This falls under the category of Of Course They Did. Officials with the Office of Accountability and Transparency reported to the Senate yesterday that the State Department understaffed their office and ignored their reports and recommendations.
Well, duh. The Bush Administration is trying to create a puppet government in Iraq to implement the United States' colonial occupation of the country. As the British Raj proved in India and Belgium proved in the Congo, a ruthlessly corrupt local government is vital to maintaining a colony. A corrupt government insures that the local citizens hopes for freedom and prosperity can be easily crushed. A corrupt government willingly passes everything of interest through to their masters, as long as they get their cut.
Al-Maliki and his cohorts are the titular leadership of Iraq not because they are honest and efficient. Far from it. Their willingness to prostitute their country to the US government, private contractors, and mercenaries makes them vital cogs in the profit making machine that is the Iraq occupation.