http://news.yahoo.com/s/mcclatchy/20071004/wl_mcclatchy/20071004bcusiraqcorruption_attn_national_foreign_editors_ytop
Whatever oil we're not stealing from the Iraqis apparently is used for funding attacks against the US according to the piece.
Also the corruption levels are ridiculously high, all the way up to Malaki, the Bush appointed puppet. When questioned about the negatives, such as if Malaki himself is part of the corruption problem and the killings of those investigating it, that was covered up under "classified" as usual ;)