Speaking after publication of the KPMG audit of Iraqi oil reserves, Jean-Pierre Halbwachs, chairman of the International Advisory and Monitoring Board for Iraq, said the US-led coalition had been working on establishing a metering system before handing over power last month, but predicted the problem would take 18 months to resolve, Associated Press reported.
The IAMB is the audit oversight body for the Development Fund for Iraq, established following a UN resolution and holds the proceeds of petroleum export sales from Iraq, as well as remaining balances from the UN Oil-for-Food Program and other frozen Iraqi funds.
The report by KPMG uncovered a lack of adequate financial controls and an inability to get information on large non-competitive contracts.
The audit covered the period from May through December of last year, which showed $10.3bn had been put into the fund, with $5.6bn of that coming as a transfer from the UN Oil for Food program.
The program is now being audited by Ernst & Young – KPMG lost the contract to audit the program after Paul Bremer, the coalition’s chief administrator in Iraq, decided it must be put to a public tender.
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