Replies

HOLY CRAP!
The NY times is actually letting us ignorant plebians know about this? This is a huge change in policy for NY Times "the paper of Saddam"

If we "follow the money", can we conclude that France, Germany & Russia were indirectly funding Islamic terrorists?

What was it that "W" said about those who fund Islamic terrorists?

Of course about 500,000 Iraq children starved to death because of Saddam. This would still be going on today had Bush not acted. It just makes you want to punch all those peaceniks who try to make it sound like the 600 American soldiers have died in vain.

Hmm. I'm waiting for the other shoe to drop. The New York Times wouldn't bother with this story if there was no payoff at the end. Do you think Haliburton will turn up among those companies? Maybe a Haliburton subsidiary? No flames please, I'm just suspicious.

http://www.freerepublic.com/focus/f-news/898147/posts
Master list FR posted articles on UN Food for Oil program
GailA ^ | 4/22/03 | Various

FYI

Article was posted twice and unnecessarily excerpted both times? This is hugh!

Hussein's Regime Skimmed Billions From Aid Program
By SUSAN SACHS

Published: February 29, 2004

AGHDAD, Iraq — In its final years in power, Saddam Hussein's government systematically extracted billions of dollars in kickbacks from companies doing business with Iraq, funneling most of the illicit funds through a network of foreign bank accounts in violation of United Nations sanctions.

Millions of Iraqis were struggling to survive on rations of food and medicine. Yet the government's hidden slush funds were being fed by suppliers and oil traders from around the world who sometimes lugged suitcases full of cash to ministry offices, said Iraqi officials who supervised the skimming operation.

The officials' accounts were enhanced by a trove of internal Iraqi government documents and financial records provided to The New York Times by members of the Iraqi Governing Council. Among the papers was secret correspondence from Mr. Hussein's top lieutenants setting up a formal mechanism to siphon cash from Iraq's business deals, an arrangement that went unnoticed by United Nations monitors.

Under a United Nations program begun in 1997, Iraq was permitted to sell its oil only to buy food and other relief goods. The kickback order went out from Mr. Hussein's inner circle three years later, when limits on the amount of oil sales were lifted and Iraq's oil revenues reached $10 billion a year.

In an Aug. 3, 2000, letter marked "urgent and confidential," the Iraqi vice president, Taha Yassin Ramadan, informed government ministers that a high-command committee wanted "extra revenues" from the oil-for-food program. To that end, he wrote, all suppliers must be told to inflate their contracts "by the biggest percentage possible" and secretly transfer those amounts to Iraq's bank accounts in Jordan and the United Arab Emirates.

"Please acknowledge and certify that this is executed in an accurate and clear way, and under supervision of the specified minister," Mr. Ramadan wrote.

Iraq's sanctions-busting has long been an open secret. Two years ago, the General Accounting Office estimated that oil smuggling had generated nearly $900 million a year for Iraq. Oil companies had complained that Iraq was squeezing them for illegal surcharges, and Mr. Hussein's lavish spending on palaces and monuments provided more evidence of his access to unrestricted cash.

But the dimensions of the corruption have only lately become clear, from the newly available documents and from disclosures by government officials who say they were too fearful to speak out before. They show the magnitude and organization of the payoff system, the complicity of the companies involved and the way Mr. Hussein bestowed contracts and gifts on those who praised him.

Yet his policy of awarding contracts to gain political support often meant that Iraq received shoddy, even useless, goods in return.

Perhaps the best measure of the corruption comes from a review of the $8.7 billion in outstanding oil-for-food contracts by the provisional Iraqi government with United Nations help. It found that 70 percent of the suppliers had inflated their prices and agreed to pay a 10 percent kickback, in cash or by transfer to accounts in Jordanian, Lebanese and Syrian banks.

At that rate, Iraq would have collected as much as $2.3 billion of the $32.6 billion worth of contracts it signed since mid-2000, when the kickback system began. And some companies were willing to pay even more than the standard 10 percent, according to Trade and Oil Ministry employees.

Iraq's suppliers included Russian factories, Arab trade brokers, European manufacturers and state-owned companies from China and the Middle East. Iraq generally refused to buy directly from American companies, which in any case needed special licenses to trade legally with Iraq.

In one instance, the Coalition Provisional Authority, the American-led administrators in Iraq, found that Syria was prepared to kick back nearly 15 percent on its $57.5 million contract to sell wheat to Iraq. Syria has agreed to increase the amount of wheat to compensate for the inflated price, said an occupation official involved in the talks.

The UN was complicit in all this. If it wasn't for UN incompetence and outright corruption, this wouldn't have played out like this. Oh, but the Dems like the UN, oh dear!