Senior US military officials may have committed the biggest fraud in US history, the Independent reports. Fifty billion dollars seems to have gone AWOL (absent without leave) and a total of $125 billion aid for Iraq appears to have been misused:
In 2004-05, the entire Iraq military procurement budget of $1.3bn was siphoned off from the Iraqi Defence Ministry in return for 28-year-old Soviet helicopters too obsolete to fly and armoured cars easily penetrated by rifle bullets. Iraqi officials were blamed for the theft, but US military officials were largely in control of the Defence Ministry at the time and must have been either highly negligent or participants in the fraud.
Sadly it is one more legacy of the most incompetent government that the USA has probably ever had.
If you want to read about military fraud take a look at the biography of the 35th Surgeon General of the US Navy, Donald C. Arthur: http://en.wikipedia.org/wiki/Donald_Arthur.