Ex-State officials allege corruption cover-up

In July 2007, the OAT team concluded that the committee's only purpose was to provide a forum for complaints against Judge Radhi Hamza al-Radhi, a top anti-corruption official in Baghdad whom many U.S. officials have hailed as the most effective in exposing fraud and abuse.

But information later released by the embassy ignored the team's assessment and ultimately "failed to even mention what a disaster" the committee "really was," Brennan said.

Brennan said he approved the embassy report against his better judgment but later regretted it.

Mattil, who worked with Brennan, made similar allegations. Specifically, he said the U.S. "remained silent in the face of an unrelenting campaign" by senior Iraqi officials to subvert Baghdad's Commission on Public Integrity, which had been led by al-Radhi. Then, the U.S. turned its back on Iraqis who fled to the United States after being threatened for pursuing anti-corruption cases, he said.

"Since we have done so little (to undercut corruption), it's easy to see why the government of Iraq has not done more," said Mattil, who left the accountability office last October after having served for a year as its chief of staff. "We have demanded no better."

Brennan was appointed as OAT director last summer and arrived in Baghdad in July. He left only a few weeks later after his wife was diagnosed with cancer. He stepped down from his position in August.

Iraqi government officials could not be reached for comment.

Sen. Byron Dorgan, head of the Democratic Policy Committee, said the testimony was critical in light of upcoming legislation that would appropriate more than $170 billion for the wars in Iraq and Afghanistan. The Senate Appropriations Committee, of which Dorgan is a member, is expected to approve the legislation Thursday.

"It is a cruel irony if we are appropriating money next Thursday or did appropriate money last month or last year and that money ends up actually providing the resources for an insurgency in Iraq which ends up killing Americans," said Dorgan, D-N.D.