WASHINGTON, Jan 31 (Reuters) - Millions of dollars in U.S. aid intended for Iraqi police training programs may have been lost because of poor contract oversight, a State Department watchdog agency said in a report. The State Department paid about $43.8 million dollars for a residential camp to house police trainers that was never used, including $4.2 million for work that was not authorized under a contract awarded to DynCorp International Inc. <DCP.N>, said the review issued on Tuesday. The unauthorized work included relocating the camp to the Adnan Palace in Baghdad, the addition of 20 VIP trailers and the construction of an Olympic size swimming pool on the palace grounds, the audit said. The review, by the office of the Special Inspector General for Iraq Reconstruction, said the camp was never completed due to security concerns. The agency recommended that the government seek reimbursement from DynCorp for the $4.2 million payment for the unauthorized work, which it said was requested by the Iraqi Ministry of Interior. The audit cited "weak and sometimes nonexistent contract administration" as the root cause of the problems found in the review of DynCorp's $1.8 billion contract. In addition, it found that the U.S. government may have spent another $36.4 million for weapons and equipment, including armored vehicles, body armor and communications equipment, that cannot be accounted for. The report blamed the problem on vague invoices and lack of backup documentation, adding that neither the U.S. government nor DynCorp maintained a complete list of items procured. The office opened in January 2004 to track $18 billion in U.S. taxpayer dollars initially allocated for rebuilding Iraq.
