... the IAMB has repeatedly raised the following issues with the CPA:
The absence of oil metering. The IAMB recommended in March 2004 the expeditious installation of metering equipment in accordance with standard oil industry practices. Contrary to earlier representations by the CPA, the award of metering contracts has been delayed and it is therefore impossible to ascertain that all oil extraction is properly accounted for.
The use of barter transactions for certain oil sales. The IAMB has been concerned that barter transactions are not reflected in the DFI as required by UNSCR 1483. The IAMB understands that some bartering of oil for electricity with a neighboring country continues. The use of barter transactions makes it difficult to determine whether fair value has been received for Iraq's oil revenues.
The use of non-competitive bidding procedures for some contracts funded from the DFI. DFI funds were used to award contracts on a non-competitive basis. To ascertain the conditions and circumstances, the IAMB has requested copies of reports on audits of sole-sourced contracts that have already been undertaken by various US agencies, before determining whether additional audits are necessary. Despite repeated requests, these reports have still to be made available to the IAMB.
The results of a review of controls in the State Oil Marketing Organization (SOMO). The CPA commissioned a review of controls in SOMO by KPMG in February 2004. The review was substantially complete in May 2004, but the IAMB has neither been briefed nor received the draft report, despite requests to the CPA ...
http://www.iamb.info/pr/pr071504.htm(15 July 2004 Press Release)