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G_j Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:26 AM
Original message
'Staggering Amount' of Cash Missing In Iraq
http://www.commondreams.org/headlines04/0821-01.htm

Published on Saturday, August 21, 2004 by the Inter Press Service

'Staggering Amount' of Cash Missing In Iraq
by Emad Mekay

WASHINGTON - Three U.S. senators have called on Defense Secretary Donald Rumsfeld to account for 8.8 billion dollars entrusted to the Coalition Provisional Authority (CPA) in Iraq earlier this year but now gone missing.

In a letter Thursday, Senators Ron Wyden of Oregon, Byron L Dorgan of North Dakota and Tom Harkin of Iowa, all opposition Democrats, demanded a "full, written account" of the money that was channeled to Iraqi ministries and authorities by the CPA, which was the governing body in the occupied country until Jun. 30.

The loss was uncovered in an audit by the CPA's inspector general. It has not yet been released publicly and was initially reported on the website of journalist and retired U.S. Army Col David Hackworth.

The CPA was terminated at the end of July to make way for an interim Iraqi government, which is in turn scheduled to be replaced by an elected body early in 2005.


..more..
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leftchick Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:32 AM
Response to Original message
1. paging Viceroy Bremer.....
Where are your receipts?!?
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Jacobin Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 10:19 AM
Response to Reply #1
11. I think he's in France working on a new wing to his villa
I understand its quite nice and will have a hangar for his new jet.

He is referring all questions about the money to former Arthur Anderson accountants with whom he has contracted to fix the books
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:34 AM
Response to Original message
2. someone's pockets are bulging
with this looted cash.

:grr:
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soothsayer Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:37 AM
Response to Reply #2
3. EVERYONE's pockets are bulging
with this stolen loot
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Zech Marquis Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:45 AM
Response to Original message
4. that's why
Bremer got the hell out of Dodge so damn fast--dude needed several cargo planes to haul away the cash he has stolen--OUR cash at that :grr:
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RUMMYisFROSTED Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 10:44 AM
Response to Reply #4
14. "D.B" Bremer?
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enough Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:52 AM
Response to Original message
5. No wonder they were so eager to terminate the CPA
and "hand over sovereignty." The democrats can make all the demands they want, but this money will NEVER be tracked, with the CPA dissolved and nobody in particular responsible.

What I can't believe is how much the American people seem to LOVE being royally ripped off. What a beautiful scam it has been.
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Eloriel Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 04:41 PM
Response to Reply #5
28. It's almost as if ...
they planned it this way. From the get go. <-- should be read as understatement.



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tedzbear Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 08:06 PM
Response to Reply #5
29. This was the Iraqi's money, not ours.
This was oil revenues, etc. that belonged to the Iraqi people. This was not US taxpayers' money.
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enough Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 08:55 PM
Response to Reply #29
32. You're right. It's confusing.
Seems to depend on which eight billion we're talking about, the 8.2 or the 8.8.

snip>

Halliburton, a giant U.S. company that has been awarded 8.2 billion dollars worth of contracts from the Defense department to provide support services such as meals, shelter, laundry and Internet connections for U.S. soldiers in Iraq, has been targeted for allegedly overcharging for those services.

"Continued failures to account for funds, such as the 8.8 billion dollars of concern here - and the refusal, so far, of the Pentagon to take corrective action are a disservice to the American taxpayer, the Iraqi people and to our men and women in uniform," the senators wrote.

snip>
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Fovea Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:53 AM
Response to Original message
6. I sure hope that after November
we get the investigations and prison sentences commensurate with the gravity of the crime committed on the American and Iraqi people.
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DoYouEverWonder Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 09:55 AM
Response to Original message
7. Did anyone check Chalabi's pockets?
I hear they are very, very deep.

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leesa Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 10:39 AM
Response to Reply #7
13. Chalabi? How about Cheney and the rest of the Bush gang?
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IndianaGreen Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 01:07 PM
Response to Reply #13
22. Chalabi is a crook, but he is not the only or biggest crook in Iraq
Accusing Chalabi of stealing money is like accusing Al Capone of being a gangster while ignoring the Sicilian Mafia.
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Tandalayo_Scheisskopf Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 10:02 AM
Response to Original message
8. One can only hope...
That RICO investigations are quietly being assembled.

Oh wait...Ashcroft. Never mind.
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acmavm Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 10:09 AM
Response to Reply #8
9. You know, that was EXACTLY the first thought that popped into my mind.
.
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cornfedyank Donating Member (642 posts) Send PM | Profile | Ignore Sat Aug-21-04 10:18 AM
Response to Original message
10. about time this resurfaced
reminds me of gold dust falling through the cracks in "Paint Your Wagon".

http://www.military.com/Resources/ResourceFileView?file=Hackworth_080204.htm

A pal in Iraq slipped me a draft Coalition Provisional Authority (CPA) Inspector General (IG) report dated July 12, 2004, that blisters the CPA for giving the missing billions to Iraqi ministries without appropriate controls.

The IG report concludes: "The CPA did not provide adequate stewardship of over $8.8 billion in DFI (Development Fund for Iraq) funds provided to Iraqi Ministries through the national budget process. Specifically, the CPA did not establish and implement adequate managerial, financial, and contractual controls over the funds to ensure they were used in a transparent manner."

snip


For example, the CPA paid 74,000 guards even though the actual number of guards couldn't be validated. On one site alone, 8,206 guards were on the payroll, but only 603 warm bodies could be counted. Elsewhere, more than $17 million was allocated to guards and the Iraqi army without one piece of backup paper. Pals in Iraq say this has been standard drill since the birth of "a very dysfunctional" CPA.

The report cites, "An improper $120 million disbursement was made in May 2004 because of miscommunication between CPA/OMB and Comptroller's office." In other words, $120 million went south but was blithely rationalized as some clerks getting their wires crossed!


or as Carl Sagen said "billions and billions".
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G_j Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 10:32 AM
Response to Original message
12. Iraq Revenue Watch
www.iraqrevenuewatch.org
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OneBlueSky Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 10:53 AM
Response to Original message
15. ready-made issue for Kerry to hammer Bush with . . .
anyone wanna take bets on whether he'll use it? . . .
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Pastiche423 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 11:38 AM
Response to Reply #15
16. Uh...
no.

That would be a fool's bet.
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sofa king Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 11:50 AM
Response to Original message
17. I'll bet a big chunk never made it to CPA.
Instead, I'll bet it has been quietly dispersed by American authorities to the local populace. Shady as it is, one might argue that it's amongst the best money yet spent in Iraq.

The following is heavily spiced with my own speculation, but I base a lot of it on fairly well documented SAS and Army Special Forces doctrine, not to mention a fair amount of alcohol-lubricated Pentagon City talk.

The way I hear it works is like this. Local American and British intelligence officers (and, since there aren't enough of them, probably private contractors as well) go into communities and start offering small sums of money for simple information. Who's willing to lease out troop housing and storage? Where can I find livestock? Where can I find water? Thanks a lot, here's a little cash.

You come back to the people willing to deal, and each time the questions asked are a little more detailed and the reward is a little more lucrative until eventually every town has fifty or more people subsisting on what is effectively a covert American stipend. People interested in cooperating are encouraged to bring in friends. Friends of the occupiers are supported both financially and militarily. Is there a local tribal dispute which can be exploited against anti-American groups? Well, you lubricate the guy on your side and become his enemy's enemy. Once they're hooked on American cash, the entire community can be threatened with an immediate and devastating cutoff of the dole if insurgents aren't sold out, run off, or scalped. No doubt incentives are also offered for those willing to help realize the same thing.

With unemployment and poverty a huge problem in Iraq, it's initially attractive, and like any addiction, once started it's hard to kick. It also provides immediate financial assistance to people most in need, rather than having the money siphoned off by corrupt corporations or the puppet government. But it's necessarily covert, because what it really is is a vast, informal, lethal and effective intelligence network designed to corner and neutralize anyone not supportive of the occupation. And the organization is almost certainly used in ways that wouldn't please any human rights watchdog group--what those people who are ratted out know is far too valuable to merely kill them, at least at first.

But killing, imprisoning, and interrogating the insurgents is what you're out to do, by turning the local populace against the insurgents and compressing them into ever smaller areas where they can be cornered, captured or killed without overly harming the local population--although some of the locals are invariably harmed. The families of the innocents (and probably the insurgents) are paid off, too, but I understand that money comes from another funding source.

Where this tactic doesn't work as well is in precicely the areas where we don't see it working--strongly Islamic areas which already have a large, effective and nearly identical version of the network already in place, like in Najaf. It's still working there to some extent, in that the insurgents are essentially trapped in Najaf because the surrounding area has already been bought off by the Americans.

If this sounds familiar, it should. It's the same strategy used by the SAS in Sarawak and Aden, by the Phoenix Project people in Vietnam, and by al Qaeda in Afghanistan and the Sudan.

The price tag for this covert boodle is enormous--imagine shelling out a thousand bucks a month to each of a hundred people in every crossroads town in the country. In order to keep the costs out of sight of watchful Congressional eyes, I'm willing to bet that DoD accountants are quietly shifting the expenses to places where it can't easily be tracked. Writing that money up as a CPA expense seems perfectly reasonable to me.

Please note that while I have my own opinions about this system, I've tried hard not to express them in the above description. And of course, since it's offered without citation, you have to check it out for yourself and make up your own mind whether or not I'm full of shit. But from my point of view it's what best fits the available evidence, and there were plenty of loose lips in Caucasian City willing to confirm it when I'm willing to listen.

If you want to read more about how the process works there's a surprisingly informative nonfiction Tom Clancy (but typically incoherent, biased and somewhat boring) book on the subject called Shadow Warriors. Much more interesting is a great little mass market paperback about the SAS in Aden (Yemen) and Sarawak (Malaysia)--I think it's called Who Dares Wins. Mark Bowden's book Killing Pablo dances around the subject a little, but it is essentially an excellent example of the Columbians and Americans out-Phoenixing Pablo Escobar's own Phoenix-style method of buying local adoration and wasting people who don't agree. And a few passages of John Keegan's recent Intelligence in War hint at the fact that winning hearts and minds through financial and material assistance is one of the better ways to quickly establish an effective intelligence network.
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Nordic Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 12:23 PM
Response to Reply #17
18. interesting. Isn't that how drug lords work as well?
say in Columbia, where they support most of the surrounding population?
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sofa king Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 12:44 PM
Response to Reply #18
19. Yep.
That's why Killing Pablo is such an interesting book. Escobar had a wild carrot and stick approach where if you were on his good side he was building you soccer fields and helping out your poor, but if you were going after him he'd blow up your fucking apartment building and everyone in it--a classic terrorist. He appeared magnanimous to the poor and utterly ruthless to his enemies.

That's exactly how Escobar went down, too. A shadowy anti-Escobar organization (which looks like it was heavily greased with American cash and intelligence) popped up and started doing the same thing, only it was Escobar's friends winding up wearing the Columbian necktie. They even went after his family. Average people were caught in the middle and thus neutralized and eventually Escobar couldn't buy friends faster than they could be killed off. His communications were monitored and cut off, and he had to move around constantly. He died on the run, despite his very effective infiltration of the government forces hunting him. It was the ruthless dirty pool played against him which eventually took him out.

It's a sad commentary on what a war on terrorism looks like from the inside--you can't tell the good guys from the bad guys on the ephemeral local battlefield. Everyone is expendable.

And yes, I think that's exactly what the United States is trying to do in Iraq.
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Kagemusha Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 12:58 PM
Response to Reply #19
20. But if they don't stay bought what then?
Honestly I understand exactly what you're saying, but the problems multiply when you get around to dealing with people you can't, for whatever reason, buy off. Take Sadr for instance. He's a religious extremist whose strategy seems to be giving the US and Allawi enough rope for them to hang themselves with, and this, both parties are doing very aggressively. He can't be bought off because he believes that once he's bought off, that's when he'll be killed; and because he believes God is on his side.

As for the shadowy organization, wasn't "My God's Bigger than Your God" Boykin involved in that?
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sofa king Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 01:37 PM
Response to Reply #20
23. I completely agree.
Sadr isn't the only one out there. The Bush Administration is desperately trying to make us forget, but Osama bin Laden is also a man whose piety and generosity is unquestioned amongst many devout Muslims.

As for Gen. Boykin, I don't know. I've heard rumors that Gen. Wesley. Clark was involved, but I never followed them up.
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Kagemusha Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 02:02 PM
Response to Reply #23
24. Not really something that's important now anyway..
I mean, it's good they got Escobar. But that just cleared the playing field for the next evolutionary advancement in drug lordism.
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IndianaGreen Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 01:04 PM
Response to Original message
21. We sent crates full of cash to Iraq
We were paying people with American dollars. Payments were made on demand in cases in which the person authorizing the payments, and the one making the payments, were one and the same (this is not a good internal control practice).

For those DUers that think that Paul Bremer is guilty of gross negligence, you are being too kind!
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miss_kitty Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 02:10 PM
Response to Original message
25. i have to point out here
Christian Aid of the UK offered a stunning report of this missing money on June 28, 2004...and we're not hearing about it , really until now?
i am providing some links here to some previous 'missing money' reports:

Aug 11th, 2004 capitol hill blue
http://www.capitolhillblue.com/artman/publish/article_5017.shtml
Cheney's Old Company Can't Account for $1.8 Billion

July 16, 2004 the guardian
http://www.guardian.co.uk/international/story/0,3604,1262373,00.html
UK blocks US plans to spend oil fund on museum
My headline was ‘UK Stops US Efforts to Build Bremer’s $10M ‘Saddam Museum’–Using Iraqi Oil $ not Yet Missing’ (http://www.hypocrites.com/article17679.html)

28.06.04 Christian Aid The Original, same day viceroy bremer handed over the ‘reigns of power’ the the selected gov’t of Iraq, and slunk out of the middle east like a dog off a gut wagon.
http://www.christian-aid.org.uk/news/media/pressrel/040627.htm
Fuelling suspicion: the coalition and Iraq's oil billions
My headline was ‘Coalition of the Thieving? $20B of Iraq's Own Money not Accounted for: Anyone Check Bremer’s Pockets?’ (http://www.hypocrites.com/article17559.html)


can you imagine if we kept our personal books this way?
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kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 02:17 PM
Response to Original message
26. The RNC is buying ads with it....
where did you think they were getting all their donations?? :shrug:
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Geo55 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 02:34 PM
Response to Original message
27. Ain't "verifin' " this site but here's a read
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Gyre Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 08:54 PM
Response to Reply #27
31. Our tax dollars
in punkass Paul Bremer's pocket. Man, that's an aggravating thought!

Gyre
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TroglodyteScholar Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-21-04 08:31 PM
Response to Original message
30. I think it's safe to say...
That irony is alive and kicking when a body called the CPA is being asked to explain how it's misplaced $8.8 billion.
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