New York, Apr 15: Warning the Bush administration against giving contracts for reconstruction in Iraq to politically connected firms without inviting bids from others, a leading American daily has said the "naked favouritism" undermines the US government's portrayal of the war as a campaign for disarmament and democracy. In an editorial, the 'New York Times' also said the invasion, occupation and rebuilding of the country will cost American taxpayers over 100 billion dollars. "The administration has begun farming out contracts, and politically connected firms like Halliburton are among the early winners. This looks like naked favouritism and undermines the Bush administration's portrayal of the war as a campaign for disarmament and democracy, not lucre," it said. Despite the limited damage of the war, the paper noted that the ravages of earlier conflicts and sanctions have left much of Iraq in ruins. Roads, ports and schools must be rebuilt, the oil industry revived and power grids and communications networks repaired.

Some emergency contracts, it said, need to be awarded right away. "But that does not mean this should be done without competition or that such contracts should be long term," it stressed.
Moreover, it said by grabbing much of the first year's money, the favoured US companies may have a leg up for signing future deals as well.
Pointing out that reconstruction is expected to cost some 20 billion dollars a year for the next three years, the 'Times' said with so much money involved it is vital that bidding be competitive, transparent and open to all. Bureau Report