Special Inspector General for Iraq Reconstruction | News Room

Useful Links Auditing Standards FAQs on IGs SIGIR News Room This section is specifically provided as an orientation to and reference for professional journalists on the office of the Special Inspector General for Iraq Reconstruction and its operations. SIGIR Newsroom "101" Why a Special Inspector General for Iraq Reconstruction? When the U.S. Congress appropriated funds for Iraq Relief and Reconstruction, it also passed legislation to create a specialized inspector general to provide accountability for the use of these funds. Public Law 108-106, the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004, appropriated $18 million for the Iraq Relief and Reconstruction Fund (IRRF). To oversee the handling and treatment of these funds by the Coalition Provisional Authority (CPA) , this law also established the Inspector General of the Coalition Provisional Authority (CPA-IG) to provide for the independent and objective conduct and supervision of audits and investigations relating to the CPA’s programs and operations. The law also had the purpose of providing for the independent and objective leadership and coordination of, and recommendations on, policies designed to -- promote economy efficiency, and effectiveness in the administration of such programs and operations; and prevent and detect fraud and abuse in such programs and operations. The CPA-IG was also to provide for an independent and objective means of keeping the head of the CPA fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress for corrective action. Stuart W. Bowen, Jr. , was appointed as the CPA-IG on January 20, 2004, and proceeded to establish a staff of auditors and investigators and support in offices in both Baghdad and Washington, D.C. CPA-IG audits and investigations began in March, and the CPA-IG provided his first Quarterly Report to Congress on March 31. However, the decision of the nations of the Coalition to return power to the Iraqis by June 28, 2004 triggered a provision of the law that called for the CPA-IG to terminate six months after the authorities of the CPA cease to exist. Disestablishment of the new CPA-IG on December 28, 2004, would have ended specific oversight of funds appropriated for Iraq relief and reconstruction long before most of these funds were spent. Congress acted to maintain the oversight, creating a successor to CPA-IG through Public Law 108-375 (The Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, enacted October 29, 2004). This amended P.L. 108-106 to re-designate the CPA-IG as Special Inspector General for Iraq Reconstruction (SIGIR) , and modified its authorities to provide for independent and objective oversight of the operations and programs under the Iraq Relief and Reconstruction Fund (IRRF). Stuart W. Bowen, Jr., continues to serve as the SIGIR with auditors, investigators and staff operating in Iraq and Washington, D.C. To whom does the Inspector General report? The Special Inspector General for Iraq Reconstruction reports directly to both the Secretary of State and the Secretary of Defense. This dual-reporting arrangement recognizes the joint responsibilities of these two cabinet departments for Iraq reconstruction. In addition, the SIGIR provides reports directly to the Congress as provided in the office’s founding statutes (Public Law 108-106 and pursuant to the Inspector General Act of 1978). Why the dual reporting arrangements to State and Defense? The work of Iraq reconstruction and the expenditure of the IRRF is a joint responsibility of the Departments of Defense and of State, and the U.S. Agency for International Development (USAID). By reporting directly to State and Defense, SIGIR is able to have independent oversight of the major government organizations involved in Iraq reconstruction. What is the SIGIR’s level of independence? The authorities and responsibilities provided in law are to ensure that the SIGIR has independence, both in fact and appearance, so that there is no impairment of the SIGIR’s objectivity. This includes the statutory independence provided under the Inspector General Act of 1978, intended to ensure the integrity and objectivity IG activities. The IG Act of 1978, as amended, authorizes inspectors general to: Conduct such audits and investigations, and issue such reports, as they believe appropriate (with limited national security and law enforcement exceptions) Issue subpoenas for information and documents outside the agency (with the same limited exceptions) Have direct access to all records and information of the agency Have ready access to the agency head Administer oaths for taking testimony Hire and control their own staff and contract resources Request assistance from any Federal, state, or local governmental agency or unit In addition, P.L. 108-106 , as amended, has two specific requirements related to independence: these are: "No officer of the Department of Defense, the Department of State, or the United States Agency for International Development shall prevent or prohibit the Inspector General from initiating, carrying out, or completing any audit or investigation related to the Iraq Relief and Reconstruction Fund, or from issuing any subpoena during the course of any such audit or investigation." "Whenever information or assistance requested by the Inspector General is, in the judgment of the Inspector General, unreasonably refused or not provided, the Inspector General shall report the circumstances to the Secretary of State or Secretary of Defense, as appropriate, and to the appropriate committees of Congress, without delay." What is the SIGIR tasked with auditing? The SIGIR focuses on money appropriated by the U.S. Congress for relief and reconstruction of IRAQ, specifically the $18.4 billion set-aside for IRRF in the 2004 Supplemental Appropriation. SIGIR audits may encompass the oversight and accounting of the funds and the reconstruction activities the funds support, as well as related contracts, transfers and records. The predecessor CPA-IG was required to also oversee $2.4 billion in the 2003 Supplemental Appropriation (Iraq Relief and Reconstruction Fund) as well as to report on the use of seized, vested and donor funds utilized in Iraq Relief and Reconstruction. Audits and work product of the CPA-IG related to these funds may be released by the SIGIR. Audits subjects are selected according to the SIGIR Audit Plan . The current plan covers SIGIR priorities for 2005-2006 Does the SIGIR have necessary authorities for criminal investigations? Yes; in creating SIGIR, the amendment to P.L. 108-106 provided more specific authority in this area than the original law. What powers and corrective measures are at the IG’s disposal? Following an investigation, the SIGIR will inform the Secretary of State or the Secretary of Defense of significant problems, abuses and deficiencies and recommend, and follow the progress of, corrective actions and implementation measures. In accordance with the Inspector General Act of 1978, Section 4(d), the SIGIR shall notify the Department of Justice and seek prosecutive opinion whenever evidence of a federal crime is found. Who handles Iraq Reconstruction? How is it handled now that the CPA is dissolved? The U.S. Department of State, U.S. Embassy Baghdad assumed oversight of relief and reconstruction activities in Iraq at the time of the dissolution of the CPA. The State Department’s Iraq Reconstruction Management Office (IRMO) has broad responsibility for identifying requirements and priorities. The Defense Department/Army Project and Contracting Office (PCO) is responsible for contracting and project management aspects of Iraq Relief and Reconstruction. What is the Development Fund for Iraq (DFI)? The DFI provided the central operating budget of the CPA-overseen Iraqi Governing Council and Ministries. DFI funds were also been used to pay public sector salaries and to compensate families for the loss of members and property as a result of the actions of coalition forces. The CPA-appointed Program Review Board (PRB) approved DFI expenditures and the UN-appointed International Advisory and Monitoring Board (IAMB) is charged auditing the DFI. The DFI is funded by continuing revenues from Iraqi oil sales, and has been supplemented by seized, vested and donor funds. After the transfer of sovereignty to Iraq on June 28, 2004, jurisdiction over the DFI was transferred go the Iraqi Interim Government. What are seized, vested and donor funds? Seized funds are cash and property confiscated by coalition forces during Operation Iraqi Freedom ($926M). Vested assets are those frozen by Presidential Executive Order and vested with the U.S. Department of Treasury for return to Iraq ($1.7B). Donor funds are those committed pledged by nations to the U.N. World Bank Trust Fund ($13.6B) and other measures of humanitarian aid ($851M) Are other inspectors general working in Iraq? How to you avoid duplication of effort? Other federal inspectors general are conducting Iraq-related activities. Two initiatives of the CPA-IG, now continued by SIGIR, were intended to enable coordination among inspectors general to ensure oversight, while avoiding duplication of effort. These are: Iraq Accountability Working Group (IAWG) coordinates audit efforts in Baghdad. Forward-deployed U.S. organizations that perform oversight of Iraqi reconstruction use the IAWG to exchange information about ongoing and planned audits. The IAWG held its first meeting on August 23, 2004, attended by representatives of the CPA-IG/SIGIR, State Department OIG, U.S. Agency for International Development OIG, the Defense Contract Audit Agency, and the Army Corps of Engineers. The Iraq Inspector General Council (IIGC) was created in March of 2004 to coordinate the activities of inspectors general and auditing agencies with jurisdiction and interests in Iraq reconstruction. In addition to the SIGIR, the inspectors generals of the Departments of Defense and of State (Co-Vice Chairs), Army, USAID, Treasury, Commerce and Health and Human Services, together with the Defense Contract Audit Agency, and the Army Audit Agency are Members, and the Government Accountability Office (GAO) holds observer status in the IIG. When does the SIGIR report to the Congress? P.L. 108-106 , as amended, calls for SIGIR to report each quarter to the Congress, with reports due 30 days after the end of each fiscal quarter. Therefore, reports are submitted at the end of January, April, July and October. The Inspector General Act of 1978 also requires semiannual reports at the end of January and July. These are combined with the appropriate quarterly report. Are these reports made public? Yes; the quarterly and semiannual reports, as well as audit reports, are posted on the SIGIR Website under SIGIR Reports . The quarterly and semiannual reports are also available on the Website in Arabic. How long will SIGIR be in operation? There is no specific date for the termination. Rather, the existence of SIGIR is tied by law to the IRRF and the activities it funds. P.L. 108-106 , as amended, specifies that SIGIR shall terminate 10 months after 80% of the IRRF has been obligated. It has been estimated that, based on projections for contractual obligation of the amounts in the IRRF, that 80% will have been obligated by November 2005. Under the formulation in the law, this would imply termination of SIGIR 10 months later, or the end of September 2006. The determination of the obligation of 80% of the IRRF is to be made by the Secretary of State and the Secretary of Defense. How is SIGIR funded, and is the funding level adequate? P.L. 108-106, the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004, provided $75 million to CPA-IG not limited for use in any specific fiscal year. The amended law permits SIGIR to continue to use this appropriation. Under our current mission requirements and assumptions about the duration of SIGIR, our budget projections indicate we have sufficient funding. How many people are employed by the SIGIR, and how can you fill positions quickly, given the normally deliberative processes of federal hiring? At its peak, the CPA-IG employed about 100 federal staff and contractors. Many were loaned by other federal organizations, and most of these returned to their parent organizations during a period in which the future of the oversight of Iraq reconstruction was uncertain. Until the amendments to P.L. 108-106 were signed into law by the President, SIGIR could not obtain employees to replace those who had departed. As a temporary organization with a unique mandate, SIGIR plans to employ about 145 federal and contractor personnel, comprised of an audit staff 57, an investigations staff of 24, initiatives/reports staff of 20, and 43 management and support. Most of the auditors and investigators are based in Baghdad, while the management, support, initiatives and report personnel are in the Washington, D.C. area. SIGIR is permitted to hire employees under special provisions of law (Title 5, U.S. Code, Section 3161), designed for temporary organizations established by law or Executive order for a period not in excess of three years. Under these provisions, qualified employees may be appointed in the excepted service of the civil service. Opportunities are posted in the employment section of the SIGIR Website. How can I read the law that created SIGIR? A document that reflects P.L. 108-106 (Nov. 6, 2004), as amended by P.L. 108-375 (Oct. 29, 2004), is posted in the Laws section of the SIGIR Website. Is a list of SIGIR duties available? Click on " Statutory Duties " on the SIGIR Website. How can I receive SIGIR reports as they are completed? SIGIR quarterly and semiannual reports are available on the Website on the dates they are due to Congress. Final audit reports are posted on the SIGIR Website after they have been provided to audited organizations. Members of the news media should contact SIGIR Public Affairs for further information. How can I find out about the progress of an investigation? Unless and until an investigation results in charges, it is our policy to not provide specific information about criminal investigations. Can I interview someone regarding a SIGIR report? Please contact SIGIR Public Affairs to discuss possible comments by SIGIR officials on quarterly and semiannual reports. While we may provide background information and explanation regarding specific SIGIR audit reports, it is not our practice to provide on-the-record comments beyond the findings and recommendations of the audits. Government audits are the result of a rigorous process of inquiry and verification, so that we prefer to let the audits speak for themselves.