Corruption probed in Iraq contracting

WASHINGTON, Oct. 15 (UPI) -- U.S. authorities launched a corruption investigation centering on the U.S. Army's financial operation for Iraq located at Camp Arifjan in the Kuwaiti desert.

Court and military records indicate the investigation centers on an alleged web of more than $10 million in favors, bribes and kickbacks among Army officers, contractors and subcontractors at the base, USA Today reported Monday.

Six companies punished administratively sought contracts by offering shopping bags and suitcases stuffed with cash and gifts ranging from phone cards to SUVS.

The newspaper said two enlisted soldiers at Camp Arifjan have been ordered to face a court-martial for allegedly taking bribes and eight people have pleaded guilty to corruption charges in federal courts.

At a hearing last month, Deputy Inspector General Thomas Gimble told the U.S. House of Representatives Armed Services Committee that one-third of the Pentagon's criminal investigations involving $6 billion worth of contracts have ties to Kuwait.

The Kuwait operation has handled more than $4.2 billion in military contracts over the years.