[R-G] BBC uncovers lost Iraq billions

[Anthony Fenton]

BBC uncovers lost Iraq billions
By Jane Corbin
BBC News
http://news.bbc.co.uk/2/hi/middle_east/7444083.stm

Henry Waxman
Waxman: "It may well turn out to be the largest war profiteering in  
history."

A BBC investigation estimates that around $23bn (£11.75bn) may have  
been lost, stolen or just not properly accounted for in Iraq.

For the first time, the extent to which some private contractors have  
profited from the conflict and rebuilding has been researched by the  
BBC's Panorama using US and Iraqi government sources.

A US gagging order is preventing discussion of the allegations.

The order applies to 70 court cases against some of the top US  
companies.

War profiteering

While George Bush remains in the White House, it is unlikely the  
gagging orders will be lifted.

To date, no major US contractor faces trial for fraud or mismanagement  
in Iraq.

The president's Democratic opponents are keeping up the pressure over  
war profiteering in Iraq.

Henry Waxman who chairs the House Committee on Oversight and  
Government Reform said: "The money that's gone into waste, fraud and  
abuse under these contracts is just so outrageous, its egregious.

"It may well turn out to be the largest war profiteering in history."

In the run-up to the invasion one of the most senior officials in  
charge of procurement in the Pentagon objected to a contract  
potentially worth seven billion that was given to Halliburton, a Texan  
company, which used to be run by Dick Cheney before he became vice- 
president.

Unusually only Halliburton got to bid - and won.

Missing billions

The search for the missing billions also led the programme to a house  
in Acton in West London where Hazem Shalaan lived until he was  
appointed to the new Iraqi government as minister of defence in 2004.

Judge Radhi Hamza al-Radhi
Judge Radhi al Radhi: "I believe these people are criminals."
He and his associates siphoned an estimated $1.2 billion out of the  
ministry.

They bought old military equipment from Poland but claimed for top  
class weapons.

Meanwhile they diverted money into their own accounts.

Judge Radhi al-Radhi of Iraq's Commission for Public Integrity  
investigated.

He said: "I believe these people are criminals.

"They failed to rebuild the Ministry of Defence , and as a result the  
violence and the bloodshed went on and on - the murder of Iraqis and  
foreigners continues and they bear responsibility."

Mr Shalaan was sentenced to two jail terms but he fled the country.

He said he was innocent and that it was all a plot against him by pro- 
Iranian MPs in the government.

There is an Interpol arrest out for him but he is on the run - using a  
private jet to move around the globe.

He stills owns commercial properties in the Marble Arch area of London.