DynCorp's Iraq Contracts With U.S. Are Scrutinized

The U.S. State Department is struggling with its accounting for billions of dollars spent on police-training contracts in Iraq with DynCorp International Inc.

A report from the Special Inspector General for Iraq Reconstruction, to be released today, says that squaring away just how the money was spent may take years.

The State Department lacks adequate staff in Iraq to closely monitor the work, its biggest contract there, according to the report. DynCorp invoices were regularly found to have errors and often lacked sufficient documentation, the auditors found. "As a result, over $2.5 billion in U.S. funds are vulnerable to waste and fraud," the report said.

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