BBC NEWS | Middle East | Iraq corruption 'costs billions'

BBC NEWS | Middle East | Iraq corruption 'costs billions': "Corruption within the Iraqi government is costing the country billions of dollars, the US official monitoring reconstruction in Iraq has said.

Stuart Bowen told the BBC that Iraq was facing a second insurgency of corruption and mismanagement.

He said Iraqi government corruption could amount to $4bn (£2.1bn) a year, over 10% of the national income, with some money going to the insurgency.

Many government workers also lack the skills to manage funds, Mr Bowen said.

'This money that's stolen doesn't merely enrich criminals,' Mr Bowen said.

'(It) frequently goes out to fund criminal militias or insurgents. That means lost lives for US troops.'

Missing weapons

A clause in a military spending bill signed by President George W Bush three weeks ago will terminate the work of the auditor on 1 October next year."