meanwhile, your wallet was stolen

It looks like this is the tip of an iceberg, but it was always in the Grover Norquist/Reaganomics/GOP Plan to sink the Ship of State, financially. Conservative, my *ss... another word they perverted in the Newspeak style.
And who robbed your wallet? Why, in this case, one of the old players who ALWAYS mug you: Bechtel.
Will you believe what President Eisenhower, in his farewell address, warned us about?

"...Crises there will continue to be. In meeting them, whether foreign or domestic, great or small, there is a recurring temptation to feel that some spectacular and costly action could become the miraculous solution to all current difficulties. A huge increase in the newer elements of our defenses; development of unrealistic programs to cure every ill in agriculture; a dramatic expansion in basic and applied research – these and many other possibilities, each possibly promising in itself, may be suggested as the only way to the road we wish to travel.
...
Our military organization today bears little relation to that known by any of my predecessors in peacetime, or indeed by the fighting men of World War II or Korea.
Until the latest of our world conflicts, the United States had no armaments industry. American makers of plowshares could, with time and as required, make swords as well. But now we can no longer risk emergency improvisation of national defense; we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations.
...
This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence – economic, political, even spiritual – is felt in every city, every Statehouse, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.
We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.
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Another factor in maintaining balance involves the element of time. As we peer into society's future, we – you and I, and our government – must avoid the impulse to live only for today, plundering for, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without asking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.
Down the long lane of the history yet to be written America knows that this world of ours, ever growing smaller, must avoid becoming a community of dreadful fear and hate, and be, instead, a proud confederation of mutual trust and respect.

Such a confederation must be one of equals. The weakest must come to the conference table with the same confidence as do we, protected as we are by our moral, economic, and military strength. That table, though scarred by many past frustrations, cannot be abandoned for the certain agony of the battlefield.
Disarmament, with mutual honor and confidence, is a continuing imperative. Together we must learn how to compose differences, not with arms, but with intellect and decent purpose. Because this need is so sharp and apparent I confess that I lay down my official responsibilities in this field with a definite sense of disappointment. As one who has witnessed the horror and the lingering sadness of war – as one who knows that another war could utterly destroy this civilization which has been so slowly and painfully built over thousands of years – I wish I could say tonight that a lasting peace is in sight. "

This is an interesting nugget: In the penultimate draft of the address, Eisenhower initially used the term military-industrial-congressional complex, indicating the essential role that U.S. Congress plays in propagating the military industry. But, it is said, that the president chose to strike the word congressional in order to avoid offending members of the legislative branch of the federal government.

Audit Finds U.S. Hid Actual Cost of Iraq Projects
By JAMES GLANZ
Published: July 30, 2006
New York Times

BAGHDAD, Iraq, July 29 — The State Department agency in charge of $1.4 billion in reconstruction money in Iraq used an accounting shell game to hide ballooning cost overruns on its projects there and knowingly withheld information on schedule delays from Congress, a federal audit released late Friday has found.

The agency hid construction overruns by listing them as overhead or administrative costs, according to the audit, written by the Special Inspector General for Iraq Reconstruction, an independent office that reports to Congress, the Pentagon and the State Department.

Called the United States Agency for International Development, or A.I.D., the agency administers foreign aid projects around the world. It has been working in Iraq on reconstruction since shortly after the 2003 invasion.

The report by the inspector general's office does not give a full accounting of all projects financed by the agency's $1.4 billion budget, but cites several examples.

The findings appeared in an audit of a children's hospital in Basra, but they referred to the wider reconstruction activities of the development agency in Iraq. American and Iraqi officials reported this week that the State Department planned to drop Bechtel, its contractor on that project, as signs of budget and scheduling problems began to surface.

The United States Embassy in Baghdad referred questions about the audit to the State Department in Washington, where a spokesman, Justin Higgins, said Saturday, "We have not yet had a chance to fully review this report, but certainly will consider it carefully, as we do all the findings of the inspector general."

Bechtel has said that because of the deteriorating security in Basra, the hospital project could not be completed as envisioned. But Mr. Higgins said: "Despite the challenges, we are committed to completing this project so that sick children in Basra can receive the medical help they need. The necessary funding is now in place to ensure that will happen."

In March 2005, A.I.D. asked the Iraq Reconstruction and Management Office at the United States Embassy in Baghdad for permission to downsize some projects to ease widespread financing problems. In its request, it said that it had to "absorb greatly increased construction costs" at the Basra hospital and that it would make a modest shift of priorities and reduce "contractor overhead" on the project.

The embassy office approved the request. But the audit found that the agency interpreted the document as permission to change reporting of costs across its program.

Referring to the embassy office's approval, the inspector general wrote, "The memorandum was not intended to give U.S.A.I.D. blanket permission to change the reporting of all indirect costs."

The hospital's construction budget was $50 million. By April of this year, Bechtel had told the aid agency that because of escalating costs for security and other problems, the project would actually cost $98 million to complete. But in an official report to Congress that month, the agency "was reporting the hospital project cost as $50 million," the inspector general wrote in his report.

The rest was reclassified as overhead, or "indirect costs." According to a contracting officer at the agency who was cited in the report, the agency "did not report these costs so it could stay within the $50 million authorization."

"We find the entire agreement unclear," the inspector general wrote of the A.I.D. request approved by the embassy. "The document states that hospital project cost increases would be offset by reducing contractor overhead allocated to the project, but project reports for the period show no effort to reduce overhead."

The report said it suspected that other unreported costs on the hospital could drive the tab even higher. In another case cited in the report, a power station project in Musayyib, the direct construction cost cited by the development agency was $6.6 million, while the overhead cost was $27.6 million.

One result is that the project's overhead, a figure that normally runs to a maximum of 30 percent, was a stunning 418 percent.

The figures were even adjusted in the opposite direction when that helped the agency balance its books, the inspector general found. On an electricity project at the Baghdad South power station, direct construction costs were reported by the agency as $164.3 million and indirect or overhead costs as $1.4 million.

That is just 0.8 percent overhead in a country where security costs are often staggering. A contracting officer told the inspector general that the agency adjusted the figures "to stay within the authorization for each project."

The overall effect, the report said, was a "serious misstatement of hospital project costs." The true cost could rise as high as $169.5 million, even after accounting for at least $30 million pledged for medical equipment by a charitable organization.

The inspector general also found that the agency had not reported known schedule delays to Congress. On March 26, 2006, Bechtel informed the agency that the hospital project was 273 days behind, the inspector general wrote. But in its April report to Congress on the status of all projects, "U.S.A.I.D. reported no problems with the project schedule."

In a letter responding to the inspector general's findings, Joseph A. Saloom, the newly appointed director of the reconstruction office at the United States Embassy, said he would take steps to improve the reporting of the costs of reconstruction projects in Iraq. Mr. Saloom took little exception to the main findings.

In the letter, Mr. Saloom said his office had been given new powers by the American ambassador in Baghdad, Zalmay Khalilzad, to request clear financing information on American reconstruction projects. Mr. Saloom wrote that he agreed with the inspector general's conclusion that this shift would help "preclude surprises such as occurred on the Basra hospital project."

"The U.S. Mission agrees that accurate monitoring of projects requires allocating indirect costs in a systematic way that reflects accurately the true indirect costs attributable to specific activities and projects, such as a Basra children’s hospital," Mr. Saloom wrote.