberg) -- A new Pentagon audit resolves a lingering Iraq-war mystery, concluding that $6.6 billion of U.S.-controlled reconstruction money was transferred to the Central Bank of Iraq, not lost or stolen.

The Coalition Provisional Authority, created by the U.S. to run Iraq after the invasion, controlled more than $20.7 billion during its 14-month life, including $6.6 billion held when it was dissolved on June 28, 2004.

“That money is not missing,” said Inspector General Stuart Bowen in a telephone interview.

A 2010 Bowen audit couldn’t account for the money. Today’s report says “sufficient evidence exists showing almost all” the $6.6 billion was transferred to the central bank.

The inability to account for the money led to suspicion in Iraq that the funds had been stolen. The Iraqi parliament’s Integrity Committee wrote the United Nations in June that “all indications are that the institutions of the United States of America committed financial corruption by stealing money.”

“That’s not true,” Bowen said. “This report answers the question about the $6.6 billion. We conclude it properly was accounted for by the Federal Reserve Board Bank of New York and Central Bank of Iraq.”
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