$1 bn + Siphoned from Iraq Defense Coffers in 2004-2005.

[cheers]

<p><a href=“http://news.independent.co.uk/world/middle_east/article313538.ece[/url]”>http://news.independent.co.uk/world/middle_east/article313538.ece&lt;/a&gt;&lt;/p&gt;

<p>

Most of the money was supposedly spent buying arms from Poland and Pakistan. The contracts were peculiar in four ways. According to Mr Allawi, they were awarded without bidding, and were signed with a Baghdad-based company, and not directly with the foreign supplier. The money was paid up front, and, surprisingly for Iraq, it was paid at great speed out of the ministry’s account with the Central Bank. Military equipment purchased in Poland included 28-year-old Soviet-made helicopters. The manufacturers said they should have been scrapped after 25 years of service. Armoured cars purchased by Iraq turned out to be so poorly made that even a bullet from an elderly AK-47 machine-gun could penetrate their armour. A shipment of the latest MP5 American machine-guns, at a cost of $3,500 (£1,900) each, consisted in reality of Egyptian copies worth only $200 a gun. Other armoured cars leaked so much oil that they had to be abandoned. A deal was struck to buy 7.62mm machine-gun bullets for 16 cents each, although they should have cost between 4 and 6 cents.</p>

<p>Many Iraqi soldiers and police have died because they were not properly equipped. In Baghdad they often ride in civilian pick-up trucks vulnerable to gunfire, rocket- propelled grenades or roadside bombs. For months even men defusing bombs had no protection against blast because they worked without bullet-proof vests. These were often promised but never turned up.</p>

<p>…Senior Iraqi officials now say they cannot understand how, if this is so, the disappearance of almost all the military procurement budget could have passed unnoticed by the US military in Baghdad and civilian advisers working in the defence ministry.</p>

<p>Government officials in Baghdad even suggest that the skill with which the robbery was organised suggests that the Iraqis involved were only front men, and “rogue elements” within the US military or intelligence services may have played a decisive role behind the scenes.

</p>

[citygirlsmom]

<p>Gee, who would have thunk it…not surprise, just wish there was some accountability somewhere</p>

[GHBrown08]

<p>“so poorly made that even a bullet from an elderly AK-47 machine-gun could penetrate their armour.”</p>

<p>Thats interesting, considering the 7.62 cartridge is extremely high power. Also, the Kalashnikov is not a machine-gun…its an assault rifle. Thats a totally different weapon, and I severely doubt the reliability of any source that would call it a “machine-gun.”</p>

[bandit_TX]

<p>The BBC maybe a bit more reliable. No reference to US involvement.

Authorities in Baghdad are preparing to issue an arrest warrant against a former defence minister, a senior Iraqi corruption investigator has said.
Radhi al-Radhi, the head of Iraq’s Commission on Public Integrity, said a warrant for Hazim Shaalan’s arrest would be issued in days. </p>

<p>It is in connection to the alleged theft of $1bn (£554m) from the post-Saddam Iraqi defence ministry. </p>

<p>Mr Shaalan, who stood down in February, has denied any wrongdoing. </p>

<p>He now lives in Jordan, but is also said to visit London. </p>

<p>Speaking from the Jordanian capital, Amman, an aide to Mr Shaalan, Amer Hantouli, said the allegations were “politically motivated”. </p>

<p>‘Disappearing money’ </p>

<p>The alleged theft took place under the former interim government, which was replaced after elections in February of this year. </p>

<p>Ali Allawi, Iraq’s finance minister, has called the matter “one of the largest thefts in history”. </p>

<p>The money was intended to buy the latest equipment for the Iraqi Army but cheap, out-of-date pieces were purchased instead, it is claimed. </p>

<p>Cash was then siphoned abroad before disappearing, it is alleged. </p>

<p>In one case, 28-year-old helicopters were said to have been purchased despite the fact they should have been scrapped after 25 years. </p>

<p>In other examples, officials are said to have deliberately paid too much for such items as bullets, with the difference between the actual cost and the inflated amount paid also disappearing. </p>

<p>Such has been the knock-on effect of the theft, it is alleged that Iraqi Army soldiers have been left without the basic equipment they need to fight the ongoing insurgency. </p>

<p>“Huge amounts of money have disappeared,” said Mr Allawi. </p>

<p>“In return we got nothing but scraps of metal.”

</p>

[cheers]

<p>CNN and Rueters have (finally) picked the story up. </p>

<p>This is a biggie, folks, with or without the slight error on weapon definition. </p>

<p>

“Huge amounts of money have disappeared. In return we got nothing but scraps of metal,” Finance Minister Ali Allawi told British newspaper The Independent in a report published on Monday. “It is possibly one of the largest thefts in history.”</p>

<p>Corruption, both in the bidding for and the awarding of contracts, and in the administration of public offices, is one of the most frequent accusations made by Iraqis against their government and foreign firms operating in the country.

</p>

<p><a href=“http://edition.cnn.com/2005/WORLD/meast/09/19/iraq.corruption.reut/index.html[/url]”>http://edition.cnn.com/2005/WORLD/meast/09/19/iraq.corruption.reut/index.html&lt;/a&gt;&lt;/p&gt;

<p>Foreign firms…hmmmmm…</p>

[citygirlsmom]

<p>This story has been floating around awhile, I am glad its finally getting picked up…</p>

<p>Deny US envolvment all you want, it was our money, our sources, our contacts…</p>

<p>If our Admin has nothing to hide, show us the books</p>

<p>That simple</p>

[bandit_TX]

<p>Not denying anything, but I also don’t accept tabloid journalism as proof. When there is real evidence, I’m sure we’ll know the truth. So far, there is nothing substantive pointing to a US government problem, other than possibly trusting the Iraqis to run their own government.</p>

[mini]

<p>Hey, let’s hear it for the free market! If the U.S. military and budget folks approved the expenditure, what’s the problem? It all ends up as obsolete anyway, so they just sped up the process. </p>

<p>Besides, who can be against recycling? ;)</p>

[texdad]

<p>I agree the story has been around for a long time. It is good to see the mainstream media pick it up. I guess the BBC is getting off the Tony Blair bandwagon a bit.</p>

<p>Bush and war supporters also want us to forget about the 9 billion that US auditors can’t account for in US expenditures. </p>

<p>I think these folks are going to try for another big score in the New Orleans clean up, but it could be their undoing.</p>

<p><a href=“http://edition.cnn.com/2005/WORLD/meast/01/30/iraq.audit/[/url]”>http://edition.cnn.com/2005/WORLD/meast/01/30/iraq.audit/&lt;/a&gt;&lt;/p&gt;

[citygirlsmom]

<p>I guess we need to see the ink bag stain on hands before some people believe it is even possible for our people to steal…</p>

<p>just look at the arrests made just yesterday, a procurement officer</p>

<p>yikes</p>