The inspector general finds too few watchdogs keeping an eye on how US reconstruction funds are spent.
Veterans are rushing to take advantage of the comprehensive education benefits, raising the question of whether the bill will hurt retention.
As Afghan insurgents exploit popular anger at civilian deaths, the US is hitting back with its own message.
The man he wants for the post, Lt. Gen. Stanley McChrystal, is deeply versed in special operations.
Iraqi security forces say they arrested Abu Omar al-Baghdadi in April. US officials say they are uncertain whether the name refers to a specific person or is simply a commonly used pseudonym within the insurgency.
The administration also ends accounting practices that kept war funding from public scrutiny.
The small number of successful pirate attacks, an increase in military patrols, and legal concerns have kept many firms from hiring security.