Untitled Document
Taking a Closer Look at the Stories Ignored by the Corporate Media
Donate | Fair Use Notice | Who We Are | Contact

NEWS
All News
9-11
Corporatism
Disaster in New Orleans
Economics
Environment
Globalization
Government / The Elite
Human Rights
International Affairs
Iraq War
London Bombing
Media
Police State / Military
Science / Health
Voting Integrity
War on Terrorism
Miscellaneous

COMMENTARY
All Commentaries
9-11
CIA
Corporatism
Economics
Government / The Elite
Imperialism
Iraq War
Media
Police State / Military
Science / Health
Voting Integrity
War on Terrorism

SEARCH/ARCHIVES
Advanced Search
View the Archives

E-mail this Link   Printer Friendly

IRAQ WAR -
-

US official admits he smuggled $2m of aid meant for Iraq

Posted in the database on Friday, February 03rd, 2006 @ 16:24:54 MST (1931 views)
by Rupert Cornwell    The Independent  

Untitled Document

In the first US corruption conviction relating to the occupation of Iraq, a former official pleaded guilty yesterday to stealing more than $2m (£1.13m) of reconstruction funds and taking more than $1m worth of contract kickbacks under a deal with an American businessman.

Robert Stein, 50, a contractor working for the now disbanded Coalition Provisional Authority, had a criminal record for fraud. He acknowledged his role in the scam in a statement to a federal court in Washington.

He admitted guilt on five felony counts, of conspiracy, money-laundering, bribery and the illegal possession of a machine-gun and a handgun.

The businessman, a US citizen identified as Philip Bloom, also faces federal conspiracy and money laundering charges. Mr Bloom was not named in the indictment or in Mr Stein's statement, but is understood to be in custody here ahead of his own likely trial. Five US Army reserve officers are also implicated, two of whom have been arrested.

The case paints an astonishing picture of incompetence and carelessness in the running of the CPA, which administered Iraq between mid-2003 and June 2004. The misdeeds in question mostly took place in the al-Hillah region south of Baghdad, where Mr Stein was in charge of administering $82m of reconstruction funds. Instead - his criminal past undiscovered by whatever background checks were carried out - he became the central figure in an imbroglio of bid-rigging and kickbacks.

Mr Stein not only took money from Mr Bloom in return for steering some $9m of contracts in his direction. He also pilfered $2m of earmarked aid for reconstruction, consisting of US taxpayers' money and funds confiscated from the former regime of Saddam Hussein.

The ill-gotten gains financed a lavish spending spree. Mr Stein used them to buy - among other things - Lexus and Porsche cars, a Cessna light aircraft, watches, jewels, guns and grenade launchers as well as two plots of land in his native North Carolina. For his part, Mr Bloom is said to have provided his benefactors with money, first-class air tickets, and sexual favours provided by women kept in a villa in Baghdad.

Among the contracts won by Mr Bloom's companies were a new police academy for al-Hillah and the renovation of a public library in nearby Karbala. His dealings with Mr Stein generated some colourful e-mail correspondence. "I love to give you money," the latter wrote after approving a $200,000 contract for the academy in January 2004.

In another exchange, the former CPA official apologizes for being "businesslike," and warns Mr Bloom to avoid using the same company name when submitting his various contract bids, to avoid arousing suspicion. Mr Bloom seems to have had no problem with that. "Since we are paid in cash," he replied, "it really doesn't matter, tax-wise." As long ago as 1996, Mr Stein had been convicted of fraud and jailed for eight months. But he was later hired by S&K Technologies, which had won a contract to supply experts to the CPA. A spokesman said S&K believed he was a construction specialist.

Meanwhile, in Iraq yesterday, two bombings 20 minutes apart killed at least 11 Iraqis and the US military announced five more Americans had died. The attacks occurred amid sluggish efforts to form a government, widely seen as the best hope for defusing the insurgency.

A pre-dawn US helicopter rocket attack in Baghdad's Shia stronghold of Sadr City killed a woman and enraged Shia across the country, who called the attack provocative. A shepherd also made a grisly discovery near Sadr City - 16 blindfolded and bound men who had been shot and buried in an open area. The men, all wearing civilian clothes were the latest victims in a string of apparent execution-style sectarian attacks.

The bloodshed, coupled with attacks yesterday on an oil processing plant in Kirkuk, underscored the difficulties coalition forces and Iraqi authorities are having to curb the raging violence.



Go to Original Article >>>

The views expressed herein are the writers' own and do not necessarily reflect those of Looking Glass News. Click the disclaimer link below for more information.
Email: editor@lookingglassnews.org.

E-mail this Link   Printer Friendly




Untitled Document
Disclaimer
Donate | Fair Use Notice | Who We Are | Contact
Copyright 2005 Looking Glass News.