Why has so little Iraq money been spent?

[toadspittle]

"It's beyond pitiful, it's beyond embarrassing, it's now in the zone of dangerous," said Sen. Chuck Hagel (news, bio, voting record), R-Neb., referring to figures showing only about 6 percent of the reconstruction money approved by Congress last year has been spent.

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20040916/ap_on_go_ca_st_pe/us_iraq&cid=542&ncid=716

I mean, I'm sure some money can't be spent because the war is still ongoing (i.e., it would be tough to set up regular garbage pickup or school days in a war zone). But where/how is the stuff supposed to be spent, and who's supposed to spend it? Do our military commanders decide? Does the new Iraqi govt.? Then who gets the money? Iraqis? Halliburton?

Is there a spending plan available on-line?

[Ravenman]

The Administration has blamed delays in spending the money on "red tape." It is true, it is not easy to put contracts together, compete them, approve them, and begin disbursing funds, but this is pretty silly. The $18.4 billion has been available since November 6, 2003, which was the date that the President signed the $87 billion appropriations bill into law.

However, US authorities have been using Iraqi oil revenue to fund smaller reconstruction projects (fixing up a school or repairing a busted water main). It is not immediately clear how these funds are accounted for, nor how extensively they have been used. The $10.2 billion in oil revenue so far this year is supposed to go primarily to the operation of the Iraqi government (including things like basic public services).

Prior funds have been used to work on bigger projects, like electricity and oil reconstruction. The $18.4 billion is intended to continue these larger projects.

Prior to June 30, 2004, the Department of Defense was in charge of contracting and disbursing the reconstruction funds. Now, the US Embassy is in charge.

To give you a sense of where things stand right now, the State Department reports that it has issued 53% of the task orders necessary, which cover 2,301 of the 2,824 projects planned in Iraq. Roughly half of the $18 billion has been committed ("we know what we're going to spend it on"), $7.1 billion has been obligated ("we have a contract with the guys who are going to do it"), and $1.1 billion has been disbursed ("we cut them a check.")