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Billion-dollar timebomb puts Chalabi at risk
The Telegraph ^ | 21/05/2004 | By Robin Gedye, Foreign Affairs Writer

Posted on 05/20/2004 7:25:00 PM PDT by Eurotwit

Ahmad Chalabi is in possession of "miles" of documents with the potential to expose politicians, corporations and the United Nations as having connived in a system of kickbacks and false pricing worth billions of pounds.

That may have been enough to provoke yesterday's American raid. So explosive are the contents of the files that their publication would cause serious problems for US allies and friendly states around the globe.

Late last year and several months before Paul Bremer's Coalition Provisional Authority became involved, Mr Chalabi had amassed enough information concerning corruption in the oil-for-food scandal to realise that he was sitting on explosive material.

It was information that would lead to the publication in a Baghdad newspaper in January of a list of 270 businessmen, politicians and corporations, of whom many were alleged to have received money in the form of kickbacks from Saddam's regime.

The list published in the newspaper al-Mada included British, Russian and French politicians, among them Benon Savan, who ran the UN's oil-for-food programme.

"The Iraqi regime, like all dictatorships, kept meticulous records with countless cross-references," said a source close to Mr Chalabi.

"The UN's oil-for food programme provided Saddam Hussein and his corrupt and evil regime with a convenient vehicle through which he bought support internationally by bribing political parties, companies, journalists and other individuals of influence," said Claude Hankes-Drielsma, a British strategy consultant who was hired by Mr Chalabi.

"I first became aware of the extent of the UN's oil-for-food problem last December when I was shown a list of non-end users who purchased crude oil through the UN approved programme.

"While the list included many bona fide oil traders, there were many names that raised questions. It suggested a pattern of buying influence through those with political influence within their own countries."

On Dec 5, 2003, Mr Hankes-Drielsma wrote to Kofi Annan, the UN secretary-general, strongly urging the UN to "consider appointing an independent commission to review and investigate the oil-for-food programme".

On Feb 2 he followed his letter to Mr Annan with one to Hans Corell, under-secretary for legal affairs and legal counsel at the UN, outlining the potential scandal. He also had a meeting with Jeremy Greenstock, Britain's special envoy to Iraq. Mr Corell responded by asking him to "produce the evidence".

On the basis of this challenge, the Iraq Governing Council decided it would have to appoint an internationally-renowned firm of accountants, together with legal advisers.

KPMG were duly appointed by the finance committee of the IGC and the UN was informed on March 3.

Some three weeks later, "Mr Bremer decided to intervene", said Mr Hankes-Drielsma, informing the IGC that he would not release funds from the Iraqi Development Fund to meet the cost of the investigation unless the contract was put out to tender. "He also without discussion or consultation put an arbitrary upper limit of $5 million [£2.8 million]" on the funds.

The contract was put out to tender the next day while KPMG had to stop its work. Within two weeks, on April 9, the CPA put out its own invitation to tender for a parallel investigation.

Meanwhile, on April 18, the IGC reviewed the submitted tender proposals and decided that KPMG's proposal was, after all, the most suitable.

Last Thursday Mr Bremer's CPA announced that it had appointed the accounting firm Ernst and Young to lead its investigation, in apparent conflict with KPMG.

KPMG, which had also bid for the CPA contract, said that it was forced to drop out because the CPA refused to agree to adequate legal protection in an investigation with immense potential for litigation.

Ernst and Young refused even to confirm that it had won the contract. Meanwhile KPMG is still waiting for its $5 million to begin work.


TOPICS: Foreign Affairs; News/Current Events
KEYWORDS: 200212; 2003; 200405; 20040520; ahmadchalabi; ahmedchalabi; britain; chalabi; cpa; france; iran; iraq; kpmg; oilforfood; russia; un
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1 posted on 05/20/2004 7:25:00 PM PDT by Eurotwit
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To: Shermy

FYI


2 posted on 05/20/2004 7:25:19 PM PDT by Eurotwit
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To: Eurotwit

close to the truth, but it would NOT be America nor it's allies with the threat of exposure....

U.N.Kofi, france, russia, germany, saudi arabia, etc etc etc.... are all probably wetting themselves over this raid... this article, because of its source, points more towards that direction.


3 posted on 05/20/2004 7:29:50 PM PDT by steplock (http://www.gohotsprings.com)
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To: steplock

Greed knows no national boundaries, no telling where all the payoffs went, but this guy had better have his life insurance paid up, and copies of the files in a safe place.


4 posted on 05/20/2004 7:34:41 PM PDT by cavan
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To: Eurotwit
Ahmad Chalabi is in possession of "miles" of documents with the potential to expose politicians, corporations and the United Nations as having connived in a system of kickbacks and false pricing worth billions of pounds.

If this is true, Chalabi's days are numbered.

Vince Foster "comitted suicide" for much less.

5 posted on 05/20/2004 7:37:26 PM PDT by F16Fighter
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To: F16Fighter

He may committ suicide by backing into a knife 100 times !!


6 posted on 05/20/2004 7:41:08 PM PDT by Pedrobud (CNN sucks , so do the French !!)
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To: Pedrobud
"He may committ suicide by backing into a knife 100 times !!"

Heh...And then running over himself!

7 posted on 05/20/2004 7:42:39 PM PDT by F16Fighter
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To: Eurotwit
MASTER LIST UN OIL/SEX FOR FOOD SCANDALS
8 posted on 05/20/2004 7:42:52 PM PDT by GailA (hanoi john kerry, I'm for the death penalty, before I impose a moratorium on it.)
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To: steplock

I'd like to see the cash bribes list reportedly discovered in Baghdad recently :)


9 posted on 05/20/2004 7:43:08 PM PDT by 1066AD
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To: F16Fighter

Imagine the Ultimate October Surprise.

Among the names in Chalabi's documents: Senator John F'in Kerry, Senator Hillary Rodham Clinton...


10 posted on 05/20/2004 7:44:41 PM PDT by Poohbah (Four thousand throats may be cut in a single night by a running man -- Kahless the Unforgettable)
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To: Poohbah
Imagine the Ultimate October Surprise.

Among the names in Chalabi's documents: Senator John F'in Kerry, Senator Hillary Rodham Clinton...

Stop! You're making me optimistic. ;)

11 posted on 05/20/2004 7:47:10 PM PDT by madison10
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To: Eurotwit

Hmm...this little story just gets more and more interesting. I wonder what else was in those documents?


12 posted on 05/20/2004 7:48:04 PM PDT by Billthedrill
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To: F16Fighter
The dream scenario would be a good cop/bad cop situation where Chalabi,
the villain, exposes the corrupt UN, et al., while the President can appear to
remain above the fray. One way or another, it all needs to be exposed,
and let the chips fall where they may.
13 posted on 05/20/2004 7:50:15 PM PDT by MamaLucci (Libs, want answers on 911? Ask Clinton why he met with Monica more than with his CIA director.)
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To: Eurotwit

This was what I was wondering on the other thread. Is Chalabi really spying for Iran? Or is Bremer desperate to silence him before he releases any more stuff on the UN food scandal.

As for our "allies" being implicated, what allies?

France is not an ally. The Liberal government of Canada is not our ally. And guys like that Scottish MP are not our allies either. The CIA was said to be involved in the raid on Chalabi, and George Tenet runs the CIA. I don't trust him one bit.

Probably the State Department is worried about offending their friends in France and the UN. Too bad.


14 posted on 05/20/2004 7:50:46 PM PDT by Cicero (Marcus Tullius)
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To: Poohbah
"Imagine the Ultimate October Surprise.

Among the names in Chalabi's documents: Senator John F'in Kerry, Senator Hillary Rodham Clinton..."

The Ultimate Christmas Present we'll never see?

The Vegas over/under line for Chalabi's extended life-span is another 30 days ;-)

15 posted on 05/20/2004 7:51:24 PM PDT by F16Fighter
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To: Eurotwit

I don't buy this one. I think Chalabi has been involved in something shady. Iranian spy? Grand theft of US funds?

Unfortunately, if he is guilty it will not help Rumsfeld who backed him despite CIA and State misgivings.


16 posted on 05/20/2004 7:53:11 PM PDT by aculeus
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To: Eurotwit

You think Bush cut a deal with the "UN" France, Russia, etc.? They keep their pilfered money, we "get" a UN resolution?

Stupid trade if so.


17 posted on 05/20/2004 7:55:00 PM PDT by Shermy
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To: Eurotwit

UN Food for Oil was a set up SCAM from the get go. All involved were part of the $$$scam.... Of course, records will bare out that it FLOURISHED during bubbafucco's reign.


18 posted on 05/20/2004 7:55:55 PM PDT by jungleboy
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To: MamaLucci
"The dream scenario would be a good cop/bad cop situation where Chalabi, the villain, exposes the corrupt UN, et al., while the President can appear to remain above the fray. One way or another, it all needs to be exposed, and let the chips fall where they may."

Remember the original 'Planet of the Apes'?

Near the conclusion Charleton Heston's character who is about to explore uncharted territory is advised by the Ape leader, "You may not like what you find..."

In this case, that's IF that point is ever reached.

Unfortunately, this is one hot potato that is never going to see the light of day. Chalabi signed his own death warrant.

19 posted on 05/20/2004 7:57:59 PM PDT by F16Fighter
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To: Eurotwit
Last Thursday Mr Bremer's CPA announced that it had appointed the accounting firm Ernst and Young to lead its investigation, in apparent conflict with KPMG.

The CPA vs. the CPA's vs. the CPA's....

20 posted on 05/20/2004 7:59:25 PM PDT by Mannaggia l'America
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