Also Thursday, the Israeli daily newspaper Haaretz reported that Prime Minister Benjamin Netanyahu has promised to withdraw from 10 percent of the West Bank, a much larger area than expected, if Arafat's self-rule government quietly accepted construction of the Jewish housing development.

CNN: Arafat: Housing plan violates peace process

He said that while he accepted the historic infringements, the construction companies had since "put their house in order".

BBC: Justin Webb's review

Investigators found instances in which military officials accepted bribes from contractors, major construction projects had fallen short of expectations and government disarray hampered progress in Iraq.

WSJ: U.S. Is Hit on Iraq, Afghan Outlays