Special Inspector General Stuart Bowen, who heads the agency, said repeated investigations have shown that "weak oversight is directly correlated to increased numbers of cases of theft and abuse."

The report comes as Iraqis are increasingly frustrated with their own government's inability to provide basic services, or to explain how tens of billions of dollars worth of oil revenue has been spent since 2007, the paper said.

"The alleged U.S. mismanagement of Iraqi money is certain to revive grievances against the U.S. for failing to make a big dent in the country's reconstruction needs despite massive expenditures, " the paper said.

Iraqis are still angry about the failure to account for a separate 8.8 billion dollars in Iraqi oil revenue spent by the U.S. -led Coalition Provisional Authority in 2003 and 2004.

If more money is found to be missing, "Iraq will definitely try to get it back," Ali Musawi, a media advisor to Prime Minister Nouri Maliki, said in remarks published by the paper.

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