Implosion??? (USRegime)

[Ocean Breeze]

Tomgram: Will the Bush Administration Implode?


Implosion?
Bush's October Surprise
By Tom Engelhardt

Those in the anti-fascist struggle of the 1930s who went off to fight in the Spanish Civil War were later termed "premature antifascists." Perhaps, in the same spirit, I might be considered a premature Bush-administration implodist.

On February 1, 2004, reviewing the week just passed, I imagined us trapped in "some new reality show in which we were all to be locked in with an odd group of [administration] jokesters," and then wrote:


"When we finally emerge will there be a prize for the survivors? Will we discover, for instance, that our President and his administration have headed down a path of slow-motion implosion…?"

On February 18, 2004, my optimism briefly surging, I imagined the future as a movie trailer (inviting readers back for the main attraction that spring or summer) and offered this synopsis of the future film -- the wild fowl references being to Dick Cheney's hunting habits, then in the news -- with:


"a wall-to-wall cast of characters. Far too many to absorb in a split second including our President, Vice President, CIA officials, a supreme court justice, spooks and unnamed sources galore, FBI agents, prosecutors, military men, congressional representatives and their committees, grand juries, fuming columnists, an ex-ambassador, journalists and bloggers, sundry politicians, rafts of neocons…, oil tycoons, and of course assorted wild fowl (this being the Bush administration). If the director were Oliver Stone, it might immediately be titled: The Bush Follies… And the first scene would open -- like that old Jean Luc Goddard movie Weekend -- with a giant traffic jam. It would be epic. All of political Washington in potential scandal gridlock. And (as with Weekend) horns would be blaring, drivers and passengers arguing. It would be obvious that the norms of civilization were falling fast and people were threatening to cannibalize each other."

Sounds a bit like Washington awaiting the Fitzgerald indictments this week, doesn't it? For good measure, I added, "The Bush administration has been in trouble ever since its arrogance met its incompetence at Intelligence Pass last summer; ever since Plame Gate began…"


On January 17, 2005 (hedging my time spans a bit more carefully), I wrote:


"[T]he Bush administration has insisted with remarkable success that a vision of the world concocted more or less out of whole cloth inside a bubble of a world is the world itself. It seems, right now, that we're in a race between Bush's fiction-based reality becoming our reality… and an administration implosion in the months or years ahead as certain dangerous facts in Iraq and elsewhere insist on being attended to."

Finally, this July, when matters were more visibly underway, I returned to the subject,


"While there is officially no means for the Bush administration to implode (impeachment not being a political possibility), nonetheless, implosion is certainly possible. If and when the unraveling begins, the proximate cause, whether the Plame affair or something else entirely, is likely to surprise us all but none more than the members of the mainstream media."

Shadow Governments and Armed Imperial Isolationists

Now, here we are. So call me prescient or, less charitably, chalk it up to the fact that, if you say anything over and over, sooner or later it may come true. Already we have the first front-page tabloid report -- in the New York Daily News -- on a President (whose reigning adjectives not so long ago were "resolute" and "steady") beginning to unravel. Under the headline, Bushies Feeling the Boss's Wrath, Thomas DeFrank, that paper's Washington Bureau Chief, wrote, "Facing the darkest days of his presidency, President Bush is frustrated, sometimes angry and even bitter, his associates say… ‘This is not some manager at McDonald's chewing out the help,' said a source with close ties to the White House when told about these outbursts. ‘This is the President of the United States, and it's not a pleasant sight.'… Presidential advisers and friends say Bush is a mass of contradictions: cheerful and serene, peevish and melancholy, occasionally lapsing into what he once derided as the ‘blame game.'" Frankly, the description already has a touch of Richard Nixon (as his presidency delaminated after Watergate finally hit).

If you want to understand the present moment, however, it's important to grasp one major difference between the Nixon years and today. In the early 1970s, Richard Nixon had to compete, elbows flying, for face and space time in what we now call the mainstream media. There wasn't any other game in town. (For instance, I suspect that if the secret history of the first op-ed page, which made its appearance in the New York Times in 1970, was ever written, its purpose would turn out to have been to give the hard-charging Nixon administration a space in the liberal paper of record where Vice President Spiro Agnew and other administration supporters could sound off from time to time.)

George Bush arrived at a very different media moment. From Rush Limbaugh and Sinclair Broadcasting to Fox News, the Washington Times, and the Weekly Standard, he had his own media already in place -- a full spectrum of outlets including TV, radio, newspapers, magazines, and publishing houses. As for the rest of the media, his task, unlike Nixon's, wasn't to compete for space, but to pacify, sideline, and, if need be, punish. In this sense, no administration has been less giving of actual news or more obviously tried to pay less attention to major media outlets. The President was proud to say that he didn't even read or watch such outlets. His was a shock-and-awe policy and, from September 12, 2001 to last spring, it was remarkably successful.

The "cabal" of Vice President Cheney, Secretary of Defense Rumsfeld, and their associates that Lawrence B. Wilkerson, former chief of staff to Secretary of State Colin L. Powell, recently spoke and then wrote about -- "Its insular and secret workings were efficient and swift, not unlike the decision-making one would associate more with a dictatorship than a democracy." -- dealt with the media that wasn't theirs and the government bureaucracy that wasn't theirs in similar ways via those big three: pacification, sidelining, and punishment. Whether it was the hated CIA or the much-loathed State Department, they set up their own small, enclosed structures for governing and attempted to shove the rest of them out into the cold. And again they were remarkably successful -- for a while. (Nixon, too, took a stab at setting up a shadow government, loyal only to him, including, of course, those famous "plumbers.")

In fact, the same cast of Bush administration characters dealt with the world in a similar manner. They buckled on their armor, raised their cruise missiles, broke their treaties, distained anything that passed for multinationalism or had the letters "U" or "N" in it, unpacked their dictionaries to redefine the nature of torture and international relations, proclaimed world domination to be their modest goal -- and, armed to the teeth, sallied forth with their allied corporations in the name of everything good to ransack the globe (and punish any country or government that dared get in their way). In this course, they were regularly called "unilateralists."

In all their guises -- in relation to the media, the federal bureaucracy, and other countries -- they actually were dominating isolationists. They took a once honorable Republican heartland tradition -- isolationism -- turned it on its head and thrust it into the world. They acted in Iraq and elsewhere as armed imperial isolationists. Where the elder Bush and Bill Clinton were multinationalists and globalizers; they were ultra-nationalists and militarists, focused only on the military solution to any problem -- and damn the torpedoes, full speed ahead!

But when you are a cabal, using such close-to-the-breast, not to say mom-and-pop, methods of ruling, and you falter, whether in Iraq or at home, unilateralism becomes weakness. And when it turns out that what you rule is the "last superpower" and you've sidelined, pacified, or punished large numbers of people in the vast, interlocking worlds of the governmental bureaucracy and the media, your enemies still retain the power to strike back.

When something closer to the full story of our moment is known, I suspect we'll see more clearly just how the bureaucracy began to do so (along with, as in this week's New Yorker magazine in the person of Brent Scowcroft, the old multinational ruling elite). In the meantime, it's clear that what the potential implosion moment awaited was the perfect storm of events now upon us. If this moment were to be traced back to its origins, I would, for the time being, pick the spring of this year as my starting point and give the mainstream media -- anxious, resentful, bitter, cowed, losing audience, and cutting staff -- their due. The Bush slide has been a long, slow one, as the opinion polls indicate; but like that famed moss-less rolling stone, it picked up speed last spring as the President's approval ratings slipped below 50%, and then in the ensuing months plunged near or below 40%, putting him at the edge of free-fall.

If there's one thing that this administration and Washington journalists have in common, it's that both groups parse opinion polls obsessively; so both saw the signs of administration polling softness and of a President, just into a second term, who should have been triumphant but was failing in his attempt to spend what he called his "political capital" on social security "reform."

Vulnerability, it gets the blood roaring, especially when it seeps from an administration so long feared and admired as the "most disciplined" and "most secretive" in memory, an administration whose highest officials (as the Plame case showed) regularly whacked their opponents with anything at hand and then called on their media allies, always in full-battle-mode, for support. Probably the key moment of weakness came in August, when Cindy Sheehan ended up in that famed ditch at the side of a road in Crawford, Texas, and the President and his men -- undoubtedly feeling their new-found vulnerability, anxious over an Iraq War gone wrong and the protesting mother of a dead soldier so near at hand -- blinked.

In their former mode, they would undoubtedly have swept her away in some fashion; instead, they faltered and sent out not the Secret Service or some minor bureaucrat, but two of the President's top men, National Security Adviser Stephen Hadley and Deputy Chief of Staff Joe Hagin. For forty-five minutes, they negotiated over her demand to meet George Bush the way you might with a recalcitrant foreign head of state -- and then she just sent them back, insisting she would wait where she was to get the President's explanation for her son's death.

Trapped in no-news Crawford with a President always determined to offer them less than nothing, hardened by an administration whose objective for any media outlet not its own was only "rollback," and sympathetic to a grieving mother from Bush's war, reporters found themselves with an irresistible story, ratified as important by the administration, at a moment when they could actually run with it -- and they headed down the road.

Not long after, hurricane Katrina swept into town; the President refused to end his vacation; FEMA began twisting, twisting in the wind; Tom DeLay went down; Rita blew in (to be followed by Wilma); Senator Frist found himself blinded by his trust; the President nominated his own lawyer to the Supreme Court -- at this point, even some of his conservative allies began peeling away -- and then, of course, waiting in the wings, there was the ultimate October surprise, Special Counsel Patrick Fitzgerald -- backed by a reinvigorated media and an angry bureaucracy -- ready to lift the lid on a whole can of worms not likely to be closed for years to come.

Our Imploding Future

To me anyway, this looks like a potential critical-mass moment. Of course, there are a few missing elements of no small import. The most obvious is an opposition party. The Democrats are essentially nowhere to be seen. In fact, whether or not they even remain a party is, at this point, open to serious question. Their leading candidate for president, Hillary Clinton, still wants to send more (nonexistent) American troops into Iraq and, like most other Democrats in Congress, has remained painfully mum -- this passes for a strategy, however craven -- on almost everything that matters at the moment. Even on the issue of torture, it's a Republican Senator, John McCain, who is spearheading resistance to the administration.

The other group distinctly missing-in-action, as they have been for years now, is the military. Many top military men were clearly against the Iraq War and, aghast at the way the administration has conducted it, have been leaking like mad ever since. But other than General Eric Shinseki, who spoke up in the pre-invasion period, suggesting the kind of troop strength that might actually be needed for an occupation (rather than a liberation) of Iraq and was essentially laughed out of Washington, and various retired generals like former Centcom Commander Anthony Zinni and former Director of the National Security Agency retired Lieutenant General William Odom, not a single high-ranking military officer has spoken out -- or, more reasonably, resigned and then done so. This, it seems to me, remains a glaring case of dereliction of duty, given what has been going on.

As for the implosion of this administration, we have no idea what implosion would actually mean under the present circumstances. Even with a Republican Congress partially staffed with the American version of the Taliban, will whatever unravels over many months or even years, post-the Fitzgerald indictments, lead to hearings and someday the launching of impeachment proceedings? Or is that beyond the bounds of possibility? Who knows. Will this administration dissolve in some fashion as yet undetermined? Will they go down shooting (as, points out Robert Dreyfuss in a striking if unnerving piece at Tompaine.com, they already are threatening to do in Syria)? Will Daddy's men be hauled out of the pages of the New Yorker magazine and off the front-lines of money-making and called in to save the day? Again, who knows. (Where is Bush family consigliere James Baker anyway?)

As you consider this, remember one small thing: So far, hurricane Katrina aside, this administration has largely felt tremors coursing through the elite in Washington. The real 7.9 seismic shocks have yet to happen. Yes, in Iraq, the 2,000 mark in American dead has just been breached, but the Iraqi equivalent of the 1983 Lebanon barracks suicide bombing in which 241 American servicemen died, hasn't happened yet. Yes, gas hovers near $3.00 a gallon at the pumps, but the winter natural-gas and heating-oil shock hasn't even begun to hit; nor has next summer's oil shock (after the Bush administration bombs Iran); nor has the housing bubble burst; nor have foreign countries begun to cash in their T-bills in staggering quantities; nor has oil sabotage truly spread in the Middle East; or unemployment soared at home; or the initial wave of a recession hit; nor have we discovered that next year's hurricane season is worse than this terrible one; nor… but I'm not really being predictive here. I'm simply saying that, once upon a time not so very long ago, this administration had a fair amount of room for error. Now, it's no longer in control of its own script and has next to no space for anything to go wrong in a world where "going wrong" is likely to be the operative phrase for quite a while. The Fitzgerald indictments, in other words, are probably just the end of the beginning. Whether they are also the beginning of the end is another question entirely.

 

[Ocean Breeze]

Implosion & Corruption

Money for Nothing

Billions of dollars have disappeared, gone to bribe Iraqis and line contractors’ pockets.


by Philip Giraldi


The United States invaded Iraq with a high-minded mission: destroy dangerous weapons, bring democracy, and trigger a wave of reform across the Middle East. None of these have happened.

When the final page is written on America’s catastrophic imperial venture, one word will dominate the explanation of U.S. failure—corruption. Large-scale and pervasive corruption meant that available resources could not be used to stabilize and secure Iraq in the early days of the Coalition Provisional Authority (CPA), when it was still possible to do so. Continuing corruption meant that the reconstruction of infrastructure never got underway, giving the Iraqi people little incentive to co-operate with the occupation. Ongoing corruption in arms procurement and defense spending means that Baghdad will never control a viable army while the Shi’ite and Kurdish militias will grow stronger and produce a divided Iraq in which constitutional guarantees will be irrelevant.

The American-dominated Coalition Provisional Authority could well prove to be the most corrupt administration in history, almost certainly surpassing the widespread fraud of the much-maligned UN Oil for Food Program. At least $20 billion that belonged to the Iraqi people has been wasted, together with hundreds of millions of U.S. taxpayer dollars. Exactly how many billions of additional dollars were squandered, stolen, given away, or simply lost will never be known because the deliberate decision by the CPA not to meter oil exports means that no one will ever know how much revenue was generated during 2003 and 2004.

Some of the corruption grew out of the misguided neoconservative agenda for Iraq, which meant that a serious reconstruction effort came second to doling out the spoils to the war’s most fervent supporters. The CPA brought in scores of bright, young true believers who were nearly universally unqualified. Many were recruited through the Heritage Foundation website, where they had posted their résumés. They were paid six-figure salaries out of Iraqi funds, and most served in 90-day rotations before returning home with their war stories. One such volunteer was Simone Ledeen, daughter of leading neoconservative Michael Ledeen. Unable to communicate in Arabic and with no relevant experience or appropriate educational training, she nevertheless became a senior advisor for northern Iraq at the Ministry of Finance in Baghdad. Another was former White House Press Secretary Ari Fleischer’s older brother Michael who, though utterly unqualified, was named director of private-sector development for all of Iraq.

The 15-month proconsulship of the CPA disbursed nearly $20 billion, two-thirds of it in cash, most of which came from the Development Fund for Iraq that had replaced the UN Oil for Food Program and from frozen and seized Iraqi assets. Most of the money was flown into Iraq on C-130s in huge plastic shrink-wrapped pallets holding 40 “cashpaks,” each cashpak having $1.6 million in $100 bills. Twelve billion dollars moved that way between May 2003 and June 2004, drawn from accounts administered by the New York Federal Reserve Bank. The $100 bills weighed an estimated 363 tons.

Once in Iraq, there was virtually no accountability over how the money was spent. There was also considerable money “off the books,” including as much as $4 billion from illegal oil exports. The CPA and the Iraqi State Oil Marketing Board, which it controlled, made a deliberate decision not to record or “meter” oil exports, an invitation to wholesale fraud and black marketeering.

Thus the country was awash in unaccountable money. British sources report that the CPA contracts that were not handed out to cronies were sold to the highest bidder, with bribes as high as $300,000 being demanded for particularly lucrative reconstruction contracts.

The contracts were especially attractive because no work or results were necessarily expected in return. It became popular to cancel contracts without penalty, claiming that security costs were making it too difficult to do the work. A $500 million power-plant contract was reportedly awarded to a bidder based on a proposal one page long. After a joint commission rejected the proposal, its members were replaced by the minister, and approval was duly obtained. But no plant has been built.

Where contracts are actually performed, their nominal cost is inflated sufficiently to provide handsome bribes for everyone involved in the process. Bribes paid to government ministers reportedly exceed $10 million.

Money also disappeared in truckloads and by helicopter. The CPA reportedly distributed funds to contractors in bags off the back of a truck. In one notorious incident in April 2004, $1.5 billion in cash that had just been delivered by three Blackhawk helicopters was handed over to a courier in Erbil, in the Kurdish region, never to be seen again. Afterwards, no one was able to recall the courier’s name or provide a good description of him.

Paul Bremer, meanwhile, had a slush fund in cash of more than $600 million in his office for which there was no paperwork. One U.S. contractor received $2 million in a duffel bag. Three-quarters of a million dollars was stolen from an office safe, and a U.S. official was given $7 million in cash in the waning days of the CPA and told to spend it “before the Iraqis take over.” Nearly $5 billion was shipped from New York in the last month of the CPA. Sources suggest that a deliberate attempt was being made to run down the balance and spend the money while the CPA still had authority and before an Iraqi government could be formed.

The only certified public-accounting firm used by the CPA to monitor its spending was a company called North Star Consultants, located in San Diego, which was so small that it operated out of a private home. It was subsequently determined that North Star did not, in fact, perform any review of the CPA’s internal spending controls. Today, no one can account for billions of those dollars or even suggest how the money was spent. And as the CPA no longer exists, there is also little interest in re-examining its transparency or accountability.

Bremer escaped Baghdad by helicopter two days before his proconsulship expired to avoid a possible ambush on the road leading to the airport, which he had been unable to secure. He has recently been awarded the Presidential Medal of Freedom, an honor he shares with ex-CIA Director George “Slam-dunk” Tenet.

Considerable fraud has been alleged regarding American companies, much of which can never be addressed because the Bush administration does not regard contracts with the CPA as pertaining to the U.S. government, even though U.S. taxpayer dollars were involved in some transactions.

Many of the contracts for work in Iraq were awarded on a cost-plus basis, in which an agreed-upon percentage of profit would be added to the actual costs of performing the contract. Such contracts are an invitation to fraud, and unscrupulous companies will make every effort to increase their costs so that the profits will also increase proportionally.

Halliburton, Vice President Dick Cheney’s former company, has a no-bid monopoly contract with the Army Corps of Engineers that is now estimated to be worth $10 billion. In June 2005, Pentagon contracting officer Bunny Greenhouse told a congressional committee that the agreement was the “most blatant and improper contracting abuse” that she had ever witnessed, a frank assessment that subsequently earned her a demotion.

Halliburton has frequently been questioned over its poor record keeping, and critics claim that it has a history of overcharging for its services. In May 1967, a company called RMK/BRJ could not account for $120 million in materiel sent to Vietnam and was investigated several times for overcharging on fuel. RMK/BRJ is now known as KBR or Kellogg, Brown and Root, the Halliburton subsidiary that has been the focus of congressional, Department of Defense, and General Accountability Office investigations. Defense Contract Audit Agency auditors have questioned Halliburton’s charges on a $1.6 billion fuel contract, claiming that the overcharges on the contract exceed $200 million. In one instance, the company charged the Army more than $27 million to transport $82,000 worth of fuel from Kuwait to Iraq. Halliburton has also been accused of billing the Army for 42,000 daily meals for soldiers, though it was only actually serving 14,000. In another operation, KBR purchased fleets of Mercedes trucks at $85,000 each to re-supply U.S. troops. The trucks carried no spare parts or even extra tires for the grueling high-speed run across the Kuwaiti and Iraqi deserts. When the trucks broke down on the highway, they were abandoned and destroyed rather than repaired.

Responding to complaints, Halliburton refused to permit independent auditing and inspected itself using so-called “Tiger Teams.” One such team stayed at the five-star Kuwait Kempinski Hotel while it was doing its audit, running up a bill of more than $1 million that was passed on to U.S. taxpayers.

Another U.S. firm well connected to the Bush White House, Custer Battles, has provided security services to the coalition, receiving $11 million in Iraqi funds including $4 million in cash in a sole-source contract to supply security at Baghdad International Airport. The company had never provided airport security before receiving the contract. It also received a $21 million no-bid contract to provide security for the exchange of Iraqi currency. It has been alleged that much of the currency “replaced” by Custer Battles has never been accounted for. The company also allegedly took over abandoned Iraqi-owned forklifts at the airport, repainted them, and then leased them back to the airport authority through a company set up in the Cayman Islands. Custer Battles reportedly set up a number of shell companies in offshore tax havens in Lebanon, Cyprus, and the Cayman Islands to handle the cash flow.

Two former company managers turned whistleblowers have charged that the company defrauded the U.S. government of at least $50 million. The Bush administration’s Justice Department has only reluctantly, and under pressure from a Newsweek exposé, supported the rights of the plaintiffs in the case. The White House has indicated that it is not interested in assisting other investigations of fraud in Iraqi contracting, preferring to regard the CPA as a “multinational entity” and thereby limiting its vulnerability in American courts.

Another American contractor, CACI International, which was involved in the Abu Ghraib interrogations, was accused by the GAO in April 2004 of having failed to keep records on hours of work that it was billing for and of routinely upgrading employee job descriptions so that more could be charged per employee per hour. Both are apparently common practices among contractors in Iraq, and audits routinely determine that there is little in the way of paperwork to support billings. The GAO report also confirms that many private security contractors in Iraq have been charging the U.S. government exorbitant fees for their services, frequently because the contracts allow security costs to be rolled into the overall cost of the contract without being itemized. In one case, contract security guards were effectively being billed at $33,000 per guard per month while the average rate for a security specialist worked out to between $13,000 and $20,000 per month.

The CPA also spread its largesse around the U.S. armed forces, distributing over $600 million in cash to four regional commanders to fund reconstruction projects as part of the Commanders’ Emergency Response Program. An audit of one region disclosed that 80 percent of the funds could not be accounted for, and more that $7 million in cash was missing. It is widely believed that many of the contracting agents working under the regional commands literally stole the money. In one reported instance, an American contracting officer doubled the price of a multimillion-dollar contract and brazenly explained that the extra money would be for his retirement fund.

Unfortunately, the corruption of the occupation outlived the departure of Paul Bremer and the demise of the CPA. A recent high-level investigation of the Iraqi interim government concluded that the corruption is now so pervasive as to be irreversible. One prominent businessman estimates that 95 percent of all business activity involves some form of bribery or kickback. The bureaucrats and fixers who live off of bribery are referred to by ordinary Iraqis as “Ali Babas,” named after the character in The Thousand and One Nights who was able to access riches from a treasure cave by saying “open sesame.” For the average Iraqi businessman, there was formerly only one hand out, that of Saddam’s designated minion. Now every hand is out. The educated and entrepreneurial are leaving the country in droves, as is most of the beleaguered Christian minority. Huge government appropriations are approved by Iraqi lawmakers and then simply disappear. Meanwhile, life for the average Iraqi does not improve, and oil production, water supplies, and electricity generation are all at lower levels than they were when the U.S. took control in 2003. The only thing that everyone knows is that all the money is gone and daily life in Iraq is worse than it was under Saddam Hussein.

The undocumented cash flow continued long after the CPA folded. Over $1.5 billion was disbursed to interim Iraqi ministries without any accounting, and more than $1 billion designated for provincial treasuries never made it out of Baghdad. More than $430 million in contracts issued by the Petroleum Ministry were unsupported by any documentation, and $8 billion were given to government ministries that had no financial controls in place. Nearly all of it disappeared, spent on “payroll,” wages for “ghost employees” in the Ministries of the Interior and Defense. In one case, an Army brigade receiving money to support 2,200 men was found to have fewer than 300 effectives. 602 actual guards at the Ministry of the Interior were billed as more than 8,200 for payroll purposes.

Iraqi Airways carried 2,400 employees even though it had not operated for over a year and had no planes. The airline itself was sold to an unidentified buyer without any paperwork to show for how much it was sold and what assets were included. It has been alleged that the buyer might well have been Pentagon favorite Ahmad Chalabi.

Nearly all payrolls in the national guard and national police were also inflated, leading to uncertainty over how large the security forces actually were—still an open question. Absentees from the nominal rolls of police and soldiers provided by government ministries are believed to number in the tens of thousands, and as the United States Congress has figured out, frequently cited figures on available trained manpower are largely imaginary.

Even the “coalition of the willing” partners have been quick to cash in. Polish helicopters purchased as part of a $300 million deal with arms maker Bumar Ltd. were found to be obsolete, largely unflyable, and were actually rejected by the Iraqis. Bullets purchased from Poland by the Defense Ministry cost three times the normal international price. Five Polish peacekeepers have been arrested for demanding $90,000 in bribes. Both British and American soldiers have also demanded bribes from shopkeepers and travelers.

In yet another instance of take-it-while-you-can, a senior Interior Ministry official flew to Beirut in a helicopter accompanied by $10 million in newly printed Iraqi dinars. He has yet to return. Interim Iraqi President Iyad Allawi’s Defense Minister Hazem Shaalan transferred $500 million to a bank account in Lebanon, allegedly to buy weapons, in a case that continues to be murky. Shaalan is reportedly vacationing abroad and has not returned to Iraq. A Bremer favorite at the Defense Ministry, Ziad Tareq Cattan, was responsible for a number of shady arms-procurement deals. A warrant has been issued for his arrest, an unusual occurrence, and he is avoiding detention by staying with family in Erbil in Kurdistan.

Countless billions will never be accounted for, and the full cost of corruption has yet to be tallied. Sources report that much of the money that was designated for the development of a national army and police force is actually going to units that are exclusively Kurd or Shi’ite in expectation of a day of reckoning over the country’s oil supplies. The Kurds have made no secret of their desire to continue their autonomy-bordering-on-independence and have stated that they regard Kirkuk as their own. The Shi’ites have possession of the oil-producing region to the south and are using their control of the Interior Ministry to fill police ranks with their own pro-Iranian Badr Brigade members as well as militiamen drawn from radical cleric Moqtada al-Sadr’s Mehdi Army. The Sunnis are the odd men out, virtually guaranteeing that, far from becoming the model democracy the U.S. set out to build, Iraq will descend deeper into chaos—aided in no small part by the culture of corruption we helped to fortify.
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