Friday, October 05, 2007
Corruption has cost Iraqi govt $18 bn.
Corruption
(Reuters) - Widespread corruption in Iraq stretches into the government of Prime Minister Nuri al-Maliki, an Iraqi investigating judge told U.S. lawmakers on Thursday, and an American official said U.S. efforts to combat the problem are inadequate. Judge Radhi Hamza al-Radhi, who was named by the United States in 2004 to head the Iraqi Commission on Public Integrity, said his agency estimated corruption had cost the Iraqi government up to $18 billion.
Maliki has shielded relatives from investigation and allowed government ministers to protect implicated employees, said the judge, who left Iraq in August after threats against him. He told a Capitol Hill hearing that 31 employees of his agency had been killed. Radhi said he did not have evidence against Maliki personally, but the prime minister had "protected some of his relatives that were involved in corruption."
One of these was a former minister of transportation, Radhi told the House of Representatives' Oversight and Government Reform Committee. The U.S. official who testified, Special Inspector General for Iraq Reconstruction, Stuart Bowen, said he also saw a "rising tide of corruption in Iraq." He said U.S. efforts to combat it were "disappointing," lacking funding and focus.
Rep. Henry Waxman, the California Democrat who chairs the panel, questioned whether the Maliki government was "too corrupt to succeed" and charged that U.S. efforts to address the problem were in "complete disarray." He criticized what he said was State Department resistance to the panel's investigation, saying the U.S. government apparently was afraid the corruption revelations "might embarrass or hurt our relations with the Maliki government."
Larry Butler, the deputy assistant secretary of state for Near East affairs, declined to publicly answer questions about whether Maliki had obstructed corruption investigations, saying he could only respond in a closed session. Waxman called the request "absurd," but the State Department defended Butler's position. Spokesman Sean McCormack said in corruption investigations it was best to handle matters privately at first to protect the rights of those under suspicion.
Radhi said he did not return to Iraq because of threats to his security, but he also suggested Maliki was behind efforts to prosecute him if he went back. In his statement, he said 31 of his co-workers and 12 of their relatives had been killed because of their work. "This includes my staff member Mohammed Abd Salif who was gunned down with his seven-month pregnant wife," he said. The body of the father of another worker was found on a meat hook, he said. Radhi also said it had been impossible for the commission to adequately investigate oil corruption because Sunni and Shi'ite militias had control of the distribution of Iraqi oil.
Maliki has shielded relatives from investigation and allowed government ministers to protect implicated employees, said the judge, who left Iraq in August after threats against him. He told a Capitol Hill hearing that 31 employees of his agency had been killed. Radhi said he did not have evidence against Maliki personally, but the prime minister had "protected some of his relatives that were involved in corruption."
One of these was a former minister of transportation, Radhi told the House of Representatives' Oversight and Government Reform Committee. The U.S. official who testified, Special Inspector General for Iraq Reconstruction, Stuart Bowen, said he also saw a "rising tide of corruption in Iraq." He said U.S. efforts to combat it were "disappointing," lacking funding and focus.
Rep. Henry Waxman, the California Democrat who chairs the panel, questioned whether the Maliki government was "too corrupt to succeed" and charged that U.S. efforts to address the problem were in "complete disarray." He criticized what he said was State Department resistance to the panel's investigation, saying the U.S. government apparently was afraid the corruption revelations "might embarrass or hurt our relations with the Maliki government."
Larry Butler, the deputy assistant secretary of state for Near East affairs, declined to publicly answer questions about whether Maliki had obstructed corruption investigations, saying he could only respond in a closed session. Waxman called the request "absurd," but the State Department defended Butler's position. Spokesman Sean McCormack said in corruption investigations it was best to handle matters privately at first to protect the rights of those under suspicion.
Radhi said he did not return to Iraq because of threats to his security, but he also suggested Maliki was behind efforts to prosecute him if he went back. In his statement, he said 31 of his co-workers and 12 of their relatives had been killed because of their work. "This includes my staff member Mohammed Abd Salif who was gunned down with his seven-month pregnant wife," he said. The body of the father of another worker was found on a meat hook, he said. Radhi also said it had been impossible for the commission to adequately investigate oil corruption because Sunni and Shi'ite militias had control of the distribution of Iraqi oil.
Labels: corruption, Judge Radhi Hamza al-Radhi, Nouri Al-Maliki, Stuart Bowen
Thursday, September 20, 2007
U.S. congress considers legislation for private security companies
(McClatchy Newspapers) - The deaths of 11 Iraqis during a shooting involving Blackwater security guards pose the kind of quandary that congressional investigators have been worrying about for years: how to oversee and prosecute contractors accused of crimes in a war-torn country. The shooting also renews focus on congressional efforts to bring more oversight to security contractors, including legislation sponsored by Rep. David Price, D-N.C., one of Congress' most vocal critics of the lack of oversight of private security companies.
Price has sponsored two bills that would bring all U.S. security contractors under federal criminal codes and require that the U.S. government provide more information about the cost and duties of private contractors.
Iraqi officials said Monday that they would revoke Blackwater's license to operate in Iraq and would insist that its employees responsible for the deaths, which Iraqi officials say resulted from an unprovoked shooting spree by the guards, face Iraqi courts.
Price has sponsored two bills that would bring all U.S. security contractors under federal criminal codes and require that the U.S. government provide more information about the cost and duties of private contractors.
Iraqi officials said Monday that they would revoke Blackwater's license to operate in Iraq and would insist that its employees responsible for the deaths, which Iraqi officials say resulted from an unprovoked shooting spree by the guards, face Iraqi courts.
On Wednesday, Iraqi officials also accused Blackwater of involvement in a number of questionable actions, including engineering the jailbreak of an official accused of corruption. Blackwater, based in Moyock, N.C., provides bodyguards for U.S. diplomats in Iraq, including Ambassador Ryan Crocker. On Tuesday, the U.S. Embassy banned civilian travel outside the fortified Green Zone because of Sunday's shooting.
"This is the first time the Iraq government has taken such strong actions against U.S. contract personnel," Price said. "The question of what we're going to do ... is a very crucial question in establishing credibility for dealing with this." Should Iraq follow through, its crackdown could have implications for tens of thousands of armed employees working in Iraq in various jobs. Price and others say it's unclear exactly what rules private security contractors fall under when operating in war zones.
Price's proposed legislation would clarify that private security contractors working for a U.S. government agency are subject to U.S. law. It would set up FBI units in Iraq to investigate suspected misconduct. The Department of State has begun an investigation into Sunday's shooting, but Price said it's unclear what authority the agency has to prosecute any suspects. He has asked Secretary of State Condoleezza Rice for her interpretation.
Bringing the contractors formally under U.S. laws would help the U.S. argument that suspected crimes need not be prosecuted in Iraqi courts. Blackwater is among the most prominent of the private security companies operating in Iraq, in part because of its State Department contract and in part because its employees have been involved in several high-profile incidents.
But the exact number of contractors in Iraq and what their jobs are aren't well known. Price and House Armed Services Chairman Ike Skelton, D-Mo., have asked the Government Accountability Office to issue a report on the subject, and GAO investigators have visited Iraq. The report, however, isn't expected for several months.
"There seems to be a potential conflict brewing about the applicability of Iraqi law," Price said in an interview. "So assuming that there is something here that deserves ... prosecution, then how willing and able the United States is to deal with it is a very important issue and will have a lot to do with the credibility of any case we make against Iraqi prosecution."
Price also has inserted rules in the defense authorization bill, now being debated in the Senate, to set standards for the rules of engagement and hiring of private security contractors, along with improved communication between contractors and the military. Sen. Barack Obama, D-Ill., has included many of the same provisions in an amendment he filed in the Senate to the defense authorization bill.
Republicans in Congress also have made efforts to bring security contractors under U.S. law. Last year, Sen. Lindsey Graham, a South Carolina Republican, inserted a clause in the defense authorization bill that made contractors working with the U.S. military subject to courts-martial. But the Pentagon hasn't yet drawn up specific guidelines on the clause, according to Peter Singer, a security expert with the Brookings Institution in Washington.
"This is the first time the Iraq government has taken such strong actions against U.S. contract personnel," Price said. "The question of what we're going to do ... is a very crucial question in establishing credibility for dealing with this." Should Iraq follow through, its crackdown could have implications for tens of thousands of armed employees working in Iraq in various jobs. Price and others say it's unclear exactly what rules private security contractors fall under when operating in war zones.
Price's proposed legislation would clarify that private security contractors working for a U.S. government agency are subject to U.S. law. It would set up FBI units in Iraq to investigate suspected misconduct. The Department of State has begun an investigation into Sunday's shooting, but Price said it's unclear what authority the agency has to prosecute any suspects. He has asked Secretary of State Condoleezza Rice for her interpretation.
Bringing the contractors formally under U.S. laws would help the U.S. argument that suspected crimes need not be prosecuted in Iraqi courts. Blackwater is among the most prominent of the private security companies operating in Iraq, in part because of its State Department contract and in part because its employees have been involved in several high-profile incidents.
But the exact number of contractors in Iraq and what their jobs are aren't well known. Price and House Armed Services Chairman Ike Skelton, D-Mo., have asked the Government Accountability Office to issue a report on the subject, and GAO investigators have visited Iraq. The report, however, isn't expected for several months.
"There seems to be a potential conflict brewing about the applicability of Iraqi law," Price said in an interview. "So assuming that there is something here that deserves ... prosecution, then how willing and able the United States is to deal with it is a very important issue and will have a lot to do with the credibility of any case we make against Iraqi prosecution."
Price also has inserted rules in the defense authorization bill, now being debated in the Senate, to set standards for the rules of engagement and hiring of private security contractors, along with improved communication between contractors and the military. Sen. Barack Obama, D-Ill., has included many of the same provisions in an amendment he filed in the Senate to the defense authorization bill.
Republicans in Congress also have made efforts to bring security contractors under U.S. law. Last year, Sen. Lindsey Graham, a South Carolina Republican, inserted a clause in the defense authorization bill that made contractors working with the U.S. military subject to courts-martial. But the Pentagon hasn't yet drawn up specific guidelines on the clause, according to Peter Singer, a security expert with the Brookings Institution in Washington.
Labels: Blackwater, corruption, legislation
Friday, September 07, 2007
Iraqi govt names new deputy head of anti-corruption body
Government
(AP) -- The Iraqi government has named the deputy head of the country's anti-corruption body to replace his boss, who is accused by a parliamentary committee of corruption himself, officials said Thursday. The change comes as the U.S. Embassy is reviewing allegations that the Iraqi government is riddled with corruption and has, in some cases, sought to derail or prevent investigations into alleged graft by Shiite-controlled agencies or allied officials.
The new chairman of the Public Integrity Commission will be Moussa Faraj, said Sabah al-Saidi, the head of the parliament's anti-corruption committee. A government official, speaking on condition of anonymity because of the issue's sensitivity, said the outgoing chairman, Radhi al-Radhi, had requested retirement and that Prime Minister Nouri al-Maliki accepted. The official said Faraj will replace al-Radhi on a temporary basis until he is approved by parliament permanently to the new post.
Parliament Speaker Mahmoud al-Mashhadani has protested al-Radhi's removal, saying in a letter to al-Maliki on Wednesday that the move was "illegal and unconstitutional" because the commission is an independent body and not a government organization, the commission official said. But al-Saidi said al-Maliki has the right to name a replacement for al-Radhi as long as he is approved by parliament later.
Al-Maliki told reporters Monday that al-Radhi fled the country after being charged with corruption - a claim al-Radhi strongly denied, saying he was at a training course at the U.S. Department of Justice in Washington.
The new chairman of the Public Integrity Commission will be Moussa Faraj, said Sabah al-Saidi, the head of the parliament's anti-corruption committee. A government official, speaking on condition of anonymity because of the issue's sensitivity, said the outgoing chairman, Radhi al-Radhi, had requested retirement and that Prime Minister Nouri al-Maliki accepted. The official said Faraj will replace al-Radhi on a temporary basis until he is approved by parliament permanently to the new post.
Parliament Speaker Mahmoud al-Mashhadani has protested al-Radhi's removal, saying in a letter to al-Maliki on Wednesday that the move was "illegal and unconstitutional" because the commission is an independent body and not a government organization, the commission official said. But al-Saidi said al-Maliki has the right to name a replacement for al-Radhi as long as he is approved by parliament later.
Al-Maliki told reporters Monday that al-Radhi fled the country after being charged with corruption - a claim al-Radhi strongly denied, saying he was at a training course at the U.S. Department of Justice in Washington.
Labels: corruption, Iraqi government, Moussa Faraj, Public Integrity Commission, Radhi al-Radhi, Sabah al-Saidi
Wednesday, August 22, 2007
Sacked Iraqi police in Basra turn to terrorism
Security, Politics
(The Times) - A British police chief in Basra has given a warning that Iraqi officers sacked for corruption have turned to terrorism in revenge. Mike Colbourne, Assistant Chief Constable of Bedfordshire but currently the senior police adviser in southern Iraq, said many of those who had been dismissed or had retired were involved in violence.
The bleak assessment after four years of British attempts to convert the Iraqi police into an effective force comes within weeks of the expected handover of the city of Basra to Iraqi security control. The 500 British soldiers based at Basra Palace in the heart of the city who patrol the districts in armoured vehicles and work alongside the Iraqi Army and police force, are to be withdrawn and relocated to the main airport base along with all the other military units.
Although the pullout date remains an operational secret the Ministry of Defence in London has stated that the handover should go ahead within the next few weeks. Mr Colbourne said on BBC Radio’s The World at One that the British troops would not withdraw until the Iraqis were ready to take on responsibility for security in the city themselves. However, he admitted that a significant number of Iraqi police officers were still engaged in corruption and violence, including murder and kidnappings.
“There are a number of Iraqi police service officers who are clearly aligned to militias,” he said. He added: “I think that there is violence being committed by police officers and other Iraqi security forces’ officers. We know there are significant numbers of both serving officers [and] those who have been sacked and retired who continue to be involved in violence.”
The infiltration of militia-loyal police officers into the Basra force has been a threat to the stability of the city since the British military occupation of southern Iraq formally came to an end in June 2004.
The bleak assessment after four years of British attempts to convert the Iraqi police into an effective force comes within weeks of the expected handover of the city of Basra to Iraqi security control. The 500 British soldiers based at Basra Palace in the heart of the city who patrol the districts in armoured vehicles and work alongside the Iraqi Army and police force, are to be withdrawn and relocated to the main airport base along with all the other military units.
Although the pullout date remains an operational secret the Ministry of Defence in London has stated that the handover should go ahead within the next few weeks. Mr Colbourne said on BBC Radio’s The World at One that the British troops would not withdraw until the Iraqis were ready to take on responsibility for security in the city themselves. However, he admitted that a significant number of Iraqi police officers were still engaged in corruption and violence, including murder and kidnappings.
“There are a number of Iraqi police service officers who are clearly aligned to militias,” he said. He added: “I think that there is violence being committed by police officers and other Iraqi security forces’ officers. We know there are significant numbers of both serving officers [and] those who have been sacked and retired who continue to be involved in violence.”
The infiltration of militia-loyal police officers into the Basra force has been a threat to the stability of the city since the British military occupation of southern Iraq formally came to an end in June 2004.
Labels: Basra, corruption, Iraqi police officers, Mike Colbourne, militias
Wednesday, July 04, 2007
Baghdad Governorate Council Has New Plan To Run Private Fuel Stations In Baghdad
Economy
(Badr Newspaper) - 3 JUL - Baghdad Governorate Council has agreed with the Oil Ministry to form a joint committee to create a plan to run private fuel stations. During a meeting held in the Oil Ministry headquarters and which was attended by Mr. Nazar Al Sultan, the Council’s Energy Committee Chief, and Mr. Mutasim Akram Hassan, an Oil Ministry advisor. Nazar Sultan said, “A technical and a legal committee will be formed that includes Baghdad Governorate Council members and Iraqi oil experts to create a plan to operate private fuel stations in Baghdad and to support the private sector.”
In related news, the Baghdad Governorate Council members discussed the subject of providing Baghdad Municipality with gasoline. The issue of supplying Baghdad Municipality with diesel was discussed for the purpose of carrying out projects and operating “pumping stations.” The council members decided to provide Baghdad Municipality with the gasoline that it needs.
In related news, the Baghdad Governorate Council members discussed the subject of providing Baghdad Municipality with gasoline. The issue of supplying Baghdad Municipality with diesel was discussed for the purpose of carrying out projects and operating “pumping stations.” The council members decided to provide Baghdad Municipality with the gasoline that it needs.
Mr. Nazar Al Sultan spoke about the fuel crisis in Baghdad and he called for a quick solution to this crisis. The Oil Ministry advisor stated that the reasons behind this crisis are corruption and the small number of fuel stations in Baghdad. He confirmed, “We have enough fuel but there are technical and security reasons that prevent us from providing Baghdad with more fuel.”
Mr. Mutasim Akram Hassan, the Oil Ministry Advisor for Distribution Efforts said, “The Oil Ministry has created a number of steps to resolve the fuel crisis, such as selling fuel directly to citizens who need it for small generators.” Nazar Al Sultan, the Energy Committee Chief, called for the distribution of fuel through the district councils and the Baghdad Governorate Council must be responsible for this matter. Al Sultan clarified that Dora Refinery needs to be used to its capacity to provide Baghdad with fuel.
Labels: Baghdad Governorate Council, corruption, Dora refinery, fuel stations, Oil Ministry, privatisation
Iraq's education system collapses amongst militia threats and corruption
Education, Corruption
(Christian Science Monitor) - Over the past two weeks, Iraq has seen an unprecedented level of interference by militias and insurgents as students have taken national exams for middle and high school diplomas. Cheating and bribing have also marred the process - as have threats by parents to uncooperative teachers.
Iraq's schools and universities were once the pride of the Arab world. But one expert says that what has happened inside exam halls, along with the plummeting standards of the education system, are further symptoms of the systematic unravelling of Iraqi society and its institutions. "There is real terror going on at some of these exams," says Asma Jamil, a sociologist at Baghdad University, adding that students feel that Iraq's instability gives them the right to cheat, while armed groups want to win the sympathy of the public.
"It's a result of greater social decay," she says, "and it feeds it by graduating a generation of aggressive, sometimes extremist, students who have very little capability for critical thinking." The Ministry of Education recently solicited solutions to the problem from her and other experts, she says, but that there has been little follow-up. "We are witnessing," she says, "the complete collapse of the education system."
Education Minister Khudayer Al Khuzaie says that all the talk of violations at exam centres were rumours and part of a smear campaign. According to Asma, the 1970s and '80s saw great strides that set Iraq apart in the region. The system started declining in the 1990s after the first Gulf War, when economic sanctions and poverty prompted some officials to sell exam questions or award fictitious degrees.
One student, who did not wish to give his name, says that he had accompanied five friends, including the son of a former minister, to the principal's house. "I saw them writing their names on the dollar bills they handed to the principal," he charges.
A teacher in Baiyaa, who gave her name as Umm Sarah, says militiamen stormed into her school and ordered proctors out of one exam. "One had a pistol under his shirt. We were terrified," she says. In a separate incident, she says, parents confronted her and others and were about to beat them for not allowing cheating, before being rescued by a police patrol.
Iraq's schools and universities were once the pride of the Arab world. But one expert says that what has happened inside exam halls, along with the plummeting standards of the education system, are further symptoms of the systematic unravelling of Iraqi society and its institutions. "There is real terror going on at some of these exams," says Asma Jamil, a sociologist at Baghdad University, adding that students feel that Iraq's instability gives them the right to cheat, while armed groups want to win the sympathy of the public.
"It's a result of greater social decay," she says, "and it feeds it by graduating a generation of aggressive, sometimes extremist, students who have very little capability for critical thinking." The Ministry of Education recently solicited solutions to the problem from her and other experts, she says, but that there has been little follow-up. "We are witnessing," she says, "the complete collapse of the education system."
Education Minister Khudayer Al Khuzaie says that all the talk of violations at exam centres were rumours and part of a smear campaign. According to Asma, the 1970s and '80s saw great strides that set Iraq apart in the region. The system started declining in the 1990s after the first Gulf War, when economic sanctions and poverty prompted some officials to sell exam questions or award fictitious degrees.
One student, who did not wish to give his name, says that he had accompanied five friends, including the son of a former minister, to the principal's house. "I saw them writing their names on the dollar bills they handed to the principal," he charges.
A teacher in Baiyaa, who gave her name as Umm Sarah, says militiamen stormed into her school and ordered proctors out of one exam. "One had a pistol under his shirt. We were terrified," she says. In a separate incident, she says, parents confronted her and others and were about to beat them for not allowing cheating, before being rescued by a police patrol.
Labels: corruption, education, exams, militias, students
Tuesday, July 03, 2007
Corruption rife as unemployed flock to join Iraqi army
Security
(Azzaman) - Volunteer armies complain of lack of recruits but that is not the case with the nascent Iraqi forces. Officers complain that they normally have more volunteers than the number of applicants they ask for despite mounting violence and suicide attacks. When Iraqi police and military authorities announced their need for 3,000 volunteers in the violence-torn districts in Baghdad’s suburbs, they received more than 15,000 applications.
“Unemployment is worse than death,” replied a young man amid a big crowd of people willing to register their names as volunteers at an army recruit center in Baghdad. Army recruitment centers have been scenes of repeated suicide bombing and hundreds of recruits have been killed in such attacks. Guards at the center at Alzawara Park could hardly bring some sort of order to a crowd of recruits fighting to present their papers.
Some recruits complained of corruption, saying officials in the center would normally ask for a tip of nearly 1,000 dollars to have their names registered as volunteers. Ali Hussain, whose application was not even handled, said he was turned away by an officer who openly asked for a bribe. “He (the officer) asked for ten 100 dollar bills. I asked him earnestly to reduce the amount, but he refused and my application was rejected. Finding a job is almost impossible and the only way to earn a decent living is by joining the army despite the hazards,” he said.
Other recruits refusing to be named said their applications were eventually rejected despite paying the money to those running the center. It was hard to get any of the officers in the center to speak on the record. One officer, who would only talk on condition of not revealing his name and rank, agreed that there was corruption in the army and particularly at recruiting centers.
“What you have discovered is true … but those found guilty of corruption are charged and dismissed. But I don’t think the problem is on the scale described in the media,” he said. He said the problem was that the number of volunteers always far exceeds what the army really needs. “This prompts some to use corruption and bribes in processing the applications,” he said.
“Unemployment is worse than death,” replied a young man amid a big crowd of people willing to register their names as volunteers at an army recruit center in Baghdad. Army recruitment centers have been scenes of repeated suicide bombing and hundreds of recruits have been killed in such attacks. Guards at the center at Alzawara Park could hardly bring some sort of order to a crowd of recruits fighting to present their papers.
Some recruits complained of corruption, saying officials in the center would normally ask for a tip of nearly 1,000 dollars to have their names registered as volunteers. Ali Hussain, whose application was not even handled, said he was turned away by an officer who openly asked for a bribe. “He (the officer) asked for ten 100 dollar bills. I asked him earnestly to reduce the amount, but he refused and my application was rejected. Finding a job is almost impossible and the only way to earn a decent living is by joining the army despite the hazards,” he said.
Other recruits refusing to be named said their applications were eventually rejected despite paying the money to those running the center. It was hard to get any of the officers in the center to speak on the record. One officer, who would only talk on condition of not revealing his name and rank, agreed that there was corruption in the army and particularly at recruiting centers.
“What you have discovered is true … but those found guilty of corruption are charged and dismissed. But I don’t think the problem is on the scale described in the media,” he said. He said the problem was that the number of volunteers always far exceeds what the army really needs. “This prompts some to use corruption and bribes in processing the applications,” he said.
Labels: corruption, Iraqi Army, recruitment, unemployment, volunteers
Saturday, May 12, 2007
Billions of dollars of Iraqi oil production unaccounted for
Oil
(Reuters) - Billions of dollars' worth of Iraq's declared oil production over the past four years is unaccounted for, possibly having been siphoned off through corruption or smuggling, The New York Times said on Saturday. Between 100,000 and 300,000 barrels of Iraq's daily output of roughly 2 million barrels is missing, it said, citing a draft report prepared by the U.S. Government Accountability Office and government energy analysts which is expected to be released next week.
The discrepancy was valued between $5 million and $15 million daily, using a $50 per barrel average, the report said. That adds up to billions of dollars over the four years since the March 2003 U.S.-led invasion of Iraq. The newspaper was provided the draft report by a separate government office that received a review copy.
The GAO declined to discuss the draft, the paper said. The report did not make a final conclusion on what happened to the missing oil, and provided alternative explanations besides corruption or smuggling, including possible Iraqi overstating of its production. A State Department official who works on energy matters offered possible explanations including pipeline sabotage, or inaccurate reporting of oil production in southern Iraq.
"It could also be theft," the Times quoted the unnamed official as saying, with suspicion falling on southern Shi'ite militias. "Crude oil is not as lucrative in the region as refined products, but we're not ruling that out either," the official said."There is not an issue of insurgency, per se, but it could be funding Shia factions, and that could very well be true.""That would be a concern if they were using smuggling money to blow up American soldiers or kill Sunnis or do anything that could harm the unity of the country," the Times quoted the official as saying.
The newspaper characterized the report as the most comprehensive look thus far at what it called faltering U.S. efforts to rebuild Iraq's oil and electricity sectors. The GAO tapped experts at the Energy Information Administration within the United States Department of Energy for its oil analysis. Erik Kreil, an oil expert at the administration who is familiar with the analysis, said a review of industry figures worldwide indicated Iraq's stated production figures did not add up.
"Either they're producing less, or they're producing what they say and the difference is completely unaccounted for in any of the places we think it should go," Kreil told the Times. "Either it's overly optimistic, or it's unaccounted for." Analysts outside the government said such a large discrepancy indicated that there was either a major smuggling operation in place or that Iraq was not generating accurate production figures, the newspaper added.
Labels: corruption, GAO, Iraq Oil, smuggling, U.S. Government Accountability Office
Monday, April 30, 2007
U.S. Iraq reconstruction effort riddled with problems
Reconstruction
(AP) - U.S. efforts to rebuild Iraq are so beset with daily violence, corruption and poor maintenance that Iraqis will not be capable of managing reconstruction anytime soon, investigators say. The latest audit by the special inspector general for Iraq reconstruction found that uncertainty and delays plague a U.S.-led war and rebuilding effort that has already cost nearly $400 billion.
Echoing what U.S. military commanders have acknowledged in recent days, the 210-page report being released Monday found that security remains highly volatile. Rates of attacks are lower, but attacks are more devastating, meaning greater disruption of services and public works. Corruption among Iraqi officials also appeared to be worsening. Iraq's annual financial loss now exceeds $5 billion due to fraud and abuse that "afflicts virtually every Iraqi ministry," according to the report. It cites the ministries of oil, interior and defense as the biggest offenders.
"Persistent attacks on U.S.-funded infrastructure projects and sustainment challenges could jeopardize the completion of projects by their planned end-dates of mid- to late-2008," according to the report. In a cover letter, Inspector General Stuart Bowen Jr. said the Iraqi government was assuming more of the financial burden for the recovery effort, but U.S. support "will remain relatively robust for the foreseeable future."
Responding to specific portions of the audit, William Lynch, acting director of the State Department's Iraq Reconstruction Management Office, indicated that it was unfair for investigators to hold the U.S. responsible for several of the cited problems, such as maintenance issues that he said were the Iraqis' responsibility.
Among other findings:
-While targets for training and equipping Iraqi security forces have been achieved, the actual number of forces available at any given time is a concern.
-The actual number of present-for-duty soldiers is about one-half to one-third of the total because of scheduled leave, absence without leave and attrition.
-While the target training 135,000 Iraqi police was met during the quarter, there were problems in getting the police where they were needed.
---
On the Net:
Special Inspector General for Iraq Reconstruction: http://www.sigir.mil/
Echoing what U.S. military commanders have acknowledged in recent days, the 210-page report being released Monday found that security remains highly volatile. Rates of attacks are lower, but attacks are more devastating, meaning greater disruption of services and public works. Corruption among Iraqi officials also appeared to be worsening. Iraq's annual financial loss now exceeds $5 billion due to fraud and abuse that "afflicts virtually every Iraqi ministry," according to the report. It cites the ministries of oil, interior and defense as the biggest offenders.
"Persistent attacks on U.S.-funded infrastructure projects and sustainment challenges could jeopardize the completion of projects by their planned end-dates of mid- to late-2008," according to the report. In a cover letter, Inspector General Stuart Bowen Jr. said the Iraqi government was assuming more of the financial burden for the recovery effort, but U.S. support "will remain relatively robust for the foreseeable future."
Responding to specific portions of the audit, William Lynch, acting director of the State Department's Iraq Reconstruction Management Office, indicated that it was unfair for investigators to hold the U.S. responsible for several of the cited problems, such as maintenance issues that he said were the Iraqis' responsibility.
Among other findings:
-While targets for training and equipping Iraqi security forces have been achieved, the actual number of forces available at any given time is a concern.
-The actual number of present-for-duty soldiers is about one-half to one-third of the total because of scheduled leave, absence without leave and attrition.
-While the target training 135,000 Iraqi police was met during the quarter, there were problems in getting the police where they were needed.
---
On the Net:
Special Inspector General for Iraq Reconstruction: http://www.sigir.mil/
Labels: corruption, Inspector General Stuart Bowen Jr., Iraq Reconstruction Management Office, reconstruction, William Lynch
Wednesday, April 18, 2007
The Fadhela party accuses al-Sadr of plotting a regional coup
Oil, Security
(UPI) - Political and sectarian fighting in Iraq's oil capital, Basra, intensifies, threatening most of Iraq's oil production and all its oil exports. Basra is majority Shiite and, as the central city of the vast majority of Iraq's oil reserves and the largest port where nearly all its oil exports are sent from, equally as important to Iraq as Baghdad. Iraq has 115 billion barrels of proven reserves, and production is struggling at around 2 million barrels per day. Oil sales make up 93 percent of Iraq's budget.
The local government is controlled by the Fadhila Party. Its biggest competitor is the alliance led by Moqtada Sadr. The two sides launched bitter and violent battles against each other over the past weeks. On Monday a large demonstration was held in Basra demanding Muhammad Masbah al Waili, the Fadhila Party governor of Basra province, resign. Sadr and his Mahdi Army deny involvement in the rally and subsequent campaign for Waili to step down.
Regardless, it "marks a new escalation in intra-Shiite tensions, which will expose government institutions and energy infrastructures in the southern provinces to serious security risks," Rochdi Younsi, analyst for Middle East and Africa for the business risk firm Eurasia Group, wrote in a new report.
The local government is controlled by the Fadhila Party. Its biggest competitor is the alliance led by Moqtada Sadr. The two sides launched bitter and violent battles against each other over the past weeks. On Monday a large demonstration was held in Basra demanding Muhammad Masbah al Waili, the Fadhila Party governor of Basra province, resign. Sadr and his Mahdi Army deny involvement in the rally and subsequent campaign for Waili to step down.
Regardless, it "marks a new escalation in intra-Shiite tensions, which will expose government institutions and energy infrastructures in the southern provinces to serious security risks," Rochdi Younsi, analyst for Middle East and Africa for the business risk firm Eurasia Group, wrote in a new report.
Sadr says Waili and the Fadhila Party in Basra are corrupt, including involvement in oil smuggling that has cost the Iraqi government billions of dollars in oil revenues and worsened the fuel shortage in the country. Local tribal leaders also back that accusation, Younsi wrote. Fadhila accuses Sadr of planning a violent regional coup, including taking control of the Southern Oil Company. "Local oil infrastructures could be exposed to a higher security risk as the Shiite community in the south becomes more fragmented," Younsi wrote.
Labels: Basra, corruption, coup, Fadhela party, Moqtada Al-Sadr, Muhammad Masbah al Waili, oil, Southern Oil Company, violence
Wednesday, April 04, 2007
$8 billion lost in corruption since 2003
Corruption
(AFP) - Iraq has lost some $8 billion to administrative and financial corruption since the 2003 US-led invasion which toppled the Saddam Hussein regime, an anti-corruption panel said on Tuesday. "The estimated value of the wasted sum because of administrative and financial corruption is eight billion dollars," Radi al-Radhi, the head of the country's anti-corruption committee, said in a statement e-mailed to news organizations.
He blamed the Constitution for some of the funds lost, saying a clause in the Iraqi law blocked the launching of legal action against government employees. "Article 136 B stipulates that no civil servant should be sent for trial before the consent of his minister," the statement quoted Radhi as saying. The article was obstructing investigations into the "lost money."
The official said that efforts were being made to abolish the clause from the Constitution and clear the way for action against employees accused of fraud and corruption. Radhi also revealed his panel was investigating around 180 employees of the Oil Ministry in the southern port city of Basra following reports of corruption, but it was not known whether they will face trial.
He blamed the Constitution for some of the funds lost, saying a clause in the Iraqi law blocked the launching of legal action against government employees. "Article 136 B stipulates that no civil servant should be sent for trial before the consent of his minister," the statement quoted Radhi as saying. The article was obstructing investigations into the "lost money."
The official said that efforts were being made to abolish the clause from the Constitution and clear the way for action against employees accused of fraud and corruption. Radhi also revealed his panel was investigating around 180 employees of the Oil Ministry in the southern port city of Basra following reports of corruption, but it was not known whether they will face trial.
Labels: corruption, Oil Ministry, Radi al-Radhi
Friday, March 09, 2007
$8 billion in public funds embezzled
Finance
(RFE/RL) Radi al-Radi, the head of Iraq's Commission on Public Integrity (CPI), told the London-based "Al-Sharq al-Awsat" in an interview published on March 8 that corruption is at an all-time high in Iraq, and far worse than it was under Saddam Hussein's tenure. "There are eight ministers and 40 director-generals against whom corruption charges have been brought and they have all fled abroad," al-Radi said, adding that some $8 billion in public funds has been embezzled.
Labels: corruption, embezzlement
Wednesday, February 28, 2007
Corruption out of control in Kurdistan
Corruption
(Kurdish Media) The head of Kurdistan Toilers Party Mr Qadir Aziz has told Kurdish independent weekly Medya that if the situation in south Kurdistan continues without a radical improvement, he thinks there will be major uprising against the rule of the two dominant parties. He says: "What is happening in Kurdistan has gone far beyond corruption. What is happening now is the official control of the two parties over all the wealth and property of people."
He says: "Corruption is something that happens discreetly. But what is happening in Kurdistan is a stark aggression of the two parties against people and their property." He adds: "The appropriation of so many public buildings, property and land by political parties and their ownership of innumerable companies, hotels and people's property have gone far beyond corruption. He says that he does not believe that KDP and PUK can improve the current situation. There will be a social breakdown. And then only the Islamic parties will exploit and benefit from this situation. "This is already happening", he says.
He says: "Corruption is something that happens discreetly. But what is happening in Kurdistan is a stark aggression of the two parties against people and their property." He adds: "The appropriation of so many public buildings, property and land by political parties and their ownership of innumerable companies, hotels and people's property have gone far beyond corruption. He says that he does not believe that KDP and PUK can improve the current situation. There will be a social breakdown. And then only the Islamic parties will exploit and benefit from this situation. "This is already happening", he says.
Labels: corruption, KDP, Kurdistan, PUK
