Ministers in dock over missing billions
Harold's List
UK Times
By James Hider
Iraqi officials are aghast at British and US failure to halt corruption in the interim government
FIVE former Iraqi ministers who held posts in the interim Government installed by the United States last year are facing charges of corruption and abuse of power, a senior Iraqi judge said yesterday.
Among them is Hazem Shaalan, the former Defence Minister in the Government of Iyad Allawi, according to Judge Radhi al-Radhi, head of the Commission on Public Integrity. Under Mr Shaalan's leadership, an estimated Ј1.3 billion went missing, auditors believe.
Judge Radhi told The Times that Iraq's fight against terrorists and insurgents had been severely handicapped by the corruption and incompetence of the interim Government, which was selected by the US-led occupation authority to accept the transfer of sovereignty in June last year.
The other former Cabinet ministers under indictment are those for Trade, Labour, Housing and Transport. The former Transport Minister has since disappeared and Interpol has issued a warrant for his arrest.
In one catastrophic deal, the Iraqi Ministry of Defence paid $226 million (Ј128 million) for a consignment of Russian helicopters, a deal arranged by a Polish-Iraqi ministry employee, Judge al-Radhi said. "Two helicopters were sent in a shabby condition, so we asked them to stop the contract, but we never got the money back."
Another $150 million was paid for weapons systems and ammunition for the helicopters. When it appeared that the entire deal was going to fall through, the Iraqis, who had secured no guarantees on their purchase, were told that they could obtain other weapons with their credit. However, they were then told that the equipment would not be available for another four years.
Investigating judges have prepared cases against 24 Ministry of Defence employees, including the former Defence Minister, who was close to the US-led authorities after the Anglo-American invasion. A spokesman for Mr. Shaalan admitted that corruption was rife in the ministry but denied that the minister had been involved.
Judge al-Radhi, whose commission was set up last July, said: "If we had 60 or 70 helicopters, at least we could guard the borders. If we had decent weapons and munitions this would shorten the fight against terrorism. That's why the Defence Ministry case is so important for us."
In some ways, the judge conceded, abuse was to be expected, given that the new administration had a lack of experience, that Iraq had been ruled since the war by short-lived governments with little accountability, and that vast sums of money had been pumped into what was an impoverished country.
But what exasperated him most was that the ministries - in particular the Defence Ministry - were under the tutelage of British and American advisers who appeared to have been oblivious to the vast malpractice being carried out under their noses. "What amazes me is that there were foreign experts there at the time," he said. "Why did they turn a blind eye and say nothing? If they were serious and honest, it would have limited the number of both Iraqis and Americans who have been killed."
Some corruption cases have revealed a direct link between fraud and the insurgency. In the Interior Ministry, in charge of police and much counter-insurgency intelligence work, 450 cases are under investigation, including those of officers suspected of selling police identity badges to terrorists.
Judge al-Radhi said that his clean-hands team were now focusing their attention on the oil ministry, where a "mafia" was operating substantial bribery and smuggling rings across the distribution network. Other investigations have centred on the Trade Ministry, where racketeers have profited from the state-run food ration-card system, and the Electricity Ministry.
British troops have seized 12 suspected terrorists, including three Iraqi police officers. The officers were arrested at the station that British troops attacked last month to free two SAS troopers detained by Iraqi police. Their arrest emphasised the fear that the British-trained force has been penetrated by militants.
UK Times
By James Hider
Iraqi officials are aghast at British and US failure to halt corruption in the interim government
FIVE former Iraqi ministers who held posts in the interim Government installed by the United States last year are facing charges of corruption and abuse of power, a senior Iraqi judge said yesterday.
Among them is Hazem Shaalan, the former Defence Minister in the Government of Iyad Allawi, according to Judge Radhi al-Radhi, head of the Commission on Public Integrity. Under Mr Shaalan's leadership, an estimated Ј1.3 billion went missing, auditors believe.
Judge Radhi told The Times that Iraq's fight against terrorists and insurgents had been severely handicapped by the corruption and incompetence of the interim Government, which was selected by the US-led occupation authority to accept the transfer of sovereignty in June last year.
The other former Cabinet ministers under indictment are those for Trade, Labour, Housing and Transport. The former Transport Minister has since disappeared and Interpol has issued a warrant for his arrest.
In one catastrophic deal, the Iraqi Ministry of Defence paid $226 million (Ј128 million) for a consignment of Russian helicopters, a deal arranged by a Polish-Iraqi ministry employee, Judge al-Radhi said. "Two helicopters were sent in a shabby condition, so we asked them to stop the contract, but we never got the money back."
Another $150 million was paid for weapons systems and ammunition for the helicopters. When it appeared that the entire deal was going to fall through, the Iraqis, who had secured no guarantees on their purchase, were told that they could obtain other weapons with their credit. However, they were then told that the equipment would not be available for another four years.
Investigating judges have prepared cases against 24 Ministry of Defence employees, including the former Defence Minister, who was close to the US-led authorities after the Anglo-American invasion. A spokesman for Mr. Shaalan admitted that corruption was rife in the ministry but denied that the minister had been involved.
Judge al-Radhi, whose commission was set up last July, said: "If we had 60 or 70 helicopters, at least we could guard the borders. If we had decent weapons and munitions this would shorten the fight against terrorism. That's why the Defence Ministry case is so important for us."
In some ways, the judge conceded, abuse was to be expected, given that the new administration had a lack of experience, that Iraq had been ruled since the war by short-lived governments with little accountability, and that vast sums of money had been pumped into what was an impoverished country.
But what exasperated him most was that the ministries - in particular the Defence Ministry - were under the tutelage of British and American advisers who appeared to have been oblivious to the vast malpractice being carried out under their noses. "What amazes me is that there were foreign experts there at the time," he said. "Why did they turn a blind eye and say nothing? If they were serious and honest, it would have limited the number of both Iraqis and Americans who have been killed."
Some corruption cases have revealed a direct link between fraud and the insurgency. In the Interior Ministry, in charge of police and much counter-insurgency intelligence work, 450 cases are under investigation, including those of officers suspected of selling police identity badges to terrorists.
Judge al-Radhi said that his clean-hands team were now focusing their attention on the oil ministry, where a "mafia" was operating substantial bribery and smuggling rings across the distribution network. Other investigations have centred on the Trade Ministry, where racketeers have profited from the state-run food ration-card system, and the Electricity Ministry.
British troops have seized 12 suspected terrorists, including three Iraqi police officers. The officers were arrested at the station that British troops attacked last month to free two SAS troopers detained by Iraqi police. Their arrest emphasised the fear that the British-trained force has been penetrated by militants.
posted by Marko at 10/08/2005 04:51:00 PM
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