The 'worst' reconstruction case in Iraq

Posted on Monday, July 28, 2008 10:39 AM ET
Filed Under: ,

Update: The contracting company that built the Iraqi prison detailed in this blog has issued a statement in response to the Inspector General's audit. Scroll to the bottom of the post to see the response.

By Aram Roston, NBC News Producer

Even for troubled reconstruction efforts in Iraq, this case stands out. Sprawled out in the Iraqi desert in Diyala Province is an abandoned and incomplete prison compound built of reinforced concrete, ringed by a fence and unmanned watchtowers. It cost the U.S. government $40 million to build over three years, before the entire complex was left unattended in 2007, to the wind and sand.

 "This was the worst project we've seen!" said Stuart Bowen, the Special Inspector General for Iraq Reconstruction, whose office released a report on the site, known as the Khan Bani Sa'ad Correctional Facility. Much of the anticipated reconstruction in Iraq following the 2003 U.S. invasion has been hampered by the violence of war, as well as by mismanagement and corruption, as Bowen's office and other investigations have documented in the past.

 The report lays out a withering critique of what happened. It was meant to be the first phase of a 3,600-bed prison - with space for 1,800 prisoners as a first step. And it was conceived during the days of the "Coalition Provisional Authority," about a year after the U.S. invasion, when Ambassador Paul Bremer presided over the U.S. occupation.

Bowen, the IG, says the prison is a case study in what could go wrong. "It is an example of poor government oversight," he said in an interview, "inadequate contracting personnel (there were 18 different contracting officers on this in less than 2 years), and really the failure to plan."

The giant American firm that first did the contract was removed from the job in 2006 and other contractors were assigned to it after that, the report explains.

Watch Aram Roston's web-exclusive report on The Khan Bani Saad Prison in Iraq.

Finally in 2007 the entire project was canceled. But there were several big hitches, the audit reveals. One extraordinary puzzle: The prison was supposed to be for the Iraqi government to detain prisoners, but the Iraqi government simply did not want it. In 2007, according to auditors, the Iraqis made it quite clear to the U.S. Army Corps of Engineers they had no interest.  "The Iraqis weren't really consulted about whether they wanted this prison," Bowen said, "and when it finally came time to give it to them they said 'no.'"

Location completely unguarded
So the U.S. stopped requiring security guards to the site in the summer of 2007.  Auditors found that even $1.2 million in construction materials which were left at the site disappeared.

Once it was all over auditors found that even much of the work that was done was allegedly substandard, including "generally poor workmanship," and "potentially dangerous building columns." One case, they said one of the buildings was so shoddy it needed to be demolished.  According to the audit, U.S. military authorities concur with most of the report's findings.

No one has used the compound for a year in any case, so it is little more than a ghost of a prison.

The audit recommends that the U.S. military try to work out some way the Iraqis could finally use the unfinish complex. But until that happens it will just be a "monument in the desert," as Bowen calls it.

Update, 7/29: Parsons , who had the initial contract for the prison, blamed the war and violence for the problems in construction. They issued the following statement on Monday in response to the audit:

"The Kahn Bani Sa’ad corrections facility was a uniquely difficult assignment.  The facility was located in a region plagued by violent sectarian warfare, particularly during the months that Parsons was on that project.  Regrettably, one of our subcontractors was shot and killed at close range while he was sitting in his office.   Ultimately, the government terminated our contract before our work was completed, and Parsons demobilized from the site in June 2006. After Parsons, the U.S. Government awarded three successive contracts with different contractors to finish the work and those contractors were unsuccessful and all three experienced similar disruptive violence. According to SIGIR, in June 2007, the government decided to abandon the project because it was too dangerous. Currently, the Government of Iraq has not resumed construction or secured the site."

Comments

ANOTHER REASON WHY AMERICA HATES WASHINGTON
Far from the worst. Keep trying.
No surprise here. If I produced shoddy work I wouldn't get paid. Therefore maybe we need to get our money back and possibly send the crooks to jail. That is what we still do with our criminals isn't it?  
How about telling us the good that has been happening over there, schools, hospitals, powerplants, etc....
You guys always have to find fault with Americaa and/or Americans
This is another example of huge waste of american taxpayer dollars.  Jobs are outsourced or in-sourced.  We pay for the Governement to ruin this Nation.  The Rich gets Richer and the Poor gets Poorer.  In ten years there will be two classes, Rich and Poor.  The Middle will no longer exist.  
Yet, according to McCain, we have won in Iraq! If your definition is billions of dollars wasted in projects like this, over 4 thousand dead service men, 10's of thousands wounded, 10's of thousands Iraqs dead, millions of refugees, many 100's of billions of dollars gone, thousands of soldiers calling suicide hot lines, all for a country that had nothing to do with 9/11...well then I guess we did win.
Who is held accountable for this waste of resources?
how come nobody is charged/prosecuted ,be it goverment employee/contactor, for this????  don't send it to a washington committee as that is just a photo op for the senators
The complete lack of accountability for this travesty of a war is just appalling.
Why didn't your story name the prime contractor?  Describe what discipline or punishment is being meted out (yeah, let's laugh.)  Whose military or civil service career was affected by this.  Who in the Bush administration takes ownership for this?  Can we associate this "success" with the Surge?  What would John McCain say about this jail?
Thanks to Aram for this info and overview of the SIGIR audit report.  It would help if more info was provided on which funding source paid for this. Was it IRMO, or DoD direct funding, or MOI funds, INL, etc?  They need to be clearly named, although you did mention the Corps of Engineers.  And, who were the construction firms?  When i was in Iraq from 2004 to 2006, I also experienced heavy turnover of contracting officers (mostly military) since they changed like confetti - flitting in and out of Iraq in periods as short as two months (Air Force) and variable levels of experience.  See more on other Iraq reconstruction problems at http://webworks.typepad.com/corruption_in_iraq/ .
The most shocking part of this is that I'm not at all surprised.  And the government has the gall to be self-righteous when people think their taxes are too high!
This is a disgrace. This country is going under
and McCain thinks "we have won".Bush has given over $1 trillion in tax breaks to his buddies and now we face a record deficit and he still wants to make his tax breaks permenant. I guess he thinks "we have won" also. This is very tragic, when will we finally wake up as Americans and vote all of these rich politicians out of office and then we can finally declare that "we (the people) have won".
Your tax dollars at work. Forty million dollars for a prison nobody asked for or wanted, but we figured they'd need it because we happen to be invading. America trying to push prison culture on other countries.. "PUT YOUR POPULATION BEHIND BARS SO YOU KNOW WHERE THEY ARE!" -America
Can someone explain to me how an ambassador (Paul Bremer, a Presidential appointee) can be given the responsibilty to preside over the occupation of a country?  Is he not also responsible for building a $700 million dollar embassy in Iraq?  If this dow\esn't send up a red flag somewhere, there must be a lot of people turning a blind eye to what is really going on in Iraq
What do you except from our government. The people in America are having hard times now and the government is still spending big bucks every where else but here in America.Living cost are hitting all or us , but as we all no,the rich get richer and the poor get screwed??
This complex should immediately be re-named the "George W Bush Legacy", except such a monument should stand for a 1,000 years, and this one is so shoddy it might not outlive his reign.
A good sized city will have mismanaged programs that 'waste' this kind of money -- as numbers go, it isn't much in a multi-billion dollar budget.

Should it have been managed better?  Yes.  Are there problems in program oversight, in Iraq and elsewhere?  Yes.  Is government worse at this than industry?  Maybe.  Industry is as capable as anyone else when it comes to changing horses midstream, failing to identify priorities, et cetera.

Hardly a hanging offence, and not even likely the 'worst case' described in the title.

V
When will people wake up. It's been like this from the first minute the first politician realized he/she is set above the people they are suppsed to work for, beyond reproach, and can spend other people's money any way they want, mostly to enrich a friend, definitely to enrich themselves, and then laugh at you and me for being the scum under their feet that do the real work of making wealth and not realizing it.
Nothing is as bad as all of the electrocution deaths because of Halliburton's and KBR's shoddy wiring - our servicemen are getting electrocuted in the shower, for God's sake!
That is why you see a ground swell of folks who are forming a grass-roots, internet-based, self-funded new political system; and are willing to bet on someone. Right now it looks like Obama is the only candidate even close to bringing reality and new energy. But he's going to need lots of help because even now there are "old guard" politicians who want to see him diminished and even distroyed. What would happen if all the lies and deceptions are placed at the feet of those who are responsible. As of now, Washington operates based on insanity. There doesn't seem to be anyone to blame for anything in this "war debacle." Is our government really at the point of being run by greedy and/or foolishly ignorant people? We have to dismantle the system to rid it of "the policies of the labyrinth," where nothing ever ends and no criminal action is ever pursued in government. Our failure to impeach Bush and his administration for actual crimes IS a crime in itself; and yet this is the same government who saw fit to impeach a sitting president after he had sex with an intern and lied about (like any other normal person would when caught in an embarrassing act)! THAT is insanity. No wonder Americans have become disgusted by their own government.
Let me tell you how and why the Bush Administration has used "no bid contracts"
I have worked with KBR Haliburton and Bechtle in my 30 years in construction.
First they are sometimes called "best value contracts" because they are supposedly based on work actually preformed, the Govenment is billed for tools, materials, labor and management at cost plus 35%.
Sounds good but the fact is the first thing that happens is they put as many people on the project as possible, each one represents profit.
That might be a good thing except the people that are hired are unskilled, usually from southern states the only true requirement is they are breathing.
When you consider of every 3 billion 1 billion of that is profit, another billion goes to wages (tax free) that ultimately benefits the states like Alabama Ga, Texas etc.
The remaining goes to materials and management and they only buy from "approved" sources.
The lack of skills is the reason for the quality problems in both Iraq and Afgahanistan.

Cheney learned this from Lyndon Johnson (Brown and Root was the no bid contractor in Viet Nam)and was intrumental in acquiring Brown and root by Haliburton. All they needed was a war and the cash cow would produce not millions as with LBJ but billions.
I have read all of these comments, tragically most of them hit the nail on the head.  It definitely is TIME FOR CHANGE. We have lost a treasure here in our United States--the American "middle class".  We have made this country what it is--we want it back!
I'm no liberal and I'm no conservative but I have a deep hatred for the way that the republican hierarchy has always managed to pidgeon hole everyone into one camp or another. As Americans, we are all complex and sometimes contradictory. But if we are honest - and have our eyes open - we'll admit to having the ability to change our views, based on simply having been able to think things over for a while. This report of yours on yet another debacle in the contracting 'smorgasbord' in Iraq should awaken anyone with a brain still between their ears. I thought that after 9/11 George Bush would take the country in the right - and dignified - direction and capitalize on the love and support that the rest of the world was ready to shower on us. Instead, Bush has overseen a train wreck of our country and its ideals. As he - and top Nazis - famously said; 'You're either with us or against us.' I never thought I'd say this but, Bush, my president. I'm against you.
Look closer and you'll find that through a maze of connections, this will wind up at the steps of a U.S. based contractor with strong ties to the white house. $40M of the taxpayers money diverted to someone's pocket through a sweetheart deal and it's likely only the tip of the iceberg.


The Bush administration has been one of the absolute most corrupt and deceptive entities to ever take seat in the white house. They have put this country into a recession, bankrupted millions of families, put them in foreclosure  and allowed wall street to bilk us out of our savings and investments. They will leave taxpayers holding a 460 billion bill while they laugh all the way to the bank.

This prison should be put to good use. Maybe the Bush administration can warm some of the cells.


These are the same people that our running our country ( into the ground ) . Too bad this is not on the regular news stations, maybe the Bush Administration and its croonies would then be proscuted if the average American new what was going on and would demand accountably.
What NEW energy is Obama going to bring us? So far his only energy policy is to tax the oil companies? What alternative fuel can we switch to today? None!
Don't we need more prisons for our criminals?
This is perfect...ship them over to Iraq and we could put the Iragis to work as guards.
If this is "The Worst" case of rebuliding, than we are in great shape. Of course there are numerous cases of mismanagement, we are talking about the Govt. Democratic or Republican. Taking a shot at McCain about this a cheap shot, It is a Demcratic controlled Senate with all of the oversight powers.
$40 million would have paid for a few teachers in some of our school districts here.  I dont understand why we just dont take a page out of our of history and do what Nixon did ... declare victory and go home.  Like Vietnam ... Iraq will sort itself out on it's own.  We have set the groundwork ... let the Iraq's take it from here.
It is time to call a spade a spade, when $40 million is spent on behalf of the United States, it is the goverment making the call but the taxpayer that is footing the bill.  The news needs to begin relaying this, and instead of "It cost the U.S. government $40 million to build ...", this should read "It cost the American people $40 million to build ..."  The should get us fired up again about spending.
Begs the question, AGAIN, why are we there??!!!
I would like to know some of the contractors involved in this construction effort.  I know you had the info when this article was wrote, but you never identified them.  We have heard through other media's (TV, etc..) about the poor mis-management of our taxes. When the Iraq government said no to the prison do they pay for any of this debt.  
WHY IS NO ONE ACCOUNTABLE FOR THIS MONEY OF THE AMERICAN CITIZENS?
WHO DECIDES HOW THIS IS BEING SPENT OR APPARENTLY  JUST HANDED OUT.
PRESIDENT BUSH,
WHY IS OUR TAX  DOLLARS BEING WASTED LIKE THIS ... (ON YOUR WATCH)?????
YOU OWE US AN EXPLANATION & IS YOUR JOB TO LOOK AFTER OUR OUR MONEY YOU SEND OVER THERE.
blane, the press does report on all the good we're doing.  The problem is that it only takes up about .5 column inches a month.  They report on what matters, and what matters today is the horrendous amount of money and resources (let alone human life) we have poured into Bush's Folly.
Just 40 million? Seriously friends, were america here, 40 million is chump change, we spend 40 million dollars everyday. every couple of hours, RIGHT THERE, another 40 million was just spent on unmanned arial and aquatic vehicles. No one cares.
I'd like the media to start following the money. Mention names, give us the facts so that "We the people" can take action. Otherwise they're also part of the problem.
RE: Blane, Springfield, Ma.
Hello?? We invaded and created this mess.  I suppose we could say we beat them in record time … that is positive I guess.  Granted Saddam was evil … but so is the guy in North Korea.  Are we going there next?  Bush sent a video after the invasion and said we would not be staying … another lie apparently.  If you look at our country’s history … we NEVER leave.  Heck we are still in Germany and Japan after 60 years!  And that was a REAL war with a valid cause!  
So let me get this straight, this "stupid" president's adminstration was behind the 9/11 attacks, was behind Enron taking everyones retirement money, launched an illegal war for oil (or for Halliburton or his Cronies or whoever it is this week), raised oil prices ofr his oil buddies, made banks give out loans to people who couldnt afford to pay for them and then caused the housing bubble to pop so he could foreclose on all those people and caused a "reccession" by giving tax cuts to the "rich"? Does that about cover it?
Who is going to be held accountable for this?  We need to write our representatives and demand that they investigate this and other waste and fraud perpetrated during this administration, with VP Dick Cheney at the helm (& earning record profits from Halliburton he'll collect after leaving office).  Isn't there a law for prosecuting companies that have taken excessive war time profits?  Where is the rage and anger about this?  People are hurting financially at home and this kind of thing has gone on.  

All the people who voted for Bush had to do was read the books about him & family before the elections.  It was very clear that he ran every company he headed into the ground financially & didn't have a clue what he was doing.  

I have an idea:  let's reorganize our country.  Democrats & Republicans and will live in separate parts of the country: Democrats & Independents will live in one half of the country & determine our own laws, be governed by our own Democratic process, taxed according to our own laws, etc.  Republicans will live in the other 1/2  of the country and accordingly establish their own laws, control one another and feed off each other in perpetuity until they are all gone.    
Why should this surprise anyone. The Us wates so much money. I work for another federal agancy and we can't even get supplies to do our job. Yet we are responsible for paying the soldiers. The Bush administration should have all been impeached for this waste. The tax payers have burdens enough. Of course Bush would say, "This was a good idea at the time". I just wish he would say, "We are in a recession", and be done with it. Our elderly have three choices, buy food, buy medicine or buy gas, but yet they will waste 40 million on a structure that is not be used. Shame of the COR for this project.
I think this building should beselected to house the Geo. W. Bush Library.  I think it will be a lasting and fitting memorial to his administration.  It might even prop up his "legacy" after he leaves office.
To paraphrase an old saw, stuff happens. The knuckleheads who want to immediately rush to blame a President of a country for a construction project in a another country probably couldn't build a toy building out of Lego blocks and know as much about contracting as Sumo wrestlers know about Slimfast meals. Perhaps in their zealousness to destroy the fabric of their own country thru constantly showing the world their own disloyalty, maybe they could find the energy to donate a little of their own time and skills, actually serve their country, and go over there and fix something they think is wrong...or can only Presidents of countries do that?  40 mil wasted on a project is but a drop in the bucket compared to the pork barrel projects of many of your own state representatives...to paraphrase another old saying, let he who is without sin cast the first stone, and he (or she) who doesn't have a clue what they are talking about, just keep your mouth shut.
I love reading these comments.  If I just dropped in here from outer space, I would be convinced that America is filled with poorly educated, prescription addicted, freedom hating liberals.  Someone call me when my Country is liberated from the lefties.
This is definitely the worst in Iraq but not the only worst. How about the 70 Million we spent to build a tomb for christopher columbus in Santo Domingo. They don't even know if its Chris or his brother---by the way this was done several years ago during a democratic reign so it isn't just the republicans its the whole bunch. At least we did better there than Vietnam where 50,000 died and we lost. guess we can't be all things to all people and we need to get back to what this country is all about and help only those who really need it. I don't think any of the idiots we have in DC can do it be them democrats or republicans---to much greed period
Sandra Jones, Tn
I'll tell you whose stealing all of our money, it's those stupid gas companies. Bush only invaded Iraq to get all of their oil and make a fortune off of high gas prices. The oil industry is making record profits while food and taxes are soaring! Our economy has gotten so bad that some of our largest companies are being taken over by foriegn companies like Anheuser-Bush less than a month ago. And the government is not helping by building prisons for people who don't want them with our tax dollars! This needs to stop NOW!
Who ever thought we could vote for a president who could not run a baseball team (they lost money) and an oil company (they lost money too). How do you think he could manage building a jail in the middle of nowhere, that nobody wanted, and by a person he put in charge who did not have the authority to build it?
I have lost all faith in the Rep & Dem's. Both parties are responsible for what they have done to this country and around the world. They are worse than a bunch of kids on the play ground. Throw the whole bunch out; we could do better with a bunch of high school freshmen in office.  I am ashamed to say I voted for most of the people in office. I am ashamed in the office of the President, the Congress and the House of Rep.
Only $40 million?   Thats nothing.  They probably spend more than that on toilet paper in the US Capitol.  Bad management, sure.  But they whole peace thing was screwed up from the start in Iraq.

Honestly, I want the SAME people who are running these projects to start picking stocks - I'll kow what not to buy then.  Who would you rather have?  A stock pickers who is wrong 99% of the time or one who is right 45%?  I'll take the guy who is wrong 99% and do exactly the opposite. . .
What are the names of the 18 contractors? We deserve to know who cheated our country, and make sure they receive no future U.S. contracts until reparations are made.


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Deep Background is NBC News’ investigative blog. It covers national security, terrorism, spies, Iraq, and politics, as well as government waste, fraud and abuse. It is edited by NBC News Senior Investigative Producer Jim Popkin.

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