OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION

Because this report contains sensitive information, such as names and account numbers, the full 

report is being released “For Official Use Only” and is not available to the public.

DEEVVEELLOOPPMMEENNTT FUUNNDDSS FFOORR IRRAAQQ

REETTUURRNNEEDD TTOO TTHHEE CEENNTTRRAALL BAANNKK

OOFF IRRAAQQ

SSIIGGIIRR 1122--001122

JJAAANNNUUUAAARRRYYY 1133,,22001122
Special Inspector General for IRAQ Reconstruction

SIGIR

For more information, contact SIGIR Public Affairs at 

(703) 428-1100 or PublicAffairs@sigir.mil Special Inspector General for Iraq Reconstruction

Summary of Report: SIGIR 12-012

Why SIGIR Did This Study

This report responds to a November 2011 

inquiry from the Prime Minister, Republic of 

Iraq, to SIGIR about $13.1 million from the 

Development Fund for Iraq, which consisted of 

Iraqi oil proceeds used for development projects 

in 2003 and 2004, that SIGIR reported was 

returned to the Central Bank of Iraq in March 

2009. The inquiry was made because former 

and current Government of Iraq officials wrote 

the Prime Minister that they could not locate 

any records supporting the return of the funds. 

SIGIR initiated this review to determine the 

disposition of the $13.1 million.

Because this report contains sensitive 

information, such as names and account 

numbers, the full report is being released “For 

Official Use Only” and is not available to the 

public.

What SIGIR Recommends

This report contains no recommendations. 

January 13, 2012

DEVELOPMENT FUNDS FOR IRAQ RETURNED TO THE CENTRAL 

BANK OF IRAQ

What SIGIR Found

Federal Reserve Bank of New York (FRBNY) documents clearly 

show that the funds in question were transferred to a FRBNY account 

under the control of the Government of Iraq on March 3, 2009. The 

documents supporting this transfer are as follows:

1. An instruction sheet with information the FRBNY said it received 

from an Iraq Ministry of Finance official, directing that the funds 

were to be deposited in a FRBNY account identified as the Central 

Bank of Iraq-Development Fund for Iraq account. 

2. A wire transfer form showing that on March 3, 2009, the U.S. 

Army Corps of Engineers transferred $13,129,168.11 to the 

FRBNY, for deposit to a FRBNY account under the control of the 

Government of Iraq and identified as the Central Bank of Iraq–

Development Fund for Iraq account. A FRBNY official told 

SIGIR that when the funds were deposited into this account, they 

became comingled with other funds in the account. The wire 

transfer also identified the Minister of Finance Accountancy 

Department as the beneficiary of the returned funds. 

3. A Society for Worldwide Interbank Financial 

Telecommunications (SWIFT) message from the FRBNY to the 

Central Bank of Iraq dated March 5, 2009, notifying the Central 

Bank of Iraq that $13,129,168.11 had been deposited into the 

Central Bank of Iraq’s–Development Fund for Iraq account at the 

FRBNY. SWIFT provides a highly secure network to allow 

financial and non-financial institutions to transfer banking 

instructions, including payment instructions and account 

information. The FRBNY SWIFT message to the Central Bank of 

Iraq on March 5, 2009, served first to advise the Central Bank of 

Iraq that a deposit had been made to its account. In addition, it 

provided information directing the Central Bank of Iraq to apply 

the funds for credit to a specific GOI account. Typically, it would 

be expected that the Central Bank of Iraq would credit the funds to 

that same account on its own books in Baghdad, and the FRBNY 

would not be involved in or aware of the ultimate credit. In this 

case, the FRBNY’s records do not establish whether the funds 

were physically transferred or otherwise credited to the designated 

account at the Central Bank of Iraq in Baghdad. 
This report was issued with a restricted distribution. 

This summary is being published for the general public. 

1

Appendix H—Acronyms

Acronym Description

FRBNY Federal Reserve Bank of New York

SIGIR Special Inspector General for Iraq Reconstruction

SWIFT Society for Worldwide Interbank Financial Telecommunications
This report was issued with a restricted distribution. 

This summary is being published for the general public. 

2

Appendix I—Team Members

This report was prepared and the audit conducted under the direction of Glenn D. Furbish, 

Assistant Inspector General for Audits, Office of the Special Inspector General for Iraq 

Reconstruction.

The staff members who conducted the audit and contributed to the report include:

Ziad Buhaissi

Ben Comfort

Mike Welsh
This report was issued with a restricted distribution. 

This summary is being published for the general public. 

3

Appendix J—SIGIR Mission and Contact Information

SIGIR’s Mission Regarding the U.S. reconstruction plans, programs, and 

operations in Iraq, the Special Inspector General for Iraq 

Reconstruction provides independent and objective:

• oversight and review through comprehensive 

audits, inspections, and investigations

• advice and recommendations on policies to 

promote economy, efficiency, and effectiveness

• deterrence of malfeasance through the prevention 

and detection of fraud, waste, and abuse

• information and analysis to the Secretary of State, 

the Secretary of Defense, the Congress, and the 

American people through Quarterly Reports

Obtaining Copies of SIGIR 

Reports and Testimonies

To obtain copies of SIGIR documents at no cost, go to 

SIGIR’s Web site (www.sigir.mil).

To Report Fraud, Waste, and 

Abuse in Iraq Relief and 

Reconstruction Programs

Help prevent fraud, waste, and abuse by reporting 

suspicious or illegal activities to the SIGIR Hotline:

• Web: www.sigir.mil/submit_fraud.html

• Phone: 703-602-4063

• Toll Free: 866-301-2003

Congressional Affairs Hillel Weinberg

Assistant Inspector General for Congressional

Affairs

Mail: Office of the Special Inspector General

for Iraq Reconstruction

2530 Crystal Drive

Arlington, VA 22202-3940

Phone 703-428-1059

Email hillel.weinberg.civ@mail.mil

Public Affairs Christopher Griffith

Director of Public Affairs

Mail: Office of the Special Inspector General

for Iraq Reconstruction

2530 Crystal Drive

Arlington, VA 22202-3940

Phone: 703-604-0693

Fax: 703-428-0818

Email: PublicAffairs@sigir.mil