Corruption In Iraq & World

George Soros funded 2003 report on "Stopping the Spread of Corruption"

The FoundationCenter is a website providing information on available grants from various sources, including Foundations. They also issue a periodic newsletter on reports issued by Foundations. If you search for "corruption", you might find this older 2003 notice about an "Open Society News" research report on corruption. It lists a number of consequences of failed anti-corruption programs.

However, the Caveat is that Open Society News is from Soros.org, which is funded by liberal Democrat George Soros. But, corruption is a problem affecting all political parties and people.
vj

Below is the Foundation Center summary notice, followed by the attached 20 page report.

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from
http://foundationcenter.org/pnd/connections/conn_item_print.jhtml?id=49100004

Connections
Posted on November 7, 2003

"The Money Trap: Stopping the Spread of Corruption"

Although the definition of corruption varies widely among organizations, governments, and industries, corrupt behavior almost always erodes the trust that constituents place in businesses and institutions. The latest issue of Open Society News (20 pages, PDF), a publication of the Open Society Institute, examines the devastating impact corruption can have on economic and political development and looks at how civil society organizations are responding to many different forms of corruption. Articles in the issue, The Money Trap: Stopping the Spread of Corruption, describe the pressure and intimidation that potential whistleblowers face from friends, colleagues, and authorities; examine undisclosed deals between multinational corporations and governments that benefit officials at the public's expense; and look at how even strong anti-corruption laws in the most established democracies can be riddled with loopholes.

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Here is the article from:
http://www.soros.org/resources/articles_publications/publications/osn_20031025/OSN--Summer-Fall%202003.pdf

Download open_society_news_on_corruption_summerfall202003.pdf

Two Bribery Prevention Organizations: Trace International & Bribeline.org

If you are working at an international corporation, one issue you have to worry about is that someone in your firm, or an intermediary agent working for you may pay a bribe to a foreign government official or other person. Such situations are prohibited by the US Foreign Corruption Practices Act (FCPA).

So, here is an organization, Trace International ( http://www.traceinternational.org/ ), that acts as a reference clearing house for international corporations by providing references for business intermediaries (i.e. a business agent in the foreign country) in target countries who have been "vetted" by background checks, required to attend annual anti-bribery seminars, etc. to reduce the risk of using an intermediary who might pay bribes.

Additionally, Trace has established a separate website, Bribeline.org for anyone to report situations in any country where someone in government requested a bribe. The website then would provide a record of the request and provide a spotlight on the bribe requester. It is at: https://www.bribeline.org/ . Notice that the home page provides buttons to select from one of 20+ languages, so it really is for multi-nationals, PLUS the website is a secure website.

Check them out....

http://www.traceinternational.org/
https://www.bribeline.org/

And, below is a 2007 Reuters story on the above organizations
vj

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New Web site encourages firms to report corruption

By Reuters
http://news.com.com/New+Web+site+encourages+firms+to+report+corruption/2100-7348_3-6196139.html

Story last modified Wed Jul 11 16:50:53 PDT 2007

Multinational firms like Wal-Mart, Target and Tyco International on Wednesday endorsed a new Web site where companies and individuals can report bribery and corruption in countries where they do business.

Bribeline.org, launched by Trace, a Maryland-based nonprofit group that represents multinational companies, lets anyone volunteer information about incidents of corruption or bribery in the United States or abroad.

The information compiled from Bribeline will help companies determine where corruption is most prevalent and will help governments strengthen their ability to tackle corruption.

"Bribeline will further Wal-Mart's efforts to ensure we are allocating the necessary resources to combat corruption in those countries where we do business," said Alberto Mora, vice president and general counsel for the international department at Wal-Mart.

Businesses looking into ventures in certain countries will be forewarned about what kinds of bribery they can expect.

"If you know the terrain, it's easier to map out a business solution for survival," said Michelle Gavin, a board member of Trace.

The Web site does not require participants to identify themselves, which some critics say would encourage malicious or false reporting.

"We had to make a decision early on between anonymity or verification," said Trace President Alexandra Wrage, "You can't have both."

The World Bank, which has a similar disclosure program that encourages firms to admit when they paid bribes while doing work for the bank, has estimated that bribery around the world amounts to about $1 trillion, and affects the poorest citizens the most.

"The World Bank knows from experience that nobody wants their names mentioned," said Suzanne Rich Folsom, director of the Department of Institutional Integrity at the World Bank. Fear is often a deterrent in reporting corruption, she added.

"Bribeline will be real-time information to all of us who are trying to fight corruption," said Folsom. "This may begin to level the playing field...and lower the cost of doing business."

She said that cracking down on bribery and corruption helped ensure that development aid benefited the poorest citizens who needed it the most.

Maura Abeln Smith, senior vice president at International Paper, a global paper and packaging company, said many companies already had internal mechanisms for reporting bribery and corruption, but said Bribeline would help.

"Without this, we will not really know what we're up against," she added

Hillary Clinton gives Speech on Plans for Iraq if Elected

This speech was given on the fifth anniversary of the Iraq war by Hillary at George Washington Univ. in DC.
The following paragraph describes actions she plans to "crack down on the black market for oil in Iraq." Notice the last sentence which is close to what we preach - halting reconstruction aid if corruption isn't measurably reduced. The problem is that the State Dept. and USAID are the ones ignoring corruption while providing foreign aid, and they are both basically very liberal organizations ( I knew token Republicans working in USAID who quit because they were so tired of the anti-Bush diatribes). So, what makes us think they will be any better at enforcing anti-corruption activities under Hillary?
vj

I will work to crack down on the black market for oil in Iraq. According to recent news reports, insurgent groups a profiteering from a substantial black market in oil. The money they make is going in part to pay for IEDs, car bombs, and other tools of terror. The Iraqi government simply has not done its part to crack down on this corruption. The equation here is simple, if we cut off or disrupt these illegal sources of funding, we can deny the insurgents the money they need to maintain their campaigns of violence. So I will order a joint nationwide U.S./Iraqi crackdown on black marketers and oil smugglers. We’ll beef up protection for oil lines to prevent illegal tapping and attacks. We will cut off illegal networks, identify where the stolen oil and other goods are going, who is stealing them, and capture those responsible. We will work with our international community to try to cut off access to the funds that hold these oil revenues. And we will maintain the crackdown success by sending a strong signal to the Iraqi government, show results in rooting out corruption or lose your aid.

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We found the text at:
http://www.pjvoice.com/v34/34302clinton.aspx

Senator Hillary Clinton
On the fifth anniversary of the War on Iraq.

-- Senator Hillary Clinton

Good morning. I want to thank Secretary West for his years of service, not only as Secretary of the Army, but also to the Veteran’s Administration, to our men and women in uniform, to our country. I certainly do remember that trip to Bosnia, and as Togo said, there was a saying around the White House that if a place was too small, too poor, or too dangerous, the president couldn't go, so send the First Lady. That’s where we went.

I remember landing under sniper fire. There was supposed to be some kind of a greeting ceremony at the airport, but instead we just ran with our heads down to get into the vehicles to get to our base. But it was a moment of great pride for me to visit our troops, not only in our main base as Tuzla, but also at two outposts where they were serving in so many capacities to deactivate and remove landmines, to hunt and seek out those who had not complied with the Dayton Accords and put down their arms, and to build relationships with the people that might lead to a peace for them and their children.

So it's a great honor being introduced by Secretary West. I also want to thank rear Admiral David Stone who commanded the fleet off of Kosovo and was an instrumental part of our successful efforts there. And Brigadier General Pat Foote and Major General George Buskirk who are representing the more than 30 generals and admirals who have endorsed me and who provide great assistance and counsel to me and to my staff. I want to thank President Steven Knapp for once again being the host. I’m getting credit for coming to GW, I come so often, and I’m thrilled to have that added to my academic career. And I want to thank the faculty, the staff, and the students at this great university.

I started my morning meeting with the Taoiseach, Bertie Ahern, to talk about the peace process in Northern Ireland, and it was a stark reminder of how long the road is toward peace, but how necessary it must be that we travel it. And we travel it with like-minded friends and allies and those willing to take risks for peace around the world. It has been five years this week since our president took us to war in Iraq. In that time, our brave men and women in uniform have done everything we ask of them and more. They were asked to remove Saddam Hussein from power and bring him to justice and they did. They were asked to give the Iraqi people the opportunity for free and fair elections and they did. They were asked to give the Iraqi government the space and time for political reconciliation, and they did. So for every American soldier who has made the ultimate sacrifice for this mission, we should imagine carved in stone "they gave their life for the greatest gift one can give to a fellow human being, the gift of freedom." And to our veterans and all those serving in Iraq today, I want to send a strong and clear message - your extraordinary devotion to our country and to your service makes us proud and profoundly grateful every single day.

The mistakes in Iraq are not the responsibility of our men and women in uniform but of their Commander-in-Chief. From the decision to rush to war without allowing the weapons inspectors to finish their work or waiting for diplomacy to run its course. To the failure to send enough troops and provide proper equipment for them. To the denial of the existence of a rising insurgency and the failure to adjust the military strategy. To the continued support for a government unwilling to make the necessary political compromises. The command decisions were rooted in politics and ideology, heedless of sound strategy and common sense.

Fortunately, ten months from now we will have a new president, and a new opportunity to change course in Iraq. Therefore, the critical question is how can we end this war responsibly and restore America’s leadership in the world? It won't be easy. There is no magic wand to wave. Bringing our troops home safely will take a president who is ready to be Commander-in-Chief on day one, a president who knows our military and has earned their respect. Bringing lasting stability to the region will take a president with the strength and determination, the knowledge and confidence to bring our troops home; to rebuild our military readiness, to care for our veterans, and to redouble our efforts against al-Qaeda. If you give me the chance, I will be that president.

I will start by facing the conditions on the ground in Iraq as they are, not as we hope or wish them to be. President Bush points to the reduction in violence in Iraq last year and claims the surge is working. Now, I applaud any decrease in violence. That is always good news. But the point of the surge was to give the Iraqis the time and space for political reconciliation. Yet today, the Iraqi government has failed to provide basic services for its citizens. They have yet to pass legislation ensuring the equitable distribution of oil revenues, yet even to pass a law setting the date of provincial elections. Corruption and dysfunction is rampant, and last week General Petraeus himself conceded that no one, in either the U.S. government or the Iraqi government, feels that there has been sufficient progress by any means in the area of national reconciliation.

So by the middle of this summer when the additional surge forces have been sent home, we'll be right back at square one with 130,000 or more troops on the ground in Iraq. That President Bush seems to want to keep as many troops there after the surge as before and says that doing otherwise would endanger our progress is a clear admission that the surge has not accomplished its goals. Meanwhile, as we continue to police Iraq’s civil war, the threats to our national security, our economy, and our standing in the world continue to mount.

The lives of our brave men and women are at stake. Nearly 4,000 of them have, by now, made that ultimate sacrifice. Tens of thousands more have suffered wounds both visible and invisible to their bodies, their minds, and their hearts. Their families have sacrificed, too, in empty places at the dinner table, in the struggle to raise children alone, in the wrenching reversal of parents burying children. The strength of our military is at stake. Only one of our army brigades is certified by the army to be ready. Our armed forces are stretched to near the breaking point with many of our troops on their second, third, or fourth tours of duty. Our economic security is at stake. Taking into consideration the long-term costs of replacing equipment and providing medical care for troops and survivors' benefits for their families, the war in Iraq could ultimately cost well over $1 trillion. That is enough to provide health care for all 47 million uninsured Americans and quality pre-kindergarten for every American child, solve the housing crisis once and for all, make college affordable for every American student, and provide tax relief to tens of millions of middle class families.

Our ability to win the war in Afghanistan is at stake. When I first visited Afghanistan in 2003, I was greeted by a soldier who said, "Welcome to the forgotten front line in the war on terror." Since then, the Taliban and al Qaeda have continued to gain new footholds throughout the country, and as a result, the overall terrorist threat, as our own intelligence community has noted, is growing.

Finally, our leadership in the world and our ability to front global challenges, present and future, is at stake. From extremism in Pakistan, to nuclear ambitions in Iran and North Korea, to troubling antidemocratic trends in Russia and Latin America, to the threat of global epidemics and global warming and to the rise of China. The more the world regards us with suspicion rather than admiration, the more difficult it is to confront these challenges. Despite the evidence, President Bush is determined to continue his failed policy in Iraq until he leaves office. And Senator McCain will gladly accept the torch and stay the course, keeping troops in Iraq for up to 100 years if necessary.

They both want to keep us tied to another country's civil war, a war we cannot win. That in a nutshell is the Bush/McCain Iraq policy. Don’t learn from your mistakes, repeat them. Well, here is the inescapable reality. We can have hundreds of thousands of troops on the ground for 100 years, but that will not change the fact that there is no military solution to the situation in Iraq.

And don't just take it from me. At his confirmation hearing, Admiral Mullen, chairman of the Joint Chiefs of Staff, said that without national political reconciliation, no amount of troops in no amount of time will make much of a difference. We simply cannot give the Iraqi government an endless blank check. Each passing month we stay in Iraq gives the Iraqi government more time to avoid the hard decisions on how to split the oil money and how to share political power. Senator McCain and president bush claim withdrawal is defeat. Well, let's be clear, withdrawal is not defeat. Defeat is keeping troops in Iraq for 100 years.

We simply cannot give the Iraqi government an endless blank check. Each passing month we stay in Iraq gives the Iraqi government more time to avoid the hard decisions on how to split the oil money and how to share political power.

Senator McCain and President Bush claim withdrawal is defeat. Well, let's be clear, withdrawal is not defeat. Defeat is keeping troops in Iraq for 100 years. Defeat is straining our alliances and losing our standing in the world. Defeat is draining our resources and diverting attention from our key interests.

Now, withdrawal is not risk-free, but the risks of staying in Iraq are certain. And a well-planned withdrawal is the one and only path to a political solution. The only way to spur the Iraqis to take responsibility for their own future and to ensure that we don't bear that responsibility indefinitely. The only way to spur other countries to do their part to help secure stability in the region. The commitment to staying in Iraq has driven President Bush's foreign policy. It looks like it would drive Senator McCain’s foreign policy as well, but it will not drive mine. My foreign policy will be driven by what is in America’s national security interests.

So it is time to end this war as quickly and responsibly as possible. That has been my mission in the Senate, and it will be my mission starting on day one as president of the United States.

For the past five years, I have served on the Senate Armed Services Committee. I have been to Iraq and Afghanistan three times. I have met with our soldiers and military leaders. I have met with Iraqi, local, regional, and national elected and other influential officials. Here at home I’ve attended countless meetings and committee hearings where I have challenged high-ranking Pentagon officials and military leaders investigating the situation in Iraq, probing the facts presented, and demanding real answers to tough questions. And I am honored that more than 30 of America’s most esteemed former admirals and generals, including two former chairmen of the Joint Chiefs of Staff and five retired officers of the four-star rank have endorsed my candidacy.

The American people don't have to guess whether I’m ready to lead or whether I understand the realities on the ground in Iraq or whether I’d be too dependent on advisers to help me determine the right way forward. I’ve been working day-in and day-out in the Senate to provide leadership to end this war. That’s why I cosponsored legislation with Senator Robert Byrd to reauthorize the war, legislation that would actually end the president's authority to fight it.

That’s why I’ve started laying the ground work for a swift and responsible withdrawal beginning in early 2009 by demanding that the Pentagon start planning for it now. I’ve introduced legislation ensuring that Congress would be briefed on those plans and that's also why I’m working to block President Bush's effort to keep this war going after he leaves office. I’ve introduced legislation banning him from unilaterally negotiating a long-term security commitment to Iraq, including the possibility of permanent bases.

I believe what matters in this campaign is not just the promises we've made to end the war; what matters is what we've actually done when it came time to match words with action. Because more than anything else, what we've done is an indication of what we'll do.

Now, my Democratic opponent talks a great deal about a speech he gave in 2002, and I commend him for making that speech. Speaking out for what you believe is a solemn, patriotic duty. He is asking us to judge him by his words, and words can be powerful, but only if the speaker translates them into action and solutions. Senator Obama holds up his original opposition to the war on the campaign trail, but he didn't start working aggressively to end the war until he started running for president. So when he had a chance to act on his speech, he chose silence instead. And out campaigning Senator Obama tells voters that as president he'd withdraw combat brigades from Iraq within 16 months, but one of his top foreign policy advisers told a different story. She told a British television reporter, and I quote, "he will, of course, not rely on some plan that he's crafted as a presidential candidate or as a U.S. Senator." Senator Obama has said often that words matter. I strongly agree. But giving speeches alone won't end the war and making campaign promises you might not keep certainly won't end it. In the end the true test is not the speeches a president delivers, it's whether the president delivers on the speeches.

I have concrete, detailed plans to end this war, and I have not waivered in my commitment to follow through on them. One choice in this election is Senator McCain. He’s willing to keep this war going for 100 years. You can count on him to do that. Another choice is Senator Obama who has promised to bring combat troops out in 16 months, but according to his foreign policy adviser, you can't count on him to do that. In uncertain times, we cannot afford uncertain leadership.

Here’s what you can count on me to do: provide the leadership to end this war quickly and responsibly. Today I’d like to talk about how I will do that, how as president, I will bring our troops home, work to bring stability in the region, and replace military force with a new diplomatic initiative to engage countries around the world in helping to secure Iraq’s future.

The most important part of my plan is the first step, to bring our troops home and send the strongest possible message to the Iraqis that they must take responsibly for their own future. No more talk of permanent occupation, no more policing a civil war, no more doing for the Iraqis what they need to be doing for themselves. As president, one of my first official actions will be to convene the Joint Chiefs of Staff, my Secretary of Defense and my National Security Council and direct them to draw up a clear, viable plan to start bringing our troops home within the first 60 days of my taking office. A plan based on my consultation with the military to remove one to two brigades a month, a plan that reduces the risks of attack as they depart.

As we bring our troops home, I will ensure we are fully prepared to take care of them and their families once they have returned. I will direct the Department of Defense and the Department of Veteran’s Affairs to prepare a comprehensive plan to provide the highest quality of health care, disability benefits, and social services for every single service member including every member of the National Guard and Reserve as well as their families, and I will make sure this plan is promptly implemented.

In the Senate I’m proud to have reached across the aisle to provide access to TRICARE for all members of the National Guard and reserve, even when they're not deployed. and to have passed my heroes at home act to help family members care for those who traumatic brain injury, the signature injury of this war because I believe when brave men and women sign up to serve our country, we sign up to serve them too.

That is why I will also immediately adopt Representative John Murtha’s urgent proposal to reduce the strain on our troops by reducing the permissible length of overseas deployments. Going forward, we will ensure that our troops spend as much time at tome as they have spent deployed. So every month they spend in the field, they will be guaranteed one month here at home.

I will also implement a proposal that I, Representative Murtha, and others have been calling for, requiring that before any brigade is deployed, the Secretary of Defense must certify to Congress that it is fully combat ready. Sending brigades that do not meet this standard puts our soldiers in danger and our mission in Iraq or elsewhere at risk.

In addition to removing American troops from Iraq, I will also work to remove armed private military contractors who are conducting combat-oriented and security functions in Iraq. For five yeas their behavior and lack of supervision and accountability have often eroded our credibility, endangered U.S. and Iraqi lives and undermined our mission. Now, Senator Obama and I have a substantive disagreement here. He won't rule out continuing to use armed private military contractors in Iraq to do jobs that historically have been done by the U.S. military or government personnel. When I am president I will ask the Joint Chiefs for their help in reducing reliance on armed private military contractors. With the goal of ultimately implementing a ban on such contractors.

I’ve already cosponsored the Stop Security Outsourcing Act requiring that security services for personnel at any U.S. diplomatic or consular mission be provided only by federal government personnel.

It’s also a time we put an end, once and for all, to the no-bid contracts that squander taxpayer money while lining the pockets of the president's cronies. Between 2000 and 2006, spending on no-bid contracts more than doubled, representing half of all federal procurement spending. Today companies like Halliburton are enjoying record profits thanks to a 700% increase in taxpayer funds awarded to them. But a recent congressional report identified 187 contracts valued at $1.1 trillion where federal auditors found massive overcharges, wasteful spending and poor oversight. I’m proposing legislation to ensure that all new spending in 2009 is done through competitive contracting processes. The heads of each agency would have to certify to Congress under a sworn affidavit that their contracting awards processes are open and competitive. As president, I will work to pass this legislation into law and to end the era of no-bid contracts and handouts to Halliburton.

It’s an interesting comparison. We’ve had a lot of talk in this town and elsewhere about earmarks, and I am one of those who believe we need more transparency and disclosure in the earmark process. But no-bid contracts are ten times more costly than earmarks, and when I introduce my legislation to eliminate no-bid contracts, I could not get, at least as of this moment, Senator McCain’s support for that.

As we bring our troops and contractors home, we cannot lose sight of our strategic interests in this region. The reality is that this war has made the terrorists stronger. Well, they may not have been in Iraq before the war, they are there now, and we cannot allow Iraq to become a breeding ground and safe haven for terrorists who seek to attack us and our friends and allies. So let me be clear - under my plan, withdrawing from Iraq will not mean retreating from fighting terrorism in Iraq. That’s why I will order small, elite strike forces to engage in targeted operations against al Qaeda in Iraq. This will protect Iraqi citizens, our allies, and our families right here at home.

The second part of my plan involves working to secure stability within Iraq as we bring our troops home, stability that will be key to a successful withdrawal of our troops. I believe it's really quite simple, greater political and economic stability means safer conditions for our departing troops and a smoother disengagement from our military's actions across Iraq. Right now no one doubts that the Iraqi government is failing its citizens. Government officials refuse to take the steps need to order to advance a solution, improve the economy, quell sectarian violence and better the lives of ordinary Iraqis. These failings are, in part, the fault of the Iraqis and in part due to the Bush administration's failure to match military efforts with political ones.

For example, the U.S. has created an armed local security forces, such as the Awakening in Anbar and the "Concerned Local Citizens," but they fail to hold the Iraqi government to its agreement to integrate these local militias and volunteers into provincial police forces or the national army. Violence has fallen in the short run, but in the long run sectarian divisions among Iraqis may only deepen.

When I’m president, we will pursue a more integrated strategy. We’ll empower local leaders and use U.S. and international influence to press the Iraqis to reach political reconciliation, and I will call on the United Nations to strengthen its role in promoting this reconciliation. Not having been a party to the mistakes of the path five years, the U.N., which has already provided valuable technical assistance in Iraq, is far more likely to be viewed as a neutral, honest broker than the United States, especially when it acts on behalf of a broad coalition of concerned states and the international community. The new United Nations Secretary General, Ban Ki-moon, has indicated he is willing to play a key role in assisting the Iraqis. I will also work with China and Russia to ensure that the U.N. envoy in Iraq has the necessary authority by obtaining the Security Council’s explicit endorsement of a strengthened U.N. mandate to promote reconciliation. I will also call upon the U.N. to help oversee the resettlement of the millions of refugees who have fled Iraq or have been displaced internally. Many are living in desperate conditions creating not just a humanitarian crisis but one affecting regional stability that poses direct threats to our security here at home which we must address immediately.

While we focus our efforts on improving conditions so Iraqis don't have to flee in the first place, we have to recognize our moral obligation to help those we have put at risk in Iraq, the interpreters, soldiers who have assisted our troops. We will work with governments in both the Middle East and the west, including of course the United States, to find places for asylum seekers, and we will work with the U.N. to develop a plan to help them return, if possible, to Iraq once the country has stabilized.

I would further seek to stabilize Iraq by insisting that the country's oil revenues, instead of U.S. taxpayer dollars, increasingly be used to fund Iraq’s reconstruction. When President Bush began this war, his administration claimed that Iraqi oil revenues would pay for Iraq’s reconstruction. Well, the Iraqi government has now earned tens of billions of dollars from oil. Some estimates indicate that revenues this year will top $55 billion. Yet since the beginning of the war, the U.S. has allocated roughly the same amount of money as Iraq for reconstruction, $47 billion from us versus $50 billion from them. And now it is even clearer that the Iraqi government is not spending its oil money on reconstruction. There are reports that Iraq spent less than a quarter of oil funds set aside for reconstruction in 2006, and the U.S. Comptroller General testified that as of November 2007 the capital expenditure rate for the central ministries in Iraq was only 7%. Oil profits are showing up in foreign banks even as Iraqi citizens lack basic services.

As president I would immediately direct the Inspector General for Iraq to appoint a special council to investigate and make recommendations directly to me for how to ensure Iraqi oil revenues and U.S. taxpayer dollars on a declining trend are used to rebuild Iraq. It is unacceptable that these oil revenues go unused or worse end up in private accounts while citizens lack electricity and clean drinking water. We will support Iraq’s efforts to rebuild their country, but we will not permit our money or theirs to be thrown away.

I will work to crack down on the black market for oil in Iraq. According to recent news reports, insurgent groups a profiteering from a substantial black market in oil. The money they make is going in part to pay for IEDs, car bombs, and other tools of terror. The Iraqi government simply has not done its part to crack down on this corruption. The equation here is simple, if we cut off or disrupt these illegal sources of funding, we can deny the insurgents the money they need to maintain their campaigns of violence. So I will order a joint nationwide U.S./Iraqi crackdown on black marketers and oil smugglers. We’ll beef up protection for oil lines to prevent illegal tapping and attacks. We will cut off illegal networks, identify where the stolen oil and other goods are going, who is stealing them, and capture those responsible. We will work with our international community to try to cut off access to the funds that hold these oil revenues. And we will maintain the crackdown success by sending a strong signal to the Iraqi government, show results in rooting out corruption or lose your aid.

The third and final part of my plan to end the war involves replacing our military force in Iraq with an intensive diplomatic initiative in the region. Over the past four years, we've learned the hard way about the need for a truly multilateral approach in Iraq, one built on sound strategy and long-range planning, not ideology and wishful thinking. the president's go it alone strategy has diminished our position in the region and around the world, and that diminished position, in turn, has made it increasingly difficult for us to bring about a political solution. Our friends and allies in the region have an especially large stake in building a stable Iraq, but until now in part because of the Bush administration's mismanagement of the war, they have lacked leadership and gotten a free pass. That must end.

Ten months from now we will have a new opportunity to reach out and engage our allies. One of my very first international meetings as president would be with our treaty allies and our friends in the region including the Gulf States, Jordan, Egypt, and our European allies. Over the course of my career I have known and worked with many of these leaders already, and I will send them a very clear message - what happens in Iraq affects all of our interests, and it is all of our responsibility. It’s time we did our part and paid our fair share. I will then convene a regional stabilization group composed of these key allies, other global parties, the states bordering Iraq. The mission of this group will be to develop and implement a strategy to create a stable Iraq. I would include in this regional stabilization group Iran and Syria. We must convince all countries in the region and beyond to refrain from getting involved in the Iraqi civil war, to hold themselves and others to their past pledges to provide funding in Iraq, and to support the central role for the United Nations.

These will be critical first steps toward establishing a new American approach in the world, one that draws on the strength of our alliances and the power of our diplomacy, and uses the greatest military force on earth as a last, not a first, resort. Achieving all of this will not be easy. But we don't have any choice. When I look at the road ahead, I think about the men and women in uniform whom I’ve had the profound honor of meeting and serving. Our troops serving not only in Iraq and Afghanistan, but across the globe. Our veterans recovering in V.A. hospitals and rehabilitation centers here at home, many with serious and life-altering injuries. The countless veterans who are not given the support and services they need to reenter civilian life. These men and women have made extraordinary sacrifices serving the country they love, and I’m always struck by how no matter the extent and severity of their suffering, no matter how grave their own injuries, they always say the same thing to me, "promise that you'll take care of my buddies. They’re still over there. Promise you'll keep them safe." I have looked these men and women in the eye, and I have made that promise, and I intend to honor it by ending this war as responsibly and quickly as possible.

Thank you all very, very much.

THIS IS BIG: United Nations' Anti-Corruption Conference in Iraq Mar 17

Egad - who would you think is now leading a charge on St. Patrick's Day to fix corruption in Iraq? Yup, the United Nations can't keep their own programs clean, but now they say Iraq should implement the UN "Convention against Corruption". The Convention is not that old, but basically countries agree and sign the "Convention" to do a number of things, primarily help other countries prosecute citizens who committed corruption in the prosecuting country. It is a good agreement, but not all countries have signed it. For instance, it was probably only two years ago that the UK signed it because they were criticized as being a haven for corrupt officials from other countries. They could move to the UK and not get prosecuted by their home country where they siphoned funds from in corrupt activities.

And, the UN wants many other changes. Lots of ideas seem to match what we have been saying... could they have been reading this blog? The UN seems to be willing to put resources behind their recommendations and get anti-corruption actions implemented that the US State Dept. wouldn't even discuss.

The UN wants "effective" accounting and auditing standards which we have preached for since I was there in 2004. The current lousy accounting is based on Saddam's ancient communist based accounting system which is not recognized by most civilized countries (except maybe Cuba) and it allows corruption to be hidden. Since Iraq doesn't meet international accounting AND audit standards, no outside investors (except the stupid or corrupt ones) will invest in the country businesses or infrastructure.

And, the UN praised Iraq's Commission of Public Integrity (which is now led by a known corrupt official - see our prior post on Judge Radhi)...

Favorite quote:

the Convention, which calls, for example, for the establishment of an independent anti-corruption authority. Mr. Costa praised the work of Iraq's Commission on Public Integrity (CPI), and offered help to strengthen its independence in line with the Convention, and to balance prevention and accountability with investigation and prosecution. He paid tribute to the dozens of CPI investigators killed in the line of duty.

So, maybe the US State Dept is unwilling to demand anti-corruption implementation, but the UN seems to be stepping up to the plate...

This is all good stuff - maybe the UN really did read this blog - read on...
vj

==================================
Here is the Press release from the United Nations from:
http://www.unodc.org/unodc/en/press/releases/2008-03-17.html

Iraq urged to use the UN Convention against Corruption to improve governance

BAGHDAD, 17 March 2008 (UNODC) - The first United Nations conference to be held in Iraq since the war began, took place today in Baghdad on the subject of "good governance and anti-corruption". The Executive Director of the United Nations Office on Drugs and Crime (UNODC), Antonio Maria Costa, asked the Government of Iraq to implement the United Nations Convention against Corruption without delay. "This powerful international instrument can help the rule of law prevail over the rule of the bribe in Iraq", said Mr. Costa. "It can build trust in Government and help achieve the country's highest priorities: national reconciliation, security, and governance. It would demonstrate that Iraq takes seriously the good governance commitments that are part of the International Compact with Iraq sanctioned in Sharm El-Sheikh last year".

The UNODC chief warned that in Iraq, as in other countries around the world, corruption destroys trust in public institutions, robs the country of development, deprives the poor of basic services, funds violence and terrorism and empowers organized crime. He therefore offered to assist Iraq with the implementation of the Convention and the monitoring of progress.

Mr. Costa explained to the audience of senior officials, including Deputy Prime Minister Barham Salih and the Special Representative of the United Nations Secretary-General, Staffan de Mistura, the merits of being Party to the Convention, which calls, for example, for the establishment of an independent anti-corruption authority. Mr. Costa praised the work of Iraq's Commission on Public Integrity (CPI), and offered help to strengthen its independence in line with the Convention, and to balance prevention and accountability with investigation and prosecution. He paid tribute to the dozens of CPI investigators killed in the line of duty.

The UNODC Executive Director offered legislative assistance programmes to protect the witnesses and victims of corruption: "We need to protect brave Iraqi citizens who speak out and blow the whistle against corruption", he said. He suggested the creation of an incentive scheme to reward whistle-blowers, "including through bounties".

The Convention calls for effective accounting and auditing standards, a key measure in Iraq where so much money is generated from oil revenue. Mr. Costa's Office is ready to assist Iraq's Board of Supreme Audit, and help to establish a financial intelligence unit. UNODC will also continue to train Iraqi magistrates in order to strengthen the accountability and integrity of the justice system. He warned that "where government control is weak, strongmen take law enforcement and public money into their own hands. This creates a vicious circle of more insecurity and greater corruption".

International cooperation is essential to "fight across borders a crime that does not respect borders", he said. As a Party to the United Nations Convention against Corruption, Iraq would be in a better position to ask for and take part in mutual legal assistance, extraditions and joint investigations.

It would also benefit from the Convention's revolutionary asset recovery measures. "The Iraqi people deserve to get back the money stolen by the former regime", said Mr. Costa. He therefore urged the Government of Iraq to consider joining the countries already assisted by UNODC and the World Bank as part of the Stolen Asset Recovery (StAR) Initiative.

To improve coordination among Iraq's anti-corruption bodies, the head of UNODC called for a national anti-corruption strategy with clear division of labour. He invited the Government to strengthen the role of the Joint Anti-Corruption Council, so that it could put an end to the squabbling among the different bodies in charge of fighting corruption. Mr. Costa urged all parts of the national administration to "assume their responsibility, to set the tone at the top, hold staff accountable and extend full co-operation to one another".

Mr. Costa offered to establish a UNODC technical assistance office in Baghdad to serve as a source of expertise to the Government of Iraq in support of its actions against corruption. He urged funding partners, both bilateral and multilateral, to provide on a matching-fund basis the resources needed for such an anti-corruption programme in Iraq.

For a full text of the speech , click here (I have attached it below: )

* ** *

For information, please contact:

Mr. Walter Kemp

Acting Spokesman

United Nations Office on Drugs and Crime

Telephone: (+43-1) 26060 5629

Mobile: (+43-699) 1459-5629

E-mail: walter.kemp@unodc.org

=========================================
Here is the full UN speech given at the Iraqi Conference on Governance & Anti-Corruption:

from
http://www.unodc.org/unodc/en/about-unodc/speeches/2008-03-17.html

Building Public Trust in Government: How the UN Convention against Corruption can help Iraq
UNODC Executive Director Antonio Maria Costa
ICI Initiative on Good Governance and Anti-Corruption; Baghdad, 17 March 2008

Thank you Mr. Chairman. I am honoured to be here. Let me take this opportunity my dear Staffan (SRSG De Mistura) to recognize with appreciation the extraordinary work you have been doing here in Iraq, re-launching so forcefully the presence of, and the assistance provided by, the United Nations.

Prime Minister,

Excellencies,

Ladies and Gentlemen,

The day before I flew to Baghdad, a friend stopped by my Office and we had the following exchange:

'W hy do you travel to a conflict zone?'

' To fight corruption!'

' Iraq must have bigger problems than that!'

Actually, it was the Prime Minister who described the fight against corruption as ' yet another conflict in Iraq, for a future of peace and trust among the people, and with their state'. I agree. This non-violent conflict is meant to enhance the software of development (namely integrity and good governance), and support the hardware of infrastructures and reconstruction.

This conference also confirms your intention to step up implementation of the International Compact for Iraq (ICI), that you co-chaired with Secretary General Ban Ki-moon at Sharm el-Sheikh last year. It is a drive towards integrity in governance to accompany ongoing democratic processes and private sector growth.
An absolute legacy

Dear Iraqi friends, fear not. Corruption is not an Iraqi problem only: it is present in all countries and in all administrations, under different species. In Iraq it's a vestige of the earlier regime built on political terror, but also on looted national wealth, squandered public assets, and on public money dished-out to cronies. My Roman ancestors (not immune from the disease) already recognized the hard logic: power corrupts, absolute power corrupts absolutely. This absolutely devastating legacy is visible in estates throughout the country. It is less visible, but also very present, in financial centres around the world, where huge sums of Iraqi money have been laundered.

Corruption is not just a financial issue, public money lost to the benefit of a few. Everywhere on the planet, it is a corrosive force that:

- destroys trust in public institutions

- robs a country of its development

- deprives the poor of basic services

- funds violence and terrorism

- empowers organized crime.

Corruption has crept even into some of the most trusted institutions: blue chip corporations, the media, the judiciary, sport and even into noble organizations such as the Olympic Committee and - I am ashamed to admit - the United Nations. We went through painful times because of the miserable handling of the Iraqi oil-for-food account.

How are things now? I sense, we face a welcome climate change in governance. Planet Integrity is more than warming up: its population is incensed. This Baghdad meeting is further evidence of the rising global temperature from Nigeria to Peru, from Japan to Ukraine, from Indonesia to Bangladesh, where government officials have landed behind bars, charged with corruption and abuse of power. From the USA to Korea, from Germany to Italy and China, the same has happened to renowned corporate CEOs, guilty of bribery and embezzlement. Public tolerance of corruption is running out, in Iraq and elsewhere.
The UN anti-Corruption Convention

While public attitudes are changing in relation to domestic conditions, the blueprint for change is a recent international agreement among the Member States of the United Nations: the Convention against Corruption (UNCaC). Allow me to elaborate on its applicability to Iraq's current conditions, and explain how the country can best fight corruption by implementing it.

The Convention was brokered by my Office in the biennium 2002/03, endorsed by the General Assembly in December 2003 and signed by a staggering number of countries (140) since. It came into force recently (in late 2005). There are 109 State Parties to it - namely almost 60% of the UN membership has ratified it. But not yet Iraq!

As the custodians of this Convention, at UNODC we are glad to learn of the government's strong political commitment to ratify it without delay. The people of Iraq expect anti-corruption actions: this is the one to begin with. The international community, especially foreign investors, are also watching: without this commitment on the part of Iraq, there cannot be private sector development in the country.

By acceding to the Convention, Iraq will commit to an international treaty, with clear rights and duties. It will be Iraq's right to claim other nations' help in combating this scourge, and bring resources back into the government's coffers. Democracy and development will benefit. It will be Iraq's duty to establish state-of-the art laws, institutions and measures to fight corruption and help others do the same.

What does the Convention oblige Iraq, and other contracting countries, to do? Nothing more than what you would like to do on your own, if I can judge on the basis of the political platform of honesty and accountability on which you were elected. And nothing more than what you would need to do, given the enormous resources generated by the oil sector, its rising prices and its robust multiplier across the economy. Let's recognize it: so much wealth accumulated so fast, is both an opportunity and a temptation. You all know what I mean.

In order to manifest the benefits Iraq can expect from accession to the Convention, let me take you through its four elements: (i) prevention, (ii) criminalization, (iii) asset recovery and (iv) legal cooperation.

(i) Preventive measures

First, prevention. I am not talking about posters, advertisements and greater public awareness. Not at all. From Al Basrah to Zakho, people are already aware of the severity of the problem. Rather, I have in mind concrete public management practices that promote the rule of law and prevent the problem to begin with. The UN Convention requires full disclosure by public officials of their earnings and assets, and full compliance with suitable codes of conduct. I was glad to learn that the new Iraqi legislation envisages some of this. Senior officials, who earn a few hundred dollars a month, obviously cannot afford luxurious villas and expensive cars: if they do, this should be explained. Some countries have been even bolder: in Nigeria, a country that since independence (40 years ago) has lost a staggering $400 billion to corruption, assets not declared by officials, when discovered, are seized. We would be happy to help implement as tough measures as you wish.

· UNCaC calls (in Article 6) for the establishment of an independent anti-corruption authority. Such an agency already exists in the new Iraq: it's the Commission on Public Integrity (CPI). I salute the recent work of Dr. Rahim Al Akily. His credentials are impeccable: I wish him, and his institution, all the best. UNODC can help CPI, including clarifying its focus, so as to balance prevention and accountability with investigation and prosecution. This would demarcate the division of roles with other agencies. We can also help draft legislation so as to enhance CPI's independence, as called for by the Convention, as well as the protection of its staff.

· Integrity of the justice system. If the judiciary is corrupted, governance is compromised. Because of this, in many countries UNODC has prioritized its technical assistance to build high standards of integrity for police investigators, prosecutors and judges. We have already trained a number of Iraqi magistrates, together with ISISC. More is needed. A democratic country, with an elected parliament and government, needs accountability throughout the system, and especially integrity of its watch-dog: the judiciary.

· According to UNCaC, there must be effective accounting and auditing standards in both private and public budgeting. A lot of corruption occurs when these two halves of society meet - like when governments tender contracts to private companies. This is a major risk in Iraq, with so much money flowing rapidly, into reconstruction. Over the millennia, from the Tigris to the Euphrates, this cradle of civilization has created some of humanity's greatest cultural wealth, above ground. It must now guard against its natural wealth, under ground, from becoming a resource curse (as economists call it). Transparency in public procurement and resource management will make it possible for Iraq to pass appropriate energy laws, and negotiate honest and transparent oil extraction and production sharing agreements. UNDP, in conjunction with the World Bank and IMF, can provide most valuable expertise. My Office is ready to join, and assist Iraq's Board of Supreme Audit to sharpen its skills. I take advantage of the presence of BSA's President, Dr. Abdul Bassit Al Turki, to thank him for his sterling work.

(ii)Criminalization and law enforcement

The UN Convention requires countries to criminalize corruption and apply effective law enforcement against it. This means adopting legislation to punish bribery, embezzlement, abuse of power, and mis-appropriation of public property. The overall effort is strengthened further if abuse of functions and illicit enrichment are also made criminal offences. This will help improve the security situation: where government control is weak, strongmen take law enforcement and public money into their own hands. This creates a vicious circle of more insecurity and greater corruption.

The Convention also calls for criminalization of the laundering of the proceeds of crime, and for protection of witnesses and victims - with compensation for damage. Our legislative assistance program (based on UNODC manuals, best-practice rosters and tool-kits) has been found helpful around the world: it could help protect brave Iraqi citizens who want to speak-out and blow the whistle against corruption.

(iii) International co-operation

For decades, so much Iraqi state money has disappeared, often through complicated international transactions. Now that the cancer surgery has taken place, chemotherapy will help.

The third pillar of the Convention calls for such an advanced medical treatment, based on extradition, mutual legal assistance, joint investigations, transfer of proceedings, and the transfer of sentenced persons. Symbolically, let me say that this Convention is not a pier, open towards the unknown: it is a bridge connected to other countries -- international co-operation is crucial in fighting across borders a crime that knows no borders.

All parties stand to benefit. Actually, Iraq can gain from these collaborative measures more than the average: we have proven quite successfully that the more a country has suffered from corruption, the greater the advantage to be expected.

(iv)Asset recovery

The fourth UNCaC pillar is about asset recovery. The measures here are truly revolutionary. Last September the World Bank and UNODC launched a Stolen Asset Recovery (or StAR) Initiative, based on the Convention.

Why is this revolutionary? Because the world over, corrupt leaders have amassed fortunes by illegally taking over, or siphoning off money from state-owned enterprises, rigging procurement contracts, stealing foreign aid or even looting cash straight from the central bank. Iraq has also suffered this fate. Our goal is to make it harder for kleptocracts to steal public money, and easier for the public to recover it. Equally far-reaching is the clause in the UN Convention, that abolishes banking secrecy as an impediment to anti-money-laundering investigations of corruption charges.

The Iraqi people deserve to get their money back, and here is my proposal. Once Iraq becomes a Party to the UN anti-corruption Convention, the government of Iraq may consider joining the countries already assisted by UNODC and the World Bank, to recover stolen assets. It will take quite some time before this process is launched: in any event, I hope your government, Prime Minister, will consider this hypothesis favourably. Asset recovery brings cash, for sure: above all it is a preventive measure.
Impediments to integrity

All I said so far sounds perfectly reasonable. So why is progress towards integrity so slow, and why is corruption so pervasive?

Let me review a few reasons, and what can be done about them.

First, greed. Since its earliest origins, humanity has been greedy. As with other such congenital weakness, we may think of social vaccines, building corruption anti-bodies from an early age - in schools, at home, and in the work place. I therefore urge all ministries in Iraq to agree on, and be part of, an overall national anti-corruption strategy without delay. Civil society can play a key role in this regard.

Second, vested interests. So many politicians promise clean government, but fail to deliver. Their best intentions are well-served by anti-corruption officials, so many of them in this Hall. But, as we have seen time and again, middle-level bureaucrats block reforms. They have a lot to lose. The challenge is to squeeze these vested interests out - by exposing them in the media, by using whistle blowers, and by collecting the evidence needed to bring them to justice. I pay tribute to the CPI investigators killed in the line of duty. Since insecurity is partly the result of corruption, building integrity can also build peace.

Third, the complexity of financial crime. The speed and openness of financial transactions today is being exploited by white-collar criminals. That is why Iraq needs an effective financial intelligence unit - and we stand ready to provide technical assistance.

Fourth, layering. Corrupt gains are so well-hidden under so many layers that it is hard to find and unpack the trail of Chinese boxes. Hence, information from whistle blowers is crucial. We need an incentive scheme to reward them, including through bounties.

Fifth, difficult monitoring of UNCaC. Following Iraq's ratification, we could help Iraq assess its own progress towards integrity. ICI would welcome such a report by the national government. Here is what I suggest to do: at the Conference of the State Parties in Indonesia (a few weeks ago), my Office tested a mechanism to monitor progress in implementing the UNCaC. It is peer-based, with volunteer countries (16) assessing one another. Given the conditions of Iraq today, I offer the services of UNODC to help the government vouch to the international community the progress it is making. We can provide technical support, standardized criteria, questionnaires and assessment tools developed for the meeting in Indonesia. The process would be run by the Iraqi government, with our capacity-building assistance.

Sixth, lack of coordination. Sometimes national authorities have a tendency to compete, thus undermining common efforts to fight corruption. That is why it is useful to count on a national anti-corruption strategy, with a clear division of labour. But this is not enough: the work of the Joint Anti-Corruption Council (JACC), under the leadership of Dr. Ali Allak, is so crucial to foster coordination among relevant agencies - the CPI, the BSA and the Inspector General.

UNODC is at your service to tighten up this coordination: but the main onus is on you. I urge national administrations to assume their responsibility, set the tone at the top, hold staff accountable, and extend full cooperation to the anti-corruption agencies.
A UNODC down-payment

In conclusion, I urge Iraq to ratify and implement the UN Convention against Corruption. Per se, this will not build trust in the government, or reduce the damage of corruption. But it will send a message of commitment to public accountability, and pave the way to the measures I described -- under a vast program of technical assistance. It will also help achieve the country's highest priorities: national reconciliation, security and governance.

As an informal down-payment, the United Nations Office on Drugs and Crime can commit itself to establish a presence in Baghdad as speedily as possible to serve as a source of expertise to the Government of Iraq in support of its actions against corruption. Our staff will interact with relevant Government entities, development partners, and the international community with the objective of coordinating actions.

The United Nations as a whole offers a partnership to turn good intentions into actions. Let us start now, at this meeting, to identity specific areas of cooperation, so that the rule of law will prevail over the rule of the bullet and the bribe.

Before closing, I would like to express the appreciation of my Office to the UNDP Country Director Paolo Lembo, for the realization of this important forum. Good job Paolo.

I thank you for your attention.
---------------------------------------------------------------------
from
http://www.reliefweb.int/rw/RWB.NSF/db900SID/EGUA-7CURZ2?OpenDocument

This is a press release from reliefweb.int regarding the conclusion of the two day Iraqi Anti-Corruption conference. It describes the four Iraqi "anti-corruption" agencies that were all at the conference.

ource: UN Assistance Mission in Iraq

Date: 17 Mar 2008
Print Print Email E-mail Save to My ReliefWeb Save
UN conference on anti-corruption and the International Compact with Iraq

Baghdad-17 March 2008 - The United Nations Development Programme (UNDP) organized an Anti-Corruption Conference in Baghdad on 17-18 March, 2008, with the title 'International Compact with Iraq: Initiative on Good Governance and Anti-Corruption – Conference on UN Convention Against Corruption'. The conference is organized by UNDP, as part of its portfolio of activities to support good governance. Funding for the conference is provided to UNDP by the European Commission.

The conference, the first comprehensive anti-corruption event to take place in Baghdad, was chaired by the United Nations Special Representative of the Secretary General for Iraq, Mr Staffan de Mistura. Iraqi Deputy Prime Minister, Dr. Barham Saleh who addressed the conferees and briefed them on measures taken by the government in that realm.

The keynote address was given by United Nations Under-Secretary General and Director of the UN Office on Drugs and Crime (UNODC), Mr Antonio Maria Costa.

The Iraqi Deputy Prime Minister, Dr. Barham Salih, accompanied by all four Iraqi institutions charged with roles in anti-corruption, the Joint Anti-Corruption Councils (JACC); the Board of Supreme Audit (BSA); the Commission of Public Integrity (CPI); and the Inspector General (IG) all made opening statements related to the conference, anf GoI's effort to combat corruption. Visiting Vice-President of The World Bank, Dr Daniela F. Gressani, and Executive Director of the UN Office of Project Services, Mr Ian Mattsson, also addressed the conference. Other participants included Members of the Iraqi Council of Representatives (CoR) and high level representatives of donors in Baghdad.

The two day Conference included presentations and discussions of technical papers on topics such as: prevention, institutional development and capacity building; criminalization and law enforcement; and the role of non-state actors, media, civil society organizations and public outreach.

The UN system appreciates the commitment of Iraq to the International Compact with Iraq, co-chaired by Prime Minister Nuri al Maliki, and UN Secretary General Ban Ki-moon, as a significant drive towards integrity in governance accompanied by democratic processes and sector growth. The primary purpose of the conference lies in support of UN system to strengthen those Iraqi institutions which play a critical role in securing transparency and efficiency in implementing the Compact.

The Government of Iraq has taken the first steps toward ratification of the UN Convention against Corruption. As a future signatory to the Convention, the Government of Iraq will undertake initiatives in compliance with principles and commitments under the Convention, and will be able to seek UN assistance for its programmes and activities to address corruption.

Great Conde Nast Portfolio Article on Iraq's Anti-Corruption Chief, Judge al-Radhi

It is a long article, and I am even quoted, along with the US Adviser and founder of the Commission of Public Integrity (CPI), Chuck Grinnell, and subsequent Sr. Adviser Chris King.

It details many of the details of the Judge's investigations into corruption in Iraq, and how he finally had to escape and is now living in a tiny apartment near Washington, DC. It also describes the number of times the US State Dept. avoided supporting him.

See it at:
http://www.portfolio.com/news-markets/international-news/portfolio/2008/03/17/Iraq-Top-Fraud-Cop-Judge-Radhi/

vj

Baghdad Mosquito Lists Iraqi Newspaper Article on Health Ministry corruption charges

There is a daily email newsletter issued from a military contractor in Baghdad containing "Open Source" Intelligence, including translated articles appearing in the Iraqi press. The newsletter is called the Baghdad Mosquito, and has many articles on different subjects. Below is one excerpt regarding corruption in the Health Ministry. The wording is rough because it is a translation.

I visited the Health Ministry and their Inspector General (IG) several times in 2005, and he was replaced by a Shia during the last elections, and the IG mentioned below could be an even later appointee. The Health Ministry already had problems with the separate agency that provided drugs, called "Kumadia" (my memory and spelling may be incorrect) which was known to be corrupt and providing inferior drugs even then. Also, there were never enough drugs, so wealthier Iraqi's would buy their own drugs on the blackmarket (probably provided by Kumadia) and bring them to the hospital when relatives were being treated.

But, the US kept throwing funds at the hospitals through IRMO and USAID and took no action to cut off spending while corruption grew.

Below the Health Ministry article is a March 13 Mosquito article on "The word on the street" which gives a picture of current conditions in Iraq.

I do not have a direct source for the Mosquito, so can't tell you how to get it directly.
vj

=============================
From the Baghdad Mosquito - Mar 15, 2008 - translated

Health Ministry Advisor Denies Accusations Of Financial And Administrative Corruption (Security/Crime) [•Azzaman Newspaper] (15 MAR)
Summary: Health Ministry Advisor – Issam Namuq denied the accusations made (against him) by Musa Faraj - the former Chief of Iraq’s Integrity Board. These accusations claimed that there is (widespread incidents of) financial and administrative corruption occurring in the (Health) Ministry.
Yesterday, Namuq told this newspaper, “The press reports about the building of ten hospitals are incorrect; currently, we have not ‘actually signed’ any contracts for building any hospitals. So, where does this (alleged) financial corruption come from?

(On a related subject) Musa Faraj has told Iraq’s Radio Sawa, “Official (laboratory) tests have shown that the albumin supplies (blood protein products) in Babil Province are contaminated with the AIDS virus. I challenge any Health Ministry official to publicize the results of the tests which were performed by the National Medical Laboratory.”
Faraj added, “The Health Ministry has a huge ‘file’ of corruption. The officials, including the Health Ministry’s Inspector General, are responsible for thefts from Health Ministry warehouses.”
He continued, “70% of the Health Ministry’s medicines are imported by private sector companies. These companies are importing medicines of very poor medical quality.”
Radio Sawa broadcasted, “At the end of last year, a Babil Provincial Council Member had revealed that the (Province’s supplies of) albumin were contaminated by the AIDS virus. At that time, the Health Ministry collected all of the albumin (took it off shelves and out of circulation); but, the Ministry denied the claims (that it was contaminated).”

=========================================

What’s The Word On The Streets Of Baghdad?

On 13 March 2008, the Mosquito Staff sat down with some knowledgeable Iraqis and inquired about the latest rumors and current atmospherics circulating the streets of Baghdad. In Iraq, rumors travel through the streets quickly and are accepted by many, educated and uneducated alike, to be the absolute truth. In fact, during Saddam’s reign, he had a department in his intelligence service dedicated to spreading various rumors throughout Iraqi society. The word on the street should not be ignored as simple hearsay, even though some of it is obviously false. It helps shape Iraqi opinions and perceptions. The following information is what came out of the meeting:
-------------------------------------------------

The Word

1. The Egyptian newspaper, Al Ahram has published that sources close to Muqtada Al Sadr have stated that Al Sadr is in a hospital in Tehran in a coma. This came a week after rumors that someone had attempted to assassinate Al Sadr by poisoning his food.

2. Kuwaiti Al Qabas Newspaper states that the MNF is planning to convert the remnants of the Mahdi Army into Shiite Awakening Councils.

3. Al Khaleej Newspaper has stated that Washington and Ankara agreed to the Turks speeding up their withdrawal from northern Iraq. In return, Turkey will assist the US in attacking Iran and the US will limit Massoud Barzani’s influence in Kurdistan due to his opposition the proposed oil and gas law.

4. Some Iraqis claim that Muqtada Al Sadr and Uday Hussein were friends in the years after Muqtada’s father was assassinated.

5. Some claim that 16 Shiite political blocs boycotted Nejad’s visit.

6. A train with 21 oil tanker cars was seen heading toward Mosul on March 9th.

7. A ‘US Intelligence HQ’ (formerly the Technical Institute) in Najaf was hit by mortars.

8. A previously unknown Iraqi Shiite group calling itself “The Husseini Scream” (Al Sarkha Al Husseiniya) has threatened to strike US interests in Iraq and US vessels docked at Umm Qasr Port if the US does not withdraw its ships that are near the coast of Lebanon. They also warn against the forming of Awakening Councils in southern Iraq.

9. Regular Iraqis believe that it is difficult for Muqtada Al Sadr to control all the members of Mahdi Army, even with the freeze. Additionally, there is no plan to dismantle the Mahdi Army, which is prepared to ‘strike’ if threatened or attacked.

10. There are no Awakening forces in the rural areas of Salah Ad Din near Samarra. This has allowed Al Qaida to rebuild itself there especially after the recent US prisoner releases. The Sunni community in general believes that this is also part of the mainly Shiite Iranian puppet government’s plan to keep the US busy in the Sunni areas, such as Salah Ad Din, Diyala, and Mosul/Ninawa so that the Iranian puppets can continue to solidify southern Iraq for Iran’s benefit.

11. Last Thursday, an eyewitness at Hababiya Fuel Station said the Mahdi Army confiscated a full fuel tanker truck and drove it away.

12. Residents in Sadr City still refuse to allow the presence of any US military vehicles or ‘they will destroy it immediately.’

13. All IP, especially the IP Commandos, are Badr Corps members.

14. Since SICI and Badr control the MOI, they have installed Badr/Iranian officers at all Jensiya and Passport offices. These officers then provide Quds forces and Hezbollah members with any Iraqi identification they need. The UAE has information on this subject.

15. If the US or Israel ever struck Al Ridha Shrine in Mashad while hitting the Iranian nuclear program, it would start World War III.

16. Iraqis want to know how any bank survives in Iraq.

17. In an open area near Bab Al Sharji, an eyewitness stated he saw some ‘electrical appliance repairmen’ flying a meter long R/C helicopter that they had installed a small camera on. The witness added that the helicopter’s motor was not very loud.

18. After the US seized a weapons cache in the Urr area of Baghdad, militants there launched a rocket attack on the IZ.

19. People in the Urr area are talking about the Mahdi Army building a new type of IED using a donkey pulled cart. There is an Iranian assisting in the construction of this IED which will use ‘oxygen bottles’ to create a huge explosion.

20. Iraq has recently opened its third ‘Consulate’ in Iran in the city of Ahwaz in Khuzestan Province. The other Iraqi Consulates in Iran are in Mashad and in Kermanshah.


Atmospherics

1. What Is The Electricity/Water Status Around Baghdad?

The group reported that electricity service improved again this week. The Hay Urr area’s 3 x 3 program has been nonexistent for months but did improve this week to around eight hours of broken service per day. The Mansour area’s service hours recently increased to between 4 and 6 hours of service per day. The Jamiia/Khadra area’s service has been three to four hours per day in western Baghdad. The Mustansiriya area skyrocketed to around 18 hours of service per day this week.

The group reported that water service was [Baghdad] normal this week. The Zayuna area reports their water still has a large amount of sediment which is visible after filling a water bottle from the tap and letting it sit a few minutes The water Baghdadis do receive they DO NOT drink for fear of illness or poisoning. However, many Iraqis have no choice but to drink this water.

2. Is There Still A Fuel Crisis In Baghdad?

The group answered that again, the fuel situation for vehicles was stable this week. However, the group stated that Iraqis are already thinking about fuel supplies and prices for generators as temps increase. Apparently, so are the militias, see Rumor # 11 above.

The group added again that due to the warm temperatures this week the need for kerosene is over until next fall/winter.

The group reported that propane in Baghdad was stable this week. The black market price has recently increased to between 20,000 to 25,000 ID this week.

This week the group reported that there is still some corruption involved in supply and sale of diesel fuel.

3. What Is Going On With The Security Situation In Iraq?

The group stated that Iraq is now witnessing the post Nejad visit portion of Iran’s plan to dominate Iraq by forcing the US out of Iraq politically as they know they cannot achieve this goal militarily.

The group stated that many Iraqis believe that this pan includes fanning the flames in Kirkuk; assisting and inciting Al Qaida in Sunni areas which do not have Awakening forces; continuation of the political and security confusion in southern Iraq to include arming Shiite militias with more sophisticated weaponry, especially as the Coalition decreases its presence in the south; and by continuing its current domination of the Iraqi government which supplies Iran with Iraqi oil and other resources.

The group added that Iran is a very patient enemy and knows that it may still take a few years to politically push the US out of Iraq but they also intend on making it very painful for the US to remain at all.

Australia Turned Blind Eye to Oil-for-food bribes says Church Report on Corruption

Now a big Church group in Australia agrees with me that government action must be taken to solve corruption. The Uniting Church in Australia just issued a report, From Corruption to Good Governance, given to the newly elected Australian "Rudd" government, that said Australia turned a blind eye to corruption in Iraq and allowed oil-for-food bribes to take place to get business for Australia's wheat industry.

Apparently, Australian fines for such bribes of public officials in other countries are really low, so the report recommended increasing the fines "30-fold".

Favorite Quote:

"It ( the Australian Government ) also failed to take much action as Iraqis were cheated out of billions of dollars of oil revenue by mismanagement and corruption within the US-led Coalition Provisional Authority."

Below are TWO articles - I have not been able to locate a copy of the report yet, but will upload it here when found.
vj
===========================================
from Australia's Herald Sun:
http://www.news.com.au/heraldsun/story/0,21985,23389172-29277,00.html

AUSTRALIA turned a blind eye to corruption and human rights abuses in Iraq under the US-led occupation, an independent church report says.

The Uniting Church report describes Iraq as a black mark on Australia's mostly good record in combating global corruption.

On top of the AWB oil-for-food bribes paid to the former regime of Saddam Hussein, the document accuses the former coalition government of failing to prevent abuses under the military occupation in which Australia participated.

"The Australian government appears to have largely looked the other way with regard to many human rights abuse in Iraq committed by US-led forces," the report says.

"It also failed to take much action as Iraqis were cheated out of billions of dollars of oil revenue by mismanagement and corruption within the US-led Coalition Provisional Authority."

A US congressional committee concluded that $US12 billion of development money derived from Iraq oil sales went missing under the authority, which was dissolved in 2004.

The Uniting Church report - From Corruption to Good Governance - adds there are no allegations of any corruption relating to Australia's direct aid program to Iraq.

"We have a good record in Australia, perhaps with the blinding exceptions of the Australian Wheat Board scandal and of our involvement with what goes in Iraq and in other parts of the Middle East," Uniting Church president Reverend Gregor Henderson told a launch of the report in Canberra.

"Where there is scant respect for human rights, corruption will flourish."

Report co-author Mark Zimsak said the government still had a chance to redeem itself on the missing Iraq funds.

"Australia could and potentially may in future still make efforts to try and see as much of that money, that part of the money that was stolen through corruption that should be recovered and returned for the benefit of the Iraqi people," Dr Zimsak said.

The report also calls for a 30-fold increase in penalties for Australian companies found guilty of bribing foreign governments and officials.

Such a move would produce fines of more than $300,000.

"Why go to all the trouble of going offshore to find cases of bribery if there's going to be such a minor penalty?" Transparency International executive director Michael Ahrens said of the current fines.

In other recommendations, the church says Australia could do more to address tax havens and evasion.

It could also cancel "odious" debts incurred by loans to dictatorships or corrupt governments.

===================================================
Here is the press release from the Uniting Church, which issued the report at:
http://www.journeyonline.com.au/showArticle.php?categoryId=2

Launch of global corruption report
Journey
Updated : Sunday, 16 March 2008 11:34:24 pm

NATIONAL NEWS
Rich nations benefiting from corruption are making the poor even poorer

The first independent report on global corruption since the election of the Rudd Government says Australia’s foreign policy needs to cut off loop-holes in corruption battle.

The Uniting Church will today present the first major independent report on global corruption to the new government of Australia at Parliament House.

The report, From Corruption to Good Governance, challenges the role of wealthy nations and big business in fostering and benefiting from corruption. It calls on the Rudd Government to ensure that penalties for foreign bribery are adequate enough to deter bribery, to guarantee whistleblower protection for people that expose bribery and support greater global efforts to shut down tax havens.

The President of the Uniting Church in Australia, the Rev Gregor Henderson said “corruption is an issue that hampers global efforts to deal with poverty and it needs efforts from all countries. Sadly, there are wealthy countries that continue to facilitate, reward and benefit from corruption in the developing world at the cost of the lives of those in poverty.”

One of the authors of the report and the Director of the Justice and International Mission Unit at the Synod of Victoria and Tasmania, Dr Mark Zirnsak said “there is a real need for a concerted global effort to shut down tax havens, whose secrecy and trust services provide a secure cover for laundering of proceeds of corruption, fraud, the illicit arms trade, other crime and the funding of terrorism.”

Amanda Johnson, National Coordinator of Micah Challenge Australia said “Stable democracies like Australia are blessed because we have tools to tackle corruption and we have strong media and civil society to highlight best practice and expose mistakes. We can encourage our neighbours who are struggling to cope with development pressures and poverty, to set standards of honesty and fairness too.”

Executive Director of Transparency International Australia, Michael Ahrens said “we strongly endorse the key messages of the report and applaud the impressive degree of research that has gone into covering this important topic. This type of research is vital.”

The report was produced by the Justice and International Mission Unit, Synod of Victoria and Tasmania, Uniting Church in Australia, with assistance from TEAR Australia and the Micah Challenge campaign. It is endorsed by Christian World Service of the National Council of Churches in Australia.

Iraq's Baiji Oil Refinery's Corrupt Officials Siphon Funds out for Terrorists

This is a good, detailed New York Times account of some of the ways that funds are stolen from oil refinery outputs to finance terrorism.

Favorite quote:

Last year, the Pentagon estimated that as much as 70 percent of the Baiji refinery’s production, or $2 billion in fuels like gasoline, kerosene and diesel, disappeared annually into the black market. Baiji supplies eight provinces.

So, why is the US still giving funds to Iraq when they allow such corruption?
vj

=============================================
from the New York Times:
http://www.nytimes.com/2008/03/16/world/middleeast/16insurgent.html?_r=1&bl&ex=1205812800&en=e2c8b398ef89c553&ei=5087&oref=slogin

March 16, 2008
Iraq’s Insurgency Runs on Stolen Oil Profits
By RICHARD A. OPPEL Jr.

BAIJI, Iraq — The Baiji refinery, with its distillation towers rising against the Hamrin Mountains, may be the most important industrial site in the Sunni Arab-dominated regions of Iraq. On a good day, 500 tanker trucks will leave the refinery filled with fuel with a street value of $10 million.

The sea of oil under Iraq is supposed to rebuild the nation, then make it prosper. But at least one-third, and possibly much more, of the fuel from Iraq’s largest refinery here is diverted to the black market, according to American military officials. Tankers are hijacked, drivers are bribed, papers are forged and meters are manipulated — and some of the earnings go to insurgents who are still killing more than 100 Iraqis a week.

“It’s the money pit of the insurgency,” said Capt. Joe Da Silva, who commands several platoons stationed at the refinery.

Five years after the war in Iraq began, the insurgency remains a lethal force. The steady flow of cash is one reason, even as the American troop buildup and the recruitment of former insurgents to American-backed militias have helped push the number of attacks down to 2005 levels.

In fact, money, far more than jihadist ideology, is a crucial motivation for a majority of Sunni insurgents, according to American officers in some Sunni provinces and other military officials in Iraq who have reviewed detainee surveys and other intelligence on the insurgency.

Although many American military officials and politicians — and even the Iraqi public — use the term Al Qaeda as a synonym for the insurgency, some American and Iraqi experts say they believe that the number of committed religious ideologues remains small. They say that insurgent groups raise and spend money autonomously for the most part, with little centralized coordination or direction.

Money from swindles in Iraq and from foreign patrons in places like Saudi Arabia allows a disparate, decentralized collection of insurgent cells to hire recruits and pay for large-scale attacks. But the focus on money is the insurgency’s weakness as well as its strength, and one reason loyalties can be traded. For now, at least 91,000 Iraqis, many of them former enemies of the American forces, receive a regular, American-paid salary for serving in neighborhood militias.

“It has a great deal more to do with the economy than with ideology,” said one senior American military official, who said that studies of detainees in American custody found that about three-quarters were not committed to the jihadist ideology. “The vast majority have nothing to do with the caliphate and the central ideology of Al Qaeda.”

The corruption that drives money to the insurgency is hardly limited to the Baiji refinery, which a reporter visited last month. In Mosul, for example, insurgents have skimmed profits from soda and cement factories, American officers said.

Insurgents in Mosul also make money from kidnapping for ransom and by extorting 5 to 20 percent of the value of contracts local businessmen get from the government, said Khasro Goran, the deputy governor of Nineveh Province.

A military official familiar with studies on the insurgency estimated that half of the insurgency’s money came from outside Iraq, mainly from people in Saudi Arabia, a flow that does not appear to have decreased in recent years.

Iraq’s Black Market

Before the invasion of Iraq, eight gasoline stations dotted the region around Sharqat, an hour north of the refinery at the northern edge of Saddam Hussein’s home province, Salahuddin. Now there are more than 50.

Economic growth? Not exactly. It is one of the more audacious schemes that feed money to the black marketeers. Most tanker trucks intended for Sharqat never make it there. “It’s all a bluff,” said Taha Mahmoud Ahmed, the official who oversees fuel distribution in Salahuddin. “The fuel is not going to the stations. It’s going to the black market.”

Gas stations are often built just to gain the rights to fuel shipments, at subsidized government rates, that can be resold onto the black market at higher prices. New stations cost more than $100,000 to build, but black market profits from six or seven trucks can often cover that cost, and everything after that is profit, said officials who have studied the scheme.

The plan also requires bribing officials in the province and Baghdad, said Col. Mohsen Awad Habib, who is from Sharqat and is now police chief in Siniya, near Baiji. He said owners of bogus gas stations told him they paid $20,000 bribes to an Oil Ministry official in Baghdad to get their paperwork approved. Local and provincial officials then extort their own cut. “In each station you’ll find high Iraqi officials who have shares,” he said.

In Baiji, dozens of active insurgent groups feed off corruption from the refinery, said Lt. Ali Shakir, the commander of the paramilitary Iraqi police unit here. “If I give you all the names, your hand is going to be tired” from writing them down, he said.

Lieutenant Shakir said the more hard-core insurgent groups had a lot of money to pay other fighters, and he grumbled that part of the reason they thrived was that obvious thievery was never prosecuted.

Another scheme, he said, involves a trucking company owned by a man tied to the insurgency who is also a relative of Baiji’s mayor. The trucks take fuel from the refinery but are then unloaded just south of Tikrit. Making arrests would be a waste of time, he said, because provincial officials would let the perpetrators go.

“What can I do?” he said. “After a half hour, they would be released.”

Last year, the Pentagon estimated that as much as 70 percent of the Baiji refinery’s production, or $2 billion in fuels like gasoline, kerosene and diesel, disappeared annually into the black market. Baiji supplies eight provinces.

Some of the most obvious corruption and theft, like tanker trucks hijacked at gunpoint from distribution pumps, has been curbed by Captain Da Silva and his predecessors. The American troops live inside the compound.

Moreover, American officials say they believe that in recent weeks, some illicit profits flowing from the refinery have diminished. The refinery has been operating at almost full capacity, they say, pouring more fuel on the market and narrowing the spread between government-mandated rates for fuel and what it fetches on the black market.

Exploiting that spread is one key to illicit profits from the refinery. For example, in January a tanker filled with kerosene that was supposed to be worth about $10,000 was going for $19,000 in Baiji, according to surveys of black market prices for the American military. In Samarra, it cost $35,000, a result of what soldiers described as the former mayor’s efforts to manipulate fuel prices.

Most theft occurs outside the refinery, but fraud still abounds inside, too. At one refinery office, a broken control-room machine has a hole where an object has been jammed through the glass to stop a dial from turning. Most everything is recorded using paper, and tubes of correction fluid sit on the desks of clerks overseeing the flow of fuel. It is regularly used to cover up huge discrepancies in production and distribution tallies that soldiers say can only be explained by theft.

“We’d all be hanged” if the refinery had operated this way under Mr. Hussein’s government, one senior refinery official confided to American soldiers.

Refinery workers plead for jobs dispensing fuel, offering to work for no pay. Far more money can be made conspiring with tanker truck drivers to skim gas from the pumps, a job some soldiers liken to being a valet parking attendant at a Las Vegas casino.

The Flow of Illicit Profits

American and Iraqi officials struggle to say exactly how much the insurgency reaps from its domestic financing activities. In the past, Iraqi officials have estimated that insurgents receive as much as half of all profits attributable to oil smuggling. And before the troop buildup began a year ago, an American report estimated that insurgents generated as much as $200 million a year.

Nor is the skimming limited to the insurgency; illicit earnings from the Baiji refinery also flow to criminal gangs, tribes, the Iraqi police, local council members and provincial officials who also smuggle fuel, Iraqi officials say.

Barham Salih, the Iraqi deputy prime minister, said he believed that the pool of money available to insurgents across Iraq had fallen in the past year, but he declined to provide an estimate himself. He said Iraqi security analysts estimated that Al Qaeda in Mesopotamia received $50,000 to $100,000 per day from swindles related to the Baiji refinery. “It’s a serious problem,” he said.

Those amounts are significant given the hard realities of Iraq, especially in Sunni areas where unemployment and discontent with the Shiite-run government run high. Men can be hired to hide roadside bombs for $100, officers say. And while American troops have captured stockpiles of artillery shells from Mr. Hussein’s days, insurgents have adapted, building bombs from cheap materials like fertilizer and cocoa.

The insurgents appear to understand how valuable the Baiji refinery is to their operations. “They have not attacked the oil refinery, because they don’t want to damage their cash cow,” said First Lt. Trent Teague, who commands the Third Platoon in Captain Da Silva’s unit, the headquarters company of the First Battalion, 327th Infantry.

Instead, when the insurgents want to send an angry message to someone at the refinery, they attack neighborhoods where oil workers live. Two suicide bombings in these Baiji neighborhoods in December killed at least 30 people and wounded more than 100. “It was the refinery being hit, without it being hit,” Lieutenant Teague said.

But the insurgents do have agents inside, and some are the very people who are supposed to thwart graft and the insurgents’ influence. In February, American troops detained Ghalib Ali Hamid, the intelligence and internal affairs chief of the Oil Protection Force at the refinery, on suspicion of skimming fuel profits and having ties to insurgents.

Among other things, officers said Mr. Hamid had issued a stern warning to one of his superiors at the refinery: “If you’re going to work here, you’ve got to be friends with the Islamic State of Iraq,” a reference to an insurgent group with ties to Al Qaeda in Mesopotamia.

Last year, a new Iraqi Army brigade commander, Col. Yaseen Taha Rajeeb, was assigned to the refinery. He helped stop some of the most blatant theft. But the colonel’s paychecks were stopped soon after he began cracking down, and he was fired this year.

While black market fuel prices and profit margins have dropped recently, they could rise again, especially if refinery production falls off.

Capt. Stephen Wright, who works at the refinery with Captain Da Silva, is concerned about whether there may be unseen problems looming, like the sort of fatigue that ruptured a propane unit in January. “If something happens to this refinery from neglect, you won’t have fuel for eight provinces,” he said, “and we’ll have 6,000 unemployed Sunnis, who are people we definitely don’t want unemployed.”

The money feeds an insurgency that is constantly adapting, and information about its exact composition and organization has continued to elude the Americans.

The Motivations of Insurgents

Some American officials and politicians maintain that Sunni insurgents have deep ties with Qaeda networks loyal to Osama bin Laden in other countries. Al Qaeda in Mesopotamia, whose members are mainly Iraqi but whose leadership has been described by American commanders as largely foreign, remains a well-financed and virulent force that carries out large-scale attacks.

But there are officers in the American military who openly question how much a role jihadism plays in the minds of most people who carry out attacks. As the American occupation has worn on and unemployment has remained high, these officers say the overwhelming motivation of insurgents is the need to earn a paycheck.

Nor do American officers say they believe that insurgent attacks are centrally coordinated. “As far as networked coordination of attacks, we are not seeing that,” said a military official familiar with studies on the insurgency.

Opposition to the occupation and fear of the Shiite- and Kurdish-dominated government and security forces “clearly are important factors in the insurgency,” the official said. “But they are being rivaled by the economic factor, the deprivation that exists.”

Maj. Kelly Kendrick, operations officer for the First Brigade Combat Team of the 101st Airborne Division in Salahuddin, estimates that there are no more than 50 hard-core “Al Qaeda” fighters in Salahuddin, a province of 1.3 million people that includes Baiji and the Sunni cities of Samarra and Tikrit.

He said most fighters were seduced not by dreams of a life following Mr. bin Laden, but by a simpler pitch: “Here’s $100; go plant this I.E.D.”

“Ninety percent of the guys out here who do attacks are just people who want to feed their families,” Major Kendrick said.

The First Brigade’s commander, Col. Scott McBride, concurs. “I don’t know that I’ve ever heard one person say, ‘I believe in a caliphate,’ ” he said.

Abu Azzam, a prominent leader of American-backed Sunni militiamen in Nasr Wa Salam, between Baghdad and Falluja, estimated that only 10 percent of Al Qaeda in Mesopotamia’s members adhered to extremist jihadist doctrines.

“Many joined Qaeda for financial and personal reasons,” said Abu Azzam, whose militia includes former insurgents. “The others joined Qaeda because they hate the government, or they hate the American army, or for revenge.”

The focus on Al Qaeda in Mesopotamia obscures the activities of other major guerrilla groups in the country. Some, like Jaish-e-Muhammad, or the Army of Muhammad, which includes ex-Baathists and former military officers, continue to battle American forces. Some American officers consider another organization, the Islamic State of Iraq, to be a front group for Al Qaeda in Mesopotamia.

But some members of other groups, including the 1920s Revolutionary Brigades and Jaish al-Islami, or the Islamic Army, have agreed to support American-financed Sunni militia forces.

Paying former insurgents to stop attacking American forces and join neighborhood militia forces has played a crucial role in turning around security in many Sunni parts of Iraq. But American officers worry that the failure to incorporate these Sunni militiamen into the government of Iraq or find them other jobs could portend trouble.

“There’s got to be an outlet,” the senior military official said, referring to a job and salary not related to the insurgency. “Without that outlet, a lot of guys will gravitate back. They are not going to starve their families. You have got to do what you have got to do to survive.”

Reporting was contributed by Michael R. Gordon, Solomon Moore and Anwar J. Ali from Baghdad, and Iraqi employees of The New York Times from Salahuddin, Falluja, and Diyala.

2005 Article about US Contractor Killing and Why

Here is a June, 2005 article by Aram Roston, about the life of a US arms & repair contractor and how the Iraqi corruption system got to him, resulting in his death. It described a typical ploy where a contractor wished to sell items or services in Iraq and sets up a contract with an Iraqi organization or Ministry, and they demand that payments will be routed through a third party with bank accounts in another country. When I was there in 2005, the same process existed for the Ministry of Health, where drug purchases by the Iraqi hospital system had to be paid for through third party firms. Doing so allows the Ministry to pay all the funds to the "escrow" agent (assumed to be a co-consirator) and they keep a percent or all the funds to be routed outside the country which are siphoned off for corrupt officials. The naive contractor, who signed the paperwork agreeing to accept funds that way, is out of luck.
vj

===================================
from Washingtonmonthly.com at:
http://www.washingtonmonthly.com/features/2005/0506.roston.html

June 2005

The Unquiet American
U.S.-Iraq policy and the murder of a whistle-blowing contractor.

By Aram Roston

The sun sets early in Iraq in December. So, it would have been approaching dusk--calm and eerie--when Dale Stoffel climbed into the passenger seat of his black BMW station wagon at Taji military base outside of Baghdad. He would have held his dull, black Heckler & Koch MP-5 submachine gun tight to his body, the way he always did. The trip back to Baghdad was just 15 miles, but it led through what had become, by December 2004, some of the most dangerous terrain in the world--the Sunni suburbs of Baghdad.

At 43 years old, Stoffel, an American businessman and arms dealer, sported a goatee that gave his grin a mischievous appearance. He probably would have been grinning that day. After all, he believed he had just rescued the biggest business deal of his tumultuous career, one that he thought would not only make him millions but would also help to arm the Iraqi military against the insurgents. It was a deal he believed in with all his heart.

Everyone has heard stories of selfless idealists killed in Iraq. Stoffel was not one of those and probably would not have wanted to be seen that way. He was a self-professed man of action, one who was proudly and openly in Iraq to make a fortune. Still, he supported the war and the promise of a new Middle East and was a solid Republican, an enthusiastic backer of George W. Bush, and a donor to the president's campaigns.

There had been obstacles in Stoffel's way: distractions, false starts, broken promises. There had been encounters with con men, hucksters, and thugs. Stoffel--who'd come to Iraq on the strength of his connections with a circle of Washington lobbyists associated with the invasion's eminence grise, Ahmed Chalabi--had recently accused the Iraqi government and American employees of U.S. military contractors of corruption in a massive deal involving military equipment. But he believed his friends in Washington had sorted it all out and that he was going to be paid the millions of dollars he felt he was owed. An Army colonel who saw him that day said he appeared "pleased."

Two days later, Stoffel's car was discovered in a grim neighborhood along the Tigris. The hood was crumpled like a paper bag, the windshield a haze of cracks. The dashboard was covered with blood. Stoffel had been shot repeatedly in the head and upper back. His friend and employee, Joe Wemple, had been shot once through the head.

A mysterious insurgent group has claimed credit for Stoffel's killing; another terrorist group celebrated the murder and called him an American spy. His friends, though, aren't convinced that this was just another act of violence by militants in Iraq, and neither, apparently, is the FBI, which is now investigating his death. In the chaos of Iraq, it's likely that no one will ever know for sure why Dale Stoffel was murdered.

What does become clear, from dozens of interviews with people who knew Stoffel and from documents that detail his work, is that Dale Stoffel's life--and death--was a version, in miniature, of the American occupation itself. His personality, with its mix of idealism, ideology, and self-interest, mirrored those of the senior administration staff and young officials who manned the American headquarters in Iraq. Stoffel and these administration officials shared a belief that they were clever enough, tough enough, and committed enough to impose their will on a dangerous land through the use of key Iraqi insiders. But, in the end, their Iraqi friends used them.

Legit side of a shady world

I had known Stoffel for four years, and I liked him. We had first met in 2000 over a Scotch and a rockfish dinner at the Landini Brothers restaurant in the Old Town section of Alexandria, Va., a self-consciously quaint shopping district across the Potomac River from D.C. where the elite of the defense contracting world meet after work. Stoffel was smoking Cuban cigars with gusto, practically smacking his lips each time he took a puff. He told good stories--of dinners with defense attachés, of drinking a $1,000 bottle of '61 Lafite Rothschild with a drunken Russian oligarch in Monte Carlo. He was loud and brash and seemed to think himself as a man's man, adventuresome and self-reliant. Stoffel liked to mimic hip-hop lingo; he called me "homeboy." But he also had a subtle intelligence and a chameleon-like ability to shape his personality to his audience and situation.

He must have picked up his swagger somewhere because "he sure wasn't like that in high school," a long-time friend of his told me. Stoffel was raised in suburban Washington, where he became an Eagle Scout, and then in Pittsburgh, where his family moved while he was in high school. Mr. Rogers broadcast his show from the Pittsburgh PBS station where Stoffel's father worked as a technician. His mother was a homemaker.

At 19, Stoffel joined the National Guard, less out of any interest in soldiering, relatives said, than to get money for college. His military records show that he was a heavy weapons specialist with a penchant for complex hardware: His military courses included advanced radar, electronic warfare, and electronic intelligence. Later, shortly after he graduated from Washington & Jefferson College in Pennsylvania with degrees in mathematics and physics, Stoffel was recruited (on the strength of his undergraduate work) to be a civilian analyst in the Office of Naval Intelligence (ONI) in Suitland, Md., studying missile technologies. By his colleagues' accounts, he was very good at his job. In 1987, two years into his tenure at ONI, close associates of Stoffel's remembered, the USS Stark was hit in the Persian Gulf by an Iraqi missile, nearly sinking the ship and killing 37 sailors. Stoffel was a junior member on the team flown to the Middle East to figure out what had happened, but when he studied the missile parts embedded in the wreckage, his associates recalled he discovered that the original Navy assessment, that a lone missile had struck the ship, was wrong. He showed his superiors that parts of two different missiles had stuck into the vessel's metal plates, making it harder for Iraqis to argue that the weapons had been fired accidentally.

Stoffel was also, early on, publicly intolerant of dishonesty, associates of his remember: His first year at ONI, his coworker Jonathan Pollard was arrested for spying on Israel's behalf. Stoffel despised Pollard and told friends and associates for years afterwards that Pollard had been unprincipled, a money-grubber who claimed heartfelt allegiance to Israel only as a way out of trouble.

Civil service money may not have been good enough for Pollard, and, in the long run, it wasn't good enough for Stoffel either. Stoffel left government work in 1989 and joined the staff of a series of defense and intelligence contractors, developing a unique specialty: buying up missiles and other weapons produced in the former Communist bloc countries on contracts for the Pentagon and U.S. intelligence agencies who wanted to analyze them. This work--on the legit side of a shady world--introduced him to a circle of adventuresome arms dealers based in Austria. According to his associates, Stoffel simply loved the swashbuckling, high-living lifestyle. "Dale always thought he was going to be someone big, and important," a close relative said, "but he wasn't one to plan more than a few months in advance. It wasn't as if he planned to be an adventurer; he more or less fell into this line of work. But he loved it; he realized that it suited him." By 1995, Stoffel had become successful enough to start his own company, Miltex, specializing in the same kinds of contracts.

Miltex had a brush with scandal in 1999 when its name appeared in a Human Rights Watch investigation into the arms trade in connection with a missile shipment seized in Bulgaria and presumed to be destined for Africa. Stoffel suggested that other arms dealers might have simply stolen his company's name for use on some documents related to the illegal weapons sale, which happens not infrequently in the shadowy world of arms dealing. Human Rights Watch's report mentioned Stoffel's explanation without assessing it.

In response to the incident, Stoffel dropped that company name and adopted a new corporate name, Wye Oak Technology, using the same small staff (usually fewer than five employees) and doing the same kind of work. But that work itself was getting tougher. Federal court records show that, in March 2001, Boeing's McDonnell Douglas subsidiary contracted to pay Wye Oak $11.5 million to obtain 32 Russian supersonic, sea-skimming missiles primarily for the Navy. Stoffel negotiated with Czech, Russian, Hungarian, and Ukrainian officials, all of whom were happy to earn American cash for their stockpiles, as if he were a shopper choosing between Best Buy, Circuit City, and the Wiz. But he could only deliver fewer than one-sixth the number of missiles he'd promised, and Boeing sued him to recover the $6 million it had advanced to him so that he could procure more missiles. Stoffel claimed that McDonnell Douglas had made his job impossible by agreeing to contracts with several other arms dealers for the same missiles, allowing the Eastern European officials who possessed the weapons to jack up prices beyond what Stoffel could pay; Boeing said it was allowed to do this under the terms of their contract with Wye Oak. The settlement is sealed, but Stoffel's associates maintain that he had already spent the $6 million and did not return it to Boeing.

By then, though, pro-Western governments had taken over much of Eastern Europe, shutting down the weapons bazaar that had flourished throughout the 1990s, and Stoffel was looking to get out of this particular line of work. "The business in this country of buying foreign materiel has kind of dropped off," says one international arms consultant who was a friend of Stoffel's. "[The United States government] can go [directly] to Romania or Poland to get this stuff," and no longer needed middlemen like Stoffel to cut deals for it. In 2002, Stoffel moved back to Pennsylvania with his second wife. He was looking for a new start. And in the wake of the Iraq invasion, he thought he'd found it.

Lawyers, guns, and money

From the beginning, the U.S. occupation of Iraq was dramatically--and consciously--different than any other post-Cold War nation-building effort. In Bosnia and Kosovo, the U.S. military had come in with substantial numbers of troops and then quickly handed authority over most civilian matters to the United Nations, the State Department, and non-governmental organizations (NGOs) such as the Red Cross.

But rather than follow previous experience and use experienced personnel, the Bush administration decided to do things differently. It chose to invade Iraq with a fraction of the troops that many senior military leaders thought necessary. It kept the United Nations, the State Department, and the NGOs on the periphery, both in the planning process and in the administration of the country. In their place, it created the Coalition Provisional Authority (CPA), an ad hoc agency set up in the "Green Zone"--the heavily fortified American sector of Baghdad--and headquartered in Saddam's former palaces. It staffed the CPA with personnel drawn from the ranks of D.C. think tanks, law firms, and political appointees, many with more loyalty to the president than experience in the field.

The CPA's plan, to the extent that it had one, was to remake Iraqi society from the ground up. It would use free-market ideas as a guide, Iraqi exiles as political proxies, oil revenues for funding, and American contractors to carry out the rebuilding. During previous occupations, the U.N. headquarters in New York and the State Department's D.C. offices had served as the clearinghouses for plans and personnel. For Iraq, however, the nerve centers were Donald Rumsfeld's Pentagon and the politically connected law firms and lobbyists on K Street.

Dale Stoffel quickly came to understand all of this, and, in April of 2003, after the United States invaded Iraq, Stoffel retained the lobbying powerhouse BKSH, the firm headed by the influential Republican lobbyist Charles Black, to provide "assistance in defense contract procurement," for Wye Oak.

Stoffel hired the firm to drum up business stateside. With a newborn fourth child, he wasn't looking for work making risky trips overseas. But BKSH had a special interest in Iraq. The firm was a key member of the coterie of talking heads, lobbyists, and politicians pushing for war in Iraq that centered around Ahmed Chalabi's Iraqi National Congress (INC), the anti-Saddam exile group, which was itself a BKSH client. (The lobbying firm provided the exiles with lobbying and media services; its staffers acted as the INC's spokesmen, brokered meetings and deals with Washington insiders, and arranged Chalabi's trips to the United States.)

In January 2004, a leading BKSH lobbyist named Riva Levinson made a pitch to Stoffel. She told him that the lobbying firm could get Stoffel into Iraq using its own connections on the ground, according to someone who attended the meeting; Stoffel, who had worked in the Middle East before but spoke no Arabic, took her up on the idea and was on a plane to Iraq in a matter of weeks.

There was an associate of the INC waiting for Stoffel in Iraq, too--a woman named Margaret "Peg" Bartel, whom he paid to serve as his liaison to the Iraqi business community. (BKSH had a referral arrangement with Bartel, who set him up in Iraq with living quarters, office space, and security.) Bartel was an integral player in Iraqi exile circles; she had helped the INC defend its sometimes questionable bookkeeping in State Department audits and had also assisted in structuring payments the Pentagon made to the INC once war broke out. In Iraq, Bartel introduced Stoffel to the Chalabis, helped him and his associates hunt for business, and set them up in quarters in the Chalabi compound. Chalabi and his INC militia had seized several properties in the posh Baghdad suburb of Monso