Iraq 101: Down the Drain

Corruption costs Iraq $4 billion annually. $8.8 billion the U.S. gave the Iraqi government cannot be fully accounted for. More than 20% of the government’s Ministry of Interior staff are “ghost employees”—nonexistent workers who collect paychecks. As much as 30% of Iraq’s refined oil ends up on the black market or is illegally taken out of the country. The U.S. government says the insurgency raises $25 to $100 million a year smuggling oil. $9 billion in oil revenues has been lost, almost as much as Saddam Hussein stole from the U.N. Oil-for-Food program over five years.