Exposes Coleman’s Attempt To Whitewash Record On Wasteful Spending, Says Coleman’s “Smoke And Mirrors” Proposal Would Do Little To End Culture Of Dependency Bush-Coleman Policy Has Caused Reiterates Call For Responsible Timetable For Re-Deployment

Saint Paul [08/11/08] - In light of a new GAO report revealing that Iraq has a projected 2008 budget surplus of up to $50.3 billion from record oil and gas revenues, DFL-endorsed U.S. Senate candidate Al Franken today criticized a recent proposal by Sen. Norm Coleman (R - Bush) to rescind a small portion of funds earmarked for Iraqi reconstruction as a political ploy and insufficient to force the Maliki government to take responsibility for reconstruction.

Al Franken:

“We absolutely owed it to the Iraqi people to help them rebuild - and we did. But we now know the Maliki government has the means to take over the reconstruction - it just refuses to spend the money because George Bush and Norm Coleman are all too willing to pick up the check. It’s time to take the training wheels off and end this culture of dependency. Norm Coleman stood idly by while $48 billion of taxpayer dollars were appropriated for this botched reconstruction - and just as his smoke-and-mirrors political ploy to rescind a small portion of that spending won’t force the Maliki government to change its behavior, it won’t fool Minnesotans into thinking he’s a responsible steward of their money.”

This week’s GAO report found that the Iraqi government generated an estimated $96 billion in revenues from 2005 to 2007 - 94% of which came from oil profits.

Meanwhile, the Maliki government has spent nearly nothing - only 1% of total expenditures - on maintaining Iraq- and U.S.-funded investments in infrastructure, leaving Iraq with a budget surplus of $50.3 billion for 2008 alone.

To date, Coleman has voted with George Bush to approve $48 billion for Iraq reconstruction. In June, even after reports surfaced that Iraq held as much as $30 billion in U.S. banks, Coleman voted with Bush to approve the additional $1.1 billion he now wants to rescind - plus another $2 billion in reconstruction funding.

That $1.1 billion Coleman wants to rescind, however, represents less than one-sixth of the funds currently appropriated but not obligated for Iraq reconstruction, and roughly two percent of the overall funds Coleman has voted to approve. Meanwhile, as chairman of the powerful Permanent Subcommittee on Investigations, Coleman held zero hearings into taxpayer spending on Iraq reconstruction.

In contrast, Franken proposed:

• Rescinding every dollar currently appropriated for reconstruction but not yet obligated - roughly $7.1 billion in total - with that money to be devoted to the federal Highway Trust Fund for infrastructure improvements here in Minnesota and around the country.
• Zeroing out reconstruction funding in any pending authorization or appropriations bills.
• Setting a responsible timeline for withdrawal of combat forces.

FRANKEN WILL END THE CULTURE OF DEPENDENCY IN IRAQ

Last week, a GAO report showed the Iraqi government was on track to bring in as much as $86.2 billion in revenue for 2008, most of it oil income, leaving the Iraqi government with a budget surplus as high as $50.3 billion. In response, Norm Coleman proposed rescinding $1.1 billion in reconstruction funding in response. Al Franken believes that step doesn’t go nearly far enough. Franken will rescind the $1.1 billion, as well as the $6 billion in reconstruction funding that has been appropriated for reconstruction, but has not yet been spent or obligated. Franken also knows that in order to break the culture of dependency our presence in Iraq has created, we must do more than simply hold back reconstruction funding, and is calling for a firm timetable for withdrawing our troops out of Iraq. Minnesotans know Norm Coleman has stood shoulder to shoulder with President Bush on Iraq, and that he allowed waste, fraud and abuse in the reconstruction to go unchecked when he refused to conduct oversight hearings as Chairman of the Permanent Subcommittee on Investigations. They deserve a senator who is willing to do what is necessary to end Iraq’s dependence on the US and start redeploying our forces quickly and responsibly.

IRAQ IS ON TRACK TO HAVE AN $86.2 SURPLUS IN 2008, WHILE DEVOTING LESS THAN 10% OF THEIR EXPENDITURES TO RECONSTRUCTION

GAO Report: Iraq On Double Oil Revenue In 2008 While Spending Only A Small Fraction Of Its Income On Reconstruction. In August 2008, the Washington Post reported, “Iraq’s oil income will more than double this year, even as Baghdad continues to spend only a small percentage of its own money on reconstruction and services while it banks billions in surplus funds, according to projections by U.S. government auditors.” [Washington Post, 8/6/08]

Iraq’s Total 2008 Revenues Could Be As High As $86.2, $79.2 Billion In Oil Revenue Alone; Projected Surplus Could Be As High As $50.3 Billion. According to the GAO report, “For 2008, GAO estimates that Iraq could generate between $73.5 billion and $86.2 billion in total revenues, with oil exports accounting for between $66.5 billion to $79.2 billion. Projected 2008 oil revenues could be more than twice the average annual amount Iraq generated from 2005 through 2007.” The report later added, “For 2008, GAO estimates a budget surplus of between $38.2 billion to $50.3 billion.” [GAO Report, August 2008]

Iraq Has Devoted Less Than 10% Of Its Expenditures To Reconstruction. According to the Washington Post, “Between 2005 and 2007, only 10 percent of Iraq’s expenditures went toward reconstruction, with just 1 percent spent on maintaining U.S. and Iraqi-funded investments in roads, water, electricity and weapons, according to a report released yesterday by the Government Accountability Office.” [Washington Post, 8/6/08]

April 2008: Armed Services Committee Chairman Levin Recounted Story Of Iraqi Official Who Said “As Long As You Are Willing To Pay For The Clean-Up, Why Should We Do It?” During an April Armed Services Committee hearing, Senator Carl Levin said, “During my recent trip to Iraq, just before the latest outbreak of violence, a senior U.S. military officer told me that when he asked an Iraqi official, ‘Why is it that we’re using our U.S. dollars to pay your people to clean up your towns instead of you using your funds?’, the Iraqi replied, ‘As long as you are willing to pay for the clean-up, why should we do it?’” [Armed Services Committee Hearing, Levin Opening Statement, 4/8/08]

COLEMAN KNEW IRAQ WAS BUILDING A MULTI-BILLION DOLLAR SURPLUS AND STORING IT IN US BANKS WHEN HE VOTED FOR ANOTHER $3.1 BILLION IN RECONSTRUCTION IN JUNE

June 14, 2008, Report Showed Iraq Had More Than $30 Billion In US Banks. In June 2008, the Washington Post reported, “More than $30 billion in Iraqi Central Bank reserves are held in the Federal Reserve Bank of New York.” [Washington Post, 6/14/08]

June 26, 2008: Coleman Voted For Almost $162 Billion In Funding For Iraq And Afghanistan; Bill Included $3.1 Billion For Iraq Reconstruction. In June 2008, Coleman voted for the last supplemental funding bill for the wars in Iraq and Afghanistan of the Bush presidency. The bill contained $161.8 billion in funding, including $3.1 billion in funding for the Iraq reconstruction. [Vote 152, 6/26/08; CQ Votes; GAO Report, August 2008]

THERE ARE $6 BILLION APPROPRIATED BUT NOT SPENT ON IRAQ RECONSTRCTION ON TOP OF THE $1.1 BILLION COLEMAN WANTS RESCINDED

GAO Report: US Has Appropriated, But Not Spent, $6 Billion In Reconstruction Funds; $1.1 Billion To Be Appropriated In October. According to the August 2008 GAO report on Iraq, “Since fiscal year 2003, Congress has appropriated about $48 billion to U.S. agencies to finance stabilization and reconstruction efforts in Iraq, including developing Iraq’s security forces, enhancing Iraq’s capacity to govern, and rebuilding Iraq’s oil, electricity, and water sectors, among others. As of June 2008, of the $48 billion in appropriated U.S. funds from fiscal years 2003 through 2008, about $42 billion (88 percent) had been obligated and about $32 billion (68 percent) had been spent.” The report adds, “This amount includes $2 billion appropriated in June 2008 for reconstruction and stabilization activities in Iraq in the Supplemental Appropriations Act, 2008. This amount does not include $1.1 billion appropriated in the same act after October 1, 2008, for similar activities in Iraq.” [GAO Report, August 2008]

NORM COLEMAN HAS STOOD WITH BUSH VIRTUALLY EVERY STEP OF THE WAY ON IRAQ; HAS VOTES 17 TIMES AGAINST CHANGING COURSE

August 2008 Report: On Iraq, Coleman “Takes Basically The Same Position On Current Matters As John McCain And President Bush.” In August 2008, MinnPost’s Eric Black reported, “Coleman expressed virtually no doubts or ambivalence on any aspect of the war during its first four years. Until 2007, he never broke ranks with the Bush administration nor the war’s steadiest supporters on any vote.” Black also wrote, “After four years of toeing the pro-Bush, pro-war line, he wobbled slightly in early 2007 by doubting the wisdom of the surge. He has since recanted those doubts, thinks the war is going well and takes basically the same position on current matters as John McCain and President Bush.” [MinnPost, 8/7/08]

June 2008: Knowing What He Knows Now, Coleman Would Still Support The War In Iraq. In June 2008, Coleman was asked, “Based on what you know now, was your support for the war then wrong?” Coleman answered, “Uh, no, no…Based on what I knew then I would have made the same decision. [Coleman Press Conference, 6/16/08, via Pioneer Press, "Political Animal," 6/16/08]

2005-Present: Coleman Has Voted 17 Times Against Changing Course In Iraq. Since 2005, Coleman has voted 17 times against changing course in Iraq. [Vote 322, 11/15/05; Vote 181, 6/22/06; Vote 182, 6/22/06; Vote 243, 9/13/06; Vote 438, 12/18/07; Vote 437, 12/18/07; Vote 411, 11/16/07; Vote 362; 10/3/07; Vote 346, 9/21/07; Vote 345, 9/20/07; Vote 252, 7/18/07; Vote 167, 5/16/07; Vote 147, 4/26/07; Vote 126, 3/29/07; Vote 116, 3/27/07; Vote 75, 3/15/07; Vote 138, 5/22/08]

September 2004: Coleman Said, “Whatever The Future Brings, We Must Stand With This President.” In September 2004, Coleman praised President Bush’s handling of the war in Iraq and said, “Whatever the future brings, we must stand with this president.” [Star Tribune, 9/22/04]

September 2002: Coleman Said A Vote Against War Authorization Would Be “Outside The Mainstream.” Anticipating Sen. Wellstone’s vote against the 2002 Iraq war authorization, Coleman said, “This is one of those examples where you say, ‘Hey, this guy is way outside the mainstream.’” [Associated Press, 9/26/02]

COLEMAN VOTED REPEATEDLY AGAINST INCREASED OVERSIGHT OF THE RECONSTRUCTION; REFUSED TO HOLD EVEN A SINGLE OVERSIGHT HEARING AS CHAIRMAN OF THE SENATE’S MOST POWERFUL OVERSIGHT COMMITTEE

2003-2007: Coleman Refused To Hold Oversight Hearings On Iraq; Said Others Were Better Equipped To Investigate The Reconstruction Then He. In August 2008, MinnPost’s Eric Black reported, that in the face of criticism of his refusal to hold oversight hearings on Iraq during his four years as Chairman of the Permanent Subcommittee on Investigations, “Coleman acknowledges that he didn’t schedule any hearings on those topics during his tenure as chairman. He says that other committees had staff on the ground in Iraq and were better positioned to oversee the reconstruction, that Congress (with his support) created a position and an agency for a Special Inspector General for Iraqi Reconstruction, and that he never prevented any member of the PSI from investigating reconstruction contracts.” [MinnPost, 8/7/08]

October 2003: Coleman Voted Twice Against Giving Congress More Oversight Over Iraq Reconstruction Spending. In October 2003, Coleman voted to kill a proposal that would have allowed President Bush to quickly spend the first half of the $20.3 billion for reconstruction in the FY04 emergency spending bill, while requiring him to get Congressional approval before spending the rest in 2004. The next day, Coleman voted to kill a proposal that would have given Congress more control over Iraq spending by eliminating the flexibility given to President Bush to reallocate all of the $20.3 billion Iraq Relief and Reconstruction Funds without congressional approval. [Vote 385, 10/16/03; Associated Press, 10/16/03; Vote 398, 10/17/03]

October 2003: Coleman Voted to Allow Iraq Contractors, Including Halliburton, To Continue Paying Top Bush Administration Officials. In October 2003, Coleman voted to kill an amendment that would cut off Iraq reconstruction contracts for any company that has financial ties to the president, vice president or any Cabinet member. Specifically, the amendment was targeted at Halliburton, which had already received $1.4 billion to restore Iraq’s oil industry while continuing to make severance payments to Vice President Cheney. [Vote 386, 10/16/03; Associated Press, 10/16/03; NPR, "Morning Edition," 10/17/03]

September 2005: Coleman Voted Against A Committee To Investigate Military Contracting In Iraq And Afghanistan. In September 2005, Coleman voted to kill an amendment “that would establish a new Senate committee to investigate contracts issued for military operations and reconstruction,” according to Congressional Quarterly [Vote 228, 9/14/05; Congressional Quarterly, 9/14/05]

October 2005: Coleman Voted Against A Special Task Force To Investigate Waste And Fraud In Iraq, Post-Katrina Contracts. In October 2005, Coleman voted to kill an amendment that “would have established a task force, modeled on the ‘Truman Committee’ during World War II, to probe contracting abuses stemming from the war in Iraq and the Gulf Coast reconstruction,” according to Congressional Quarterly. [Vote 259, 10/19/05; Congressional Quarterly, 10/19/05]

November 2005: Coleman Voted Against A Committee To Investigate Waste And Fraud In Iraq And Afghanistan Contracts. In November 2005, Coleman voted to kill an amendment “that would have created a special Senate committee to investigate waste, fraud and abuse in defense contracting, principally in Iraq and Afghanistan,” according to Congressional Quarterly. [Vote 316, 11/10/05; Congressional Quarterly, 11/10/05]

June 2006: Coleman Voted Against A Committee To Investigate Waste And Fraud In Military Contracts. In June 2006, Coleman voted to kill an amendment “calling for an investigation into waste and fraud in military contracts,” according to the International Herald Tribune. The amendment called “for a panel like one headed by Harry Truman, then a senator, that uncovered many abuses in military spending during World War II.” [Vote 176, 6/20/06; International Herald Tribune, 6/20/06]

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