The auditing firm also mentioned it faced “resistance” from CPA officials whilst it was trying to audit the Development Fund for Iraq, which is managed by the US-led Coalition Provisional Authority to channel oil revenue into reconstruction projects in Iraq.

Citing an interim KPMG report, the Financial Times daily said, “The Development Fund for Iraq is open to fraudulent acts. The CPA does not have effective controls over the ministries’ spending of their individually allocated budgets, whether the funds are direct from the CPA or via the Ministry of Finance.”

“The Fund has taken in US$20.2 billion since last May and has disbursed US$11.3 billion, with US$4.6 billion left in outstanding commitments,” added the KPMG report which also blasted the CPA’s bookkeeping and the State Organisation for Marketing Oil, the body responsible for sale of Iraq’s oil.

When asked to comment on the report, a CPA spokesperson said, “[The CPA] has been and will continue to discharge its responsibilities under the Iraqi Development Fund.” The spokesperson declined to comment further.