Where your kids’ savings are going

NY Times

Nonstop Theft and Bribery Are Staggering Iraq

Jobless men pay $500 bribes to join the police. Families build houses illegally on government land, carwashes steal water from public pipes, and nearly everything the government buys or sells can now be found on the black market.

“Everyone is stealing from the state,” said Adel Adel al-Subihawi, a prominent Shiite tribal leader in Sadr City, throwing up his hands in disgust. “It’s a very large meal, and everyone wants to eat.”

Corruption and theft are not new to Iraq, and government officials have promised to address the problem. But as Iraqis and American officials assess the effects of this year’s American troop increase, there is a growing sense that, even as security has improved, Iraq has slipped to new depths of lawlessness.

One recent independent analysis ranked Iraq the third most corrupt country in the world. Of 180 countries surveyed, only Somalia and Myanmar were worse, according to Transparency International, a Berlin-based group that publishes the index annually.

And the extent of the theft is staggering. Some American officials estimate that as much as a third of what they spend on Iraqi contracts and grants ends up unaccounted for or stolen, with a portion going to Shiite or Sunni militias. In addition, Iraq’s top anticorruption official estimated this fall — before resigning and fleeing the country after 31 of his agency’s employees were killed over a three-year period — that $18 billion in Iraqi government money had been lost to various stealing schemes since 2004.

The collective filching undermines Iraq’s ability to provide essential services, a key to sustaining recent security gains, according to American military commanders.

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