Why Can't We Just Report the Good News: Too Much Bad News

Can anyone doubt how much war-profiteering and corruption has and will continue to go on by Iraqis and Americans. "Fighting for a noble cause" my ass.

Audit: Iraq fraud drained $1 billion
By Hannah Allam
Knight Ridder Newspapers

BAGHDAD, Iraq - Iraqi investigators have uncovered widespread fraud and waste in more than $1 billion worth of weapons deals arranged by middlemen who reneged or took huge kickbacks on contracts to arm Iraq's fledgling military, according to a confidential report and interviews with U.S. and Iraqi officials.
Among the findings:


-Multimillion-dollar contracts were awarded to favored weapons suppliers without a bidding process and without the required approval from the prime minister's office. Investigators wrote that the chief procurer went "beyond his authority" in purchasing equipment.


-Senior Iraqi officials kept little or no record of major purchases, sometimes noting lucrative deals in "undated and unnumbered" memos. Nearly all purchases contained a clause - unusual in international contracting of this magnitude - that required the contract's full value to be paid up front in cash.


-Instead of buying directly from a foreign company or government, Iraqi arms procurers hired third-party companies to negotiate the contracts. When Iraqi leaders later complained about unfulfilled contracts, they discovered they had no recourse to demand a refund because the payments were made to Iraqi middlemen who vanished after receiving the millions. "The undertakings make no obligation ... toward the Iraqi Ministry of Defense," according to the report.


-The sole beneficiary on 43 of the 89 contracts was a former currency-exchange operator, Nair Mohamed al-Jumaili, whose name doesn't even appear on the contracts. At least $759 million in Iraqi money was deposited into his personal account at a bank in Baghdad, according to the report. Internal records incorrectly "indicated that the Ministry of Defense signed contracts with Poland, Arab countries, the United States and Europe, but we discovered that all contracts were signed and executed with Iraqi suppliers," the report said.


The contracts under scrutiny total $1.27 billion, nearly equal to the estimated $1.3 billion allocated for the Defense Ministry's budget this year. The money came solely from Iraqi coffers, not from the training budget of the U.S. military or from NATO and foreign donations to Iraq's military.
"There's no rebuilding, no weapons, nothing," said retired Iraqi Lt. Gen. Abdul Aziz al-Yaseri, who worked in the Defense Ministry at the height of the alleged corruption. "There are no real contracts, even. They just signed papers and took the money."


Lt. Gen. David H. Petraeus, who oversees the U.S. military's training of Iraqi troops, conducts weekly briefings with the defense minister. Other Iraqi defense officials seldom are spotted without American civilian advisers nearby. The close relationship has raised questions as to how $500 million or more could vanish without U.S. intervention to stop the suspicious contracts that flowed for at least eight months.


"Ask them. I have the same question," al-Dulaimi said. "I blame those who posted them (the officials under investigation). And, by the way, the CPA posted them."


He was referring to the Coalition Provisional Authority, the occupation-era administration that American Ambassador L. Paul Bremer oversaw. Al-Dulaimi, other Iraqi politicians and some U.S. military officials blamed the CPA for forcing the Defense Ministry to hire previously unknown Iraqi officials, especially former exiles, without consulting Iraqi leaders.