Last night (20/3/2006), Channel4 Dispatches did a programme on the missing $23 billion in Iraq.
To set the context : cash amounting to $23 billion pledged was transferred by the USA to Iraq after the invasion in March 2003.
JUST SO THAT WE'RE ALL IN THE LOOP - THE USA'S MONEY ISN'T A BENEVOLENT DONATION - IT WAS GIVEN IN EXCHANGE FOR IRAQI LIQUID ASSETS HELD IN BAGHDAD CENTRAL BANK THAT WERE TRANSFERRED FROM IRAQ'S CENTRAL BANK TO THE FEDERAL RESERVE IN THE USA.
The "donated" cash was supposed to be used to help rebuild the infrastructure of Iraq - hospitals/schools/roads etc.
US dollars were required to be in Iraq because international companies in Iraq
were not prepared to be paid in local currency - and it was decided that they
ought to be paid in US dollars.
It seems that the cash was stored in one of Saddams former palaces under guard by US troops, awaiting distribution.
The only problem is that the money was never used for the purposes intended and it appears that the vast majority of the money has "disappeared".
The control and distribution of the cash was supposed to be controlled and monitored by the Coalition Provisional Authority.
The CPA was set up by the USA administration in Iraq under the jurisdiction of
Paul Bremer III.
The first action that the CPA carried out was to transfer, out of Baghdad Iraqi
bank balances amounting to €23 billion to the US Federal Reserve.
The Federal Reserve was then mandated by the US administration to transfer - in cash - €23 billion to Iraq to be used for infrastructural spending.
Three years down the line - little or no expenditure has resulted in the infrastructure.
The reality is that hospitals have few drugs to give to their patients, dilapidated hospital equipment (newborn babies having to share incubators!)
is the norm, electricity supplies during specific hours daily, no rebuilsing of raods, escaling oil prices (in a country with abundant oil) is the order of the day.
In the meantime some of the cash has been traced to payments to companies like Halliburton - for services never rendered.
Some of the cash disappeared in payments to a company setup by former US Republicans named Custer & Battle. Again paid for no services rendered.
Part of the money was also "misappropriated" by two CIA operatives.
Currently a team of US accountants are attempting to trace the whereabouts of the money.
In the meantime, the hospitals are slowly decaying through lack of funding,
schools remain shut through lack of teachers, electricity cannot be supplied for lack of infrastructure : AND IRAQ'S FUNDS IN IT'S OWN CENTRAL BANK NOW RESIDE IN THE US FEDERAL RESERVE.
To set the context : cash amounting to $23 billion pledged was transferred by the USA to Iraq after the invasion in March 2003.
JUST SO THAT WE'RE ALL IN THE LOOP - THE USA'S MONEY ISN'T A BENEVOLENT DONATION - IT WAS GIVEN IN EXCHANGE FOR IRAQI LIQUID ASSETS HELD IN BAGHDAD CENTRAL BANK THAT WERE TRANSFERRED FROM IRAQ'S CENTRAL BANK TO THE FEDERAL RESERVE IN THE USA.
The "donated" cash was supposed to be used to help rebuild the infrastructure of Iraq - hospitals/schools/roads etc.
US dollars were required to be in Iraq because international companies in Iraq
were not prepared to be paid in local currency - and it was decided that they
ought to be paid in US dollars.
It seems that the cash was stored in one of Saddams former palaces under guard by US troops, awaiting distribution.
The only problem is that the money was never used for the purposes intended and it appears that the vast majority of the money has "disappeared".
The control and distribution of the cash was supposed to be controlled and monitored by the Coalition Provisional Authority.
The CPA was set up by the USA administration in Iraq under the jurisdiction of
Paul Bremer III.
The first action that the CPA carried out was to transfer, out of Baghdad Iraqi
bank balances amounting to €23 billion to the US Federal Reserve.
The Federal Reserve was then mandated by the US administration to transfer - in cash - €23 billion to Iraq to be used for infrastructural spending.
Three years down the line - little or no expenditure has resulted in the infrastructure.
The reality is that hospitals have few drugs to give to their patients, dilapidated hospital equipment (newborn babies having to share incubators!)
is the norm, electricity supplies during specific hours daily, no rebuilsing of raods, escaling oil prices (in a country with abundant oil) is the order of the day.
In the meantime some of the cash has been traced to payments to companies like Halliburton - for services never rendered.
Some of the cash disappeared in payments to a company setup by former US Republicans named Custer & Battle. Again paid for no services rendered.
Part of the money was also "misappropriated" by two CIA operatives.
Currently a team of US accountants are attempting to trace the whereabouts of the money.
In the meantime, the hospitals are slowly decaying through lack of funding,
schools remain shut through lack of teachers, electricity cannot be supplied for lack of infrastructure : AND IRAQ'S FUNDS IN IT'S OWN CENTRAL BANK NOW RESIDE IN THE US FEDERAL RESERVE.
