I've done a lot of study on the Middle East, and as one of my professors put it (even before the conflicts) it takes $10,000 to do a $50 job in many areas. Corruption isn't an issue, it's a way of life in many regions.
The reason it's easy to point fingers is we are used to a system of book-keeping which lists every cost and expenditure. Culturally, these regions have always been given a set amount of money and then assumed that the tribal elder's children, friends, militias, etc. etc. would skim off their share.
We are always told that we need to understand the cultures of foreigners, and we need to adapt to their ways. This is one of them, by allowing the tribal elders to skim their share we ensure good will and cooperation. It also gives us a stick to the carrot, in that we can always give the contracts to rival tribes.
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"Smite the rocks with the rod of knowledge, and fountains of unstinted wealth will gush forth." - Ashbel Smith as he laid the first cornerstone of the University of Texas
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