Wed, Jun 23, 2004 - Page 7 News List

CPA criticized by auditors over oil fund management

AFP , Washington

Auditors working for the United Nations have strongly criticised the US-led Coalition Provisional Authority for its management of the US$20 billion fund from oil sales, which it said is "open to fraudulent acts," the Financial Times said yesterday.

KPMG International experts also "encountered resistance from CPA staff" in its attempts to oversee the fund's spending, according to an interim KPMG report obtained by the financial daily.

"The CPA does not have effective controls over the ministries' spending of their individually allocated budgets, whether the funds are direct from the CPA or via the ministry of finance," the report said.

The Development Fund for Iraq, which channels oil revenues to reconstruction projects, is "open to fraudulent acts," the report added.

The report was specially critical of the State Organization for Marketing Oil in charge of the sale of Iraqi oil, which has topped US$10 billion since the Iraq war ended and which goes to the US-controlled Defense Fund, the daily said.

The Development Fund has taken in US$20.2 billion since May and has disbursed US$11.3 billion, with US$4.6 billion left in outstanding commitments, the daily said.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top