Saddam Hussein was dead broke, the result of U.N. penalties. Or so it was thought.I agree that these smuggling crimes are important. They are as important as prosecuting the bribery at the UN. Those who say otherwise are doing nothing more than applying a smokescreen for their beloved Kofi Annan and the organization he has mismanaged.
So where did the Iraqi president find the money to pursue missile technology from North Korea, air defense systems from Belarus and other prohibited military equipment?
The CIA's top weapons inspector in Iraq said Saddam carried out much of that trade with proceeds from illegal oil sales to Syria, one of three Iraqi neighbors that bought oil from Baghdad in defiance of the United Nations.
Trade with Syria, Jordan and Turkey was the biggest source of illicit funds for Saddam, more so than the much-maligned U.N. oil-for-food program, according to investigations of Saddam's finances.
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During the dozen years between the two Iraq wars, Saddam's oil sales were supposed to be limited to those under permitted the U.N. oil-for-program. From 1996 to 2003, the $60 billion program allowed Iraq to sell oil and use proceeds to buy food, medicine and other necessities.
That program has come under scrutiny because of allegations that Saddam received kickbacks and bribed U.N. and foreign government officials. Besides the congressional inquiries, U.N. Secretary-General Kofi Annan has appointed former Federal Reserve Chairman Paul Volcker to head an investigation.
The report by CIA weapons inspector Charles Duelfer found that oil-for-food corruption generated $1.7 billion for Saddam. It said illegal oil contracts with generated about $8 billion: $4.4 billion with Jordan, $2.8 billion with Syria and $710 million with Syria. A short-lived agreement with Egypt generated $33 million. Overall, Saddam had $10.9 billion in illicit revenue from 1990 to 2003, Duelfer said.
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More than with Jordan or Turkey, Duelfer tied the proceeds from the Syria-Iraq trade agreement to Iraq's illegal weapons trade with various countries. Those countries included:
_Belarus, described as the largest supplier of high-technology conventional weapons to Iraq from 2001-2003. Products included radar technology and air defense systems. Belarus received nearly $114 million in payments from Iraq.
_North Korea, which signed $10 million of contracts for missile-related projects and other military equipment.
_Bulgaria, which used the Iraq-Syria agreement to sell Iraq machine tools that could be used for military or civilian purposes.
Monday, December 13, 2004
Oil for Food Update
From Newsday: