Lawmakers skewer Rice on Iraqi corruption.

The tenor of the discussion is interesting. There is not even the faintest hint that the US should maybe concentrate upon its own corruption problems rather than insisting in the harshest and belligerent tones that it has every right to correct corruption in Iraq. After all its our puppet must be the thought. We are paying for the strings and manufactured it from scratch at great expense. The Democrats are the best at this holy and arrogant outrage.
Of course this is not to deny that there is corruption in the Iraqi govt. but there is also corruption among private contractors and their relationships with US government officials and the Iraqis. Maybe only the corrupt will co-operate with the occupiers!

Lawmakers skewer Rice on Iraqi corruption by Stephen Collinson
Thu Oct 25, 6:45 PM ET



WASHINGTON (AFP) - US Secretary of State Condoleezza Rice fought off an inquisition by lawmakers Thursday over claims that Iraqi Prime Minister Nuri al-Maliki was shielding top ministers from corruption probes.

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Democratic lawmaker Henry Waxman, who has demanded answers from Rice on various aspects of the US operation in Iraq for months, got his chance at a hearing of a key House of Representatives committee.

He raised claims that Maliki had issued a decree requiring his approval before any minister or official in the presidential office was brought before a court on corruption charges.

Rice refused to respond directly but said US officials took all allegations of corruption in Iraq seriously and pledged to review the case.

"To assault the prime minister in Iraq, with to date heretofore unsubstantiated allegations or uncorroborated allegations in a setting that would simply fuel those allegations ... would be deeply wrong," Rice said.

"Not only is it potentially damaging to relationships that we are very dependent on ... it is wrong."

Rice argued that publicly talking about specific corruption cases risked exposing intelligence sources in Iraq, but said any official or document was available to the committee in closed session.

Democrats say such discussions must be in public, including documents which could damage the administration's claims of success in Iraq.

The hearing represented the latest sharp confrontation between Congress and the Bush administration, three days after the White House asked lawmakers for another 196 billion dollars in funding for the Iraq and Afghan wars.

On Wednesday, anger mounted after the Congressional Budget Office said the cost of the "war on terror" could hit 2.4 trillion dollars by 2017.

As tempers flared in the hearing of the House Oversight and Government reform committee, Waxman confronted Rice with a document purportedly from the Iraqi Prime Minister's office signed by its manager, Tariq Najim Abdullah.

The order said no official from the presidential office, council of ministers or current or previous ministers should be sent to court with Maliki's express approval.

The document, dated 04/01/2007, was handed to the committee Judge Radhi Hamza al-Radhi, former head of the Iraqi Commission on Public Integrity who has fled to the United States.

"Is the prime minister one of the people that cares about fighting corruption in Iraq?" Waxman asked.

Rice replied that the United States did not accept "any policy that would make immune from investigation or prosecution any member of the Iraqi government, no matter how high."

"If there is corruption, the United States wants to root it out."

Earlier this month, the Iraqi government said it would take legal action against the judge, accusing him of smuggling official documents and defaming the prime minister.

Radhi and a group of colleagues headed to Washington in August to undergo training with the US Justice Department.

Maliki at the time accused him of fleeing the country to avoid being tried on graft charges and replaced him as head of the Commission.

Radhi denies the graft allegations and told Waxman's committee earlier this month corruption was affecting virtually every government ministry and that some of the most powerful officials in Iraq are implicated.

As tensions rose in the hearing, Democrats lined up to hammer the Bush administration on Iraq, and Republicans attempted to defend Rice, and argue that the current US troop "surge strategy" had improved security there.

"May I have an opportunity though to finish my answers?" Rice asked Waxman at one stage, while Republican member Dan Burton felt obliged to apologize for the harsh questioning of Democrats on the committee.

"You are not being prosecuted, and we are not prosecutors," Burton said.

But Democratic member Stephen Lynch warned Rice "our kids are on the ground now in that country fighting and dying. We can't wait a moment longer before we talk about this."

Waxman earlier warned Rice's personal reputation was on the line, as she faced questions about her department's oversight of the Blackwater private security firm, accused of killing as many as 17 Iraqi civilians on September 16.

Lawmaker says Rice interfered with Iraq inquiry

This sounds like the standard sort of interference in inquiries that make it difficult for investigating agencies to get relevant data. The smoke screen of National Security can always be brought up. Sometimes it may be relevant but then who knows. The beauty of this is that the other side can bring it up whether it is relegvant or not.

Lawmaker says Rice interfered with Iraq inquiry
Tue Sep 25, 2007 6:27pm EDT

WASHINGTON (Reuters) - A leading Democratic lawmaker on Tuesday accused Secretary of State Condoleezza Rice of interfering in congressional inquiries into corruption in Iraq's government and the activities of U.S. security firm Blackwater.

Democratic Rep. Henry Waxman said State Department officials had told the Oversight and Government Reform Committee he chairs they could not provide details of corruption in Iraq's government unless the information was treated as a "state secret" and not revealed to the public.

"You are wrong to interfere with the committee's inquiry," Waxman said in a letter to Rice. "The State Department's position on this matter is ludicrous," added Waxman, a vocal opponent of the Bush administration's Iraq policies.

The State Department had no immediate comment on the letter or Waxman's allegations of interference but it has in the past dismissed the California lawmaker's comments as partisan.

Waxman said security contractor Blackwater, which was involved in an incident in which Iraqi civilians were killed last week, said they could not hand over documents relevant to an investigation without State Department approval.

"Congress has a constitutional prerogative to examine the impacts that corruption within the Iraqi ministries and the activities of Blackwater may have on the prospects for political reconciliation in Iraq," Waxman wrote to Rice.

Blackwater provides security for the U.S. Embassy in Baghdad and has a contract with the State Department.

The company was involved in a September 16 shooting in which 11 people were killed while Blackwater was escorting a convoy through Baghdad. The State Department is investigating the incident along with the Iraqis.

Waxman, who has called a hearing on Blackwater for October 2, released a letter his staff received from the security contractor's attorneys dated September 24.

"It (the State Department) directs Blackwater USA not to disclose any information concerning the contract without DOS (Department of State) preauthorization in writing."

Blackwater also urged the committee not to ask questions at the hearing that could reveal sensitive information "that could be utilized by our country's implacable enemies in Iraq."

Such information included the size of their security staff in Baghdad, weaponry and the operation of convoys.

Waxman also released a letter signed by State Department contracting officer Kiazan Moneypenny to Blackwater.

"I hereby direct Blackwater to make no disclosure of documents or information ... unless such disclosure has been authorized in writing by the contracting officer," wrote Moneypenny.

Waxman also complained Rice was refusing to testify at any hearings his committee planned to look at political reconciliation in Iraq, corruption or the Blackwater incident.



© Reuters2007All rights reserved

Iraq Paralyzed by Corruption

This is a good article detailing the corruption in the Iraqi government. Of course there is also corruption in the US contractor system as well. No doubt the systems mesh together well with each supporting the other.


Iraq Paralyzed By Corruption

Sept. 2, 2007
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(The Nation) This column was written by David Corn.

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As Congress prepares to receive reports on Iraq from General David Petraeus and U.S. Ambassador Ryan Crocker and readies for a debate on George W. Bush's latest funding request of $50 billion for the Iraq war, the performance of the government of Prime Minister Nouri al-Maliki has become a central and contentious issue.

But according to the working draft of a secret document prepared by the U.S. Embassy in Baghdad, the Maliki government has failed in one significant area: corruption. Maliki's government is "not capable of even rudimentary enforcement of anticorruption laws," the report says, and, perhaps worse, the report notes that Maliki's office has impeded investigations of fraud and crime within the government.

The draft - over 70 pages long - was obtained by The Nation, and it reviews the work (or attempted work) of the Commission on Public Integrity (CPI), an independent Iraqi institution, and other anticorruption agencies within the Iraqi government. Labeled "SENSITIVE BUT UNCLASSIFIED/Not for distribution to personnel outside of the US Embassy in Baghdad," the study details a situation in which there is little, if any, prosecution of government theft and sleaze. Moreover, it concludes that corruption is "the norm in many ministries."

The report depicts the Iraqi government as riddled with corruption and criminals - and beyond the reach of anticorruption investigators. It also maintains that the extensive corruption within the Iraqi government has strategic consequences by decreasing public support for the U.S.-backed government and by providing a source of funding for Iraqi insurgents and militias.

The report, which was drafted by a team of U.S. Embassy officials, surveys the various Iraqi ministries. "The Ministry of Interior is seen by Iraqis as untouchable by the anticorruption enforcement infrastructure of Iraq," it says. "Corruption investigations in Ministry of Defense are judged to be ineffectual." The study reports that the Ministry of Trade is "widely recognized as a troubled ministry" and that of 196 corruption complaints involving this ministry merely eight have made it to court, with only one person convicted.

The Ministry of Health, according to the report, "is a sore point; corruption is actually affecting its ability to deliver services and threatens the support of the government." Investigations involving the Ministry of Oil have been manipulated, the study says, and the "CPI and the [Inspector General of the ministry] are completely ill-equipped to handle oil theft cases." There is no accurate accounting of oil production and transportation within the ministry, the report explains, because organized crime groups are stealing oil "for the benefit of militias/insurgents, corrupt public officials and foreign buyers."

The list goes on: "Anticorruption cases concerning the Ministry of Education have been particularly ineffective….[T]he Ministry of Water Resources…is effectively out of the anticorruption fight with little to no apparent effort in trying to combat fraud….[T]he Ministry of Labor & Social Affairs is hostile to the prosecution of corruption cases. Militia support from [Shia leader Moqtada al-Sadr] has effectively made corruption in the Ministry of Transportation wholesale according to investigators and immune from prosecution." Several ministries, according to the study, are "so controlled by criminal gangs or militias" that it is impossible for corruption investigators "to operate within [them] absent a tactical [security] force protecting the investigator."

The Ministry of the Interior, which has been a stronghold of Shia militias, stands out in the report. The study's authors say that "groups within MOI function similarly to a Racketeer Influenced and Corrupt Organization (RICO) in the classic sense. MOI is a 'legal enterprise' which has been co-opted by organized criminals who act through the 'legal enterprise' to commit crimes such as kidnapping, extortion, bribery, etc." This is like saying the mob is running the police department. The report notes, "currently 426 investigations are hung up awaiting responses for documents belonging to MOI which routinely are ignored." It cites an episode during which a CPI officer discovered two eyewitnesses to the October 2006 murder of Amer al-Hashima, the brother of the vice president, but the CPI investigator would not identify the eyewitnesses to the Minister of the Interior out of fear he and they would be assassinated. (It seemed that the killers were linked to the Interior Ministry.) The report adds, "CPI investigators assigned to MOI investigations have unanimously expressed their fear of being assassinated should they aggressively pursue their duties at MOI. Thus when the head of MOI intelligence recently personally visited the Commissioner of CPI…to end investigations of [an] MOI contract, there was a clear sense of concern within the agency."

Over at the Defense Ministry, the report notes, there has been a "shocking lack of concern" about the apparent theft of $850 million from the Iraqi military's procurement budget. "In some cases," the report says, "American advisors working for U.S. [Department of Defense] have interceded to remove [Iraqi] suspects from investigations or custody." Of 455 corruption investigations at the Defense Ministry, only 15 have reached the trial stage. A mere four investigators are assigned to investigating corruption in the department. And at the Ministry of Trade, "criminal gangs" divide the spoils, with one handling grain theft, another stealing transportation assets.

Part of the problem, according to the report, is Maliki's office: "The Prime Minister's Office has demonstrated an open hostility" to independent corruption investigations. His government has withheld resources from the CPI, the report says, and "there have been a number of identified cases where government and political pressure has been applied to change the outcome of investigations and prosecutions in favor of members of the Shia Alliance"-which includes Maliki's Dawa party.

The report's authors note that the man Maliki appointed as his anticorruption adviser - Adel Muhsien Abdulla al-Quza'alee - has said that independent agencies, like the CPI, should be under the control of Maliki. According to the report, "Adel has in the presence of American advisors pressed the Commissioner of CPI to withdraw cases referred to court." These cases involved defendants who were members of the Shia Alliance. (Adel has also, according to the report, "steadfastly refused to submit his financial disclosure form.") And Maliki's office, the report says, has tried to "force out the entire leadership of CPI to replace them with political appointees" - which would be tantamount to a death sentence for the CPI officials. They now live in the Green Zone. Were they to lose their CPI jobs, they would have to move out of the protected zone and would be at the mercy of the insurgents, militias, and crime gangs "who are [the] subjects of their investigations."

Maliki has also protected corrupt officials by reinstating a law that prevents the prosecution of a government official without the permission of the minister of the relevant agency. According to a memo drafted in March by the U.S. embassy's anticorruption working group-a memo first disclosed by The Washington Post - between September 2006 and February 2007, ministers used this law to block the prosecutions of 48 corruption cases involving a total of $35 million. Many other cases at this time were in the process of being stalled in the same manner. The stonewalled probes included one case in which Oil Ministry employees rigged bids for $2.5 million in equipment and another in which ministry personnel stole 33 trucks of petroleum.

And in another memo obtained by The Nation - marked "Secret and Confidential" - Maliki's office earlier this year ordered the Commission on Public Integrity not to forward any case to the courts involving the president of Iraq, the prime minister of Iraq, or any current or past ministers without first obtaining Maliki's consent. According to the U.S. embassy report on the anticorruption efforts, the government's hostility to the CPI has gone so far that for a time the CPI link on the official Iraqi government web site directed visitors to a pornographic site.

In assessing the Commission on Public Integrity, the embassy report notes that the CPI lacks sufficient staff and funding to be effective. The watchdog outfit has only 120 investigators to cover 34 ministries and agencies. And these investigators, the report notes, "are closer to clerks processing paperwork rather than investigators solving crimes." The CPI, according to the report, "is currently more of a passive rather than a true investigatory agency. Though legally empowered to conduct investigations, the combined security situation and the violent character of the criminal elements within the ministries make investigation of corruption too hazardous."

CPI staffers have been "accosted by armed gangs within ministry headquarters and denied access to officials and records." They and their families are routinely threatened. Some sleep in their office in the Green Zone. In December 2006, a sniper positioned on top of an Iraqi government building in the Green Zone fired three shots at CPI headquarters. Twelve CPI personnel have been murdered in the line of duty. The CPI, according to the report, "has resorted to arming people hired for janitorial and maintenance duty."

Radhi al-Radhi, a former judge who was tortured and imprisoned during Saddam Hussein's regime and who heads the CPI, has been forced to live in a safe house with one of his chief investigators, according to an associate of Radhi who asked not to be identified. Radhi has worked with Stuart Bowen Jr., the Special Inspector General for Iraq Reconstruction, who investigates fraud and waste involving U.S. officials and contractors. His targets have included former Defense Minister Hazem Shalaan and former Electricity Minister Aiham Alsammarae. And Radhi himself has become a target of accusations. A year ago, Maliki's office sent a letter to Radhi suggesting that the CPI could not account for hundreds of thousands of dollars in expenses and that Radhi might be corrupt. But, according to the U.S. embassy report, a subsequent audit of the CPI was "glowing." In July, the Iraqi parliament considered a motion of no confidence in Radhi-a move widely interpreted as retaliation for his pursuit of corrupt officials. But the legislators put off a vote on the resolution. In late August, Radhi came to the United States. He is considering remaining here, according to an associate.

Corruption, the report says, is "one of the major hurdles the Iraqi government must overcome if it is to survive as a stable and independent entity." Without a vigorous anticorruption effort, the report's authors assert, the current Iraqi government "is likely to loose [sic] the support of its people." And, they write, continuing corruption "will likely fund the violent groups that our troops are likely to face." Yet, according to the report, the U.S. embassy is providing "uncertain" resources for anticorruption programs. "It's a farce," says a U.S. embassy employee. "There is a budget of zero [within the embassy] to fight corruption. No one ever asked for this report to be written. And it was [canned]. Who the hell would want to release it? It should infuriate the families of the soldiers and those who are fighting in Iraq supposedly to give Maliki's government a chance."

Beating back corruption is not one of the 18 congressionally mandated benchmarks for Iraq and the Maliki government. But this hard-hitting report-you can practically see the authors pulling out their hair-makes a powerful though implicit case that it ought to be. The study is a damning indictment: widespread corruption within the Iraqi government undermines and discredits the U.S. mission in Iraq. And the Bush administration is doing little to stop it.


By David Corn
Reprinted with permission from the The Nation.