Senators: Where Is Iraq's Oil Money Going?

This should be basic business 101 for our nation's first MBA President!?

BAGHDAD, Iraq (CNN) -- Two senators are asking congressional investigators to look at Iraq's oil revenues and see if the war-ravaged nation can pay for its own reconstruction, an effort that has been bankrolled to this point mostly by U.S. taxpayers.

Carl Levin, D-Michigan, and John Warner, R-Virginia, said in their Friday letter to the Government Accountability Office that Iraq has "tremendous resources" in banks worldwide but is doing little to improve security and reconstruction efforts.

Iraqi officials did not immediately respond to the senators' allegations.

"We believe that it has been overwhelmingly U.S. taxpayer money that has funded Iraq reconstruction over the last five years, despite Iraq earning billions of dollars in oil revenue over that time period that have ended up in non-Iraqi banks," wrote the senators, who are their party's top members on the Armed Services Committee.

The senators cited testimony of then-Deputy Defense Secretary Paul Wolfowitz who told a House subcommittee in March 2003 that the U.S. would not foot the entire bill for rebuilding Iraq. Wolfowitz predicted then that Iraq's oil revenues could reach between $50 billion and $100 billion in the next two or three years.

"We are dealing with a country that can really finance its own reconstruction and relatively soon," Wolfowitz said in 2003.

Using numbers from the U.S. State Department and Iraqi Oil Ministry, the senators said Iraq hopes to produce 2.2 million barrels of oil a day this year. Weekly averages suggest that the number has climbed as high as 2.51 million barrels a day.

That kind of oil production could earn Iraq a projected $56.4 billion this year, an estimate the senators say is low given the rising cost of crude.

"In essence, we believe that Iraq will accrue at least $100.0 billion in oil revenues in 2007 and 2008," the letter said.

It added, "Our conversations with both Iraqis and Americans during our frequent visits to Iraq, as well as official government and unofficial media reports, have convinced us that the Iraqi government is not doing nearly enough to provide essential services and improve the quality of life of its citizens."

Iraq's ability to spend its $10.1 billion capital projects budget in 2007 was one of the 18 benchmarks used to assess U.S. progress in stabilizing and rebuilding Iraq, according to the GAO.

The United States has spent more than $47 billion on Iraqi reconstruction efforts since 2003, according to the 2008 quarterly audit by the special inspector general for Iraq reconstruction.

CNN's Mohammed Tawfeeq contributed to this report

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