According to The New York Times, the Special Inspector General for Iraq Reconstruction (SIGIR) found that “DynCorp seemed to act almost independently of its reporting officers at the Department of State, billing the United States for millions of dollars of work that were not authorized and beginning other jobs without a go-ahead.” The report states that the findings of DynCorp’s misconduct on a $188 million job to buy weapons and build quarters for the Iraqi police were serious enough to warrant a fraud inquiry. A US government audit report of October 2007 revealed that $1.3 billion was spent on a contract with DynCorp for training Iraqi police. The auditors stated that the program was mismanaged to such an extent that they were unable to determine how the money was spent.
In February 2007 federal auditors cited DynCorp for wasting millions on projects, including building an unapproved, Olympic-sized swimming pool at the behest of Iraqi police officials. In April 2011, DynCorp agreed to pay $7.7 million to the US government to settle claims that it had inflated claims for construction contracts in Iraq.
On October 11, 2007, a DynCorp security guard in a US State Department convoy killed a taxi driver in Baghdad. According to several witnesses, the taxi did not pose a threat to the security of the convoy.
A January 2010 report by the SIGIR assessed that oversight of DynCorp police training contracts by the Bureau of International Narcotics and Law Enforcement Affairs found that INL exhibited weak oversight of the DynCorp task orders for support of the Iraqi police training program. It found that INL lacks sufficient resources and controls to adequately manage the task orders with DynCorp. As a result, more than $2.5 billion in U.S. funds were vulnerable to waste and fraud, although SIGAR’s Iraq reconstruction inspector noted that there was no indication that DynCorp had misspent any of the $2.5 billion.
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“An element of exaggeration clings to the popular judgment: great vices are made greater, great virtues greater also; interesting incidents are made more interesting, softer legends more soft.”
—Walter Bagehot (18261877)