“I have been charged with defeating Democrats,” DeLay said. “I have been charged for advocating constitutional representation.”
“I will fight this prosecutor’s abuse of the legal system,” DeLay said, “and I will be absolutely exonerated.”
“Grand jury shopping and make-up-the-law-as-you-go justice by the district attorney will not rule the day,” DeLay said, “the facts and the law will rule the day.”
DeGuerin noted that Judge Perkins had donated money to Move On . Org which has been tee shirts with Delay's mug shot across the front.
He said as far as he could recall, he hadn't donated to the organization since before the 2004 election, "when they were helping John Kerry get elected.
He said as far as he could recall, he hadn't donated to the organization since before the 2004 election, "when they were helping John Kerry get elected.
Tony Snow today on the radio stated that he had read all the charges against Delay: "There is no crime"
He then played, "Don't Worry Be Happy!"
posted by Michele @ 11:15 AM
14 Comments:
Even more...
October 21, 2005
Cover-Up Issue Is Seen as Focus in Leak Inquiry
By DAVID JOHNSTON
WASHINGTON, Oct. 20 - As he weighs whether to bring criminal charges in the C.I.A. leak case, Patrick J. Fitzgerald, the special counsel, is focusing on whether Karl Rove, the senior White House adviser, and I. Lewis Libby Jr., chief of staff for Vice President Dick Cheney, sought to conceal their actions and mislead prosecutors, lawyers involved in the case said Thursday.
Among the charges that Mr. Fitzgerald is considering are perjury, obstruction of justice and false statement - counts that suggest the prosecutor may believe the evidence presented in a 22-month grand jury inquiry shows that the two White House aides sought to cover up their actions, the lawyers said.
Mr. Rove and Mr. Libby have been advised that they may be in serious legal jeopardy, the lawyers said, but only this week has Mr. Fitzgerald begun to narrow the possible charges. The prosecutor has said he will not make up his mind about any charges until next week, government officials say.
With the term of the grand jury expiring in one week, though, some lawyers in the case said they were persuaded that Mr. Fitzgerald had all but made up his mind to seek indictments. None of the lawyers would speak on the record, citing the prosecutor's requests not to talk about the case.
Associates of Mr. Rove and Mr. Libby continued to express hope that the prosecutor would conclude that the evidence was too fragmentary and that it would be difficult to prove Mr. Rove or Mr. Libby had a clear-cut intention to misinform the grand jury. Lawyers for the two men declined to comment on their legal status.
The case has cast a cloud over the White House, as has the Congressional criticism over the Supreme Court nomination of Harriet E. Miers. On Thursday, responding to a reporter's question, Mr. Bush said: "There's some background noise here, a lot of chatter, a lot of speculation and opining. But the American people expect me to do my job, and I'm going to."
The possible violations under consideration by Mr. Fitzgerald are peripheral to the issue he was appointed in December 2003 to investigate: whether anyone in the administration broke a federal law that makes it a crime, under certain circumstances, to reveal the identity of a covert intelligence officer.
But Mr. Rove and Mr. Libby may not be the only people at risk. There may be others in the government who could be charged for violations of the disclosure law or of other statutes, like the espionage act, which makes it a crime to transmit classified information to people not authorized to receive it.
It is still not publicly known who first told the columnist Robert D. Novak the identity of the C.I.A. officer, Valerie Wilson. Mr. Novak identified her in a column on July 14, 2003, using her maiden name, Valerie Plame. Mr. Fitzgerald knows the identity of this source, a person who is not believed to work at the White House, the lawyers said.
The accounts given by Mr. Rove and Mr. Libby about their conversations with reporters have been under investigation almost from the start. According to lawyers in the case, the prosecutor has examined how each man learned of Ms. Wilson, and questioned them in grand jury appearances about their conversations with reporters, how they learned Ms. Wilson's name and her C.I.A. employment and whether the discussions were part of an effort to undermine the credibility of her husband, a former ambassador, Joseph C. Wilson IV.
Mr. Wilson had become an irritant to the administration in the late spring and early summer of 2003 even before he went public as a critic of the war in Iraq by writing a July 6, 2003 Op-Ed article in The New York Times.
In that article he wrote that he had traveled to Africa in 2002 to explore the accuracy of intelligence reports that suggested Iraq might have tried to purchase uranium ore from Niger. Mr. Wilson said that he had been sent on the trip by the C.I.A. after Mr. Cheney's office raised questions about one such report, but that he found it unlikely that any sale had taken place.
In Mr. Rove's case, the prosecutor appears to have focused on two conversations with reporters. The first was a July 9, 2003, discussion with Mr. Novak in which, Mr. Rove has said, he first heard Ms. Wilson's name. The second conversation took place on July 11, 2003 with a Time magazine reporter, Matthew Cooper, who later wrote that Mr. Rove had not named Ms. Wilson but had told him that she worked at the C.I.A. and that she had been responsible for her husband being sent to Africa.
Mr. Rove did not tell the grand jury about his phone conversation with Mr. Cooper until months into the leak investigation, long after he had testified about his conversation with Mr. Novak, the lawyers said. Later, Mr. Rove said he had not recalled the conversation with Mr. Cooper until the discovery of an e-mail message about it that he sent to Stephen J. Hadley, then the deputy national security adviser. But Mr. Fitzgerald has remained skeptical about the omission, the lawyers said.
In Mr. Libby's case, Mr. Fitzgerald has focused on his statements about how he first learned of Ms. Wilson's identity, the lawyers said. Mr. Libby has said that he learned of Ms. Wilson from reporters. But Mr. Fitzgerald may have doubts about his account because the journalists who have been publicly identified as having talked to Mr. Libby have said that they did not provide the name, that they could not recall what had been said or that they had discussed unrelated subjects.
and again...
October 21, 2005
Former Powell Aide Says Bush Policy Is Run by 'Cabal'
By BRIAN KNOWLTON
WASHINGTON, Oct. 20 - Secretary of State Colin Powell's former chief of staff has offered a remarkably blunt criticism of the administration he served, saying that foreign policy had been usurped by a "Cheney-Rumsfeld cabal," and that President Bush has made the country more vulnerable, not less, to future crises.
The comments came in a speech Wednesday by Lawrence Wilkerson, who worked for Mr. Powell at the State Department from 2001 to early 2005. Speaking to the New America Foundation, an independent public-policy institute in Washington, Mr. Wilkerson suggested that secrecy, arrogance and internal feuding had taken a heavy toll in the Bush administration, skewing its policies and undercutting its ability to handle crises.
"I would say that we have courted disaster, in Iraq, in North Korea, in Iran, generally with regard to domestic crises like Katrina, Rita - and I could go on back," he said. "We haven't done very well on anything like that in a long time."
Mr. Wilkerson suggested that the dysfunction within the administration was so grave that "if something comes along that is truly serious, truly serious, something like a nuclear weapon going off in a major American city, or something like a major pandemic, you are going to see the ineptitude of this government in a way that will take you back to the Declaration of Independence."
Mr. Wilkerson, a retired Army colonel and former director of the Marine Corps War College, said that in his years in or close to government, he had seen its national security apparatus twisted in many ways. But what he saw in Mr. Bush's first term "was a case that I have never seen in my studies of aberration, bastardizations" and "perturbations."
"What I saw was a cabal between the vice president of the United States, Richard Cheney, and the secretary of defense, Donald Rumsfeld, on critical issues," he said.
The former aide referred to Mr. Bush as someone who "is not versed in international relations, and not too much interested in them, either." He was far more admiring of the president's father, whom he called "one of the finest presidents we've ever had."
Mr. Wilkerson has long been considered a close confidant of Mr. Powell, but their relationship has apparently grown strained at times - including over the question of unconventional weapons in Iraq - and the former colonel said Mr. Powell did not approve of his latest public criticisms.
Mr.,and I use that title loosely,Wilson lied to Congress. If Karl Rove and or Lewis Libby Jr., broke the law they should be found guilty and serve their punishment. The same is true for Rep.Tom DeLay(Rep. TX).
We KNOW that Mr. Wilson and his wife have lied about their involvement before and after the 2004 election. We know that the CIA was leaking information before the election to undermine the reelection of President Bush.
Mr. Wilson and his wife can not remember: what who said what to whom now. And that's OK - anonymous understands.
Judith Miller has "Flame" in her notes on page with interviews.She can't remember who actually gave her the name. And that's OK - anonymous understands.
After all these nonpartisan lawsuits are brought forth and the followup lawsuits are filled against those who lied - will the MSM and anonymous understand? We think not.
I say let the games begin...... :)
Don't worry be happy!
I'd be a little skeptical though, Mads.
If liberal judges can find non-existent things like a right to murder children and a right for the government to disarm the populace, who's to say this liberal judge can't find a little guilt for Tom DeLay?
RWR
this is true
Why are Republicans always persecuted when we clearly walk alone in the Lord's light? Doesn't He see that we are always right, regardless of far from His message we stray to get the job done?
I have to go feed my high horse now, but I'll be back later.
How Scary Is This?
By BOB HERBERT
The White House is sweating out the possibility that one or more top officials will soon be indicted on criminal charges. But the Bush administration is immune to prosecution for its greatest offense - its colossal and profoundly tragic incompetence.
Lawrence Wilkerson, a retired Army colonel who served as chief of staff to Secretary of State Colin Powell, addressed the administration's arrogance and ineptitude in a talk last week that was astonishingly candid by Washington standards.
"We have courted disaster in Iraq, in North Korea, in Iran," said Mr. Wilkerson. "Generally, with regard to domestic crises like Katrina, Rita ... we haven't done very well on anything like that in a long time. And if something comes along that is truly serious, something like a nuclear weapon going off in a major American city, or something like a major pandemic, you are going to see the ineptitude of this government in a way that will take you back to the Declaration of Independence."
The investigation of Karl Rove, Scooter Libby et al. is the most sensational story coming out of Washington at the moment. But the story with the gravest implications for the U.S. and the world is the overall dysfunction of the Bush regime. This is a bomb going "Tick, tick, tick . . ." What is the next disaster that this crowd will be unprepared to cope with? Or the next lunatic idea that will spring from its ideological bag of tricks?
Mr. Wilkerson gave his talk before an audience at the New America Foundation, an independent public policy institute. On the all-important matter of national security, which many voters had seen as the strength of the administration, Mr. Wilkerson said:
"The case that I saw for four-plus years was a case that I have never seen in my studies of aberrations, bastardizations, perturbations, changes to the national security decision-making process. What I saw was a cabal between the vice president of the United States, Richard Cheney, and the secretary of defense, Donald Rumsfeld, on critical issues that made decisions that the bureaucracy did not know were being made."
When the time came to implement the decisions, said Mr. Wilkerson, they were "presented in such a disjointed, incredible way that the bureaucracy often didn't know what it was doing as it moved to carry them out."
Where was the president? According to Mr. Wilkerson, "You've got this collegiality there between the secretary of defense and the vice president, and you've got a president who is not versed in international relations and not too much interested in them either."
One of the consequences of this dysfunction, as I have noted many times, is the unending parade of dead or badly wounded men and women returning to the U.S. from the war in Iraq - a war that the administration foolishly launched but now does not know how to win or end.
Mr. Wilkerson was especially critical of the excessive secrecy that surrounded so many of the most important decisions by the Bush administration, and of what he felt was a general policy of concentrating too much power in the hands of a small group of insiders. As much as possible, government in the United States is supposed to be open and transparent, and a fundamental principle is that decision-making should be subjected to a robust process of checks and balances.
While not "evaluating the decision to go to war," Mr. Wilkerson told his audience that under the present circumstances "we can't leave Iraq. We simply can't." In his view, if American forces were to pull out too quickly, the U.S. would end up returning to the Middle East with "five million men and women under arms" within a decade.
Nevertheless, he is appalled at the way the war was launched and conducted, and outraged by "the detainee abuse issue." In 10 years, he said, when this matter is "put to the acid test, ironed out, and people have looked at it from every angle, we are going to be ashamed of what we allowed to happen."
Mr. Wilkerson said he has taken some heat for speaking out, but feels that "as a citizen of this great republic," he has an obligation to do so. If nothing is done about the current state of affairs, he said, "it's going to get even more dangerous than it already is."
Moving the Goal Posts
October 24, 2005
*
In 2003 – and again in 2004 – President Bush said he would fire anyone found to be involved in the leak of Valerie Plame’s name. He didn’t say he would fire anyone who “committed a crime.” He said we would fire anyone found to be involved in the leak. [Bush Media Availability, 9/30/03]
*
The president called the leak of Plame’s identity “a serious charge,” and “a criminal action.” [President Bush, 10/6/03] He said the “the special prosecutor is conducting a very serious investigation – he’s doing it in a very dignified way…” [10/11/05]
*
The Department of Justice directed Special Prosecutor Fitzgerald to investigate whether any crimes were committed as part of the “alleged unauthorized disclosure of a CIA employee’s identity.” He was not told to determine whether there was a violation of the “Intelligence Identities Act of 1992,” as conservative talkers assert. He was charged with investigating whether any crimes were committed in connection with the leak. Period. [http://www.thinkprogress.org/leak-rebuttal].
*
Perjury is a crime. Perjury is a felony. Obstruction of justice is a felony.
*
Special Prosecutor Fitzgerald will determine if any crimes were committed. But there is no disputing the fact that Karl Rove and I. Lewis Libby were involved in the leak. These men undertook a campaign to discredit Wilson and his wife and then they lied about it. Regardless of what Fitzgerald finds, the president must purge the White House of Karl Rove, I. Lewis Libby and all staff involved in the leak.
*
This investigation is not a simple case of the White House “smearing political foes.” Ultimately, it is case about the White House manipulating intelligence to sell the war in Iraq and then lying to cover it up. The president owes the country an answer on the larger and far more troubling question of why the White House manipulated intelligence to make the case for a war that has made our country less safe and cost nearly 2,000 American lives.
Letters Show Frist Notified Of Stocks in 'Blind' Trusts
Documents Contradict Comments on Holdings
By Jeffrey H. Birnbaum
Washington Post Staff Writer
Monday, October 24, 2005; A01
Senate Majority Leader Bill Frist (R-Tenn.) was given considerable information about his stake in his family's hospital company, according to records that are at odds with his past statements that he did not know what was in his stock holdings.
Managers of the trusts that Frist once described as "totally blind," regularly informed him when they added new shares of HCA Inc. or other assets to his holdings, according to the documents.
Since 2001, the trustees have written to Frist and the Senate 15 times detailing the sale of assets from or the contribution of assets to trusts of Frist and his family. The letters included notice of the addition of HCA shares worth $500,000 to $1 million in 2001 and HCA stock worth $750,000 to $1.5 million in 2002. The trust agreements require the trustees to inform Frist and the Senate whenever assets are added or sold.
The letters seem to undermine one of the major arguments the senator has used throughout his political career to rebut criticism of his ownership in HCA: that the stock was held in blind trusts beyond his control and that he had little idea of the extent of those holdings.
The extent of Frist's knowledge of the inner workings of his trusts and his family's health care company is related to a recently launched federal investigation of possible insider trading involving the liquidation this summer of Frist's HCA stock. Within weeks of Frist's decision to sell his holdings in June, HCA shares fell sharply because of a weak earnings report. Frist has said he possessed only publicly available and not "insider" information about the company when he directed the sale and, therefore, did nothing wrong.
Last week, Frist told reporters that he is "absolutely confident in the outcome" of the inquiries by the Justice Department and the Securities and Exchange Commission because he "acted properly at every point." He declined to address specifics about the investigations but said he is providing information as quickly and fully as possible.
Frist, a heart-surgeon-turned-politician, has been actively involved in shaping national health care legislation, including passage of the Medicare prescription drug benefit, while maintaining a major financial interest in his family-founded health care business.
Two watchdog organizations -- Citizens for Responsibility and Ethics in Washington and the Foundation for Taxpayer and Consumer Rights -- filed complaints with the Senate Select Committee on Ethics this yearcharging Frist with having a conflict of interest and questioning why he sold his shares after a decade of saying he did not need to.
Frist and his family have a dozen federal trust accounts, which are essentially piles of stock controlled by professional money managers. Under the terms of his "qualified" trust agreements set up in 2000, Frist is barred from contacting the managers except under specific circumstances. The managers, however, are required to contact him when the funds they control undergo certain changes -- an arrangement similar to those of several other senators.
In January 2003, after winning election as majority leader, Frist was asked on CNBC whether his HCA holdings made it difficult for him to push for changes in Medicare, a federal health program for seniors that added to the hospital company's revenue.
"I think really for our viewers it should be understood that I put this into a blind trust," Frist replied. "So as far as I know, I own no HCA stock." He added that the trust was "totally blind. I have no control."
Two weeks before that interview, M. Kirk Scobey Jr., a Frist trustee, informed the senator in writing that one of his trusts had received HCA stock valued at between $15,000 and $50,000.
"He [Frist] could have been more exact in his comments," said Bob Stevenson, spokesman for Frist. Stevenson added that Frist might better have said he did not know to what extent he owned HCA shares.
Kathleen Clark, a law professor at Washington University in St. Louis, said she was surprised that Frist had ever claimed before this summer's liquidation that he might have owned no HCA stock. "Did he say that? What was he thinking of?" she asked. "How did he know to tell the trustee to sell it [his HCA stake] if he didn't know that he had it in the first place?"
Disclosures by the trustees to the Senate and to Frist indicate that Frist and his family probably owned a great deal of HCA stock at the time. When Frist's federal trusts were created in late 2000, the trustees disclosed that one trust alone contained between $5 million and $25 million in HCA shares and that each of seven other trusts held more than $1 million of the stock.
Frist was notified in November 2002 that 14,781 HCA shares had been sold from one of his trusts. But he was not told that all of his HCA shares had been disposed of until this summer -- after he had directed his trustees to sell them all, the documents show.
Questions about his HCA holdings have been a staple of Frist's public life. The Nashville-based company, the country's largest chain of for-profit hospitals, was founded in 1968 by Frist's father, Thomas F. Frist, his brother, Thomas F. Frist Jr., and Jack C. Massey, the former owner of Kentucky Fried Chicken. Its stock made up the majority of Frist's wealth and was used to help him secure some of the financing for his first Senate campaign.
During his first run for the Senate in 1994, Frist was accused of having a "mammoth conflict of interest" by his Democratic opponent, then-Sen. Jim Sasser. Frist promised to put his HCA stock in a blind trust to avoid the problem.
This year, as he contemplated a bid for the White House in 2008 and worried about the appearance of conflicts, Frist abruptly changed tactics, aides said. Rather than defend his stock held in trust, he asked his trustees to sell all his HCA shares.
Stevenson said Frist's concerns involved the perception of a conflict rather than any real conflict of interest. In 1997 and 1999, the ethics committee cleared Frist to participate in Senate debates involving Medicare and health maintenance organizations despite his "substantial" holdings in HCA. The committee did not take into account whether Frist's holdings were in blind trusts in reaching its decisions.
Frist said last week he was not required to set up a blind trust after he went to the Senate, but he wanted to "apply the highest ethical standards I possibly could. I thought, why not raise the bar, why not do a good deed . . . and avoid any appearance of a conflict of interest."
Senate rules prohibit any lawmaker with a blind trust from contacting his trustees unless the ownership of an asset poses a potential conflict of interest "due to the subsequent assumption of duties" by the lawmaker. The lawmaker can then ask the trustees to dispose of the asset.
Frist did not take on any new duties this year. But a Frist adviser said the senator had been thinking about selling his HCA stake from the time he was elected majority leader in 2002. Frist had not known that he could sell his shares until this spring, the adviser asserted, and so went ahead with the sale based on his nearly three-year-old wish.
Why will nobody look into this fraud? The Oil-For-Food scandal was beans compared to this.
October 24, 2005 Issue
Copyright © 2005 The American Conservative
Money for Nothing
Billions of dollars have disappeared, gone to bribe Iraqis and line contractors’ pockets.
by Philip Giraldi
The United States invaded Iraq with a high-minded mission: destroy dangerous weapons, bring democracy, and trigger a wave of reform across the Middle East. None of these have happened.
When the final page is written on America’s catastrophic imperial venture, one word will dominate the explanation of U.S. failure—corruption. Large-scale and pervasive corruption meant that available resources could not be used to stabilize and secure Iraq in the early days of the Coalition Provisional Authority (CPA), when it was still possible to do so. Continuing corruption meant that the reconstruction of infrastructure never got underway, giving the Iraqi people little incentive to co-operate with the occupation. Ongoing corruption in arms procurement and defense spending means that Baghdad will never control a viable army while the Shi’ite and Kurdish militias will grow stronger and produce a divided Iraq in which constitutional guarantees will be irrelevant.
The American-dominated Coalition Provisional Authority could well prove to be the most corrupt administration in history, almost certainly surpassing the widespread fraud of the much-maligned UN Oil for Food Program. At least $20 billion that belonged to the Iraqi people has been wasted, together with hundreds of millions of U.S. taxpayer dollars. Exactly how many billions of additional dollars were squandered, stolen, given away, or simply lost will never be known because the deliberate decision by the CPA not to meter oil exports means that no one will ever know how much revenue was generated during 2003 and 2004.
Some of the corruption grew out of the misguided neoconservative agenda for Iraq, which meant that a serious reconstruction effort came second to doling out the spoils to the war’s most fervent supporters. The CPA brought in scores of bright, young true believers who were nearly universally unqualified. Many were recruited through the Heritage Foundation website, where they had posted their résumés. They were paid six-figure salaries out of Iraqi funds, and most served in 90-day rotations before returning home with their war stories. One such volunteer was Simone Ledeen, daughter of leading neoconservative Michael Ledeen. Unable to communicate in Arabic and with no relevant experience or appropriate educational training, she nevertheless became a senior advisor for northern Iraq at the Ministry of Finance in Baghdad. Another was former White House Press Secretary Ari Fleischer’s older brother Michael who, though utterly unqualified, was named director of private-sector development for all of Iraq.
The 15-month proconsulship of the CPA disbursed nearly $20 billion, two-thirds of it in cash, most of which came from the Development Fund for Iraq that had replaced the UN Oil for Food Program and from frozen and seized Iraqi assets. Most of the money was flown into Iraq on C-130s in huge plastic shrink-wrapped pallets holding 40 “cashpaks,” each cashpak having $1.6 million in $100 bills. Twelve billion dollars moved that way between May 2003 and June 2004, drawn from accounts administered by the New York Federal Reserve Bank. The $100 bills weighed an estimated 363 tons.
Once in Iraq, there was virtually no accountability over how the money was spent. There was also considerable money “off the books,” including as much as $4 billion from illegal oil exports. The CPA and the Iraqi State Oil Marketing Board, which it controlled, made a deliberate decision not to record or “meter” oil exports, an invitation to wholesale fraud and black marketeering.
Thus the country was awash in unaccountable money. British sources report that the CPA contracts that were not handed out to cronies were sold to the highest bidder, with bribes as high as $300,000 being demanded for particularly lucrative reconstruction contracts.
The contracts were especially attractive because no work or results were necessarily expected in return. It became popular to cancel contracts without penalty, claiming that security costs were making it too difficult to do the work. A $500 million power-plant contract was reportedly awarded to a bidder based on a proposal one page long. After a joint commission rejected the proposal, its members were replaced by the minister, and approval was duly obtained. But no plant has been built.
Where contracts are actually performed, their nominal cost is inflated sufficiently to provide handsome bribes for everyone involved in the process. Bribes paid to government ministers reportedly exceed $10 million.
Money also disappeared in truckloads and by helicopter. The CPA reportedly distributed funds to contractors in bags off the back of a truck. In one notorious incident in April 2004, $1.5 billion in cash that had just been delivered by three Blackhawk helicopters was handed over to a courier in Erbil, in the Kurdish region, never to be seen again. Afterwards, no one was able to recall the courier’s name or provide a good description of him.
Paul Bremer, meanwhile, had a slush fund in cash of more than $600 million in his office for which there was no paperwork. One U.S. contractor received $2 million in a duffel bag. Three-quarters of a million dollars was stolen from an office safe, and a U.S. official was given $7 million in cash in the waning days of the CPA and told to spend it “before the Iraqis take over.” Nearly $5 billion was shipped from New York in the last month of the CPA. Sources suggest that a deliberate attempt was being made to run down the balance and spend the money while the CPA still had authority and before an Iraqi government could be formed.
The only certified public-accounting firm used by the CPA to monitor its spending was a company called North Star Consultants, located in San Diego, which was so small that it operated out of a private home. It was subsequently determined that North Star did not, in fact, perform any review of the CPA’s internal spending controls. Today, no one can account for billions of those dollars or even suggest how the money was spent. And as the CPA no longer exists, there is also little interest in re-examining its transparency or accountability.
Bremer escaped Baghdad by helicopter two days before his proconsulship expired to avoid a possible ambush on the road leading to the airport, which he had been unable to secure. He has recently been awarded the Presidential Medal of Freedom, an honor he shares with ex-CIA Director George “Slam-dunk” Tenet.
Considerable fraud has been alleged regarding American companies, much of which can never be addressed because the Bush administration does not regard contracts with the CPA as pertaining to the U.S. government, even though U.S. taxpayer dollars were involved in some transactions.
Many of the contracts for work in Iraq were awarded on a cost-plus basis, in which an agreed-upon percentage of profit would be added to the actual costs of performing the contract. Such contracts are an invitation to fraud, and unscrupulous companies will make every effort to increase their costs so that the profits will also increase proportionally.
Halliburton, Vice President Dick Cheney’s former company, has a no-bid monopoly contract with the Army Corps of Engineers that is now estimated to be worth $10 billion. In June 2005, Pentagon contracting officer Bunny Greenhouse told a congressional committee that the agreement was the “most blatant and improper contracting abuse” that she had ever witnessed, a frank assessment that subsequently earned her a demotion.
Halliburton has frequently been questioned over its poor record keeping, and critics claim that it has a history of overcharging for its services. In May 1967, a company called RMK/BRJ could not account for $120 million in materiel sent to Vietnam and was investigated several times for overcharging on fuel. RMK/BRJ is now known as KBR or Kellogg, Brown and Root, the Halliburton subsidiary that has been the focus of congressional, Department of Defense, and General Accountability Office investigations. Defense Contract Audit Agency auditors have questioned Halliburton’s charges on a $1.6 billion fuel contract, claiming that the overcharges on the contract exceed $200 million. In one instance, the company charged the Army more than $27 million to transport $82,000 worth of fuel from Kuwait to Iraq. Halliburton has also been accused of billing the Army for 42,000 daily meals for soldiers, though it was only actually serving 14,000. In another operation, KBR purchased fleets of Mercedes trucks at $85,000 each to re-supply U.S. troops. The trucks carried no spare parts or even extra tires for the grueling high-speed run across the Kuwaiti and Iraqi deserts. When the trucks broke down on the highway, they were abandoned and destroyed rather than repaired.
Responding to complaints, Halliburton refused to permit independent auditing and inspected itself using so-called “Tiger Teams.” One such team stayed at the five-star Kuwait Kempinski Hotel while it was doing its audit, running up a bill of more than $1 million that was passed on to U.S. taxpayers.
Another U.S. firm well connected to the Bush White House, Custer Battles, has provided security services to the coalition, receiving $11 million in Iraqi funds including $4 million in cash in a sole-source contract to supply security at Baghdad International Airport. The company had never provided airport security before receiving the contract. It also received a $21 million no-bid contract to provide security for the exchange of Iraqi currency. It has been alleged that much of the currency “replaced” by Custer Battles has never been accounted for. The company also allegedly took over abandoned Iraqi-owned forklifts at the airport, repainted them, and then leased them back to the airport authority through a company set up in the Cayman Islands. Custer Battles reportedly set up a number of shell companies in offshore tax havens in Lebanon, Cyprus, and the Cayman Islands to handle the cash flow.
Two former company managers turned whistleblowers have charged that the company defrauded the U.S. government of at least $50 million. The Bush administration’s Justice Department has only reluctantly, and under pressure from a Newsweek exposé, supported the rights of the plaintiffs in the case. The White House has indicated that it is not interested in assisting other investigations of fraud in Iraqi contracting, preferring to regard the CPA as a “multinational entity” and thereby limiting its vulnerability in American courts.
Another American contractor, CACI International, which was involved in the Abu Ghraib interrogations, was accused by the GAO in April 2004 of having failed to keep records on hours of work that it was billing for and of routinely upgrading employee job descriptions so that more could be charged per employee per hour. Both are apparently common practices among contractors in Iraq, and audits routinely determine that there is little in the way of paperwork to support billings. The GAO report also confirms that many private security contractors in Iraq have been charging the U.S. government exorbitant fees for their services, frequently because the contracts allow security costs to be rolled into the overall cost of the contract without being itemized. In one case, contract security guards were effectively being billed at $33,000 per guard per month while the average rate for a security specialist worked out to between $13,000 and $20,000 per month.
The CPA also spread its largesse around the U.S. armed forces, distributing over $600 million in cash to four regional commanders to fund reconstruction projects as part of the Commanders’ Emergency Response Program. An audit of one region disclosed that 80 percent of the funds could not be accounted for, and more that $7 million in cash was missing. It is widely believed that many of the contracting agents working under the regional commands literally stole the money. In one reported instance, an American contracting officer doubled the price of a multimillion-dollar contract and brazenly explained that the extra money would be for his retirement fund.
Unfortunately, the corruption of the occupation outlived the departure of Paul Bremer and the demise of the CPA. A recent high-level investigation of the Iraqi interim government concluded that the corruption is now so pervasive as to be irreversible. One prominent businessman estimates that 95 percent of all business activity involves some form of bribery or kickback. The bureaucrats and fixers who live off of bribery are referred to by ordinary Iraqis as “Ali Babas,” named after the character in The Thousand and One Nights who was able to access riches from a treasure cave by saying “open sesame.” For the average Iraqi businessman, there was formerly only one hand out, that of Saddam’s designated minion. Now every hand is out. The educated and entrepreneurial are leaving the country in droves, as is most of the beleaguered Christian minority. Huge government appropriations are approved by Iraqi lawmakers and then simply disappear. Meanwhile, life for the average Iraqi does not improve, and oil production, water supplies, and electricity generation are all at lower levels than they were when the U.S. took control in 2003. The only thing that everyone knows is that all the money is gone and daily life in Iraq is worse than it was under Saddam Hussein.
The undocumented cash flow continued long after the CPA folded. Over $1.5 billion was disbursed to interim Iraqi ministries without any accounting, and more than $1 billion designated for provincial treasuries never made it out of Baghdad. More than $430 million in contracts issued by the Petroleum Ministry were unsupported by any documentation, and $8 billion were given to government ministries that had no financial controls in place. Nearly all of it disappeared, spent on “payroll,” wages for “ghost employees” in the Ministries of the Interior and Defense. In one case, an Army brigade receiving money to support 2,200 men was found to have fewer than 300 effectives. 602 actual guards at the Ministry of the Interior were billed as more than 8,200 for payroll purposes.
Iraqi Airways carried 2,400 employees even though it had not operated for over a year and had no planes. The airline itself was sold to an unidentified buyer without any paperwork to show for how much it was sold and what assets were included. It has been alleged that the buyer might well have been Pentagon favorite Ahmad Chalabi.
Nearly all payrolls in the national guard and national police were also inflated, leading to uncertainty over how large the security forces actually were—still an open question. Absentees from the nominal rolls of police and soldiers provided by government ministries are believed to number in the tens of thousands, and as the United States Congress has figured out, frequently cited figures on available trained manpower are largely imaginary.
Even the “coalition of the willing” partners have been quick to cash in. Polish helicopters purchased as part of a $300 million deal with arms maker Bumar Ltd. were found to be obsolete, largely unflyable, and were actually rejected by the Iraqis. Bullets purchased from Poland by the Defense Ministry cost three times the normal international price. Five Polish peacekeepers have been arrested for demanding $90,000 in bribes. Both British and American soldiers have also demanded bribes from shopkeepers and travelers.
In yet another instance of take-it-while-you-can, a senior Interior Ministry official flew to Beirut in a helicopter accompanied by $10 million in newly printed Iraqi dinars. He has yet to return. Interim Iraqi President Iyad Allawi’s Defense Minister Hazem Shaalan transferred $500 million to a bank account in Lebanon, allegedly to buy weapons, in a case that continues to be murky. Shaalan is reportedly vacationing abroad and has not returned to Iraq. A Bremer favorite at the Defense Ministry, Ziad Tareq Cattan, was responsible for a number of shady arms-procurement deals. A warrant has been issued for his arrest, an unusual occurrence, and he is avoiding detention by staying with family in Erbil in Kurdistan.
Countless billions will never be accounted for, and the full cost of corruption has yet to be tallied. Sources report that much of the money that was designated for the development of a national army and police force is actually going to units that are exclusively Kurd or Shi’ite in expectation of a day of reckoning over the country’s oil supplies. The Kurds have made no secret of their desire to continue their autonomy-bordering-on-independence and have stated that they regard Kirkuk as their own. The Shi’ites have possession of the oil-producing region to the south and are using their control of the Interior Ministry to fill police ranks with their own pro-Iranian Badr Brigade members as well as militiamen drawn from radical cleric Moqtada al-Sadr’s Mehdi Army. The Sunnis are the odd men out, virtually guaranteeing that, far from becoming the model democracy the U.S. set out to build, Iraq will descend deeper into chaos—aided in no small part by the culture of corruption we helped to fortify.
Stop acting like a pussy and I'll stop pointing it out. Deal? Good. Also, if you actually read what I posted, you may notice that it's from The American Conservative, not a lib website. You don't read. Period. Either that or you ignore what you're told, dismissing everything as being liberal, so I won't waste my time. You're going to continue playing the matyr role, and I'll keep calling you out on it. That sounds like fun to me, you big puss.
meow!
answered for you moose
okay i like the gargling peanut butter reference
it almost made me choke lol
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