US Army Can’t Show Delivery of $1bn Fuel to Iraq

However, the log book is missing. In the absence of receiving reports and the fuel delivery log book, USACE has no evidence that shows whether fuel products paid for with DFI funds were received. This problem was compounded by the lack of metered trucks to document how much fuel was being delivered and the proliferation of fuel delivery points from 12 official sites to more than 100 sites. A DCAA report noted that due to these two conditions alone, the contractor had no way to confirm fuel deliveries and to establish a basis for paying the subcontractor. However, USACE officials noted that fuel was delivered by military-escorted convoys, which they believe decreased the probability of fraud or theft, and that there is no evidence that theft occurred.

USACE has not been able to determine the status of the DFI as key financial audits of contractors have not been completed. Without these audits, USACE cannot close out these contracts and task orders and assess whether the contractor owes the U.S. money, whether the U.S. owes the contractor money, and ultimately, whether the U.S. needs to return unused DFI funds to the GOI. The six RIO task orders that SIGIR reviewed have been closed, but the three RIE task orders remain open although the work was completed almost eight years ago. To date, USACE has returned $17.7 million in unused DFI funds to the GOI and, pending closeout of the RIE task orders, there may be more money to return.

The RIO and RIE work was completed in 2004 and, for the most part, work performed under the non-fuel-related task orders that we reviewed was successfully completed. Construction work on one RIO task order was terminated before completion. However, USACE awarded two new contracts to complete the projects and paid for them with U.S.-appropriated funds rather than DFI funds.

(Source: SIGIR)

(Picture: SIGIR Special Inspector, Stuart Bowen)

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