Editing Development Fund for Iraq (section)

In May 2003, following the [[2003 invasion of Iraq|invasion of Iraq]] in March of that year, the '''Central Bank of Iraq-Development Fund for Iraq''' (DFI) account was created at the U.S. [[Federal Reserve Bank of New York]] at the request of the [[Coalition Provisional Authority]] (CPA) Administrator.  A part of the fund has been transferred to [[Baghdad]] and [[Iraq]], and the DFI-Baghdad account was opened at the [[Central Bank of Iraq]] "for cash payment requirements".<ref>{{cite web|url=http://www.cpa-iraq.org/budget/DFI_intro1.html |author=The [[Coalition Provisional Authority]]|date=2006-07-07|title= THE DEVELOPMENT FUND FOR IRAQ }}</ref>
The fund also eventually received money ([[US$]]1.724 billion) from seized and "vested" Iraqi bank accounts and funds seized by coalition forces ($926.7 million). $650 million of this amount belongs to [[Uday Saddam Hussein]], the older son of the former Iraqi president.<ref>{{cite web|url=http://www.sigir.mil/reports/quarterlyreports/Jan05.aspx|title=SIGIR report|date=January 2005|access-date=2007-04-09|archive-url=https://web.archive.org/web/20070410220443/http://www.sigir.mil/reports/quarterlyreports/Jan05.aspx|archive-date=2007-04-10|url-status=dead}}</ref> (This money was also used during the transition period before the DFI was set up.)  The DFI have been disbursed mainly for "the wheat purchase program, the currency exchange program, the electricity and oil infrastructure programs, equipment for Iraqis security forces, and for Iraqi civil service salaries and ministry budget operations".<ref>{{cite web|url=http://www.christianaid.org.uk/indepth/406iraqoilupdate/Fuelling_Suspicion.pdf|title=Fuelling suspicion:the coalition and Iraq's oil billions|date=2004-06-28|format=PDF|access-date=2007-03-16|archive-url=https://web.archive.org/web/20070203050443/http://www.christianaid.org.uk/indepth/406iraqoilupdate/Fuelling_Suspicion.pdf|archive-date=2007-02-03|url-status=dead}}</ref>
 
The DFI was put under the control of the Coalition Provisional Authority and the administrative arm of the US-UK occupation forces. [[International Advisory and Monitoring Board]] (IAMB) was created in [[United Nations Security Council Resolution 1483]] (2003). IAMB is an independent oversight body for DFI and its principal role is to ensure transparency and financial accountability of the DFI. 
The IAMB was operated from the establishment of the DFI on May 22, 2003 until the dissolution of the CPA on June 28, 2004.<ref>{{cite web|url=http://www.iamb.info/pdf/IAMBreport.pdf|title=REPORT OF THE INTERNATIONAL ADVISORY AND MONITORING BOARD OF THE DEVELOPMENT FUND FOR IRAQ|format=PDF|access-date=2007-03-16|archive-url=https://web.archive.org/web/20070206225228/http://www.iamb.info/pdf/IAMBreport.pdf|archive-date=2007-02-06|url-status=dead}}</ref>
 
In October 2004, the audits conducted by IAMB and [[KPMG]] revealed the CPA's inadequate accounting system. IAMB failed its oversight process for several months because of procedural disputes and US manipulation. During this time illegal export of petroleum was conducted secretly from Iraq, and a large amount of funds for DFI were disbursed without accountability. 
According to the audits conducted by the [[Special Inspector General for Iraq Reconstruction]] (SIGIR), US$8.8 billion of the US$23 billion of Iraqi money disbursed for DFI has not been accounted the use.<ref>{{cite web|url= http://www.globalpolicy.org/iraq/humanitarian-issues-in-iraq/development-fund-for-iraq.html|author=[[Global Policy Forum]] |title= Development Fund For Iraq }}</ref>
 
After June 28, 2004, the [[Iraqi Interim Government]] had administered the DFI under the IAMB's oversight following to [[United Nations Security Council Resolution 1546]] until December 31, 2006.<ref>{{cite web|url= http://www.iamb.info/ |author=[[International Advisory and Monitoring Board]] for Iraq |title= Propose}}</ref>

[[L. Paul Bremer|Paul Bremer]] led the Coalition Provisional Authority.  During his administration Ambassador Bremer was criticized by some for spending down over 90% of the Development Funds for Iraq.  Less than 5% of the $18 billion Congress had set aside for reconstruction were spent during that period. These funds make up the [[Iraq Relief and Reconstruction Fund]], which is largely managed by the [[Iraq Reconstruction Management Office]]. [[USAID]] also plays a role in managing these funds.  Since the transfer of sovereignty in June 2004, the Development Fund for Iraq has been managed by the [[Iraqi Transitional Government]].