“Cash was loaded onto giant pallets for shipment by plane to Iraq, and paid out to contractors who carried it away in duffel bags,” reports Reuters:
A report by Democratic Rep. Henry Waxman of California, said in the week before the hand-over on June 28, 2004, the U.S.-led Coalition Provisional Authority ordered the urgent delivery of more than $4 billion in Iraqi funds from the U.S. Federal Reserve in New York.
One single shipment amounted to $2.4 billion — the largest movement of cash in the bank’s history, said Waxman.
Most of these funds came from frozen and seized assets and from the Development Fund for Iraq, which succeeded the U.N.’s oil-for-food program. After the U.S. invasion, the U.N. directed this money should be used by the CPA for the benefit of the Iraqi people. [….]
MORE BELOW:
“The disbursement of these funds was characterized by significant waste, fraud and abuse,” said Waxman.
An audit by the U.S. Special Inspector General for Iraq Reconstruction said U.S. auditors could not account for nearly $8.8 billion in Iraqi funds and the United States had not provided adequate controls for this money. […..]
[Chief inspector Stuart Bowen] has referred three criminal cases to the U.S. Attorney’s Office in the past two weeks for misuse of funds. … […..]
Citing documents from the U.S. Federal Reserve Bank in New York, Waxman said the United States flew in nearly $12 billion overall in U.S. currency to Iraq from the United States between May 2003 and June 2004.
This money was used to pay for Iraqi salaries, fund Iraqi ministries and also to pay some U.S. contractors.
In total, more than 281 million individual bills, including more than 107 million $100 bills, were shipped to Iraq on giant pallets loaded onto C-130 planes, the report said.
Full article.
I heart Waxman. He’s a man doing some very heavy lifting for the Democrats who doesn’t get the amount of respect and support due him. (I’ll comment on the article later).
Waxman’s press release; the full House Committee on Government Reform Staff Report(.pdf, 322kb); and the Democratic Committee page.
[NOTE: There are no references in the orginal WaPo, or linked truthout articles. WTF’s up with that?].
Rba, if you notice material that’s not in this Reuters story, please diary it. Thanks.
What’s left out of truthout’s reproduction of a Reuters’ story on the report is any mention of the fact the report was a staff report, prepared by Waxman’s office, submitted to the “House Committee on Governmental Reform”. By my count fourteen words that complete the story. And all available in Waxman’s press release.
Sloppy reporting by two news outlets that should know better. No diary required.
should be “Government”, without the “al”. Sheesh.
WOW. I’m continually surprised at the ability of this administration to surprise me.
But this was one of my first thoughts: The Republicans, led by tool-extraordinaire Norm Coleman, have be throwing around accusation about Kofi Annan and the oil-for-food program. Meanwhile, we are robbing it dry. Wow. Ain’t this a great country?
I’m glad to see this percolating up to the surface again.
The investigation of the UN by the Volcker-commission is useful and necessary in the aftermath of the extensive Oil-for-Food Programme (OFFP). As the 2 interim reports (one on the Office of the Iraq Program = OIP, and one on Kofi and Kojo Annan). There are allegations that Mr. Benon Sevan (who headed the OIP) may have received ill-gained funds to the tune of $160,000. It has also been uncovered that Kojo Annan – after leaving regular employment with Cotecna – remained on a retainer-contract of $2,500/month over several years.
Mr. Sevan will be prosecuted and has lost his immunity. Kojo may have been very stupid and makes the S-G look bad.
But it is all a diversion. While those acts may have been criminal, and certainly are unethical – I must say that the OFFP comes out squeeky clean considering that it managed resources to the tune of $68 billion over almost 7 years.
The scandal is the billions missing during CPA’s short reign (14 months, or so). I have hotlised several diaries over at dKos on the issue (thinking of a diary, once Volcker presents his final report). This is not new information, it’s been out there for some time:
RangerShade’s diary from 13 February
seesdifferent’s diary from 4 May
Stirling Newberry’s diary from 12 May
Let’s keep the focus where the real money is. The CPA and their contractors – often, no-bid contracts handed out to cronies.
This is the same $8.8 billion that the auditors had previously identified that US law has no jurisdiction over because it is not US money, so it is unclear what laws Bowman is referring to.
We also know that Shaalan transfered about 500 million dollars in cash through Beirut Airport early this year. And in January 2004, a plane full of Iraqi dinars (20 million USD) was impounded by Beirut authorities much to the chagrin of the Iraqi gov’t.
Chances are that little of this money was “lost”. As was so clearly demonstrated by the Iran/Contra/Crack scandal, untraceable money is golden.
The real answer, like the rape of Iraqi kids on film at Abu Ghraib, is likely far too damning to be uncovered by Waxman or any other member of this government not named Cynthia McKinney.
Hal C.
was of Iraqi archealogical treasures.
Guess we know now why they hate our freedoms.
This is precisely the reason we went there to begin with. It so often has been.
War is a Racket
The Star Tribune has a story from the LA Times.
This money weighed 28 tons!!!!