US Iraq fraud office investigated

Much US cash for reconstruction in Iraq has gone astray

The office which investigates cases of waste and fraud surrounding reconstruction efforts in Iraq is being investigated itself, reports say.

Stuart Bowen, special inspector general for Iraq reconstruction, and his team are the focus of four probes, among them one by the FBI, US media reports.

His office has been accused of waste and overspending, allegations now being presented to a US grand jury.

Mr Bowen said no current member of his team was accused of acting illegally.

The investigations focused on allegations of overspending and mismanagement, and claims that staff's e-mails had been monitored, the Washington Post reported, citing law enforcement sources and staff members from the Special Inspector General for Iraq Reconstruction (SIGIR).

Both Mr Bowen and a spokeswoman for SIGIR sought to play down reports.

"No current SIGIR official has been notified that he or she is the subject or target of any such investigation," Mr Bowen told the Post by e-mail.

Mr Bowen's agency has been at the forefront of efforts to highlight inefficiencies and fraud in the $22bn (£11bn) project to rebuild Iraq since the US-led invasion in 2003.

The office has been widely praised for its work.

Among its key findings was a verdict, delivered in July, asserting that corruption and mismanagement in Iraq amounted to a "second insurgency".