By RICHARD LARDNER, Associated Press Writer – Tue Jan 13, 2009

WASHINGTON – A $722 million project to restore Iraq’s oil production facilities was undermined by weak management, contractor mistakes and Iraqi neglect, U.S. auditors say in a new report similar to many others examining the country’s reconstruction.

Released Tuesday, the report from the office of the special inspector general for Iraq reconstruction points to security concerns, postwar looting and the shoddy shape of the oil network as primary contributors to the cost of the contract awarded to Houston-based KBR Inc. in January 2004.

As if this weren’t a challenging enough climate, the effort, administered by the U.S. Army Corps of Engineers, was hampered by a lack of direction, the report says. Cost overruns and frequent contract changes led to work being delayed or canceled. (To read more click HERE)

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