the banality of greed
This week’s evidence of the continuing corruption of Halliburton and its subsidiaries profiteering from contracts costing American taxpayers an unbelievable $22 billion stems from a report by the special inspector general for Iraq reconstruction. The report, only one of many about Halliburton’s recently severed subsidiary KBR, focuses on work done in Baghdad’s super-secure Green Zone. While parent company Halliburton insults U.S. taxpayers by relocating its headquarters to the tax shelter of Dubai, subsidiary KBR has been spun off to focus more directly on the American military contracts that form the core of its operations.
(...) It is claimed by American officials that KBR’s accountability issues are being addressed. In one instance cited, the U.S. Embassy in Baghdad—a spiraling enterprise well on its way to becoming a nation-within-a-nation akin to the Vatican in Italy—announced that, as a means of avoiding food theft, its personnel would no longer be allowed to bring large bags into the eating halls. Such sacrifice for the mission of securing Iraqi freedom.
Showing posts with label halliburton. Show all posts
Showing posts with label halliburton. Show all posts
Thursday, June 28, 2007
Saturday, May 5, 2007
corruption, oil, iraq:
Rumors are rife among suspicious Iraqis about the failure to measure the oil flow. "Iraq is the victim of the biggest robbery of its oil production in modern history," blazed a March 2006 headline in Azzaman, Iraq's most widely read newspaper. A May 2006 study of oil production and export figures by Platt's Oilgram News, an industry magazine, showed that up to $3 billion a year is unaccounted for.
(...) "Iraqi oil is regularly smuggled out of the country in many different ways," an oil merchant in Amman told the Nation (U.S.) magazine last month. "Emir al-Hakim [the head of the Supreme Council of the Islamic Revolution in Iraq] is spending all his time in Basra selling oil as if it were his own. People there call him Uday al-Hakim, meaning he is behaving the same way Uday Saddam Hussein was acting. Other merchants like myself have to work through him with the big deals or smuggle small quantities on our own. The petroleum is now divided among political parties in power."
(...) Saddam was accused of selling some $5.7 billion worth of petroleum products on the black market over the six years of the Oil-for-Food program while United Nations inspectors turned a blind eye. Today, his successors stand accused of similar abuses.
(...) Iraq sits on 115 billion barrels of proven oil reserves, the third largest in the world (behind Saudi Arabia and Canada). From a society that once used its oil revenue to create a social welfare state that provided education, health care and social services, the country has plummeted into the ranks of the poorest countries of the world.
(...) Almost four years after the DFI was created, officially logged crude sales have generated more than $80 billion. The U.S.-led Coalition Provisional Authority (CPA) managed the DFI from the immediate aftermath of Saddam's removal until June 28, 2004, when the CPA was disbanded. During those 14 months, the CPA spent $19.6 billion of Iraq's DFI funds. The three succeeding governments have been officially in charge of the DFI revenues, although the influence of the U.S. military and political advisors has remained significant throughout. In the 32 months after the CPA left, the three governments spent $47 billion more.
(...) In January 2004, under project Restore Iraqi Oil II (RIO II), the Bush administration contracted with Halliburton to fix southern Iraq's oil fields and with Parsons to handle the northern fields. The two companies were supposed to be supervised by yet another contractor, New Jersey-based Foster Wheeler. (The first RIO contract was the infamous, secret no-bid contract issued to Halliburton before the invasion of Iraq. Although RIO II was competitively bid, Sheryl Tappan, a former Bechtel employee wrote a book criticizing the award as unfair.)
(...) Halliburton and Parsons have long histories in Iraq, going back more than 40 years. Brown & Root, which is now part of Halliburton , began work in Iraq in 1961, while Parsons dipped into Iraq's oil sector in the 1950s. Foster Wheeler dates its work in Iraq to the 1930s.
(...) Neither US officials nor contractors have provided good reasons why, four years into the US occupation, the meters have not been calibrated, repaired, or replaced. One excuse is that the job of calibration requires special devices to assess the current meters and security issues make importing these devises problematic. Yet that and other security-related explanations fall apart given that the oil terminals are under 24 hour high security guard, lie more than 50 miles off-shore, and are accessible only by helicopter or ship.
(...) There are two possible explanations: that the project has been delayed by bureaucracy or that vested interests benefiting from the lack of oil metering (such as smugglers or corrupt officials) have prevented the project from moving forward.
(...) But despite not starting work until November 2004, the company charged the government millions of dollars for engineers who sat idle. Halliburton 's $296 million bill included at least 55 percent overhead. (In an estimate due later this month, SIGIR may predicts even higher overhead costs.)
(...) A Parsons joint venture (with Worley of Australia), was also issued a contract in January 2004, given detailed task orders in June, and started work in July 2004. It has also been accused of charging high overhead costs while idle, although not as much as Halliburton . SIGIR estimate pegs its overhead at 43 percent.
Rumors are rife among suspicious Iraqis about the failure to measure the oil flow. "Iraq is the victim of the biggest robbery of its oil production in modern history," blazed a March 2006 headline in Azzaman, Iraq's most widely read newspaper. A May 2006 study of oil production and export figures by Platt's Oilgram News, an industry magazine, showed that up to $3 billion a year is unaccounted for.
(...) "Iraqi oil is regularly smuggled out of the country in many different ways," an oil merchant in Amman told the Nation (U.S.) magazine last month. "Emir al-Hakim [the head of the Supreme Council of the Islamic Revolution in Iraq] is spending all his time in Basra selling oil as if it were his own. People there call him Uday al-Hakim, meaning he is behaving the same way Uday Saddam Hussein was acting. Other merchants like myself have to work through him with the big deals or smuggle small quantities on our own. The petroleum is now divided among political parties in power."
(...) Saddam was accused of selling some $5.7 billion worth of petroleum products on the black market over the six years of the Oil-for-Food program while United Nations inspectors turned a blind eye. Today, his successors stand accused of similar abuses.
(...) Iraq sits on 115 billion barrels of proven oil reserves, the third largest in the world (behind Saudi Arabia and Canada). From a society that once used its oil revenue to create a social welfare state that provided education, health care and social services, the country has plummeted into the ranks of the poorest countries of the world.
(...) Almost four years after the DFI was created, officially logged crude sales have generated more than $80 billion. The U.S.-led Coalition Provisional Authority (CPA) managed the DFI from the immediate aftermath of Saddam's removal until June 28, 2004, when the CPA was disbanded. During those 14 months, the CPA spent $19.6 billion of Iraq's DFI funds. The three succeeding governments have been officially in charge of the DFI revenues, although the influence of the U.S. military and political advisors has remained significant throughout. In the 32 months after the CPA left, the three governments spent $47 billion more.
(...) In January 2004, under project Restore Iraqi Oil II (RIO II), the Bush administration contracted with Halliburton to fix southern Iraq's oil fields and with Parsons to handle the northern fields. The two companies were supposed to be supervised by yet another contractor, New Jersey-based Foster Wheeler. (The first RIO contract was the infamous, secret no-bid contract issued to Halliburton before the invasion of Iraq. Although RIO II was competitively bid, Sheryl Tappan, a former Bechtel employee wrote a book criticizing the award as unfair.)
(...) Halliburton and Parsons have long histories in Iraq, going back more than 40 years. Brown & Root, which is now part of Halliburton , began work in Iraq in 1961, while Parsons dipped into Iraq's oil sector in the 1950s. Foster Wheeler dates its work in Iraq to the 1930s.
(...) Neither US officials nor contractors have provided good reasons why, four years into the US occupation, the meters have not been calibrated, repaired, or replaced. One excuse is that the job of calibration requires special devices to assess the current meters and security issues make importing these devises problematic. Yet that and other security-related explanations fall apart given that the oil terminals are under 24 hour high security guard, lie more than 50 miles off-shore, and are accessible only by helicopter or ship.
(...) There are two possible explanations: that the project has been delayed by bureaucracy or that vested interests benefiting from the lack of oil metering (such as smugglers or corrupt officials) have prevented the project from moving forward.
(...) But despite not starting work until November 2004, the company charged the government millions of dollars for engineers who sat idle. Halliburton 's $296 million bill included at least 55 percent overhead. (In an estimate due later this month, SIGIR may predicts even higher overhead costs.)
(...) A Parsons joint venture (with Worley of Australia), was also issued a contract in January 2004, given detailed task orders in June, and started work in July 2004. It has also been accused of charging high overhead costs while idle, although not as much as Halliburton . SIGIR estimate pegs its overhead at 43 percent.
Monday, April 30, 2007
a private surge after a public withdrawal:
While all of this is troubling, there is another disturbing fact which speaks volumes about the Democrats' lack of insight into the nature of this unpopular war -- and most Americans will know next to nothing about it. Even if the President didn't veto their legislation, the Democrats' plan does almost nothing to address the second largest force in Iraq -- and it's not the British military. It's the estimated 126,000 private military "contractors" who will stay put there as long as Congress continues funding the war.
(...) The 145,000 active duty U.S. forces are nearly matched by occupation personnel that currently come from companies like Blackwater USA and the former Halliburton subsidiary KBR, which enjoy close personal and political ties with the Bush administration. Until Congress reins in these massive corporate forces and the whopping federal funding that goes into their coffers, partially withdrawing U.S. troops may only set the stage for the increased use of private military companies (and their rent-a-guns) which stand to profit from any kind of privatized future "surge" in Iraq.
(...) While many of them perform logistical support activities for American troops, including the sort of laundry, fuel and mail delivery, and food-preparation work that once was performed by soldiers, tens of thousands of them are directly engaged in military and combat activities. According to the Government Accountability Office, there are now some 48,000 employees of private military companies in Iraq. These not-quite G.I. Joes, working for Blackwater and other major U.S. firms, can clear in a month what some active-duty soldiers make in a year. "We got 126,000 contractors over there, some of them making more than the secretary of Defense," said House Defense Appropriations Subcommittee Chairman John Murtha. "How in the hell do you justify that?"
(...) House Oversight and Government Reform Committee Chairman Rep. Henry Waxman estimates that $4 billion in taxpayer money has so far been spent in Iraq on these armed "security" companies like Blackwater -- with tens of billions more going to other war companies like KBR and Fluor for "logistical" support. Rep. Jan Schakowsky of the House Intelligence Committee believes that up to forty cents of every dollar spent on the occupation has gone to war contractors.
(...) David Petraeus, the general running the President's "surge" plan in Baghdad, cited private forces as essential to winning the war. In his confirmation hearings in the Senate, he claimed that they fill a gap attributable to insufficient troop levels available to an overstretched military. Along with Bush's official troop surge, the "tens of thousands of contract security forces," Petraeus told the Senators, "give me the reason to believe that we can accomplish the mission." Indeed, Gen. Petraeus admitted that he has, at times, been guarded in Iraq not by the U.S. military, but "secured by contract security."
(...) lthough contractor deaths are not effectively tallied, at least 770 contractors have been killed in Iraq and at least another 7,700 injured. These numbers are not included in any official (or media) toll of the war. More significantly, there is absolutely no effective system of oversight or accountability governing contractors and their operations, nor is there any effective law -- military or civilian -- being applied to their activities. They have not been subjected to military courts martial (despite a recent Congressional attempt to place them under the Uniform Code of Military Justice), nor have they been prosecuted in U.S. civilian courts -- and, no matter what their acts in Iraq, they cannot be prosecuted in Iraqi courts. Before Paul Bremer, Bush's viceroy in Baghdad, left Iraq in 2004 he issued an edict, known as Order 17. It immunized contractors from prosecution in Iraq which, today, is like the wild West, full of roaming Iraqi death squads and scores of unaccountable, heavily-armed mercenaries, ex-military men from around the world, working for the occupation. For the community of contractors in Iraq, immunity and impunity are welded together.
(...) Despite the tens of thousands of contractors passing through Iraq and several well-documented incidents involving alleged contractor abuses, only two individuals have been ever indicted for crimes there. One was charged with stabbing a fellow contractor, while the other pled guilty to the possession of child-pornography images on his computer at Abu Ghraib prison. While dozens of American soldiers have been court-martialed -- 64 on murder-related charges -- not a single armed contractor has been prosecuted for a crime against an Iraqi. In some cases, where contractors were alleged to have been involved in crimes or deadly incidents, their companies whisked them out of Iraq to safety.
(...) "These private contractors are really an arm of the administration and its policies," argues Rep. Dennis Kucinich, who has called for a withdrawal of all U.S. contractors from Iraq. "They charge whatever they want with impunity. There's no accountability as to how many people they have, as to what their activities are."
(...) Not surprisingly, then, the mercenary trade group with the Orwellian name of the International Peace Operations Association (IPOA) has pushed for just this Democratic-sponsored approach rather than the military court martial system favored by conservative Republican Senator Lindsey Graham. The IPOA called the expansion of the Military Extraterritorial Jurisdiction Act -- essentially the Democrats' oversight plan -- "the most cogent approach to ensuring greater contractor accountability in the battle space." That endorsement alone should be reason enough to pause and reconsider.
(...) As originally passed in the House, the Democrats' Iraq plan would have cut only about 15% or $815 million of the supplemental spending earmarked for day-to-day military operations "to reflect savings attributable to efficiencies and management improvements in the funding of contracts in the military departments." ... But even that mild provision was dropped by the Democrats in late April. Their excuse was the need to hold more hearings on the contractor issue. Instead, they moved to withhold -- not cut -- 15% of total day-to-day operational funding, but only until Secretary of Defense Robert Gates submits a report on the use of contractors and the scope of their deployment. Once the report is submitted, the 15% would be unlocked. In essence, this means that, under the Democrats plan, the mercenary forces will simply be able to continue business-as-usual/profits-as-usual in Iraq.
(...) Consider the case of Blackwater USA. A decade ago, the company barely existed; and yet, its "diplomatic security" contracts since mid-2004, with the State Department alone, total more than $750 million. Today, Blackwater has become nothing short of the Bush administration's well-paid Praetorian Guard. It protects the U.S. ambassador and other senior officials in Iraq as well as visiting Congressional delegations; it trains Afghan security forces and was deployed in the oil-rich Caspian Sea region, setting up a "command and control" center just miles from the Iranian border. The company was also hired to protect FEMA operations and facilities in New Orleans after Hurricane Katrina, where it raked in $240,000 a day from the American taxpayer, billing $950 a day per Blackwater contractor.
(...) At present, it has forces deployed in nine countries and boasts a database of 21,000 additional troops at the ready, a fleet of more than 20 aircraft, including helicopter gun-ships, and the world's largest private military facility -- a 7,000 acre compound near the Great Dismal Swamp of North Carolina. It recently opened a new facility in Illinois ("Blackwater North") and is fighting local opposition to a third planned domestic facility near San Diego ("Blackwater West") by the Mexican border. It is also manufacturing an armored vehicle (nicknamed the "Grizzly") and surveillance blimps.
(...) The President likes to say that defunding the war would undercut the troops. Here's the truth of the matter: Continued funding of the Iraq war ensures tremendous profits for politically-connected war contractors. If Congress is serious about ending the occupation, it needs to rein in the unaccountable companies that make it possible and only stand to profit from its escalation.
While all of this is troubling, there is another disturbing fact which speaks volumes about the Democrats' lack of insight into the nature of this unpopular war -- and most Americans will know next to nothing about it. Even if the President didn't veto their legislation, the Democrats' plan does almost nothing to address the second largest force in Iraq -- and it's not the British military. It's the estimated 126,000 private military "contractors" who will stay put there as long as Congress continues funding the war.
(...) The 145,000 active duty U.S. forces are nearly matched by occupation personnel that currently come from companies like Blackwater USA and the former Halliburton subsidiary KBR, which enjoy close personal and political ties with the Bush administration. Until Congress reins in these massive corporate forces and the whopping federal funding that goes into their coffers, partially withdrawing U.S. troops may only set the stage for the increased use of private military companies (and their rent-a-guns) which stand to profit from any kind of privatized future "surge" in Iraq.
(...) While many of them perform logistical support activities for American troops, including the sort of laundry, fuel and mail delivery, and food-preparation work that once was performed by soldiers, tens of thousands of them are directly engaged in military and combat activities. According to the Government Accountability Office, there are now some 48,000 employees of private military companies in Iraq. These not-quite G.I. Joes, working for Blackwater and other major U.S. firms, can clear in a month what some active-duty soldiers make in a year. "We got 126,000 contractors over there, some of them making more than the secretary of Defense," said House Defense Appropriations Subcommittee Chairman John Murtha. "How in the hell do you justify that?"
(...) House Oversight and Government Reform Committee Chairman Rep. Henry Waxman estimates that $4 billion in taxpayer money has so far been spent in Iraq on these armed "security" companies like Blackwater -- with tens of billions more going to other war companies like KBR and Fluor for "logistical" support. Rep. Jan Schakowsky of the House Intelligence Committee believes that up to forty cents of every dollar spent on the occupation has gone to war contractors.
(...) David Petraeus, the general running the President's "surge" plan in Baghdad, cited private forces as essential to winning the war. In his confirmation hearings in the Senate, he claimed that they fill a gap attributable to insufficient troop levels available to an overstretched military. Along with Bush's official troop surge, the "tens of thousands of contract security forces," Petraeus told the Senators, "give me the reason to believe that we can accomplish the mission." Indeed, Gen. Petraeus admitted that he has, at times, been guarded in Iraq not by the U.S. military, but "secured by contract security."
(...) lthough contractor deaths are not effectively tallied, at least 770 contractors have been killed in Iraq and at least another 7,700 injured. These numbers are not included in any official (or media) toll of the war. More significantly, there is absolutely no effective system of oversight or accountability governing contractors and their operations, nor is there any effective law -- military or civilian -- being applied to their activities. They have not been subjected to military courts martial (despite a recent Congressional attempt to place them under the Uniform Code of Military Justice), nor have they been prosecuted in U.S. civilian courts -- and, no matter what their acts in Iraq, they cannot be prosecuted in Iraqi courts. Before Paul Bremer, Bush's viceroy in Baghdad, left Iraq in 2004 he issued an edict, known as Order 17. It immunized contractors from prosecution in Iraq which, today, is like the wild West, full of roaming Iraqi death squads and scores of unaccountable, heavily-armed mercenaries, ex-military men from around the world, working for the occupation. For the community of contractors in Iraq, immunity and impunity are welded together.
(...) Despite the tens of thousands of contractors passing through Iraq and several well-documented incidents involving alleged contractor abuses, only two individuals have been ever indicted for crimes there. One was charged with stabbing a fellow contractor, while the other pled guilty to the possession of child-pornography images on his computer at Abu Ghraib prison. While dozens of American soldiers have been court-martialed -- 64 on murder-related charges -- not a single armed contractor has been prosecuted for a crime against an Iraqi. In some cases, where contractors were alleged to have been involved in crimes or deadly incidents, their companies whisked them out of Iraq to safety.
(...) "These private contractors are really an arm of the administration and its policies," argues Rep. Dennis Kucinich, who has called for a withdrawal of all U.S. contractors from Iraq. "They charge whatever they want with impunity. There's no accountability as to how many people they have, as to what their activities are."
(...) Not surprisingly, then, the mercenary trade group with the Orwellian name of the International Peace Operations Association (IPOA) has pushed for just this Democratic-sponsored approach rather than the military court martial system favored by conservative Republican Senator Lindsey Graham. The IPOA called the expansion of the Military Extraterritorial Jurisdiction Act -- essentially the Democrats' oversight plan -- "the most cogent approach to ensuring greater contractor accountability in the battle space." That endorsement alone should be reason enough to pause and reconsider.
(...) As originally passed in the House, the Democrats' Iraq plan would have cut only about 15% or $815 million of the supplemental spending earmarked for day-to-day military operations "to reflect savings attributable to efficiencies and management improvements in the funding of contracts in the military departments." ... But even that mild provision was dropped by the Democrats in late April. Their excuse was the need to hold more hearings on the contractor issue. Instead, they moved to withhold -- not cut -- 15% of total day-to-day operational funding, but only until Secretary of Defense Robert Gates submits a report on the use of contractors and the scope of their deployment. Once the report is submitted, the 15% would be unlocked. In essence, this means that, under the Democrats plan, the mercenary forces will simply be able to continue business-as-usual/profits-as-usual in Iraq.
(...) Consider the case of Blackwater USA. A decade ago, the company barely existed; and yet, its "diplomatic security" contracts since mid-2004, with the State Department alone, total more than $750 million. Today, Blackwater has become nothing short of the Bush administration's well-paid Praetorian Guard. It protects the U.S. ambassador and other senior officials in Iraq as well as visiting Congressional delegations; it trains Afghan security forces and was deployed in the oil-rich Caspian Sea region, setting up a "command and control" center just miles from the Iranian border. The company was also hired to protect FEMA operations and facilities in New Orleans after Hurricane Katrina, where it raked in $240,000 a day from the American taxpayer, billing $950 a day per Blackwater contractor.
(...) At present, it has forces deployed in nine countries and boasts a database of 21,000 additional troops at the ready, a fleet of more than 20 aircraft, including helicopter gun-ships, and the world's largest private military facility -- a 7,000 acre compound near the Great Dismal Swamp of North Carolina. It recently opened a new facility in Illinois ("Blackwater North") and is fighting local opposition to a third planned domestic facility near San Diego ("Blackwater West") by the Mexican border. It is also manufacturing an armored vehicle (nicknamed the "Grizzly") and surveillance blimps.
(...) The President likes to say that defunding the war would undercut the troops. Here's the truth of the matter: Continued funding of the Iraq war ensures tremendous profits for politically-connected war contractors. If Congress is serious about ending the occupation, it needs to rein in the unaccountable companies that make it possible and only stand to profit from its escalation.
Saturday, April 28, 2007
sanctions to war to war-profiteering:
Iraq was simply and shamelessly robbed blind during the period of US-championed UN sanctions. Sadly, the robbery and mismanagement continue to this day, but now the figures are much more staggering.
(...) I reflected on my lengthy interview with Iraq's former Ambassador to the United Nations Mohamed Al-Duri. Al-Duri, being interviewed for the first time by English-language media since taking up his post at the UN, revealed to me in early 2001, in equally shocking detail, what sanctions had done to his country and people. He claimed that the UN was a key part of the problem. Led by two countries, the US and Britain, the UN Oil for Food Programme and the "humanitarian" mission it established in Iraq was reducing Iraqis to beggary, robbing the country blind and mis-managing funds, whereas the large bulk fuelled UN-related missions and operations, with needy Iraqi families receiving next to nothing. He spoke of the manipulation of Iraq's wealth for political purposes and alleged that the UN was a tool in the hands of the US government, aimed at encouraging widespread popular dissatisfaction with Saddam's government, before the country was dragged into war.
(...) By March 2003, when American forces invaded Iraq, the UN was generating $64 billion in sales of Iraqi oil, according to von Sponeck. But scandalously, only $28 billion reached the Iraqi people. If distributed evenly, each Iraqi received half a US dollar per day. According to UN figures, an individual living under one dollar per day is classified as living in "abject poverty". Even during the most destructive phases of the war with Iran, Iraq managed to provide relatively high living standards. Its hospitals were neither dilapidated nor did its oil industry lie in ruins. Only after the advent of UN sanctions in 1991 did Iraqis suffer with such appalling magnitude. Alas, the tyranny of Saddam Hussein expanded to become the tyranny of the international community as well.
(...) The UN Security Council's "elected 10 or veto-wielding five" had nothing for Iraq but "empty words," and there were "deliberate efforts to make life uncomfortable (for the Iraqis) through the Oil for Food Programme". All efforts to modernise Iraq's oil industry were blocked, said von Sponeck, at the behest of "two governments that blocked all sorts of items," necessary for even basic living -- again, the US and Britain, the same two that invaded and currently occupy Iraq. The logic in all of this is clear; the "pre- emptive" war on Iraq was but an extension of the sanctions regime.
(...) Von Sponeck reports that a large chunk -- 55 per cent of the money generated from Iraq's oil -- went to fund the UN's own inadequate "humanitarian" programmes. Much of the rest was usurped by the UN Compensation Commission, entrusted with handling damages claims made by those allegedly harmed by the Iraqi invasion of Kuwait. According to von Sponeck, the Iraqi oil "pie" was so large there was plenty for everyone: Kuwait, Jordan, Turkey, and all the rest. But most ironically, the commission awarded a large sum of money to two Israeli kibbutzim in the occupied Syrian Golan Heights, for allegedly losing some of their income due to the fact that the war damaged the tourism industry in Israel.
(...) The US Government Accountability Office uncovered appalling discrepancies in the US military administration's handling of money: uncountable billions went missing; hundreds of contractors fully paid but the work never done; layer upon layer of shady companies, mercenaries and sub-contractors (Halliburton and its subsidiary Kellogg, Brown & Root but mere illustrations). In partnership with the new rulers of Iraq, these corporations are stealing the wealth of the once prosperous nation, leaving it in shambles. And now, the Iraqis are facing enormous pressure to approve the Iraqi oil and gas law. The draft bill, according to Iraqi MP Nureddin Al-Hayyali, would give "50 per cent of the Iraqi people's oil wealth to foreign investing oil firms".
Iraq was simply and shamelessly robbed blind during the period of US-championed UN sanctions. Sadly, the robbery and mismanagement continue to this day, but now the figures are much more staggering.
(...) I reflected on my lengthy interview with Iraq's former Ambassador to the United Nations Mohamed Al-Duri. Al-Duri, being interviewed for the first time by English-language media since taking up his post at the UN, revealed to me in early 2001, in equally shocking detail, what sanctions had done to his country and people. He claimed that the UN was a key part of the problem. Led by two countries, the US and Britain, the UN Oil for Food Programme and the "humanitarian" mission it established in Iraq was reducing Iraqis to beggary, robbing the country blind and mis-managing funds, whereas the large bulk fuelled UN-related missions and operations, with needy Iraqi families receiving next to nothing. He spoke of the manipulation of Iraq's wealth for political purposes and alleged that the UN was a tool in the hands of the US government, aimed at encouraging widespread popular dissatisfaction with Saddam's government, before the country was dragged into war.
(...) By March 2003, when American forces invaded Iraq, the UN was generating $64 billion in sales of Iraqi oil, according to von Sponeck. But scandalously, only $28 billion reached the Iraqi people. If distributed evenly, each Iraqi received half a US dollar per day. According to UN figures, an individual living under one dollar per day is classified as living in "abject poverty". Even during the most destructive phases of the war with Iran, Iraq managed to provide relatively high living standards. Its hospitals were neither dilapidated nor did its oil industry lie in ruins. Only after the advent of UN sanctions in 1991 did Iraqis suffer with such appalling magnitude. Alas, the tyranny of Saddam Hussein expanded to become the tyranny of the international community as well.
(...) The UN Security Council's "elected 10 or veto-wielding five" had nothing for Iraq but "empty words," and there were "deliberate efforts to make life uncomfortable (for the Iraqis) through the Oil for Food Programme". All efforts to modernise Iraq's oil industry were blocked, said von Sponeck, at the behest of "two governments that blocked all sorts of items," necessary for even basic living -- again, the US and Britain, the same two that invaded and currently occupy Iraq. The logic in all of this is clear; the "pre- emptive" war on Iraq was but an extension of the sanctions regime.
(...) Von Sponeck reports that a large chunk -- 55 per cent of the money generated from Iraq's oil -- went to fund the UN's own inadequate "humanitarian" programmes. Much of the rest was usurped by the UN Compensation Commission, entrusted with handling damages claims made by those allegedly harmed by the Iraqi invasion of Kuwait. According to von Sponeck, the Iraqi oil "pie" was so large there was plenty for everyone: Kuwait, Jordan, Turkey, and all the rest. But most ironically, the commission awarded a large sum of money to two Israeli kibbutzim in the occupied Syrian Golan Heights, for allegedly losing some of their income due to the fact that the war damaged the tourism industry in Israel.
(...) The US Government Accountability Office uncovered appalling discrepancies in the US military administration's handling of money: uncountable billions went missing; hundreds of contractors fully paid but the work never done; layer upon layer of shady companies, mercenaries and sub-contractors (Halliburton and its subsidiary Kellogg, Brown & Root but mere illustrations). In partnership with the new rulers of Iraq, these corporations are stealing the wealth of the once prosperous nation, leaving it in shambles. And now, the Iraqis are facing enormous pressure to approve the Iraqi oil and gas law. The draft bill, according to Iraqi MP Nureddin Al-Hayyali, would give "50 per cent of the Iraqi people's oil wealth to foreign investing oil firms".
Saturday, April 21, 2007
iraq war profiteering:
"Now that the dictator's gone," he stated, "we and our coalition partners are helping Iraqis to lay the foundations of a free economy." Apparently he was referring to the Coalition Provisional Authority that took up residence in Saddam's luxurious palace in May 2003, with the newly appointed King, Paul Bremer. The CPA was granted the authority to award reconstruction contracts in Iraq and it used that authority to implement what will go down in the history books as the most blatant war profiteering scheme of all time.
(...) [nepotism] Bush filled the top slots of the CPA with the administration cronies. For instance, a friend of Cheney's, Peter McPherson, took a leave of absence as president of Michigan State University to serve as Bremer's economic deputy. The leader of the CPA's private development sector was Thomas Foley, an old college classmate of Bush, who served as finance chairman for his Presidential campaign in Connecticut and also raised more than $100,000 for Bush. Relatives of the administration were also given jobs, such as Ari Fleischer's brother Michael, and Simone Ledeen, the daughter of Michael Ledeen. Cheney's daughter Liz, also did a short stint. However, it should be noted that none of them lounged around for too long in what soon became a hellhole in Iraq.
(...) With one swipe of the pen, Bremer granted himself the authority to run the government ministries, appoint Iraqi officials and award contracts for reconstruction. Next he fired 500,000 Iraqis, most of them soldiers, but pink slips also went out to many doctors, nurses, teachers and other public employees as well.
(...) [money] For the most part, the CPA financed its activities with billions of dollars that belonged to the Iraqis. On May 22, 2003, a UN Security Council passed a resolution that directed the proceeds from Iraqi oil to be placed in a Development Fund for Iraq, and the CPA was granted authority to control the fund and decide which profiteers would get contracts. During the year that Bremer controlled the purse strings, the Iraqi Development Fund received $20.2 billion, including $8.1 billion from the UN's oil-for-food program, $10.8 billion from Iraqi oil, and the rest from repatriated funds, vested assets and donations.
(...) A report released by the House Government Reform Committee in February 2007, shows that in the 13 months that Bremer ruled, from May 2003 to June 2004, the Federal Reserve Bank in New York shipped nearly $12 billion in a cash to Iraq. ... nspector Bowen later said that he determined that some of this cash went to pay salaries for thousands of "ghost employees" and Iraqi civil servants who did not exist.
(...) Reports of flat out-fraud remained steady throughout Bremer's reign in Iraq. One audit showed that the CPA Ministry of Finance could not provide documentation for about $17 million spent on employee salaries in February 2004, and a CPA Advisor to the Ministry of the Interior said the Ministry was paid for 8,602 guards but only 602 could be verified.
(...) He also testified that millions of dollars in $100 bills were stored in the basement of the CPA offices and distributed to favored contractors with little accounting discipline. For instance, in the year that the CPA ruled, Custer was awarded contracts worth more than $100 million. Two former Custer employees ended up filing a lawsuit under the Federal False Claims Act, saying Custer had swindled $50 million from the CPA with scams like double-billing for salaries and repainting the forklifts found at the Baghdad airport and then leasing them back to the US government. The employees said the CPA paid the Custer $15 million to provide security for Iraq's civilian airline, when no services were needed because the airline was grounded during the time covered by the contract. These employees said they kept informing the CPA about Custer's fraudulent conduct for more than a year and when they asked why the firm continued to get contracts, they were told: "Battles is very active in the Republican party, and speaks to individuals he knows in the Whitehouse almost daily."
(...) [!] In June 2004, the Government Accounting Office estimated that more than $1 billion in had been wasted due to illegal overcharges by contractors since the war began. A later audit by the Iraqi government found that as much as $1.27 billion was lost to accounting irregularities between June 2004 and February 2005.
(...) Not surprisingly, Cheney's Halliburton remained the top profiteer under Bremer's rule. A July 23, 2004, audit conducted by Bowen, showed the company had received 60% of all contracts paid for with Iraq money, including 5 no-bid contracts worth $222 million, $325 million, $180 million, and the last 2 together totaled $194 million for the last two. In comparison, the audit showed that the CPA awarded only 2% of the reconstruction contracts to Iraqi companies. ... In one example of blatant fraud, an audit found that Halliburton was charging for more than 41,000 meals a day for soldiers when only about 14,000 were served.
(...) Senator Robert Byrd said he was outraged over the inability to monitor CPA spending. "There is no reason why any arm of the executive branch charged with making such significant spending decisions," he said, "should not be working directly with Congress."
(...) All total, the CPA had control of Iraqi money for one year between June 2003 and June 2004, but unfortunately no auditors arrived to take a look at the agency's spending until April 2004, two months before the CPA's rule was scheduled to end.
(...) The favored companies enjoyed a fraud-free-all. For instance, Halliburton said it had lost over $60 million worth of government property including trucks, office furniture and computers. Inspector Bowen reported that 6,975 items valued at $61.1 million were lost, and in June 2005, the Defense Contract Audit Agency reported that the Halliburton had overcharged or presented questionable bills for close to $1.5 billion.
(...) The whistleblower case against Custer Battle went to trial and a jury found that Custer had committed 37 acts of fraud and filed $3 million in false claims, and rendered a verdict with a $10 million penalty. However, the verdict was overturned by Republican appointed US District Court Judge TS Ellis III, who ruled that the CPA was not a US entity and therefore the false claims act does not apply to it.
"Now that the dictator's gone," he stated, "we and our coalition partners are helping Iraqis to lay the foundations of a free economy." Apparently he was referring to the Coalition Provisional Authority that took up residence in Saddam's luxurious palace in May 2003, with the newly appointed King, Paul Bremer. The CPA was granted the authority to award reconstruction contracts in Iraq and it used that authority to implement what will go down in the history books as the most blatant war profiteering scheme of all time.
(...) [nepotism] Bush filled the top slots of the CPA with the administration cronies. For instance, a friend of Cheney's, Peter McPherson, took a leave of absence as president of Michigan State University to serve as Bremer's economic deputy. The leader of the CPA's private development sector was Thomas Foley, an old college classmate of Bush, who served as finance chairman for his Presidential campaign in Connecticut and also raised more than $100,000 for Bush. Relatives of the administration were also given jobs, such as Ari Fleischer's brother Michael, and Simone Ledeen, the daughter of Michael Ledeen. Cheney's daughter Liz, also did a short stint. However, it should be noted that none of them lounged around for too long in what soon became a hellhole in Iraq.
(...) With one swipe of the pen, Bremer granted himself the authority to run the government ministries, appoint Iraqi officials and award contracts for reconstruction. Next he fired 500,000 Iraqis, most of them soldiers, but pink slips also went out to many doctors, nurses, teachers and other public employees as well.
(...) [money] For the most part, the CPA financed its activities with billions of dollars that belonged to the Iraqis. On May 22, 2003, a UN Security Council passed a resolution that directed the proceeds from Iraqi oil to be placed in a Development Fund for Iraq, and the CPA was granted authority to control the fund and decide which profiteers would get contracts. During the year that Bremer controlled the purse strings, the Iraqi Development Fund received $20.2 billion, including $8.1 billion from the UN's oil-for-food program, $10.8 billion from Iraqi oil, and the rest from repatriated funds, vested assets and donations.
(...) A report released by the House Government Reform Committee in February 2007, shows that in the 13 months that Bremer ruled, from May 2003 to June 2004, the Federal Reserve Bank in New York shipped nearly $12 billion in a cash to Iraq. ... nspector Bowen later said that he determined that some of this cash went to pay salaries for thousands of "ghost employees" and Iraqi civil servants who did not exist.
(...) Reports of flat out-fraud remained steady throughout Bremer's reign in Iraq. One audit showed that the CPA Ministry of Finance could not provide documentation for about $17 million spent on employee salaries in February 2004, and a CPA Advisor to the Ministry of the Interior said the Ministry was paid for 8,602 guards but only 602 could be verified.
(...) He also testified that millions of dollars in $100 bills were stored in the basement of the CPA offices and distributed to favored contractors with little accounting discipline. For instance, in the year that the CPA ruled, Custer was awarded contracts worth more than $100 million. Two former Custer employees ended up filing a lawsuit under the Federal False Claims Act, saying Custer had swindled $50 million from the CPA with scams like double-billing for salaries and repainting the forklifts found at the Baghdad airport and then leasing them back to the US government. The employees said the CPA paid the Custer $15 million to provide security for Iraq's civilian airline, when no services were needed because the airline was grounded during the time covered by the contract. These employees said they kept informing the CPA about Custer's fraudulent conduct for more than a year and when they asked why the firm continued to get contracts, they were told: "Battles is very active in the Republican party, and speaks to individuals he knows in the Whitehouse almost daily."
(...) [!] In June 2004, the Government Accounting Office estimated that more than $1 billion in had been wasted due to illegal overcharges by contractors since the war began. A later audit by the Iraqi government found that as much as $1.27 billion was lost to accounting irregularities between June 2004 and February 2005.
(...) Not surprisingly, Cheney's Halliburton remained the top profiteer under Bremer's rule. A July 23, 2004, audit conducted by Bowen, showed the company had received 60% of all contracts paid for with Iraq money, including 5 no-bid contracts worth $222 million, $325 million, $180 million, and the last 2 together totaled $194 million for the last two. In comparison, the audit showed that the CPA awarded only 2% of the reconstruction contracts to Iraqi companies. ... In one example of blatant fraud, an audit found that Halliburton was charging for more than 41,000 meals a day for soldiers when only about 14,000 were served.
(...) Senator Robert Byrd said he was outraged over the inability to monitor CPA spending. "There is no reason why any arm of the executive branch charged with making such significant spending decisions," he said, "should not be working directly with Congress."
(...) All total, the CPA had control of Iraqi money for one year between June 2003 and June 2004, but unfortunately no auditors arrived to take a look at the agency's spending until April 2004, two months before the CPA's rule was scheduled to end.
(...) The favored companies enjoyed a fraud-free-all. For instance, Halliburton said it had lost over $60 million worth of government property including trucks, office furniture and computers. Inspector Bowen reported that 6,975 items valued at $61.1 million were lost, and in June 2005, the Defense Contract Audit Agency reported that the Halliburton had overcharged or presented questionable bills for close to $1.5 billion.
(...) The whistleblower case against Custer Battle went to trial and a jury found that Custer had committed 37 acts of fraud and filed $3 million in false claims, and rendered a verdict with a $10 million penalty. However, the verdict was overturned by Republican appointed US District Court Judge TS Ellis III, who ruled that the CPA was not a US entity and therefore the false claims act does not apply to it.
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