January 21, 2005
Evelyn Pringle
The Defense Policy Board (DPB) is a hand-picked group of 30 people that advises Bush administration officials on matters such as whether and when to go to war, or not. The current group was selected by Under Secretary of Defense for Policy, Douglas Feith, and approved by Secretary of Defense Donald Rumsfeld. Everyone who is anyone in the arms and defense industry knows that palling up to DPB members is the ticket to getting a Pentagon contract.
Shortly after the war in Iraq began, the April 10, 2003 New York Times pointed out that several board members stood to benefit financially from the war. It reported that the Center for Public Integrity (CPI) documented that 9 of the members were "linked to companies that have won more than $76 billion in defense contracts in 2001 and 2002."
Promote War & Garner Positions For Profits
One of the members mentioned who stood to profit was R. James Woolsey. In addition to being a member of the DPB, Woolsey also sits on Navy and CIA advisory boards; and he is also a founding member of the Committee for the Liberation of Iraq (CLI), a private group that was specifically set up by Bush in 2002, to find ways to increase public support for a war against Iraq.
Let me say right here and now that I think bold lines are crossed when people like Woolsey, who promote a specific war, financially benefit from their successful promotion. There should be a law that requires a standard recusal from all war profits by any policy advisor who advocates sending our young men and women off to die in that same war.
And I don't know about anybody else, but I've never heard of our government forming a group of promoters to rally support for a war before. I dare anyone to try and convince me that this war profiteering scheme wasn't well planned and managed from the get-go.
Mom & Pop Team Of War Profiteers
I would rate the husband and wife team of James and Suzanne Woolsey up there as one of the most blatant examples of war profiting that I‘ve ever seen. They both remain policy advisors on Iraq, even though they both work for private firms that do business there. James has long wanted to use US military might to transform the Middle East. "And he has pushed for war with Iraq as hard as anyone, even before the terrorist attacks of Sep 11, 2001," according to the April 8, 2003 Global Policy Forum.
That's right - long before 9/11. In January 1998, James signed the now infamous letter to Clinton from the Project for the New American Century (PNAC) calling for regime change in Iraq (which Clinton trashed). In 1998, he also successfully lobbied to pass the Iraq Liberation Act (ILA), which allocated nearly $100 million for the Iraqi opposition, mainly the Iraq National Congress (INC), headed by none other than Ahmed Chalabi.
9/11 - Gift To Profiteering Team
The lobby for the war in Iraq immediately moved into high gear after 9/11. Within days, the DPB convened to discuss how they could use 9/11 to justify a war in Iraq. James was sent overseas to try to find a link between Saddam and bin Laden. He returned with the tale that an unnamed source had told the Czech intelligence that in April, 2001, he had observed a meeting between the lead 9/11 skyjacker and an Iraqi agent in Prague.
Even though the tale was deemed not credible by US, British, Israeli, and French, intelligence agencies, it became the basis of a major neo-con disinformation campaign against Saddam on cable news shows and editorial pages in major US newspapers.
James himself wrote an op-ed in the Wall Street Journal that said a foreign state had aided Al Qaeda in preparing the 9/11 attacks and pointed to Iraq as the prime suspect. In fact, James even went so far to allege that Saddam was behind the 1993 WTC bombing and the anthrax letters sent out after 9/11. In large part, the propaganda campaign was successful. A poll conducted in late 2002, showed that over half of those polled believed that Saddam was somehow linked to 9/11.
Woolsey & Chalabi - Secret Long-Time Buddies
Just when I think I have seen every dirty filthy angle by which money can be made in the war profiteering trade, something else turns up. I recently discovered a little tid-bit that I was unaware of. In addition to getting $100 million tax dollars allocated for the INC and Ahmed Chalabi in 1998, James also became lawyer and adviser to Iraq's "President in Waiting" in the same year.
With the help of the media, James must have forgot to mention this obvious conflict of interest while he was alleging collusion in 9/11 between Chalabi's enemy Saddam and bin Laden. This relationship definitely should have been made public before the war began because of its relevance to the truth or falsity of the justification given for waging war in Iraq to begin with.
Back in 1998, Chalabi sought legal help from Woolsey to secure the release of 6 of his INC associates from the detention center in Guam, even though the CIA said they were threats to US interests. James successfully freed Chalabi's minions and mowed a path for the so-called Iraqi defectors to feed bogus information to US intelligence teams.
The false information about WMDs and collusion between Saddam and bin Laden, that originated from the relationship of Chalabi and Woolsey, along with the resulting diversion of financial and military resources to Iraq, and away from the real terrorist bin Laden, has left the US with a limited ability to project military power anywhere else in the world. Any unexpected conflict would be a disaster with the military so overstretched in Iraq, and it looks like in large part, we can thank Woolsey and Chalabi for this predicament.
And as it turns out the CIA was right. One of men Woolsey freed, Aras Habib Karim, went on to become Chalabi's Chief of Intelligence, and has since leaked classified information to Iran, and is currently under investigation by the FBI. I wonder if James is representing the guy now?
James & Booz Allen Hamilton
At the same time that they were advocating for war in Iraq, its more than obvious that James and Suzanne Woolsey were positioning themselves for a future in defense-related firms, with an eye on the anticipated war profits.
James is a shining example of how the revolving door policy works in Washington. Although he left his position as director of the CIA in 1995, he remained a senior advisor on intelligence and national security policies.
And he also now works for several private firms that do business in Iraq. According to Citizens for Public Integrity, in July, 2002, James joined Booz Allen Hamilton, a consulting firm that "had contracts worth more than $680 million" that year.
In May, 2003, in his capacity as a vice president of Booz Allen Hamilton, James was a featured speaker at a seminar entitled "Companies on the Ground: The Challenge for Business in Rebuilding Iraq." He spoke of the potential business opportunities in the reconstruction of Iraq and how Bush planned to steer the contracts to US companies. Approximately 80 corporate executives paid $1100 to listen to what he had to say.
May, 2003 was only 2 months after the war began. If not for his advisory positions in the Bush administration, how would James possibly be able to put together a investor seminar with information on how to make money in Iraq?
In addition, "Booz Allen is a subcontractor for a $75-million telecommunications project in Iraq. The company does extensive work for the Defense Department as well. Recently, the Navy awarded it $14 million in contracts," according to the Aug 15, 2004 LA Times.
In true Dick Cheney style, James said in an interview that "he had not been involved in Booz Allen's Iraq contracts," the Times reports. But then it really doesn't matter whether he was involved in a particular contract or not, because as a Vice President of the firm, he benefits from profits resulting from all contracts.
Besides his recent statement to the Times belies the title of his own May, 2003 seminar which was: "Companies on the Ground: The Challenge for Business in Rebuilding Iraq." What is he trying to say? That he never got paid for speaking at that seminar? That none of the 80 executives that attended ever contacted Booz work in Iraq? Yea right.
James & Paladin Capital Group
James positioned himself all over the map. He is now a principal in the Paladin Capital Group, another defense-related firm. In part, here is how the firm describes itself on its web site, Paladin Homeland Security Fund, L.P. Investment Strategy
As widely reported in public media, billions of dollars are being appropriated by the United States and foreign governments for replenishment of military stockpiles, deployment of new means to create more secure societies and creation of new standards, equipment, technologies and policies for coping with and recovering from the myriad forms of terrorism and attack. ... the General Partner believes that the Federal and State governments ... and indeed governments throughout the world, will look to ... private enterprise to address these issues. The General Partner believes that the private sector thus will look to expend billions of dollars to execute defense and security plans for security in the public sector and to deploy growth equity to produce the products and services that non-governmental organizations will require.
Fund Management
Operation of the Fund starts with an experienced management team. ... additional individuals who have prominent and distinguished records in relevant fields, including security, defense and information and technology sciences, have associated with Paladin Capital in connection with the Fund. These additional principals of the Fund include R. James Woolsey, ...
The Fund's Principals have extensive domestic and international experience in fund investments and in originating, underwriting, closing, monitoring and exiting investments similar to those that are proposed for the Fund. The additional Principals, including Mr. Woolsey, ... have extensive and distinguished track records in service within the security, defense and related fields.
Investment Guidelines Characteristics
Small to medium-sized, worker-friendly companies with the following characteristics: Must relate to defense, prevention, coping or recovery from disaster. Dual use: commercial and government applicability for products and services.
Surely no one could ever allege a possible conflict of interest between James serving on 3 defense-related boards (Navy, DPB, & CIA) with the US government and his involvement with this firm.
Global Options - James & DPB Member Livingstone
James is also plugged into Global Options, which is headed by his fellow DPB member Neil Livingstone. In addition to sitting on the DPB, Livingstone has served as a Pentagon and State Department advisor and has long called for overthrowing Saddam.
Livingstone was already promoting war against Iraq back in 1993, when he wrote an editorial for Newsday that said the US "should launch a massive covert program designed to remove Hussein." Well 11 years later, it looks like he finally got his wish, and just like his pal James, Livingstone is a regular speaker at investment seminars on Iraq.
Global Options provides contacts and consulting services to firms doing business in Iraq and "offers a wide range of security and risk management services," according to its website. Although James admits that he is a paid advisor at Global Options, he again says the work he does at the firm does not involve Iraq. And of course I believe him (not).
Suzanne - Better Half Of Profiteering Team
From 1993 - 2003, Suzanne was an executive with the National Academies, an institution that advises the government on science, engineering, and medicine. There's probably no big money to be made in that position and that's probably what motivated Suzanne seek a more potentially profitable government position.
And she sure found one. According to the Aug 15, 2004 LA Times, Suzanne is a trustee of a little-known arms consulting group that had access to senior Pentagon leaders directing the Iraq war.
Although she had zero experience with military or national security matters, in 2000 she became a trustee at the Institute for Defense Analyses (IDA), a nonprofit corporation paid to do research for the Pentagon. During the attack against Iraq, the IDA provided senior Pentagon officials with assessments of the operation.
Through this position, Suzanne had unlimited insider access to valuable information. For instance, the Times reported that in a June 3, 2003, briefing, Brigadier General Robert Cone of the Army, described the group's operation. "This team did business" within the Army Central Command "on a daily basis, by observing meeting and planning sessions, attending command updates, watching key decisions being made, watching problems being solved, and generally being provided unrestricted access to the business of the conduct of this war," Cone said, according to a transcript of the session.
The question is did Suzanne use the info to benefit the family business? I'll let the reader be the judge. She was appointed to "Fluor's board in January 2004, while Fluor and a partner, AMEC, were competing for two federal contracts to do reconstruction work in Iraq. A little more than a month after she was named, Fluor and AMEC got both contracts, with a combined value of $1.6 billion," according to the LA Times.
Although a Fluor official refused to discuss why Suzanne was chosen for the job, the official confirmed SEC filings that show, "Fluor pays outside directors (like Suzanne) $40,000 a year, plus stock options and additional fees for attending meetings," the Times reports.
As for the financial worth of her stock in the company, its looking good. Fluor's stock has risen steadily since the war in Iraq began. The Times reports that in August, 2004, it was $45 a share, up from a little more than $30 a share in March 2003. Reports filed with the SEC show Suzanne owns 1,500 shares of Fluor stock.
With Fluor making a bundle, it only stands to reason that all the more money can be funneled back into the Woolsey piggy bank. SEC filings show that Fluor reported that its revenue for the first quarter of the current fiscal year from work in Iraq totaled "approximately $190 million. There was no work in Iraq in the comparable period in 2003," reports the Times.
I would be willing to bet that any defense related firm would have given an arm and a leg to find out what was being said during those IDA meetings and war planning sessions. Oh of course I'm not suggesting that Suzanne was feeding Fluor information before she came on board and that's why she was hired. But at the same time, its sure difficult to think of any other reason why she would be hired.
Here's another profiteering trick that I would never have thought of. Suzanne even managed to get paid while she gathered the insider information. Tax records show that in 2003, she was paid $11,500 for serving on the IDA. Who wouldn't want this gal on their team?
The overlapping public and private associations of the Woolsey's are merely 2 examples of the all too familiar pattern in the Bush administration, in which people who play key roles in advising officials on policies, are involving themselves financially with firms in related fields. And it should be noted that the profiteering is certainly not limited to war policies. Its rampant in every area of policy within the Bush administration.
Long-Term War - Thriving Family Business
Hands down, James should be awarded a plaque for being the #1 Iraq War Monger, and it should say: "What could be more sickening than a war-hungry non-combatant? A war-hungry non-combatant reaping profit from the blood of slaughtered women, children and men of Iraq," (Bill Berkowitz).
War-hungry James is still hard at it; promoting war for as far as the eye can see. On August 15, 2004, the LA Times reported that, "Last month, Woolsey appeared at a ... news conference to announce the creation of a group called the Committee of the Present Danger, which he said would attempt to focus public attention on the threat to the US and the civilized world from Islamic terrorism."
On September 29, 2004 he participated in a forum entitled: "World War IV: Why We Fight, Whom We Fight, How We Fight," sponsored by the Committee on Present Danger and the Foundation for the Defense of Democracies.
I wonder how many people who went to the polls on Nov 2, 2004, realized that a vote for Bush meant rubber-stamping more of World War IV?
Plan To Destroy and Conquer Iraq
The Iraqi citizens had no say-so in the Bush administration's decision to bomb the hell out of their country and the Iraqi people, now suffering the most as a result of the war, are not allowed to be involved in making decisions about the reconstruction of Iraq.
In comments that could have been made yesterday, Naomi Klein described what would happen to the Iraqis under Bush's war plan in the April 14, 2003 issue of the Guardian, "A people, starved and sickened by sanctions, then pulverized by war, is going to emerge from this trauma to find that their country had been sold out from under them. They will also discover that their new-found "freedom" - for which so many of their loved ones perished - comes pre-shackled by irreversible economic decisions that were made in boardrooms while the bombs were still falling. They will then be told to vote for their new leaders, and welcomed to the wonderful world of democracy. "
Every one of her predictions has come true and Iraqis may be worse off than we realize. Klein reports that on October 13, 2004, Iraq's "health ministry issued a harrowing report on its post-invasion health crisis, including outbreaks of typhoid and tuberculosis and soaring child and mother mortality rates," while at the same time the "State Department announced that $3.5 billion for water, sanitation and electricity projects was being shifted to security."
How can anybody in their right mind expect the Iraqi people to be grateful to America for all this good fortune?
Stop The War Profiteering
It seems to me that we've taken our eye off the ball here. Granted, the web of corruption is bad enough in itself, but too little consideration is being given to the Iraqi lives at stake. Every profiteering dollar bilked or wasted is a dollar that could be spent on improving Iraq's basic living conditions like getting water, sanitation and electricity up and running again, or training Iraqi police and military forces, or developing jobs for Iraqis.
Instead our tax dollars are being funneled back to profiteers like the Woolseys, over the backs of not only our dead soldiers; but over 100,000 dead Iraqis as well. The administration had the chance to rebuild Iraq, and at the same time earn the trust of the Iraqi people, but instead it chose to rape and torture innocent Iraqi prisoners, raid the reconstruction fund, and deprive the Iraqis of everything essential to normal human life.
The blatant acts of corruption by the occupational authority and US contractors have given the Iraqis every reason under the sun to mistrust the motives of Americans who say they want to help rebuild their country. And how can we expect their opinions to change as long as the obvious corruption continues?
If we ever expect to regain the trust of Iraqis, we have to stop the Woolseys, and others like them, who engage in this filthy, disgusting trade. For starters, I say all Bush war profiteers should be given 2 options: they can either recuse themselves from advising government officials on any matter of national security period, or they can donate all profits made through affiliations with defense-related companies to soldiers wounded in the war and families of soldiers killed in the war.
While this would definitely be a good first step, I won't hold my breath while waiting to see which option the greedy war-mongers choose.
Showing posts with label IILG. Show all posts
Showing posts with label IILG. Show all posts
Thursday, July 29, 2010
The Iraq Money Trail
Evelyn Pringle April 17, 2007
The Inexplicable Enrichment of Bush Cronies
It's time for Americans to face the cold hard truth that nothing will be accomplished by allowing the daily carnage in Iraq to continue, and if Bush has his way, our young people will be dying in this war profiteering scheme until hell freezes over. Congress needs to authorize funding to pull our troops out of that deathtrap and not one dime more.
It apparent that Bush is a madman who will listen to no one. After Bush's speech on January 10, 2007, about the plan to send more troops, retired Army Col Doug McGreggor, a former advisor to Don Rumsfeld in 2003, said in a broadcast interview, "There seems to be a complete failure to understand that we have been trying to suppress a rebellion against our occupation."
"As long as we are there," he warned, "we are the number one public enemy for the Muslim-Arab world."
"We were after all," he points out, "a Christian army occupying a Muslim Arab country, something which in the Middle East, is essentially a disaster."
This decorated combat veteran says Bush's strategy will never work. "We did not go to Iraq originally," he explains, "to dismantle the state, dismantle the army, the police, and the government, to occupy the place with the object of changing the people that lived there into something they did not want to become."
After Bush's speech, military families also spoke out publicly against the decision to send more troops. "I don't have words for it," said Nancy Lessin, of Military Families Speak Out, a group of 3,100 families, including 100 who have lost a loved one in the war.
"This is a war," she said, "that should never have happened, that has wreaked so much havoc on our loved ones, Iraqi children, women and men, and now to be facing, almost four years into it, this news of an escalation of the war, is just unbearable."
An Associated Press-Ipsos poll showed that 70% of Americans opposed sending more troops, but Bush went right ahead and did it anyways. And then to make matters worse, this month he announces the plan to extend the 12-month tours to 15-months to allow his 30,000-troop buildup in Baghdad to stay for another year.
This war is going to bankrupt the US. A January 2007 study by Columbia University economist Joseph Stiglitz, who won a Nobel Prize in economics in 2001, and Harvard lecturer Linda Bilmes, estimated that the total costs of the Iraq war could be more than $2 trillion when the long-term medical costs for the soldiers injured so far are factored in.
The only people who are benefiting from Bush's war on terror are members of the Military Industrial Complex. Since 9/11, the pay for the CEOs of the top 34 defense contractors in the US has doubled, according to the August 2006 report, "Executive Excess 2006," by the Institute for Policy Studies, and the United for a Fair Economy.
The bill is rising so fast because the level of war profiteering is unprecedented. The Excess Report lists George David, CEO of United Technologies, as the top earner, making more than $200 million since 9/11, despite investigations into the poor quality of the firm's Black Hawk helicopters.
Halliburton CEO David Lesar made $26.6 million in 2005, and nearly $50 million since 9/11, an amount that even beats the $24 million that Dick Cheney received in exchange for the guarantee that Halliburton would be the number one military contractor during the Bush administration.
Cheney himself is also taking in war profits, contrary to what he told Tim Russert on "Meet the Press" in 2003, when he denied making any money off his former employer. "Since I left Halliburton to become George Bush's vice president," he said, "I've severed all my ties with the company, gotten rid of all my financial interest."
"I have no financial interest in Halliburton," Cheney told Tim, "of any kind and haven't had, now, for over three years."
Those statements were proven false when financial disclosure forms showed that Cheney had received a deferred salary from Halliburton of $205,298 in 2001, $262,392 in 2002, $278,437 in 2003, and $294,852 in 2004.
In 2005, an analysis released by Senator Frank Lautenberg (D-NJ), reported that Cheney continued to hold over 300,000 Halliburton stock options and said their value had risen 3,281% over the previous year, from $241,498 to more than $8 million.
"It is unseemly for the Vice President to continue to benefit from this company at the same time his Administration funnels billions of dollars to it," Senator Lautenberg said.
Cheney may be the most visible profiteer to those who find it difficult to follow the war on terror money trail, but many other members of the administration with insider knowledge set themselves up to profit early on as well.
For instance, there was the Undersecretary of Defense, Doug Feith, largely credited for fabricating the tales that got the US into the war to begin with, along with his fellow neocons and best buddy, Ahmed Chalabi.
Feith was a partner with Marc Zell, in the Feith & Zell, DC law firm before joining the administration. After he left for the White House, Zell renamed the firm, Zell, Goldberg & Co, and teamed up with Salem Chalabi, Ahmed nephew, to solicit contracts for clients in Iraq. This scam operated under the name, "Iraqi International Law Group."
At the time, the National Journal quoted Salem as saying that Marc Zell was the firm's "marketing consultant" and had been contacting law firms in Washington and New York to ask if they had clients interested in doing business in Iraq.
According to its web site back then, the IILG was made up of lawyers and businessmen who "dared to take the lead in bringing private sector investment and experience" to the war-torn country and offered to "be your Professional Gateway to the New Iraq."
"The simple fact is," the site stated, "you cannot adequately advise about Iraq unless you are here day in and day out, working closely with officials at the CPA, the newly constituted governing council and the few functioning civilian ministries [oil, labor and social welfare, etc]."
It is highly likely that the preceding statement was absolutely true when made because Feith helped set up the Coalition Provisional Authority in May 2003, with its leader Paul Bremer, and Feith's office and the CPA were in charge of awarding reconstruction contracts with Iraqi money.
For his part, Salem was a legal adviser to Iraq's governing council, of which his Uncle was a member, and Bremer even tried to appoint him to lead the tribunal that would try Saddam.
Uncle Chabali footprints in the profiteering racket can be traced back to September 2003, when the CPA awarded an $80 million contract to Nour USA, a company with ties to Winston Partners, which is a whole other story in itself because Winston Partners is headed by none other than Marvin Bush, the brother to the president.
In May 2003, Nour was founded by, Abul Huda Farouki, whose financial ties to Ahmed Chalabi date back to 1989, when Chalabi was CEO of the Petra Bank, and helped Farouqi finance projects around the world.
Nour's website at the time described the firm as an "international investment and development company" with more than 100 employees based in Iraq, and listed expertise in telecommunications, agribusiness, internet development, recruitment, construction materials, oil and power services, pharmaceuticals and fashion apparel.
In January 2004, Nour picked up another contract to equip the Iraqi armed forces and police worth $327 million. However, shortly thereafter, Nour came under fire when a shady deal surfaced involving the first $80 million contract and Ahmed Chalabi.
Newsday reported that Chalabi had received $2 million for helping to arrange the contract, but as it turned out, the contract was actually awarded to Erinys International, a firm set up in Iraq immediately after the invasion. The problem arose, Newsday said, because within days of receiving the contract, Erinys became a joint venture operation with Nour.
Next, the $327 million contract was in jeopardy after it was revealed that Nour had no experience providing military equipment and Nour claimed that it planned to subcontract its weapons procurement to Ostrowski Arms. However, the army soon learned that Ostowski had no license to export weapons.
The contract was finally axed in March 2004, after six of the 17 firms that bid on it complained that Nour's winning bid was impossibly low.
Following the money trail on this insider deal turned up the names of a few more suspects. According to the National Journal, a Nour executive said the Cohen Group "introduced us to people in the U.S. government who were involved in oil-industry security."
Former Republican Congressman and Secretary of Defense under President Clinton, William Cohen, sits at the helm of the Cohen Group, and according to a report by David Hilzenrath in the Washington Post on May 28, 2006, when he left office in January 2001, Cohen was saddled with debt and his final financial disclosure form, "listed tens of thousands of dollars of charge-account debts at interest rates as high as about 25 percent."
However, within a matter of weeks Cohen and his wife were residing in a $3.5 million mansion. It seems Cohen had wanted this house but was still in office and had no way to finance the purchase, so Frank Zarb, then chairman of the Nasdaq Stock Market, sold the house to Michael Ansari, chairman and CEO of defense contractor MIC Industries, in October 2000, and the Cohen took up residence in January or February of 2001, according to the Post.
From there, Cohen went on to join the board and audit committee of the Nasdaq Stock Market, and 11 days after he left office, MIC announced Cohen's appointment as chairman of its board of advisers in a press release.
In no time at all the Cohen Group was raking in mega-bucks. In applying for one contract, that earned the Group $490,000 over seven months, the firm bragged that it had helped Lockheed win a $3.6 billion contract for the sale of F-16 fighter jets to Poland, financed by the US government.
The Group's proposal said its efforts for the Lockheed deal included "advocacy with key decision-makers in the White House, Office of the Vice President, National Security Council, Department of Defense and the State Department during an 18-month campaign," according to the Post.
In regard to helping Nour get contracts in Iraq, according to the Post, where the government disclosure form for Nour asks the firm to identify "Specific lobbying issues," the Group's filings say: "Exploring overseas business opportunities."
When it comes to war profiteering, members of the Bush administration have given a whole new meaning to the "revolving door." A whole gang of thugs has been robbing us blind in Iraq since day one and nobody seems to be able to stop it.
Congress knows what's going on. Back on September 30, 2003, during the Senate debate over the first Iraq spending bill, Senator John Edwards said he refused to funnel the $87 billion to Cheney and other Bush cronies after learning that Bush's former campaign manager, Joe Allbaugh, who was later appointed to head FEMA, had quit his job 3 weeks before the bombs began to fall in Iraq to start the consulting firm, New Bridge Strategies, for clients seeking contracts in Iraq.
"First, Vice President Cheney's Halliburton receives more than $2 billion in Iraq reconstruction contracts," he said, "and now this."
He called it outrageous and disrespectful to the young people serving in Iraq. "President Bush should start addressing this credibility gap by calling on Joe Allbaugh and his friends to stop using their influence to secure government contracts in Iraq," he said.
Senator Edwards said there used to be talk about money for Iraq being a blank check but we now "know the president is writing it out to Joe Allbaugh and Halliburton and it's all endorsed by Vice President Cheney," he said.
In hindsight, Edwards should have expressed outrage at a few more people because the profiteering team at New Bridges was stacked with Republicans. The company's address was the same as a lobbying firm run by Haley Barbour, a former chairman of the Republican National Committee that went under the name of Barbour Griffith & Rogers.
And as luck would have it, Lanny Griffith was the CEO of New Bridge, and Ed Rogers was the vice president.
The firm's initial web site told potential clients, "the opportunities evolving in Iraq today are of such an unprecedented nature and scope that no other existing firm has the necessary skills and experience to be effective both in Washington, D.C., and on the ground in Iraq."
And these greedy thugs were so shameless that they didn't even try to hide their elation over all the money they planned to make in Iraq. "Getting the rights to distribute Procter & Gamble products can be a gold mine," one of the firm's partners told Naomi Klein, quoted in an article in Harper's Magazine in September 2004.
"One well-stocked 7-Eleven," the partner said, "could knock out thirty Iraqi stores; a Wal-Mart could take over the country."
There were rumors that a McDonald's might open, a Starwood hotel was mentioned, and General Motors was said to be planning a factory and according to Ms Klein, Citigroup was preparing to offer loans guaranteed against future sales of Iraqi oil.
However since the war never did end, in 2004, Joe Allbaugh abandoned the quest for reconstruction gold mine in Iraq and started a consulting firm with the former director of Cheney's secret energy task force, Andrew Lundquist, and their first client was Lockheed Martin.
The marriage between the ex-campaign manager, Cheney's buddy, and Lockheed apparently worked out much better than the plan to build 7-Elevens in Iraq, because Lockheed stock value has doubled since 2001, and according to the Excess Report, the firm's CEO has made $50 million since 9/11.
It may well have been that Joe's new firm was simply an outgrowth from the many other firms set up by this same gang because Haley Barbour had already worked as a lobbyist for a Lockheed.
On thing is certain, Lockheed was not lacking for administration insiders when Allbaugh came knocking. For instance, before Cheney took over as VP, his wife, Lynne served on the board of Lockheed, receiving deferred compensation to the tune of half a million dollars in stock and fees, according to a January 16, 2007 report by Richard Cummings.
Cummings notes that Cheney's "2004 financial disclosure statement lists Lockheed stock options and $50,000 in Lockheed stock."
In addition, Cheney's son-in-law, Philip Perry, Cummings says, was appointed to serve as general counsel to the Department of Homeland Security, and he had been a registered lobbyist for Lockheed who had worked for a law firm representing Lockheed with the Department of Homeland Security.
According to Cummings, less than a month after 9/11, in October of 2001, the Pentagon announced a $20 billion contract for Lockheed for the development of the Joint Strike Fighter, called the F-35. At the time, Edward Aldridge was Undersecretary of Defense for acquisitions, technology and logistics, which was responsible for the approval of the contract. Aldridge left his government post in 2003, and he now just happens to serve on Lockheed's board of directors.
However, the most stunning revelation in the Cummings report, is that in November 2002, Stephen Hadley, deputy national security advisor at the time, called Lockheed employee, Bruce Jackson, to a meeting at the White House and told him that the US was definitely going to war in Iraq but there was one small hitch, the administration could not decide what reason to use to justify it.
So Jackson formed the "Committee for the Liberation of Iraq," and its mission statement said it was "formed to promote regional peace, political freedom and international security by replacing the Saddam Hussein regime with a democratic government that respects the rights of the Iraqi people and ceases to threaten the community of nations."
According to Cummings, the "pressure group began pushing for regime change - that is, military action to remove Hussein - in the usual Washington ways, lobbying members of congress, working with the media and throwing money around."
Jackson told Cummings that he did not see the point of going on about WMDs or an Al Queda link because he thought the human rights issue was enough to justify the war.
However, Hadley did not agree. "The committee's pitch," Cummings says, "or rationale as Hadley would call it, was that Saddam was a monster -- routinely violating human rights -- and a general menace in the Middle East."
Jackson said he closed down the Committee in June 2003 because its human rights rationale had been abandoned. "We were cut out," he told Cummings, "after the whole thing went to Rumsfeld," and Hadley explained that "terrorism and WMDs" were now the rationale for the war, not human rights.
However, Cummings reports that members of the war sales team that served with Jackson have done well for themselves. The president of the Committee, Randy Scheunemann, became the president of the Mercury Group, and lobbied for Lockheed and others, and then set up the firms, Scheunemann and Associates, and Orion Strategies, which, among other things, consults with companies and countries looking to do business in Iraq.
In November 2003, another Committee member, Rend Al-Rahim Francke, was appointed Iraqi ambassador to the US.
Meanwhile back in Iraq goldmine, the Iraqis have nothing to show for all the torture that they have endured for the past 4 years. On average, Iraqis still get only about two hours of electricity a day, and the situation won't be improving anytime soon because the US has not built a single major power plant.
And despite the $22 billion funneled to the war profiteers for reconstruction, a US official recently said, Baghdad may not have continuous 24-hour electricity until the year 2013.
For the people drawn to Iraq to fight against the occupation, this is not a war against Americans; it's a war against Bush. He tore this country apart for no reason and then just as the Iraqis predicted, the greedy gang of thugs swooped in and ripped everybody off.
And there is no reason to believe that the thievery has ended or the situation in Iraq will get better because an audit released on January 31, 2007, by Inspector General, Stuart Bowen, reported that the $300 billion war and reconstruction effort continues to be plagued with waste and corruption, and yet Bush now wants us to hand over another $100 billion to be funneled through Iraq to the exact same gangsters.
We will never win in Iraq no matter how long we stay because the other side will always have more people willing to die for the cause, and it doesn't take a genius to figure out that if the number of daily attacks continues to escalate as they have for the last 4 years, the US will run out of troops before they do.
The Inexplicable Enrichment of Bush Cronies
It's time for Americans to face the cold hard truth that nothing will be accomplished by allowing the daily carnage in Iraq to continue, and if Bush has his way, our young people will be dying in this war profiteering scheme until hell freezes over. Congress needs to authorize funding to pull our troops out of that deathtrap and not one dime more.
It apparent that Bush is a madman who will listen to no one. After Bush's speech on January 10, 2007, about the plan to send more troops, retired Army Col Doug McGreggor, a former advisor to Don Rumsfeld in 2003, said in a broadcast interview, "There seems to be a complete failure to understand that we have been trying to suppress a rebellion against our occupation."
"As long as we are there," he warned, "we are the number one public enemy for the Muslim-Arab world."
"We were after all," he points out, "a Christian army occupying a Muslim Arab country, something which in the Middle East, is essentially a disaster."
This decorated combat veteran says Bush's strategy will never work. "We did not go to Iraq originally," he explains, "to dismantle the state, dismantle the army, the police, and the government, to occupy the place with the object of changing the people that lived there into something they did not want to become."
After Bush's speech, military families also spoke out publicly against the decision to send more troops. "I don't have words for it," said Nancy Lessin, of Military Families Speak Out, a group of 3,100 families, including 100 who have lost a loved one in the war.
"This is a war," she said, "that should never have happened, that has wreaked so much havoc on our loved ones, Iraqi children, women and men, and now to be facing, almost four years into it, this news of an escalation of the war, is just unbearable."
An Associated Press-Ipsos poll showed that 70% of Americans opposed sending more troops, but Bush went right ahead and did it anyways. And then to make matters worse, this month he announces the plan to extend the 12-month tours to 15-months to allow his 30,000-troop buildup in Baghdad to stay for another year.
This war is going to bankrupt the US. A January 2007 study by Columbia University economist Joseph Stiglitz, who won a Nobel Prize in economics in 2001, and Harvard lecturer Linda Bilmes, estimated that the total costs of the Iraq war could be more than $2 trillion when the long-term medical costs for the soldiers injured so far are factored in.
The only people who are benefiting from Bush's war on terror are members of the Military Industrial Complex. Since 9/11, the pay for the CEOs of the top 34 defense contractors in the US has doubled, according to the August 2006 report, "Executive Excess 2006," by the Institute for Policy Studies, and the United for a Fair Economy.
The bill is rising so fast because the level of war profiteering is unprecedented. The Excess Report lists George David, CEO of United Technologies, as the top earner, making more than $200 million since 9/11, despite investigations into the poor quality of the firm's Black Hawk helicopters.
Halliburton CEO David Lesar made $26.6 million in 2005, and nearly $50 million since 9/11, an amount that even beats the $24 million that Dick Cheney received in exchange for the guarantee that Halliburton would be the number one military contractor during the Bush administration.
Cheney himself is also taking in war profits, contrary to what he told Tim Russert on "Meet the Press" in 2003, when he denied making any money off his former employer. "Since I left Halliburton to become George Bush's vice president," he said, "I've severed all my ties with the company, gotten rid of all my financial interest."
"I have no financial interest in Halliburton," Cheney told Tim, "of any kind and haven't had, now, for over three years."
Those statements were proven false when financial disclosure forms showed that Cheney had received a deferred salary from Halliburton of $205,298 in 2001, $262,392 in 2002, $278,437 in 2003, and $294,852 in 2004.
In 2005, an analysis released by Senator Frank Lautenberg (D-NJ), reported that Cheney continued to hold over 300,000 Halliburton stock options and said their value had risen 3,281% over the previous year, from $241,498 to more than $8 million.
"It is unseemly for the Vice President to continue to benefit from this company at the same time his Administration funnels billions of dollars to it," Senator Lautenberg said.
Cheney may be the most visible profiteer to those who find it difficult to follow the war on terror money trail, but many other members of the administration with insider knowledge set themselves up to profit early on as well.
For instance, there was the Undersecretary of Defense, Doug Feith, largely credited for fabricating the tales that got the US into the war to begin with, along with his fellow neocons and best buddy, Ahmed Chalabi.
Feith was a partner with Marc Zell, in the Feith & Zell, DC law firm before joining the administration. After he left for the White House, Zell renamed the firm, Zell, Goldberg & Co, and teamed up with Salem Chalabi, Ahmed nephew, to solicit contracts for clients in Iraq. This scam operated under the name, "Iraqi International Law Group."
At the time, the National Journal quoted Salem as saying that Marc Zell was the firm's "marketing consultant" and had been contacting law firms in Washington and New York to ask if they had clients interested in doing business in Iraq.
According to its web site back then, the IILG was made up of lawyers and businessmen who "dared to take the lead in bringing private sector investment and experience" to the war-torn country and offered to "be your Professional Gateway to the New Iraq."
"The simple fact is," the site stated, "you cannot adequately advise about Iraq unless you are here day in and day out, working closely with officials at the CPA, the newly constituted governing council and the few functioning civilian ministries [oil, labor and social welfare, etc]."
It is highly likely that the preceding statement was absolutely true when made because Feith helped set up the Coalition Provisional Authority in May 2003, with its leader Paul Bremer, and Feith's office and the CPA were in charge of awarding reconstruction contracts with Iraqi money.
For his part, Salem was a legal adviser to Iraq's governing council, of which his Uncle was a member, and Bremer even tried to appoint him to lead the tribunal that would try Saddam.
Uncle Chabali footprints in the profiteering racket can be traced back to September 2003, when the CPA awarded an $80 million contract to Nour USA, a company with ties to Winston Partners, which is a whole other story in itself because Winston Partners is headed by none other than Marvin Bush, the brother to the president.
In May 2003, Nour was founded by, Abul Huda Farouki, whose financial ties to Ahmed Chalabi date back to 1989, when Chalabi was CEO of the Petra Bank, and helped Farouqi finance projects around the world.
Nour's website at the time described the firm as an "international investment and development company" with more than 100 employees based in Iraq, and listed expertise in telecommunications, agribusiness, internet development, recruitment, construction materials, oil and power services, pharmaceuticals and fashion apparel.
In January 2004, Nour picked up another contract to equip the Iraqi armed forces and police worth $327 million. However, shortly thereafter, Nour came under fire when a shady deal surfaced involving the first $80 million contract and Ahmed Chalabi.
Newsday reported that Chalabi had received $2 million for helping to arrange the contract, but as it turned out, the contract was actually awarded to Erinys International, a firm set up in Iraq immediately after the invasion. The problem arose, Newsday said, because within days of receiving the contract, Erinys became a joint venture operation with Nour.
Next, the $327 million contract was in jeopardy after it was revealed that Nour had no experience providing military equipment and Nour claimed that it planned to subcontract its weapons procurement to Ostrowski Arms. However, the army soon learned that Ostowski had no license to export weapons.
The contract was finally axed in March 2004, after six of the 17 firms that bid on it complained that Nour's winning bid was impossibly low.
Following the money trail on this insider deal turned up the names of a few more suspects. According to the National Journal, a Nour executive said the Cohen Group "introduced us to people in the U.S. government who were involved in oil-industry security."
Former Republican Congressman and Secretary of Defense under President Clinton, William Cohen, sits at the helm of the Cohen Group, and according to a report by David Hilzenrath in the Washington Post on May 28, 2006, when he left office in January 2001, Cohen was saddled with debt and his final financial disclosure form, "listed tens of thousands of dollars of charge-account debts at interest rates as high as about 25 percent."
However, within a matter of weeks Cohen and his wife were residing in a $3.5 million mansion. It seems Cohen had wanted this house but was still in office and had no way to finance the purchase, so Frank Zarb, then chairman of the Nasdaq Stock Market, sold the house to Michael Ansari, chairman and CEO of defense contractor MIC Industries, in October 2000, and the Cohen took up residence in January or February of 2001, according to the Post.
From there, Cohen went on to join the board and audit committee of the Nasdaq Stock Market, and 11 days after he left office, MIC announced Cohen's appointment as chairman of its board of advisers in a press release.
In no time at all the Cohen Group was raking in mega-bucks. In applying for one contract, that earned the Group $490,000 over seven months, the firm bragged that it had helped Lockheed win a $3.6 billion contract for the sale of F-16 fighter jets to Poland, financed by the US government.
The Group's proposal said its efforts for the Lockheed deal included "advocacy with key decision-makers in the White House, Office of the Vice President, National Security Council, Department of Defense and the State Department during an 18-month campaign," according to the Post.
In regard to helping Nour get contracts in Iraq, according to the Post, where the government disclosure form for Nour asks the firm to identify "Specific lobbying issues," the Group's filings say: "Exploring overseas business opportunities."
When it comes to war profiteering, members of the Bush administration have given a whole new meaning to the "revolving door." A whole gang of thugs has been robbing us blind in Iraq since day one and nobody seems to be able to stop it.
Congress knows what's going on. Back on September 30, 2003, during the Senate debate over the first Iraq spending bill, Senator John Edwards said he refused to funnel the $87 billion to Cheney and other Bush cronies after learning that Bush's former campaign manager, Joe Allbaugh, who was later appointed to head FEMA, had quit his job 3 weeks before the bombs began to fall in Iraq to start the consulting firm, New Bridge Strategies, for clients seeking contracts in Iraq.
"First, Vice President Cheney's Halliburton receives more than $2 billion in Iraq reconstruction contracts," he said, "and now this."
He called it outrageous and disrespectful to the young people serving in Iraq. "President Bush should start addressing this credibility gap by calling on Joe Allbaugh and his friends to stop using their influence to secure government contracts in Iraq," he said.
Senator Edwards said there used to be talk about money for Iraq being a blank check but we now "know the president is writing it out to Joe Allbaugh and Halliburton and it's all endorsed by Vice President Cheney," he said.
In hindsight, Edwards should have expressed outrage at a few more people because the profiteering team at New Bridges was stacked with Republicans. The company's address was the same as a lobbying firm run by Haley Barbour, a former chairman of the Republican National Committee that went under the name of Barbour Griffith & Rogers.
And as luck would have it, Lanny Griffith was the CEO of New Bridge, and Ed Rogers was the vice president.
The firm's initial web site told potential clients, "the opportunities evolving in Iraq today are of such an unprecedented nature and scope that no other existing firm has the necessary skills and experience to be effective both in Washington, D.C., and on the ground in Iraq."
And these greedy thugs were so shameless that they didn't even try to hide their elation over all the money they planned to make in Iraq. "Getting the rights to distribute Procter & Gamble products can be a gold mine," one of the firm's partners told Naomi Klein, quoted in an article in Harper's Magazine in September 2004.
"One well-stocked 7-Eleven," the partner said, "could knock out thirty Iraqi stores; a Wal-Mart could take over the country."
There were rumors that a McDonald's might open, a Starwood hotel was mentioned, and General Motors was said to be planning a factory and according to Ms Klein, Citigroup was preparing to offer loans guaranteed against future sales of Iraqi oil.
However since the war never did end, in 2004, Joe Allbaugh abandoned the quest for reconstruction gold mine in Iraq and started a consulting firm with the former director of Cheney's secret energy task force, Andrew Lundquist, and their first client was Lockheed Martin.
The marriage between the ex-campaign manager, Cheney's buddy, and Lockheed apparently worked out much better than the plan to build 7-Elevens in Iraq, because Lockheed stock value has doubled since 2001, and according to the Excess Report, the firm's CEO has made $50 million since 9/11.
It may well have been that Joe's new firm was simply an outgrowth from the many other firms set up by this same gang because Haley Barbour had already worked as a lobbyist for a Lockheed.
On thing is certain, Lockheed was not lacking for administration insiders when Allbaugh came knocking. For instance, before Cheney took over as VP, his wife, Lynne served on the board of Lockheed, receiving deferred compensation to the tune of half a million dollars in stock and fees, according to a January 16, 2007 report by Richard Cummings.
Cummings notes that Cheney's "2004 financial disclosure statement lists Lockheed stock options and $50,000 in Lockheed stock."
In addition, Cheney's son-in-law, Philip Perry, Cummings says, was appointed to serve as general counsel to the Department of Homeland Security, and he had been a registered lobbyist for Lockheed who had worked for a law firm representing Lockheed with the Department of Homeland Security.
According to Cummings, less than a month after 9/11, in October of 2001, the Pentagon announced a $20 billion contract for Lockheed for the development of the Joint Strike Fighter, called the F-35. At the time, Edward Aldridge was Undersecretary of Defense for acquisitions, technology and logistics, which was responsible for the approval of the contract. Aldridge left his government post in 2003, and he now just happens to serve on Lockheed's board of directors.
However, the most stunning revelation in the Cummings report, is that in November 2002, Stephen Hadley, deputy national security advisor at the time, called Lockheed employee, Bruce Jackson, to a meeting at the White House and told him that the US was definitely going to war in Iraq but there was one small hitch, the administration could not decide what reason to use to justify it.
So Jackson formed the "Committee for the Liberation of Iraq," and its mission statement said it was "formed to promote regional peace, political freedom and international security by replacing the Saddam Hussein regime with a democratic government that respects the rights of the Iraqi people and ceases to threaten the community of nations."
According to Cummings, the "pressure group began pushing for regime change - that is, military action to remove Hussein - in the usual Washington ways, lobbying members of congress, working with the media and throwing money around."
Jackson told Cummings that he did not see the point of going on about WMDs or an Al Queda link because he thought the human rights issue was enough to justify the war.
However, Hadley did not agree. "The committee's pitch," Cummings says, "or rationale as Hadley would call it, was that Saddam was a monster -- routinely violating human rights -- and a general menace in the Middle East."
Jackson said he closed down the Committee in June 2003 because its human rights rationale had been abandoned. "We were cut out," he told Cummings, "after the whole thing went to Rumsfeld," and Hadley explained that "terrorism and WMDs" were now the rationale for the war, not human rights.
However, Cummings reports that members of the war sales team that served with Jackson have done well for themselves. The president of the Committee, Randy Scheunemann, became the president of the Mercury Group, and lobbied for Lockheed and others, and then set up the firms, Scheunemann and Associates, and Orion Strategies, which, among other things, consults with companies and countries looking to do business in Iraq.
In November 2003, another Committee member, Rend Al-Rahim Francke, was appointed Iraqi ambassador to the US.
Meanwhile back in Iraq goldmine, the Iraqis have nothing to show for all the torture that they have endured for the past 4 years. On average, Iraqis still get only about two hours of electricity a day, and the situation won't be improving anytime soon because the US has not built a single major power plant.
And despite the $22 billion funneled to the war profiteers for reconstruction, a US official recently said, Baghdad may not have continuous 24-hour electricity until the year 2013.
For the people drawn to Iraq to fight against the occupation, this is not a war against Americans; it's a war against Bush. He tore this country apart for no reason and then just as the Iraqis predicted, the greedy gang of thugs swooped in and ripped everybody off.
And there is no reason to believe that the thievery has ended or the situation in Iraq will get better because an audit released on January 31, 2007, by Inspector General, Stuart Bowen, reported that the $300 billion war and reconstruction effort continues to be plagued with waste and corruption, and yet Bush now wants us to hand over another $100 billion to be funneled through Iraq to the exact same gangsters.
We will never win in Iraq no matter how long we stay because the other side will always have more people willing to die for the cause, and it doesn't take a genius to figure out that if the number of daily attacks continues to escalate as they have for the last 4 years, the US will run out of troops before they do.
Subscribe to:
Comments (Atom)