By Bryan Li

“A second insurgency” is how Stuart Bowen, chief auditor for Iraq appointed by US Congress, has described the economic mismanagement taking place in Iraq, as quoted in the BBC News. His choice of words reflects the severity with which he sees the situation.

Vanity Fair writes that “between April 2003 and June 2004, [of] $12 billion in U.S. currency… shipped from the Federal Reserve to Baghdad… incredibly, at least $9 billion has gone missing or unaccounted for, in a frenzy of mismanagement and greed.” They further write that the American company (NorthStar) hired to provide accounting and auditing services for the reconstruction was in fact “based in a private home in San Diego, [and] was a shell corporation with no certified public accountants.”

The International Herald Tribune notes the difficulties encountered by Bryon J. Young, a retired Army colonel and the current director of the Army Contracting Agency, in dealing with the large influx of funds for reconstruction, writing that the Army Contracting Agency entrusted nearly $4 billion to “a B team of civilians and military officers with limited contracting experience”.

As at 12 September, the US Army reported that it had 78 cases of fraud and corruption under investigation, had obtained 20 criminal indictments and had uncovered over US $15 million in bribes, the New York Times writes.

By Bryan Li

Investigations into the allegations have plagued news headlines in the Phillipines.

On 1 October, Filipino elections chief Benjamin Abalos resigned, having been accused in Senate hearings of brokering the broadband contract with China's ZTE Corp. and of trying to bribe a Cabinet official and a Filipino businessman in connection with the deal. During the 26 September Senate hearing, former Socio-economics Secretary Romulo Neri claimed Abalos offered him US $4.4 million to endorse the Chinese company's bid, the Manila Times writes.

The broadband contract, originally signed in April 2007, was suspended by the Supreme Court on 22 September and, according to the Financial Times, President Gloria Macapagal Arroyo was forced to create a special panel to review all China-funded projects amid a political backlash.

ZTE Corporation has denied bribing or soliciting anyone in connection with the deal, the Business Mirror reports. The charges and counter-charges could hurt investors’ confidence to invest in the country, according to the Financial Times.

President Arroyo traveled to China on 2 October for a two day visit to meet with Chinese President Hu Jintao to boost trade and political ties amidst the unfolding scandal, the International Herald Tribune reveals.

By Bryan Li

The TIME magazine Asian edition article claimed that the Suharto family amassed a US $15 billion fortune during his three decades in power until his ousting in 1998, the Wall Street Journal writes.
In announcing their verdict, the court overruled two previous rulings on the lawsuit by lower courts in 2000 and 2001.

The day following the unfavourable verdict, TIME responded in an article by saying: “This is a blow to freedom of the press, and it means it is not safe for the press to work," Todung Mulya Lubis, an Indonesian lawyer representing TIME is quoted as saying. The magazine also reaffirmed that it stands by the original article.
TIME magazine has said they will fight the ruling, according to the BBC News. "We will use all means available to challenge this decision," Mr Lubis told during a news conference… what is at stake here is not only TIME but also the freedom of the press."

In a separate case, Indonesia’s long delayed civil lawsuit seeking US $1.54 billion from the former President in damages and stolen funds, commenced in August after long delays due to his ill health, the International Herald Tribune reports.