NY Times: U.S. Finds Iraq Insurgency Has Funds to Sustain Itself

[Kadie]

U.S. Finds Iraq Insurgency Has Funds to Sustain Itself

By JOHN F. BURNS and KIRK SEMPLE
Published: November 26, 2006

BAGHDAD, Nov. 25 — The insurgency in Iraq is now self-sustaining financially, raising tens of millions of dollars a year from oil smuggling, kidnapping, counterfeiting, corrupt charities and other crimes that the Iraqi government and its American patrons have been largely unable to prevent, a classified United States government report has concluded.

The report, obtained by The New York Times, estimates that groups responsible for many of the insurgent and terrorist attacks are raising $70 million to $200 million a year from illegal activities. It says that $25 million to $100 million of the total comes from oil smuggling and other criminal activity involving the state-owned oil industry aided by “corrupt and complicit” Iraqi officials.

As much as $36 million a year comes from ransoms paid to save hundreds of kidnap victims in Iraq, the report said. It estimates that unnamed foreign governments — previously identified by senior American officials as including France and Italy — paid Iraqi kidnappers $30 million in ransom last year.

A copy of the report was made available to The Times by American officials in Iraq, who said they acted in the belief that the findings could improve American understanding of the challenges the United States faces in Iraq.

The report offers little hope that much can be done, at least soon, to choke off insurgent revenues. For one thing, it acknowledges how little the American authorities in Iraq know — three and a half years after the invasion that toppled Saddam Hussein — about crucial aspects of insurgent operations. For another, it paints an almost despairing picture of the Iraqi government’s ability, or willingness, to take measures the report says will be necessary to tamp down the insurgency’s financing.

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http://www.nytimes.com/2006/11/26/world/middleeast/26insurgency.html?ex=1322197200&en=1bd1f805c30e2ae2&ei=5088&partner=rssnyt&emc=rss

[ThomWV]

1. So It Cost $200 Million To Defeat Our $100 Billion Per Year

Are we that inept that they can underspend us by, what is it, 5000 to 1 or something like that, and still beat us?

[Kadie]

2. the article also says...

snip...


“In fact, if recent revenue and expense estimates are correct, terrorist and insurgent groups in Iraq may have surplus funds with which to support other terrorist organizations outside of Iraq.”


Not only have we been unable to beat them, they have enough money to support other terrorist groups outside of Iraq.

[BuyingThyme]

3. We're fighting them over there so they can

fund the terrorists over here.

[applegrove]

4. Great! At least if the insurgency were to stop after America leaves..

or negotiations occur in that civil war... some of the money would have to go to rebuild. Unfortunately that is another pipeline isn't it. Much cheaper to just blow things and people up. Always has been.

[shadowknows69]

5. Not to blow my own horn (ok, I am.)

I kind of scooped the times on this one a little bit.

From the Times' article:As much as $36 million a year comes from ransoms paid to save hundreds of kidnap victims in Iraq, the report said. It estimates that unnamed foreign governments — previously identified by senior American officials as including France and Italy — paid Iraqi kidnappers $30 million in ransom last year.

From one of my Taxi reports: This same soldier in fact did have some "good" stories from Iraq believe it or not. I've always maintained that many of our soldiers are in Iraq with the sincere desire to do good for the Iraqi people and I was fortunate to meet this man who seems to be one of them. He had a great hatred for the supposed "holy men" of the religious sects they were fighting. He said that one way the insurgents raise money for their weapons is to kidnap local females of affluent Iraqi families who then pay huge ransoms for their return. He says that despite the fact that many of these girls are returned when the ransom is paid, many times it is weeks later after the kidnappers have made good "use" of her. He claims we have liberated many such victims and says that he personally has found dozens of women raped and tortured nearly to death. He was clearly choked up thinking about this and for a moment I felt guilty for making him relive such horror. Then again maybe I was the only one he could dump that baggage on and if so I hope I did some good.
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