Pentagon audit reveals $200 million overpayment

The audit by the Defense Department’s inspector general, which was posted on the Pentagon’s Web site this week, estimated that the department paid the oilman “$160 [million] to $204 million more for fuel than could be supported by price or cost analysis.” The study also reported that the three contracts were awarded under conditions that effectively eliminated the other bidders.

Harry Sargeant III, a well-connected Florida businessman and once-prominent Republican donor, first faced scrutiny over his defense work in October 2008, when he was accused in a congressional probe of using his close relationship with Jordan’s royal family to secure exclusive rights over supply routes to U.S. bases in western Iraq.