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The Special Inspector General for Iraq Reconstruction has criticized the State Department for its management of nearly $3 billion in contracts and grants in Iraq.


In two reports, auditors cited weak and ineffective State Department oversight of a $2.5 billion contract for police training and a grant of $250 million for programs to build democratic institutions.
The first report found that lax oversight of the police training contract with DynCorp International has left the contract's funds vulnerable to fraud and abuse.
Special Inspector General for Iraq Reconstruction Stuart Bowen says the issue of oversight has long plagued the DynCorp contract.
"This is not a new issue. It's one we pointed out previously in reviews of the police training oversight there. But it's a troubling issue because not enough progress has been made in addressing the problems we have uncovered in our prior reports," he said.
Bowen points to questionable invoices from DynCorp, such as an order for electric power generators it already had and payments for real estate that far exceeded local market value.
Bowen say the State Department does not have enough personnel to monitor the costs associated with the police training contract.
"What this audit is really about, though, is weaknesses in controls over the review of DynCorp's invoices. These are enormous invoices with thousands of line items charging millions of dollars, and you have one person essentially actively reviewing them. And that's insufficient," he said.
State Department spokesman P.J. Crowley said Monday that the department acknowledges the need for more auditors in Iraq. But he took issue with the report's assertions regarding vulnerability to fraud and waste.
"I don't think that we agree with the characterization in that report. But we will continue to work with the I.G. [i.e., Inspector General] on it," he said.
In a written statement, DynCorp says its performance of the contract has been "exemplary" and that the firm welcomes thorough scrutiny of its billing and invoices.
In the second report, auditors questioned the effectiveness of grants totaling some $248 million to the National Democratic Institute and the International Republican Institute for democracy promotion.
Bowen says both groups engage in a variety of programs to help build civil institutions in post-Saddam Iraq.
"It's called 'democracy-building' - specifically, training for elections, training for political parties, training for all aspects of the electoral process. Iraq is a fledgling democracy. It has no foundation from which to work in this regard. And there have been five elections in the past six years in Iraq, and that has required essentially a system to be built from scratch coming out of the tyranny that preceded it," he said.
Although these grants are small compared to the police training contract, Bowen says the problems are the same.
"[They are] a much smaller effort, but similar nevertheless in that there is not sufficient oversight being carried out in-country - both in review of expenditures and in provision of outcomes. The grants themselves require pretty detailed reporting on achievements. And we found that that is just not being done. Very cursory reporting is being provided regarding these grants," he said.
Without detailed reporting, Bowen says, the effectiveness of the two programs cannot be accurately gauged. A National Democratic Institute official, who asked not to be named, says his organization's reporting on its activities has been detailed and far in excess of State Department requirements.
Auditors also noted that the National Democratic Institute, or NDI, spent almost one-third of grant funds for security, and that the International Republican Institute used more than half of its funds for the same purpose. The NDI official said the organization's security costs were moderate and reasonable in light of the situation in Iraq. In a written statement, the International Republican Institute denies that its security costs were excessive. A previous Inspector General report found that security costs for contractors and grantees in Iraq ranged between 24 and 53 percent of the contract or grant.

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Wednesday marked one year since President Barack Obama took office. The anniversary was barely mentioned at the White House.

On a frigid January 20, 2009, an excited crowd numbering in the tens of thousands jammed Washington's National Mall to watch as Barack Obama was sworn in as the first African-American U.S. president.
January 20, 2010 was a much quieter day for Mr. Obama. "Good afternoon, everybody, and welcome. I am glad you all could join us today as we mark National Mentoring Month here at the White House," he said.
The president welcomed a group of teenagers who are being advised by members of the White House staff.
Earlier in the day, Mr. Obama signed an order directing federal agencies to block contractors who are delinquent on their taxes from receiving new government contracts. "One company owner who owed over $1 million in taxes was paid over $1 million as a defense contractor. And instead of using that money to pay his back taxes, he chose to buy a boat, some cars and a home abroad with his earnings," the president said.
At press secretary Robert Gibbs' daily briefing with reporters, the anniversary was ignored. The discussion centered instead on a political setback for the administration-Tuesday's surprising victory by Republican candidate Scott Brown over Democrat Martha Coakley in the U.S. Senate race in the Northeastern state of Massachusetts.
"The president did not expect-I would certainly put myself in that category-not expecting to lose that Senate race. There is no doubt we are frustrated by that," Gibbs said.
Virtually the only public commemoration of the anniversary was by the president's wife, Michelle Obama, who surprised visitors Wednesday by personally conducting White House tours. "It is nice to see you guys. How is it going? Welcome! How are you?," she said.
Wednesday was a quiet day at the White House. But with President Obama facing two wars, ten percent unemployment, a massive earthquake relief effort in Haiti, a resurgent Republican opposition and a health reform program in political trouble, quiet days here will be increasingly rare.

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More Organizations Join List of Available Short Codes to Donate in U.S. & Canada

SEATTLE, Jan. 19 /PRNewswire/ -- Donations made via mobile phones for Haiti Earthquake Relief have surpassed $27 million across all the short codes managed by the Mobile Giving Foundation, a non-profit organization dedicated to helping other non-profits raise funds through mobile.
Thanks largely to national television appeals and more non- profit organizations joining relief efforts, mobile donations increased by $7 million, raising the total amount from $20 million reported by MGF yesterday to more than $27 million as of 8:00pm Eastern on Monday. The Foundation continues to see donations come in at an increasing pace.

MGF will report updated numbers throughout the week.
By texting a keyword to a designated short code via a mobile phone, a micro-donation of $5 or $10 can be made to aid the millions of people affected by this tragedy. 100% of your donation goes to the recipient charity, and the donation appears as a charge on your carrier bill, standard rates may apply.

As more organizations join the relief efforts in Haiti, additional short codes are available for making monetary donations to aid those affected by the recent earthquake:

Text the word "Quake" to 20222 to donate $10 On behalf of The Clinton Bush Haiti Fund

Text the word "Haiti" to 20222 to donate $10 On behalf of the Clinton Foundation Haiti Relief Fund

Text the word "Haiti" to 52000 to donate $10 On behalf of the Salvation Army

Text the word "Hope10" or "UNICEF" to 20222 to donate $10 On behalf of UNICEF

Text the word "Habitat" to 25383 to donate $10 On behalf of Habitat for Humanity

Text the word "Oxfam" to 25383 to donate $10 On behalf of Oxfam America, Inc.

Text the word "Give" or "World" to 20222 to donate $10 On behalf of World Vision Inc.

Text the word "Haiti" to 85944 to donate $10 On behalf of the International Medical Corps

Text the word "Care" to 25383 to donate $10 On behalf of Cooperative for Assistance and Relief Everywhere, Inc. (CARE)

Text the word "Haiti" to 90999 to donate $10 On behalf of the American Red Cross in the U.S.
Text the word "Hope" or "Monde" to 45678 (In Canada Only) to donate $5 On behalf of World Vision Canada

Text the word "CAHAITI" to 20222 (In Canada only) to donate $5 On behalf of the Clinton Giustra Sustainable Growth Initiative

The North American International Auto Show is one of the biggest events for the automobile industry. The annual show gives vehicle manufacturers an opportunity to introduce new models and technology available to consumers in the coming years. The spotlight placed on Detroit during the Auto Show also underscores the economic difficulty in the United States, as the country and the auto industry struggle to emerge from one of the worst years in auto sales.

Inside Cobo Center, home to the annual Detroit Auto Show, it's an endless display of glitz and glamour as automobile executives give the world a first look at their latest offerings.
This year's show comes in the wake of one of the worst years in automobile sales, which led to a massive government loan to General Motors and Chrysler, to help those companies stay afloat.
Outside Cobo Center, the reality of that economic climate is visible in Detroit's urban decay. Known as the Motor City, Detroit's former glory has given way to crumbling buildings and vacant lots. Detroit now has an unemployment rate near 15 percent, the largest for a metropolitan area in the United States. "If you have large scale downsizing in the auto industries, and other industries, workers don't have money. People are behind in their mortgages. They're behind in their rents. They don't have disposable income to come downtown and go to a restaurant or go to a shop. So this is the main issue," he said.
Abayomi Azikiwe is a local community activist trying to stop home foreclosures around Detroit. On a tour of the city, he explains the reason for Detroit's decline. "The auto industry had employed hundreds of thousands of people here in the city of Detroit for decades, and beginning in the 1970's, those jobs are gone. They've been downsized and outsourced," he said.
Azikiwe says he doesn't believe the billions of dollars the U.S. government pumped into the auto industry in the last year has helped Detroit reverse the unemployment trend.
Jeff McQueen, who belongs to the TEA Party Political organization, is also critical of the government's new role as a primary shareholder in the U.S. Auto industry. "No amount of government stimulation is ever going get us back on our feet," he said.
But Michigan Governor Jennifer Granholm disagrees, saying, "You better believe that this unemployment rate in Michigan would have been a heck of a lot worse if it weren't for the fact the Obama administration came in and provided a safety net."
General Motors employee Matt Slade agrees with Governor Granholm. He says his job is one of the tens of thousands saved by the government's assistance. "They kept thousands of people, especially in Michigan and the metro Detroit area working. It's not the perfect scenario, however it did save our industry," he said.
The issue now is transforming Michigan's economy, which has historically been dependent on the auto industry. "We have been the poster child for this global shift in manufacturing jobs, and this is why we are so focused in diversifying Michigan's economy," said Governor Granholm.
Granholm believes that with new technology, profiled at this year's Auto Show, Michigan can play an important role in helping the environment, while also creating jobs.
The state is showing signs of heading in that direction. In early January, General Motors started production of a lithium ion battery at a new plant in Brownstown Township, about 40 kilometeres from Detroit. It is the first such plant in the United States, and initially employs about 25 people.

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The auto fleet in the United States is shrinking. For the first time since World War II, more used cars were scrapped than new cars sold in 2009. The fleet decreased from an all-time high in 2008 of 250 million vehicles to 246 million last year.
Driving is no longer a 'must' for some American teens
When Lester Brown was a teenager growing up in rural New Jersey in the early 1950s he says he couldn't wait to drive. "Getting a driver's license and then getting a car of some sort or a pick-up [truck] in the rural community was sort of a rite of passage," he says.
Today, Brown heads the Earth Policy Institute, an environmental research group based in Washington. In a new report, Brown contends that times have changed when it comes to Americans and their cars. Youth today aren't as interested in driving, Brown says, because more are growing up in cities and have learned to live without a car. "Increasingly young people are socializing over the Internet and 'smart' phones and not in automobiles," he explains.

Recession and pollution reduce new car appeal
During the current U.S. economic recession, consumers of all ages have been reluctant to buy big-ticket items such as new cars. But other factors like urbanization, congestion and environmental concerns, help explain why fewer cars are on the road.
Paul Eisenstein, senior editor for the online automotive news magazine TheDetroitBureau.com, is a long-time auto industry analyst. Like Brown, he sees a culture shift occurring among both car consumers and car makers.
"Consumers are rethinking what they are spending money on, whether they need to own as many vehicles in a household fleet," Eisenstein says. He adds, "The carmakers are also rethinking what they need to get consumers to buy so many vehicles." It wasn't unusual, Eisenstein says, for companies to spend between $5,000 and $10,000 per car to attract a single customer to make a purchase. Now he says, "Car companies are looking at finding a way to sell cars more cheaply."
In 10 years, 10 percent fewer cars may be on roads
Eisenstein says that could lead to fewer retail incentives, rebates and subsidies for new car buyers. It could also mean plant closings to bring car production in line with demand. Brown expects the U.S. auto fleet to shrink by 10 percent over the next decade. Many experts believe plant closings would result in a healthier U.S. auto industry.
Eisenstein says while he doesn't expect full recovery to previous production levels of 17 million vehicles a year, the market for American cars will improve because of immigration and population growth.
Looking ahead, Brown says the U.S. may follow the lead of Japan, a country with large cities oversaturated with motor vehicles. "Japan reached the saturation point in 1990 and its annual car sales have declined by 21 percent since then," he says.
But, Eisenstein says that, unlike the U.S., Japan has an easily accessible mass transit system that gives drivers an alternative not available to most Americans. "[That's] complicated by the fact that our cities are much further apart than they are in much of the world." He says there is really nothing else to turn to.

The car once promised mobility
Today drivers must contend with traffic jams, congestion and pollution. And it's becoming a global problem. Brown notes that China has begun to outpace the U.S. in new car sales. He says if China were to reach the same level of per capita car ownership as the United States, the resulting traffic congestion, pollution and land use shifts could have a devastating impact on Chinese society. "[Just] think of the roads, the streets, the parking lots, [and] the land that has to be paved over to support that level of car ownership," he says. That would be equal, Brown adds, "to two-thirds of the area of rice planted in China today."
In this context, Brown believes a shrinking U.S. car fleet could help address the problem of climate change, lessening dependence on foreign oil and reducing carbon emissions from the transportation.
Brown predicts that a smaller U.S. car market will shift steadily away from fossil fuel powered vehicles to more hybrid and electric models. One case in point is that the Toyota Prius hybrid was among the top ten best-selling cars in the United States in 2009. Brown says auto companies that fail to note these trends and embrace these new technologies will be left in the backwater of a bygone automotive age.

Authorities ordered a North Carolina port to shut down and asked thousands of nearby residents to evacuate Tuesday, following an accident that punctured containers of highly explosive material.

Officials in North Carolina said they ordered the measures as a precaution after a forklift operator at the Morehead City Port poked a hole in several containers of an explosive known as PETN, pentaerythritol tetranitrate. The explosive is often used in military explosives and other detonators.
It is also the same material found in the underwear of a Nigerian man accused of trying to blow up a U.S.-bound airplane on December 25.
Officials urged any residents who did not evacuate to stay away from windows and doors.
Officials say the Morehead City Port is a major transit point for chemicals, including phosphates and sulfur products, and routinely handles explosive materials. The port is also one of the deepest on the country's East Coast.