U.S. Contractors Bilked Iraq Big Time

Attaturk at Rising Hegemon points us to this important piece at Boston Globe:

American contractors swindled hundreds of millions of dollars in Iraqi funds, but so far there is no way for Iraq's government to recoup the money, according to US investigators and civil attorneys tracking fraud claims against contractors......

A US law that allows citizens to recover money from dishonest contractors protects only the US government, not foreign governments.In addition, an Iraqi law created by the Coalition Provisional Authority days before it ceded sovereignty to Iraq in June 2004 gives American contractors immunity from prosecution in Iraq.

''In effect, it makes Iraq into a 'free-fraud zone,' " said Alan Grayson, a Virginia attorney who is suing the private security firm Custer Battles in a whistle-blower lawsuit filed by former employees. A federal jury last month found the Rhode Island-based company liable for $3 million in fraudulent billings in Iraq...