mad in pursuit: greed & arrogance

2004 political season

mad in pursuit home

greed & arrogance index

contact

4.21.04 Apparently Cronies Rule the World

Ah, now we get to the really juicy story. While the right-wingers pounce on the U.N. for corruption in the Oil-for-Food program, a similar tale of corruption is unfolding within their beloved administration. Marketplace is producing an interesting radio series on "The Spoils of War."

...not all of the $22 billion being spent to rebuild Iraq is going where it should. Who's watching the money as it streams through Baghdad? Just about no one, and bribes and black marketeering are rampant, witnesses say. A leading anti-corruption group claims as much as 90 percent [should read 20%] of U.S. money spent in Iraq is being lost to corruption. From Halliburton subsidiaries charging double for gas, Iraqi officials and Arabic translators unrestrained from pocketing millions of dollars, or even members of the interim governing Council accusing each other of taking tens of millions in bribes. Trouble is, the root of the problem can't be found anywhere near the Green Zone. Try the White House, and Capitol Hill, where oversight of Iraqi construction crews and U.S. contractors like Halliburton has only just begun to be assigned… more than a year after the war began.

Why is it that the Bush people don't have a problem with Halliburton charging twice as much for gasoline as the government's own Defense Energy Support Center? Is "privatization" just another word for cronyism?

Iraqi leadership is thoroughly corrupt. Saddam & Sons were only the strongest of the strongmen. Jason Vest has written a troubling article based on a memo by a staffer at the Coalition Provisional Authority.

Fanning the embers of distrust is the U.S.'s failure to acknowledge that the constituencies of key Governing Council members "are not based on ideology, but rather on the muscle of their respective personal militias and the patronage which we allow them to bestow," according to the memo's author.

Using the Kurds as an example, he reveals that "we have bestowed approximately $600 million upon the Kurdish leadership, in addition to the salaries we pay, in addition to the U.S. AID projects, in addition to the taxes which we have allowed them to collect illegally."

We lament Iraqi cronyism while Bush administration cronies at Halliburton are under criminal investigation for robbing U.S. taxpayers. Looks like Bechtel cronies might also be in for some scrutiny. In the same article, Vest says:

...the steam turbines at Iraq's Najibiya power plant have been dormant since last fall. As Yaruub Jasim, the plant's manager, explained, "Normally we have power 23 hours a day. We should have done maintenance on these turbines in October, but we had no spare parts and money." And why not? According to Jasim, the necessary replacement parts were supposed to come from Bechtel, but they hadn't arrived yet--in part because Bechtel's priority was a months-long independent examination of power plants with an eye towards total reconstruction. And while parts could have been cheaply and quickly obtained from Russian, German, or French contractors--the contractors who built most of Iraq's power stations--"unfortunately," Jasim told Chatterjee and Docena, "Mr. Bush prevented the French, Russian and German companies from [getting contracts in] Iraq."

I'm suspecting Bechtel is angling for that "total reconstruction" contract.

 

 

 

 

 

Thumbs Up if you liked this entry