BAGHDAD – The U.S. Defense Department is unable to properly account for over 95 percent of $9.1 billion in Iraqi oil money tapped by the U.S. for rebuilding the war ravaged nation, according to an audit released Tuesday.

The report by the U.S. Special Investigator for Iraq Reconstruction offers a compelling look at continued laxness in how such funds were being spent in a country where people complain basic services like electricity and clean water are sharply lacking seven years after the U.S.-led invasion that toppled Saddam Hussein.

The audit found that shoddy record keeping by the Defense Department left the Pentagon unable to fully account for $8.7 billion it withdrew between 2004 and 2007 from a special fund set up by the U.N. Security Council. Of that amount, the Pentagon “could not provide documentation to substantiate how it spent $2.6 billion.”

The funds are separate from the $53 billion allocated by Congress for rebuilding Iraq.

The report comes at a critical time for Iraq, which four months after inconclusive elections squabbling political factions have still not agreed on a new government.

Despite security gains made since 2008, bombings remain near a daily occurrence that compound the frustrations and fears of Iraqis increasingly weary of the political crisis — one many say reflects how the country’s politicians are more interested in their own interests than those of the nation.

The continuing impasse was highlighted on Tuesday when Iraqi lawmakers gathered for the second time this month only to indefinitely postpone the parliamentary session because there was still no decision on the new government.