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The spoils of war add up to more than capturing expansive palaces and luxury cars. As Marketplace reporters have discovered, not all of the $22 billion being spent to rebuild Iraq is going where it should. Who's watching the money as it streams through Baghdad? Just about no one, and bribes and black marketeering are rampant, witnesses say. A leading anti-corruption group claims that at least 20% of U.S. money spent in Iraq is being lost to corruption. From Halliburton subsidiaries charging double for gas, Iraqi officials and Arabic translators unrestrained from pocketing millions of dollars, or even members of the interim governing Council accusing each other of taking tens of millions in bribes.
Marketplace's four-part series was produced by Karen Lowe. "Spoils of War" was produced in cooperation with the Center for Investigative Reporting, with funding from The Economist magazine.
 Photo: Paula Bronstein Getty Images
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Iraq's Reconstruction Boom:
The troubles in Iraq continue to mount. More than 100 U.S. troops have died there so far this month, making April the deadliest for U.S.-led forces since the fall of Saddam Hussein. Occupation and Iraqi forces have been unable to establish security in Iraq's cities. Against this violent and unstable backdrop, the United States has embarked on its largest postwar reconstruction effort ever. American taxpayers are footing a more than $20 billion tab to build schools, bridges, houses and power grids in Iraq. The security crisis has slowed the reconstruction effort, but President Bush has vowed that his administration will not stop until the work is done. Even if there were no security problems, the reconstruction might not proceed as well as the administration hoped. Millions - possibly billions - of taxpayer dollars are disappearing in a web of bribes, kickbacks and price gouging. From Baghdad, Marketplace's Adam Davidson follows the money.
Broadcast Date: Tuesday, April 20, 2004 |
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 Photo: Antonio Scorza Getty Images
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Where is the Money Going: Today the United nations Security Council unanimously approved an independent investigation into its oil-for-food program for Iraq. U.S. lawmakers claim that while Saddam Hussein was in power, billions of dollars were bled off in kickbacks to officials, activists and journalists from 46 countries. Though Saddam is gone, as is the oil-for-food program, there are signs the culture of corruption is intact. The U.S. has earmarked $20 billion to rebuild Iraq. Yesterday, in our series 'The Spoils of War' Marketplace's Adam Davidson looked at the looseness of the ledgers. Today, he walks the streets of Baghdad where, he says, the evidence of corruption is quite visible - if you know where to look.
Broadcast Date: Wednesday April 21, 2004 |
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 Photo: Joe Raedle Getty Images
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Is Anyone Accountable?:
Expensive, difficult, and long. That's how Republican Senator John McCain today described the process of bringing democracy to Iraq. During a speech in Washington, McCain said the recent escalation in violence was a "wake-up call". All the recent security problems only add to the deep frustration Iraqis feel over the slow pace of reconstruction. When the war began more than a year ago, many Iraqis hoped the United States would free them not only from a cruel dictator, but also from an ugly history of corruption. But the U.S. is having its own difficulties with corruption in Iraq. Allegations that the giant oil company Halliburton overcharged the U.S. government have grabbed most of the headlines. But it's not the only company where there have been problems. The list of U.S. contractors under investigation by federal and congressional authorities is growing. Millions - perhaps even billions - of dollars are at stake. We collaborated with the Center for Investigative Reporting on our special series "The Spoils of War." Mark Schapiro has the story.
Broadcast Date: Thursday, April 22, 2004 |
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 Photo: Ronald Martinez Getty Images
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The Buck Stops Here:
In the Iraqi city of Basra on Friday, police arrested five suspects believed to be linked to Al Qaida. The men are being held in connection with a series of car bombings earlier this week that killed at least 74 people. For many Iraqis, the increase in this kind of violence has fed their frustration with the U.S. occupation. It's not just the growing death toll. Their discouragement also stems from the slow pace at which fundamental change is taking place in Iraq. Central to that change was supposed to be the squelching of corruption. During a three month investigation, though, Marketplace found that the corruption plaguing Iraq today has its roots not only in the parched soil of that beleaguered country, but also in Washington. In the first of two reports today, the Center for Investigative Reporting's Mark Schapiro takes us to Capitol Hill. Then Adam Davidson brings us more from Baghdad.
Broadcast Date: Friday, April 23, 2004 |
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