Rigging contracts in Iraq

Reports of fraud and corruption in Iraqi contracting are, alas, no longer new. But even in a system known for its deceit, this is just depressing.

A U.S. official working in Iraq accepted $546,000 in illegal payments for steering more than $13 million in contracts last year to an American businessman, the Justice Department alleged in the first criminal corruption case arising from Iraq reconstruction.

Robert J. Stein Jr., who worked for the U.S.-led Coalition Provisional Authority, and Philip H. Bloom, who ran several companies from a base in Romania, were arrested earlier this week on the basis of criminal complaints citing fraud, money-laundering and conspiracy charges.

And who’s Robert Stein? Well, he’s the man hired by the American occupation authority to be a comptroller and financial officer — despite having served prison time for felony fraud in the 1990’s.

The job gave the man, Robert J. Stein, control over $82 million in cash earmarked for Iraqi rebuilding projects.

Along with a web of other conspirators who have not yet been named, Mr. Stein and his wife received “bribes, kickbacks and gratuities amounting to at least $200,000 per month” to steer lucrative construction contracts to companies run by another American, Philip H. Bloom, an affidavit outlining the criminal complaint says.

The corruption was so blatant with these two, it’s almost comical. In one instance, there was a wire transfer of a $140,000 bribe so Stein could buy real estate in North Carolina. In other instances, they took tens of thousands of dollars for cars, jewelry, and “home improvements.” Stein’s wife, at one point, used over $7,000 in bribe money for a “towing service.” All of this money, of course, was intended for Iraqi construction projects.

Rep. Henry A. Waxman (D-Calif.) noted that this just the latest example of the Bush administration’s “non-existent oversight” of the spending of Iraqi funds. For that matter, Waxman also noted that Congress held 13 hearings on the U.N. oil-for-food scandal — 13! — but has convened just one hearing on the spending of reconstruction funds.

If congressional Republicans have a compelling defense for this, I’d love to hear it.

Here’s the defense: We are obscenely wealthy and, thereby, can do no wrong. The purpose of hearings is punish those who oppose us.

  • Ed!

    How dare you so blatently tell the truth! How do we know its the truth? Simple: the current adminsitration will deny it. Sickening. Just sickening.

    Can any imagine what the outcry would have been if Clinton had appointed a felony (on a fraud charge no less) to oversee disbursements of US money? I can and even though it doesn’t involve sex, I’m sure it would have recieved lots of airtime in the CCCP and the right wingnut airwaves.

    The hypocrisy of the GOP and their supporters apparently knows no bounds.

  • In a 7/05 Wall Street Journal story, Stuart Bowen, the Bush inspector general for the reconstruction of Iraq, reported that $9 billion of pre-war Iraqi oil revenue managed by the Coalition Provisional Authority was embezzled.

    Neither the Republicans or Democrats hav ever called for an investigation of the Coalition Provisional Authority’s role in the theft of the $9 billion.

  • And who was supposed to supervise all this? Didn’t he get a Medal of Honor or something from the prez?

  • Here’s their defense:

    Until it it discovered by some investigation, it’s obviously not an issue. (which of course shouldn’t be investigated)

    Once it is discovered… “It’s being investigated. See, the system works!”

    Bushenomics will one day make it into the dictionary.

    (“Bushenomics is the use of the government to take regular people’s money and give it to rich people and corporations.”)

    http://www.commondreams.org/views05/1115-34.htm

  • Is Waxman quoted anywhere about the 13 hearings on the UN vs. the 1 for reconsruction? That’s something Republicans couldn’t really defend, but might not have to if it’s ignored.

  • If you’re gonna compete with a corrupt company like Halliburton with their insider kick-back artist Cheney, you’ve got a lot of corruption to accomplish. These guys are self-starters, operating solely on their ambition and slightly less inside connections than KBR, etc. That’s the kind of gumption America’s all about.

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