Posted on 02/08/2006 12:05:17 AM PST by Rick_Michael
Iraq's insurgency is receiving millions of dollars from smuggling oil through a network of supporters working in its oil industry, the government and American officials say.
The director of an oil storage plant near Kirkuk was arrested with several of his employees and charged with helping to orchestrate a mortar attack on the plant last week.
Iraq factfile
The bombardment resulted in a huge pipeline fire that shut down all oil operations in the area. The attack is believed to have been launched after anti-corruption agents uncovered insurgent thefts being orchestrated from the plant.
Ali Allawi, the finance minister, issued a statement estimating that 40 to 50 per cent of all oil smuggling profits in the country were going to insurgents.
Although no specific figures were given, industry experts said this would amount to tens of millions of pounds a year to be spent on weapons and financing fighters.
Mr Allawi highlighted the situation at a northern oil refinery near Baiji where insurgents were found to have infiltrated senior management positions and tapped the pipeline for their own use. A group armed with Kalashnikovs and grenades attacked a convoy of 60 tankers last month.
"It has gone beyond Nigeria levels now where it really threatens national security," Mr Allawi said. "The insurgents are involved at all levels."
Iraq's commission on public integrity announced that Meshaan al-Jaburi, a Sunni member of parliament, had been charged with stealing millions of pounds intended for pipeline protection and funnelling a portion of the money to rebel groups.
His tribe, the Jaburis, are strong in Salahuddin province, through which the oil pipeline to Baiji runs. In 2004 he was asked to organise 17 battalions to protect the pipe.
A three-month investigation at the end of last year discovered he had recruited just a handful of commanders and paid them to appoint hundreds of soldiers who existed only on paper. A commander he hired was arrested on charges of organising insurgent attacks on the pipeline.
Mr Jaburi fled the country before an arrest warrant was issued and is believed to be in Syria.
The alleged level of corruption in the oil industry is particularly worrying, as oil revenues provide almost the only income for the Iraqi state.
An American official said corruption was "becoming a very real threat to the new state", adding: "Corruption funds the insurgency."
Time for Iraqi Firing Sqauds?
I wonder if any of our Democrat senators had contact with this guy? I can't help thinking of the Regan years and a certain senator...
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