Wednesday, April 19, 2006

Sex and money bought Iraq contracts

A CONTRACTOR in Iraq has pleaded guilty to providing money, sex and designer watches to US officials in exchange for more than $US8 million ($10.8 million) in reconstruction contracts.

Philip Bloom faces up to 40 years in prison after admitting paying more than $US2 million in bribes to US officials with the Coalition Provisional Authority, which ruled Iraq after the US-led invasion in 2003.

Bloom's guilty plea on bribery and money-laundering charges is the latest development in a widening corruption scandal centred on a network of US civilians and military officials who worked out of a coalition outpost in the south-central Iraqi town of Hillah.

Under the plea agreement, Bloom must pay $US3.6 million in restitution and forfeit $US3.6 million in assets. His guilty plea "sends a message to Iraqis that US oversight will track down, arrest and prosecute American citizens who committed crimes in Iraq involving Iraqi money", said Stuart Bowen, who heads the office of the Special Inspector-General for Iraq Reconstruction.

The scheme began in January 2004, when Bloom began paying bribes to Robert Stein, a civilian contractor who controlled $US82 million in reconstruction funds as the comptroller for the coalition's headquarters in Hillah.

Stein, who had a previous conviction for fraud when he was hired, pleaded guilty to accepting bribes in February. He funnelled money and favours from Bloom to other officials in Hillah, all of whom helped direct contracts to a group of companies controlled by Bloom, court documents say.

Two officers in the US Army Reserve, Lieutenant-Colonel Michael Wheeler and Lieutenant-Colonel Debra Harrison, have already been arrested in connection with the case and more arrests are expected, investigators said.

From January to June 2004, when the coalition government was replaced, Bloom provided Stein and officers with first-class air tickets, real estate lots, weapons, new four-wheel-drive vehicles, cigars, designer watches, alcohol, prostitutes at Bloom's Baghdad villa and cash bribes.

In return, Bloom's company, Global Business Group, received $US8.6 million in contracts to refurbish a police academy in Hillah, a library in Karbala and other reconstruction projects. In some cases the work was never done, and in others it was shoddy, audits by the inspector-general reveal.

The contracts were paid with Iraqi funds held in the Development Fund for Iraq, which has been at the centre of many of the corruption scandals in Iraq.

■ Handwriting experts authenticated Saddam Hussein's signatures on more documents, including one apparently approving death sentences for 148 Shiites in June 1984, Raouf Abdel-Rahman, the chief judge in his trial, said yesterday.

Also in Baghdad yesterday, separate groups of gunmen entered two primary schools and beheaded two teachers in front of their students, the Ministry of State for National Security said.

SMH

I wonder where Mustang is? Mustang was a guy who went to Iraq to do reconstruction and started a blog "Mustang in Iraq". The poor guy was true right wing Christian do gooder who was actually there to do good works. He reported on all this stuff from sex orgies to his gay boss trading sex for the top jobs.. needless to say he closed down the blog and disappeared. If anyone out there know how to recover long deleted post from google search for Mustangs old blog.

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