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The tale of massive fraud and embezzlement of millions of dollars by the US military in its operations in Iraq continues. Testifying before the US Congress Committee on Oversight and Government Reform on 22 May, Mary Ugone, deputy inspector general of accounts in the Pentagon said that an audit of $8.2 billion spending related to the Iraq war showed that $7.8 billion had been improperly spent.

Over 180,000 payments, mostly since the war started in 2003, were made by the defense department to contractors for everything from bottled water to vehicles to transportation services.

In her testimony, Ugone also revealed that $135 million were given to forces from three countries UK, South Korea and Poland to facilitate their participation in the war. This is the first time that the US has officially admitted paying its allies in the so-called Coalition of the Willing that invaded Iraq in March 2003.

In his opening statement, Henry Waxman, chairman of the committee, said that wounded soldiers are getting notices from the Pentagon to return signing bonuses with interest since they had not completed the full term. “There is something very wrong when our wounded troops have to fill out forms in triplicate for meal money while billions of dollars in cash are handed out in Iraq with no accountability,” he said.

In an earlier report released in November 2007, the Inspector General had concluded that the Defense Department couldn’t properly account for over $5 billion in taxpayer funds spent in support of the Iraq Security Forces. It said that thousands of weapons, including assault rifles, machine guns, and rocket-propelled grenade launchers were unaccounted for, and millions of dollars had been squandered on construction projects that did not exist.

Ugones testimony gave detailed examples of the bizarre manner in which US defense officials doled out huge amounts of money without recording where it was going. In one case a sum of $320 million was paid an Iraqi official for paying salaries with only an incompletely filled voucher signed by one official. Since no details of the spending plan were attached as required by Pentagon rules the auditors have no clue as to where the money went. This payment was made from assets seized from Iraq.

Auditors found that the Pentagon gave away $1.8 billion from seized Iraqi assets. There were 53 vouchers noting these payments but not even one adequately explained where the money went.

In another instance, two vouchers, one for $5 million and the other for $2.7 million showed payments to a vendor for goods and services provided except that there were no details of what goods or services were actually delivered.

It is impossible to keep up with all the Bush regime’s lies. There are simply too many. Among the recent crop, one of the biggest is that the “surge” is working.

Launched last year, the “surge” was the extra 20,000-30,000 U.S. troops sent to Iraq. These few extra troops, Americans were told, would finally supply the necessary forces to pacify Iraq.

This claim never made any sense. The extra troops didn’t raise the total number of U.S. soldiers to more than one-third the number every expert has said is necessary in order to successfully occupy Iraq.

The real purpose of the “surge” was to hide another deception. The Bush regime is paying Sunni insurgents $800,000 a day not to attack U.S. forces. That’s right, 80,000 members of an “Awakening group,” the “Sons of Iraq,” a newly formed “U.S.-allied security force” consisting of Sunni insurgents, are being paid $10 a day each not to attack U.S. troops. Allegedly, the Sons of Iraq are now at work fighting al-Qaeda.

This is a much cheaper way to fight a war. We can only wonder why Bush didn’t figure it out sooner.

The “surge” was also timed to take account of the near completion of neighborhood cleansing. Most of the violence in Iraq during the past five years has resulted from Sunnis and Shi’ites driving each other out of mixed neighborhoods. Had the two groups been capable of uniting against the U.S. troops, the U.S. would have been driven out of Iraq long ago. Instead, the Iraqis slaughtered each other and fought the Americans in their spare time.

In other words, the “surge” has had nothing to do with any decline in violence.

With the Sunni insurgents now on Uncle Sam’s payroll, with neighborhoods segregated, and with Sadr’s militia standing down, it is unclear who is still responsible for ongoing violence other than U.S. troops themselves. Somebody must still be fighting, however, because the U.S. is still conducting air strikes and is still unable to tell friend from foe.

On Feb. 16, the Los Angeles Times reported that a U.S. air strike managed to kill nine Iraqi civilians and three Sons of Iraq.

The Sunnis are abandoning their posts in protest, demanding an end to “errant” U.S. air strikes. Obviously, the Sunnis see an opportunity to increase their daily pay for not attacking Americans. Soon they will have consultants advising them how much they can demand in bribes before it pays the Americans to begin fighting the war under the old terms. If Sunnis are smart, they will split the gains. Currently, the Sunnis are getting shafted. They are only collecting $800,000 of the $275,000,000 it costs the U.S. to fight the war for one day. That’s only about three-tenths of one percent, too much of a one-sided deal for the Americans.

If the Sunnis negotiate their cut to between one-quarter and one-half of the daily cost to the U.S. of the war, the Sunnis won’t need to share in the oil revenues, thus helping the three factions to get back together as a country. Even 20 percent of the daily cost of the war would be a good deal for the Sunnis. A long-term contract in this range would be expensive for Uncle Sam, but a great deal cheaper than John McCain’s commitment to a 100-year Iraqi war.

If Bush’s war turns out to be as big a boon for the Sunnis as it has for Tony Blair, we might have a modern-day version of The Mouse That Roared – a movie about an impoverished country that attacked the U.S. in order to be defeated and receive foreign aid – only this time the money comes as a payoff for not fighting the occupiers.

As the world now knows, Blair’s “dodgy dossier” about the threat allegedly posed by Iraq was a contrivance that allowed Blair to put British troops at the service of Bush’s aggression in the Middle East. Now that Blair is out of his prime minister job, he has been rewarded with millions of dollars in sinecures from financial firms such as JP Morgan and millions more in speaking engagements. As part of the payoff, the Bush Republicans have even put Mrs. Blair on the lucrative lecture circuit.

Ask yourself, do you really think Blair knows enough high finance to be of any value as an adviser to JP Morgan, or enough about climate change to advise Zurich Financial on the subject? Do you really believe that after hearing all the vacuous speeches Blair has delivered in those many years in office anyone now wants to pay him huge fees to hear him give a speech? Even when it was free, people were sick of it.

Blair is simply collecting his payoff for selling out his country and sending British troops to die for American hegemony.

The Sunnis seem inclined to do the same thing if Bush will pay them enough.