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Below the cut is an interesting article about how the United States will still have control over Iraq's oil revenues after the June 30th cut off.

Though this isn't a new thought by any means, this is the first time I've verbalized it for the viewing pleasure of others. It strikes me that the neoconservatives in this country, and those that take a stance of "no holds barred" fighting against "terrorists" in other parts of the world have something in common with the extremists who terrorize us. They too feel an affront has been committed by us that is unforgivable. They have wanted us dead like many of us want them dead. I don't see how that is going to solve the problem, really.

Some people get so angry and frightened at the atrocities committed in this world. They are truly horrible events. However, reacting with hysteria is not going to solve the problem. And killing more people, to create more fear and anguish, isn't working for us, either.



If the Bush administration is truly committed to the nation's sovereignty, it should let Iraqis retake control of their own oil revenues.

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By Andrew Cockburn

May 17, 2004 | As the occupation of Iraq dissolves further into bloody chaos, the colonial overseers in Baghdad are keeping their eyes fixed on what is really important: Iraq's money and how to keep it. Whatever apology for a "sovereign" Iraqi government is permitted to take office after June 30 -- and U.N. envoy Lakhdar Brahimi admits in private that he "has to do" whatever the Americans tell him to do -- the United States is making sure that the Iraqis do not get their hands on their country's oil revenues.

We are talking about big money here: Iraq's oil exports are slated to top $16 billion this year alone. U.N. Security Resolution 1483, rammed through by the United States a year ago, gives total control of the money from oil sales -- currently the only source of revenue in Iraq -- to the occupying power, i.e., the United States. The actual repository for the money is an entity called the Development Fund for Iraq, which in effect functions as a private piggy bank for Paul Bremer's Coalition Provisional Authority. The DFI is directed by a Program Review Board of 11 members, just one of whom is Iraqi.

In case anyone should be moved to challenge this massive looting exercise in the courts, President Bush followed up the May 2003 resolution with Executive Order 13303, which forbids any legal challenge to the development fund or any actions by the United States affecting Iraq's oil industry. Since then, the Iraqi oil ministry, famously secured by the U.S. military during post-invasion riots and looting, has been kept under the close supervision of a senior U.S. advisor, former ExxonMobil executive Gary Vogler.

Now, whatever President Bush or his officials may spout in public about the transfer of power being a "central commitment," there is absolutely no intention in Washington of changing the arrangement concerning oil revenues. Queried on this crucial topic, the CPA has stated that it will continue to control the revenues beyond June 30 "until such time as an internationally recognized, representative government of Iraq is properly constituted." Whatever entity is unveiled for June 30, it apparently will not fit these requirements, so the hand-over date is, essentially, meaningless.

The development fund is not solely dependent on oil money -- of which it had collected $6.9 billion by March. Under the terms of 1483 the DFI also took over all funds -- $8.1 billion so far -- in the U.N.'s oil-for-food program accounts (Russian and Chinese support for the resolution was bought by agreeing to keep the oil-for-food racket running for a few more months); various caches of Saddam Hussein's frozen assets around the world, amounting to $2.5 billion; and further cash left behind by Saddam inside Iraq, estimated at about $1.3 billion. The money is kept in an account at the Federal Reserve Bank in New York.

In theory, these vast sums were to be spent in an open, transparent manner solely for the benefit of the Iraqi people. But how can we be sure they have been? Along with the development fund, there was meant to be a supervisory group, the International Advisory and Monitoring Board -- made up of officials from the World Bank, International Monetary Fund, U.N. and Arab Fund for Development -- to oversee where the money goes. However, according to a trenchant report from the Soros Foundation-funded group Iraq Revenue Watch, which has been keeping an informed eye on the Iraq boondoggle, because of dogged resistance by the occupation authorities, combined with bureaucratic sloth by the IAMB, the board got its first look at the books only this March, 10 months late. Needless to say, there are no Iraqis on the board, though two have recently and reluctantly been designated as observers.

Free from independent scrutiny, the DFI piggy bank has disbursed $7.3 billion. For months Bremer's merry men refused to disclose even the most minimal information on where the money was going, and even now the CPA releases only the most generalized breakdown, for example: "Restore Oil Infrastructure -- $80,197,742.82."

Assuming that line item is accurate, that would be money paid to Halliburton -- which as it happens is a fine example of how the piggy bank has been used by the administration to get around irksome constitutional restrictions on government spending without congressional approval.

Late last year, when the stench of Halliburton contracts for Iraq became so strong that even Congress noticed, the $18.4 billion supplemental appropriations bill for Iraqi reconstruction specifically forbade the award of any contract worth more than $5 million that had not been competitively bid. This might have put a spoke in the Halliburton wheel, except that the CPA simply reached into the DFI to pay Dick Cheney's old company.

There has been no protest from Congress over this egregious flouting of its fundamental role as controller of the government's checkbook. No one should be surprised, however, given that there is specific legislation on the books -- passed over fruitless objections from Democrats -- exempting the CPA from any investigation by the Government Accounting Office or any requirement to appoint an inspector general, as mandated for all government agencies in a 1990 law.

For most of the past year, Iraqis have complained about ill treatment and torture meted out by the army of occupation. No one paid much attention until the Abu Ghraib photographs became public. Over the same period, in several visits to Iraq, I heard Iraqis complaining with equal vehemence about the generalized corruption of the occupiers -- corruption that extends from the top right down to ordinary soldiers robbing Iraqis of cash and valuables during house searches and vehicle checks, and military and CPA officials at every level demanding bribes and kickbacks.

These complaints get the same brushoff treatment as the torture and abuse victims at Abu Ghraib got until what was happening at the prison became widely known. A photo of CPA officials giving the thumbs up and pointing to their wallets might make a difference. In the meantime, don't expect the administration to give Iraqis their money back anytime soon.

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About the writer
Andrew Cockburn is coauthor of "Out of the Ashes: The Resurrection of Saddam Hussein" and has reported from Iraq for years.

Too much fence riding...

Date: 2004-05-17 09:20 am (UTC)
From: [identity profile] cotharyus.livejournal.com
That's what it comes down to. People are afraid to make a decision. The problem isn't that we don't jump in and raise an american flag in the middle of the desert, and it's not that we're there in the first place, and it's not that we aren't gone yet. The problem is that current policy is a split of all three and it doesn't work. We should have A) stayed the hell out (but seriously, I'm of the opinion that *someone* had to do something. All that money being funneled to terrorists, and please, lets not argue this, because we know it's true) B) removed saddom and gotten the hell out. Once he and his cronies were either dead or gone, the odds of an identical type of government being set up were minimal. And immediately after the removal of said individuals from office, most of Iraq seemed very happy. C) Gone in and leveled the dirty little country and set an example. Raise an american flag in the middle of the desert, and declare it territorial US soil. No, it isn't realistic, but it would be preferable to the current fiasco.

Now lets straighten a few things out. I stand behind our military 100%. This who thing about prisoner abuse...I'm not saying an eye for an eye, or turnabout is fair play, but what do you think is being done to people the *other* side catches? Is it right? No, it's not. If I was there, and angry, would I have done something different? I'd like to think so, but the reality of the situation is I have a bad temper, and I'd have probly just starting killing the bastards outright. Speaking of killing...

I hate witch hunts. Thats what this terrorist thing is turning into though. Seriously. Lets address this. I understand there are people on this earth that just don't need a gun in thier hands. But if citizens of this country were still permitted to carry a gun where ever they damn well please, September 11th wouldn't have happened. I don't care what color your skin is, if I see you running down the street with a 10 pounds of plastic strapped to you screaming like an idiot, I'm gonna put a couple rounds in your head quick like before you can push the little red button. Thats how it ought to be, and thats what these people deserve. But the witch hunt is no better than the spanish inquisition.

Bottom line? Political correctness (which you'll notice I blatantly thumb my nose at) is going to destroy the world, because everyone thinks they have to sit on a fence. God forbid your opinion should offend someone. You have the right to an opinion, and so does everyone else. Everyone else has the right to be offended at my opinion, but that's not going to stop me for expressing it. The world needs to get off the fence.

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