Unanswered questions: Saddam's dirty dealings. Jordanian ties?

Weekly Standard and ABC News ^ | May 5 & May 20, 2003 | Stephen Hayes, Brian Ross and Rhonda Schwartz

[Ragtime Cowgirl]

Saddam's Cash 

The Weekly Standard  | May 5, 2003 | Stephen F. Hayes

 Shortly before his 1990 invasion of Kuwait, he shipped 100 new Mercedes 200 Series cars to top editors in Egypt and Jordan.

Before the recent conflict, says Tareq al-Mezrem from the Kuwaiti Information Office, the Iraqi regime gave journalists luxury "villas in Jordan, Tunisia, and even Lebanon."

The boxes of money found in Baghdad last week were tied with ribbon stamped "Bank of Jordan," which doesn't surprise Salama Nimat, who spent much of his career exploring the shady financial ties between Saddam and the Jordanian elite.

At the beginning of the Iran-Iraq War, Nimat explains, Saddam Hussein began cultivating the political and business establishment in Jordan. Encouraged by Washington's support of the Iraqi government, Jordan increased trade and diplomatic relations with Saddam. Fifty percent of Jordan's exports went to Iraq, trade facilitated by sweetheart deals between the regime and family members of leading Jordanian politicians and journalists.

At the same time, Saddam began to realize the importance of good press. "Media people were paid monthly by the Iraqi embassy in Amman," says Nimat, "in cash. They were also given presents, like cars and expensive watches." And Saddam built a "housing complex for the Jordanian Press Association" in Amman, according to Nimat, at a cost of $3 million.

Saddam bought good press in less obvious ways, too. "He would award big contracts to newspapers in Jordan to publish all sorts of stuff, like Iraqi schoolbooks and other things," says Nimat. "The contracts were worth millions, and no one ever found out if they ever printed the books. No one cared."

Saddam got what he wanted. His atrocities mounted, but newspapers in Jordan--even those that offered pointed critiques of Jordan's King Hussein--would print nothing critical of Saddam Hussein.

"It's been going on for almost a quarter century," says Nimat. "In the newspapers in Jordan, you wouldn't have seen anything negative about Saddam Hussein. I don't want to generalize too much, but many of the editors were bought by the regime."

"What Saddam did in Jordan, he did in other poor countries in the region like Egypt and Yemen and Mauritania," says Nimat.

---

Saddam Stole Billions From U.N. 

 May 20, 2003 - U.N. Officials Admit They Were Powerless to Stop Iraqi Leader's Skimming

http://abcnews.go.com/sections/wnt/World/saddam_bribery030520.html

 

L O N D O N, May 20— United Nations officials looked the other way as Saddam Hussein's regime skimmed $2 billion to $3 billion in bribes and kickbacks from the U.N. Oil-for-Food Program, said U.N. officials who told ABCNEWS they were powerless to stop the massive graft.

An international investigation conducted by ABCNEWS found widespread corruption in the U.N. program, which helped Saddam build his fortune in U.S. currency.

"Everybody knew it, and those who were in a position to do something about it, were not doing anything," said Benon Sevan, the executive director of the Office of Iraq Program. When asked if that included him, he told ABCNEWS, "I have no power."

The program was originally designed to provide food and medication to the Iraqi people, after the U.N.-imposed sanctions prevented Saddam from selling Iraqi oil as a result of Iraq's invasion of Kuwait in 1990.

Under the program, all money from the sale of oil was supposed to go into U.N. bank accounts in New York to buy food and humanitarian supplies.

Companies Bribed Saddam for Contracts

But that's not what British businessman Swara Khadir found when his company sought contracts to sell Iraqi oil. "We discovered that we had to bribe a lot of people," said Khadir. "And because it was Iraqi oil we were talking about, it was bribing top Saddam officials."

Khadir refused to go along [with the bribes], but still has the Iraqi documents instructing him in which Swiss and Jordanian bank accounts the bribe money should be deposited.

"They made no show of concealing it," he said, "because the U.N. was just turning a blind eye to it."

One Russian oil dealer actually complained to the United Nations that Saddam's son Odai took a $60,000 bribe, but never came through with the oil contracts.

The money was deposited in a bank in Amman, Jordan, in a private account for Odai, according to documents submitted to the United Nations last year but never acted on by the Security Council.

"Of course it troubled me," said Sevan. "What do you think, I'm what you call a 'dodo,' sitting here what do you call, cold-blooded? Of course it bothers me."

U.N. officials say the program was under intense scrutiny, but the Security Council permitted Iraq, not U.N. administrators, to select which companies were part of the program.

And many had obviously suspect backgrounds, including everyone "from Mafia to terrorists to money launderers to anybody that wanted to make a quick buck," said human rights investigator John Fawcett.

Two companies apparently were little more than post office boxes in the tiny country of Liechtenstein. Sevan said they were never verified: "I am not an FBI, I'm not an investigation office," he said.

And Sevan said it was possible fraudulent companies could get approval. "I guess they could," he said.

To questions about whether there should have been intense scrutiny of the companies and evidence of wrongdoing, such as illegal money being funneled to Saddam, Sevan said, "We don't do that. I'm sorry."  

[Ragtime Cowgirl]

Bomb Kills 11 at Jordan Embassy in Iraq - AP  | 8/7/03 | ANDREW ENGLAND

''While Jordan is a major entry point into Iraq and remains a large trading partner, many Iraqis are resentful that Jordan dropped its support for Saddam Hussein after the 1991 Gulf War (news - web sites), and allowed U.S. troops to use its soil as a base during the latest war.''

Is that why the newly freed Iraqi people looted the Ba'athist hospitals and the UN building - because the Baathists and UN didn't support Saddam Hussein over the years?

Recent Jordan FR threads.

When the American press and their international press allies promoted the Communist-sponsored anti-American, anti-Semitic, anti-war rallies last Winter, they helped give France and Germany an excuse to say "No" to helping us topple Saddam Hussein and stabilize  Iraq. 

After over four months of negative, dishonest, daily press coverage on the war - last week both the World Bank and the Arab League refused to endorse the Coalition sponsored provisional Iraqi Council, depriving the fledgling nation of legitimacy on the world stage, access to needed funds, undermining potential international business deals - though both international organizations worked with an unelected mass-murderer for years.

Those who opposed our efforts in Iraq have been undermining our efforts since - working to weaken our country on the world stage and place the 'UN'-capable UN back in authority.

This is not the will of the Iraqi people, or the Coalition.

It is, however, the will of the Democratic Party and the left-wing  mainstream (inter) national press.

*****

"In general, the biggest shortcoming from Iraq to Afghanistan is not the accomplishment of the mission as much as it is getting the word out about the successes we're achieving every day."  ~ Gen. Richard Myers, 8/05/03

[Ragtime Cowgirl]

 

Thank you for helping the troops by finding and sharing the news from Iraq.

8 Unapologetically Pro-Coalition News Links 7

[maestro]

Islamic Gangsters.......

(a 'French-UN' Connection?)

Naw

[Ragtime Cowgirl]

Remember this?

Saddam began to realize the importance of good press. "Media people were paid monthly by the Iraqi embassy in Amman," says Nimat, "in cash. They were also given presents, like cars and expensive watches." And Saddam built a "housing complex for the Jordanian Press Association" in Amman, according to Nimat, at a cost of $3 million.

If you want off or on my provisional pro-Coalition/anti-wanker ping list, please ping. If you don't say "yes" by 8/31, I promise to remove your name.

[anniegetyourgun]

But, but, but....our media is telling us the Jordan Embassy bombing is because Iraqis hate Jordan for "supporting" the coalition.?????

[Dog]

Someone was sending someone a message. I don't buy the media saying this is Iraqis punishing Jordan for not supporting Saddam.

There was no US troops in the area at the time of the bombing. Some reports suggest this was a suicide bomber.....could be the Jordanian Embassy wasn't the target....the bomb could have went off early.

Cowgirl is there any Coalition offices nearby this embassy???

[MJY1288]

Thanks for the ping,

Watch for Saddam's money showing up in some strange places

[windchime]

Yes. There's a whole lot more than meets the eye to this war on terror.

[Radix]

You sure do a terrific job out here RC with the links and posts. I thank you.

One thing that really disturbs me is that we all have to be vigilant and take this Hillary seriously. I honestly feel that I could use a break from this bimbo, and her piece of sheite hubby. There seems to be no rest for the weary.

[Calpernia]

Ping

[dixiechick2000]

"In general, the biggest shortcoming from Iraq to Afghanistan is not the accomplishment of the mission as much as it is getting the word out about the successes we're achieving every day." ~ Gen. Richard Myers, 8/05/03

The General is absolutely right.

Durn media...

Thank you, RC!

[Ragtime Cowgirl]

Cowgirl is there any Coalition offices nearby this embassy???

Good question, Dog. I hope our military is looking into the possibility that the Iraqi people are paying back the Jordanians for dealing with Saddam - and protecting the Hussein daughters. AP is either lying or careless. Our military often depends on the press for intel. Scary thought these days.

Many of us over at the OIF thread were waiting for the follow up investigation into the Stephen Hayes article - in the press and on Capitol Hill - reporters ignoring Saddam's atrocities, taking Saddam's cash and condemning the Coalition daily. Pretty dang serious scandal...especially when our enemies are using the "news" media to incite anti-American hatred around the world.

Remember, too, Col. North's last days as an embed north of Baghdad on the way to Tikrit? He told the world about some of the weapons the troops found across the country - including boxes labeled "Made in JORDAN".

The Iraqi people know who betrayed them. It's a legitimate question, especially when no one seems to care about helping them find the truth - and justice.

[Ragtime Cowgirl]

There seems to be no rest for the weary.

We happy few....lol! You aren't alone, Radix. At least we have the internet.

During Vietnam, a few dishonest reporters controlled the info. The troops had no way to fight the propaganda war. Now they have us - and Americans post-911. When the people hear the facts, their eyes begin to open. Pass on the info to sympathetic neighbors and friends.

We bypassed the press in Florida to win - twice.

[Soaring Feather]

bump

[Dolphy]

Thanks for the ping, Calpernia.

Cowgirl is there any Coalition offices nearby this embassy???

I heard a BBC anchor ask one of his reporters on the ground if the attack might have been intended for some other location. The reporter said that was stretching the imagination since the embassy was in a somewhat isolated, or at least removed from general traffic, area.

[Calpernia]

http://www.iraqwatch.org/perspectives/winep-policywatch-489-9-27-00.htm


SADDAM AND THE ECONOMIC LEVER: WHITHER SANCTIONS?

By David Schenker
Washington Institute for Near East Policy

POLICYWATCH, No. 489
27 September 2000



A UN approved Jordanian "humanitarian" flight into Baghdad today punctuates a month of air travel to Iraq unprecedented since 1991. The flight, following similar flights in recent weeks by France and Russia, is significant as Jordan is a key U.S. ally and a recipient of substantial U.S. foreign assistance. The absence of any explicit U.S. objections to the Russian and Jordanian flights highlights a shifting in U.S. policy vis-a-vis the sanctions regime.

Non-Middle East States Iraqi President Saddam Husayn has pursued an economic policy of carrots and sticks geared toward ending Iraq's international isolation. Counting legal and illegal sales, Iraq will earn over $20 billion in oil income this year, making the sanctioned state an extremely attractive export market. In September, a New York Times article cited a CIA report suggesting that Iraq is giving UN oil-for-food contracts to states proffering "antisanctions rhetoric." Based on this policy, Germany and Japan, leading suppliers to Iraq prior to the Gulf War, now only account for one percent of total contracts, while France, Russia, and China account for 1/3 of these deals. The strategy appears to be paying off; by awarding contracts, Saddam has purchased international support for loosening UN Security Council constraints.

In August, for example, the Foreign Ministry of France revisited its longstanding interpretation of UN Security Council Resolution 670 pertaining to rules for flying into Iraq. Noting no specific prohibition of passenger flights, on August 4, the French Foreign Ministry granted permission for a direct passenger flight from Paris to Baghdad. Russia has also taken a more permissive attitude towards flights to Iraq. This was best illustrated by an August 19 arrival in Baghdad of a Russian "humanitarian" flight and a September 17 "economic" charter, which brought eleven senior Russian oil officials to Iraq. Following meetings between these visitors and Iraqi officials, Russia recommended to the UN Security Council that Iraqi war reparations be cut to Kuwaiti by 1/3 (to 20 percent of its total oil for food revenues.) As the Russian oil mission would suggest, trade is becoming an increasingly important lever employed by Saddam to erode sanctions.

Middle Eastern States Iraq has also tried to foster economic ties with its neighbors-including some historic enemies-in order to achieve political gains. In particular, Iraq has capitalized on the fact that King Abdullah II and Bashar al-Asad may be feeling politically and economically vulnerable at home and looking to cement relations with Baghdad to solve potential internal problems.

Jordan Shortly after Vice President of Iraq Taha Yassin Ramadan visited Jordan in July, King Abdullah proclaimed a "new page" in bilateral relations. The significance of this pronouncement is yet to be determined, but reports suggested that during the meetings, the Iraqis offered to double the trade protocol with Jordan to $600 million per year in exchange for a resumption of air travel between Amman and Baghdad. Jordan had submitted its first request to the UN in February 2000, only to be rejected in May. In June, Jordan resubmitted the request. Earlier this month, the Jordanian minister of trade and industry led a trade delegation to Baghdad to follow up on the July meeting, and during the visit, the Iraqi vice president expressed satisfaction at Jordan's efforts to lift the sanctions.

Many Jordanians consider bilateral trade and economic relations with Iraq to be the key to short-term economic growth in the Kingdom. By way of comparison, the volume of Jordanian exports to Iraq are ten times larger than Jordanian exports to the U.S. Likewise, Jordan receives an annual oil grant from Iraq valued at between $600-$900 million (depending on oil prices), dwarfing the U.S. foreign assistance package to Jordan, which for 2001 is proposed to be $227 million.

Syria For more than a quarter century relations between the Ba'ath regimes in Baghdad and Damascus have been cold and adversarial. In the aftermath of the Hussein Kamel defection to Jordan in 1995, however, ties started to warm, suggesting a strategic modus vivendi. The death in June of Syrian president Hafiz al-Asad at least temporarily diminished the historic rivalry between Syria and Iraq, paving the way for improved ties. In addition, as with Jordan, trade appears to be a factor in the recent warming. This summer, the Iraqi Minister of Trade held trade meetings with the Syrian prime minister. After these meetings, in August the Iraqi Minister of Trade indicated that the annual (legal) trade volume between Syria and Iraq-- which then stood at roughly $450 million (of which $300 million are Iraqi imports)-- would increase and would "certainly exceed $1 billion in the future." Currently, the Iraqi market takes about 20 per cent of Syrian non-oil exports. It has likewise been reported that Syria is planning to upgrade its diplomatic representation in Baghdad, and will soon open a trade representation office in the Iraqi capital.

In late August, Syria and Iraq re-opened the Aleppo-Mosul railroad, a link that had been inactive since 1981. The Aleppo-Mosul route will facilitate the transport of Syrian goods and people to Iraq, suggesting a level of coordination between security services that has not been witnessed since the 1970's. There are also reports that Syria and Iraq are negotiating the reopening of a long dormant oil pipeline. And yesterday, Iraqi deputy prime minister Tariq Aziz paid a surprise visit to Damascus, where he met with President Bashar al-Asad to discuss Syrian flights to Baghdad.

Turkey and Iran Turkey has allowed an illegal trade in Iraqi oil since 1991, much of the time with Washington's implicit blessing. In fact, the Turks openly acknowledge this trade and rationalize it as partial compensation for the difficulties its economy has endured under the sanctions regime. While trade has fluctuated over the years, Radio Free Europe reported in August 2000 that illegal trade-- which had been reduced by half in recent months due to a government decree-- would soon return to the usual 36,000 barrels per day. According to this report, revenues from these sales go directly to a company owned by Uday Hussein, Saddam's son.

Like Turkey, Iran too has a long record in circumventing sanctions. Although Iran periodically impounds oil tankers transiting illegal Iraqi oil, smuggling of Iraqi oil still continues via Iranian waters. U.S. officials estimate that Iran earns as much as $500 million per year in "tolls." The U.S.-led multilateral intervention forces tries to interdict these shipments. However, the smaller gulf monarchies where this oil is generally sold have only been periodically cooperative in these efforts. Earlier this year, United States 5th Fleet commander Vice Admiral Charles Moore told the UN Sanctions Committee that Iraq would earn up to $1 billion from illicit trade this year if Iran "did not clamp down." Based on its irregular cooperation during the first decade of sanctions, an Iranian clamp-down anytime in the near future is highly unlikely.

Implications During a hearing of the Senate Foreign Relations Committee yesterday, Secretary of State Madeleine Albright expressed "concern" about the Russian, French, and Jordanian flights. But in noting that flights are indeed permitted, she failed to mention that permission was granted for the Russian and Jordanian flights because the U.S. did not object when the request was brought before the UN sanctions committee.

Today, for all the talk of "sanctions erosion" there is no country in the world overtly flouting the UN sanctions on Iraq. In part, this is because over the past year, the United States has itself changed its sanctions policy to make it "smarter"-- i.e., to expand the list of what Iraq is permitted to import and to reinterpret more narrowly restrictions (such as airflights) that affect ordinary Iraqis. If Saddam is growing bolder as a result of enhanced trade with the outside world, the responsibility lies not with Iraq's trading partners, but with those that set the rules.

David Schenker is a research fellow at The Washington Institute for Near East Policy. He is currently writing a monograph on Jordanian-Iraqi relations.

[Alamo-Girl]

Thanks for the information!

[sarasota]

If saddam was so fond of the Jordanians, why the bombing of the Jordanian Embassy?