Iraq aid 'vanished', says charity

About $50bn is needed to rebuild Iraq, aid officials say

Millions of pounds earmarked for Iraq have vanished after being handed to the US-controlled governing body, a study has revealed.

Two billion pounds set aside for development has been accounted for, according to a report from the British charity, Christian Aid.

This comes as attempts are made to rebuild the country's infrastructure after the war and on the day world leaders meet in Madrid to discuss the country's reconstruction.

We talked to Dominic Nutt from the development charity Christian Aid - who's in Madrid for the reconstruction conference - and Charles Heatly, who defended the actions of the Coalition Provisional Authority.

Earlier Breakfast spoke to BBC world affairs correspondent June Kelly is in Baghdad.

She said the Christian Aid report - coinciding as it does with the conference in Madrid - could be extremely damaging.

She looked at the huge task ahead of those trying to rebuild Iraq.

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A major international conference to raise money for the reconstruction of Iraq gets under way in the Spanish capital, Madrid, on Thursday.

More than 70 countries and multilateral organisations are attending the meeting, which has the strong backing of the United States.

Washington is seeking more than $30bn dollars in pledges, but donations are expected to fall far short of that target.

Countries such as France, Germany and Russia, which opposed the US-led war on Iraq, have already said they will not provide any more money beyond what they have already promised.

The unstable security situation in Iraq has made some potential donors worried about making financial commitments at this stage.

The meeting comes days after the United Nations Security Council passed a US resolution calling for a multinational force and aid for Iraq from the world community.