Stuart Bowen, the special inspector-general who issued quarterly reviews of US-funded Iraq rebuilding efforts, said: “Insurgent activity continues to impede reconstruction projects and interrupt their transition to Iraqi control.” Mr Bowen found that one US contrator set out to build 150 health clinics, but now planned to finish only 20.

An audit found that only six clinics are completed even though 75 per cent of the money had been spent. More than three quarters of healthcare projects were finished, but “progress has been significantly diminished by security problems”, the report said.

Mr Bowen said that corruption in Iraq’s oil and gas sector continued unchecked and an operation to protect 340 important oil, gas and electrical facilities and thousands of miles of pipelines “failed to adequately meet its goals”. (AP)

Times Recommends

• Michael Jackson: Not the final chapter
• Indian Army spends10m rupees on golf buggies
• Brüno toned down for 15 rating