WASHINGTON, Oct. 14 (HalliburtonWatch.org) -- The U.S. government will investigate the no-bid contracts financed with Iraq's oil revenues, a United Nations watchdog agency reported today. So far, the U.S. has investigated contracts financed with U.S. dollars, but a formal investigation of contracts awarded with Iraqi oil revenues has not been announced until today.

Halliburton was awarded $1 billion in no-bid, sole-source contracts financed by Iraq's oil revenues between May 2003 and June 2004, the period when the U.S. Coalition Provisional Authority (CPA) governed Iraq. The company was paid 60 percent of Iraqi oil revenues during that period.

The UN's watchdog, known as the International Advisory and Monitoring Board (IAMB), released an independent audit of the CPA's oil revenues. The IAMB said the U.S. government has yet to explain why Iraqi oil money was used to pay off Halliburton. It said, "The IAMB has previously announced its concern about the use of non-competitive contracting using [local Iraqi] resources. The US Government provided the IAMB with information on audits of sole-sourced contracts by the Defense Contract Audit Agency. The US Government has also agreed to commission a special audit of sole-sourced contracts in accordance with terms of reference agreed with the IAMB. This special audit will (i) determine the extent of sole-sourced contracts using DFI resources; (ii) summarize the findings of audits that have already been conducted by various US government audit agencies; and (iii) determine whether any such contracts have not been the subject of audits. The results of the audit will also be made public.

"The IAMB also reiterated its request to receive access to audit reports on the review of controls in the State Oil Marketing Organization (SOMO) by [independent auditor] KPMG, which was commissioned by the CPA in February 2004."

The IAMB did not indicate which U.S. agency would conduct the audit.

IAMB's press release

IAMB's audit report (pdf)

House Committee on Government Reform, Minority Staff report on IAMB's audit

Halliburton won 60 percent of Iraq's reconstruction funds

Reuters: U.S. to audit Halliburton Iraq contracts

U.S. mismanaged $8.8 billion in Iraqi funds: 'Ghost employees' hired for nonexistent work