http://www.newsday.com/news/nationworld/world/la-fg-contracts7nov07,0,4832819.story?coll=ny-worldnews-headlinesBAGHDAD — Businessmen with close ties to a leading — and controversial — member of Iraq's Governing Council have won large contracts for the country's reconstruction, leading to charges by some council members and other Iraqis that the actions are fueling a cronyism that threatens to sabotage the nation-building effort.
The men are associates of Ahmad Chalabi, an American-trained financier who has close ties to senior Pentagon officials and is a prominent member of the council, the U.S.-appointed interim government in Iraq.
Although it is perfectly legal for entrepreneurs with ties to top government officials to land reconstruction contracts, the perception of favoritism is setting back the rebuilding effort in Iraq by discouraging some foreign companies from seeking contracts, Iraqi and U.S. businessmen and officials said in interviews in Washington and Iraq.
It is further damaging the image of a reconstruction effort already hurt by the granting of huge no-bid awards to the politically connected U.S. firms Halliburton Co. and the Bechtel Group, Iraqis said.
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Welcome to American economics and Democracy, Iraq.