Development Fund For Iraq

Development fund for Iraq : the Coalition Provisional Authority transferred control over most of the remaining DFI funs to the Central Bank of Iraq.

The Coalition Provisional Authority (CPA) was established in May 2003 to provide for the temporary governance of Iraq, following the conclusion of major combat operations in that country. UN Security Council Resolution 1483 established the Development Fund for Iraq (DFI) in May 2003 and assigned the CPA full responsibility for managing the fund. The Resolution stated that DFI funds should be disbursed at the CPA's direction, in consultation with the interim Iraqi administration. It specified the DFI should be used in a transparent manner and for the humanitarian needs of the people; the economic reconstruction and repair of infrastructure; the continued disarmament of Iraq; the costs of civilian administration; and other purposes benefiting the Iraqi people. The DFI comprised revenues from ongoing Iraqi oil sales, unencumbered Oil for Food deposits, and repatriated national assets. During its almost 14-month life, the CPA had access to $20.7 billion in DFI funds, including $10.2 billion in U.S. currency that was flown to Baghdad. Further, the CPA had $6.6 billion under its control when it completed its mission on June 28, 2004. A July 2010 report concluded that weaknesses in DoD's financial and management controls left it unable to properly account for and articulate the disposition of remaining DFI funds following dissolution of the CPA. This audit determined who had authority and control over DFI funds upon dissolution of the CPA and whether DFI funds shipped to Baghdad were properly transferred to Iraqi control and then deposited in the Central Bank of Iraq (CBI). Figures. This is a print on demand report.

The Development Fund for Iraq (DFI) was established in 5/03 by the Admin. of the Coalition Provision Authority (CPA). DFI funds were to be used in a transparent manner for the benefit of the people of Iraq. After the CPA was dissolved in 6/04, the U.S. gov¿t. was authorized to administer DFI funds made available for reconstruction projects. The DoD managed DFI funds on behalf of the U.S. gov¿t.; that authority was withdrawn effective 12/31/07. This report determines whether DoD adequately accounted for the funds they received from the DFI. The report concludes that weaknesses in DoD¿s financial and management controls left it unable to properly account for $8.7 billion of the $9.1 billion in DFI funds it received for reconstruction activities in Iraq. Illus.

Development Fund for Iraq : Department of Defense needs to improve financial and management controls

Follow-up on SIGIR recommendations concerning the Development Fund for Iraq (DFI)