The War Profiteers - War Crimes, Kidnappings, Torture and Big Money

 

March 15th, 2008 - Kickbacks, Weapons and Suicide: The US Army’s Battle with Corruption

Analysis by kippreport

Summary of the Blackwater Killings

Summary of U.S. Military Operations in Iraq

Kickbacks, Weapons and Suicide: The US Army’s Battle with Corruption

The disappearance of 200,000 US-supplied weapons in Iraq exposes a massive web of corruption among military personnel and contractors.              

           

By Ed Blanche

kippreport

March 15, 2008 

           

Major Gloria D. Davis of the US Army was buried in Washington's Arlington Cemetery, the last resting place of many of America's military heroes, on December 23, 2006. But the 47-year-old Davis, of Missouri, an 18-year army veteran, did not perish fighting her country's enemies. Instead, the US Army said, she died in "a non-combat-related incident" in Iraq. In fact, Gloria Davis put a bullet in her brain on December 12 in her quarters in the sprawling US military base at Baghdad International Airport. The previous day she had confessed to military investigators that she had taken $225,000 in bribes in 2004-05 from a US defense contractor that operated warehouses across Iraq where the US military stored automatic weapons and other equipment.

 

US authorities believe that the company that Major Davis identified, Lee Dynamics International, is part of a massive web of corruption involving military personnel and contractors across Iraq. She told army investigators she received the bribes through a Thai bank account and then deposited the money in US and Swiss accounts.

 

At the heart of an ever-widening investigation by a posse of US agencies is a mushrooming scandal in Iraq that has seriously eroded US credibility in the Middle East - the disappearance in 2004-05 of some 190,000 US-supplied weapons intended for Iraqi security forces and which the US Army cannot account for. There is evidence that some of the missing 110,000 AK-47 assault rifles and 80,000 pistols, including Austrian-made 9mm Glock automatic pistols, ended up in the hands of anti-US insurgents and sectarian death squads that have killed thousands of Iraqis. The scandal over the weapons, and swelling evidence of massive corruption by US officials in the war zone, has reached into the upper echelons of the State Department, greatly embarrassing the Bush administration and underlining the chaotic and often inept US management of the conflict.

 

The missing weapons were provided by the US government and the supply line to the Iraqi forces was operated by US defense contractors. They ran a network of warehouses across Iraq where the weapons and other equipment were stored. Some of the missing guns - estimates range from dozens to hundreds - have been found in Turkey, Iraq's northern neighbor and a key US ally. NATO-member Turkey has complained that some of these weapons, traced by their serial numbers, have been captured from militant separatists of the Kurdistan Workers Party (PKK), which has bases in northern Iraq and has links to Iraq's Kurds, who are also important US allies.

 

Turkish police officers say the Ankara government believes that as many as 20,000 Glock pistols have been smuggled into Turkey from Iraq over the last three years. Until 2006, few of the high-quality handguns had been found in Turkey. But since then, police officers say, Glocks have been used in several high-profile assassinations and that as many as 1,000 have been seized by the army and police from terrorists, separatists and criminals. Iran, which the Bush administration accuses of training, arming and funding Shi'ite and Sunni groups in Iraq, complains that US-supplied weapons from Iraq are making their way to anti-government rebels in oil-rich Khuzestan province in southwestern Iran and other border regions.

 

In December 2007, the US military in Iraq admitted that it had also lost track of a further 12,000 weapons, including more than 800 machine guns, as well as other equipment. Most of the missing weapons originated in Eastern Europe, particularly from the former Yugoslavia. Amnesty International reported that in 2004-05 more than 350,000 AK-47s and other arms were taken from Bosnia and Serbia by private contractors working for the US Defense Department and shipped to Iraq. The Pentagon said that an audit conducted in Iraq between March and May 2007 was able to trace only $41 million worth of armored vehicles and other equipment in a package valued at more than $500 million intended for the Iraqi police force and army. The missing items included 2,300 rocket-propelled grenade launchers, 7,000 pistols and 18 heavy recovery vehicles worth $5 million.

 

Petraeus’ watch

 

Adding to the embarrassment of the US government is that much of this fraud occurred when General David Petraeus, currently the US military commander in Iraq and the mastermind of the surge strategy that is buying time for the Bush administration, was in charge of the program to train and equip Iraqi security forces to join the battle against insurgents and the jihadists led by Al-Qaeda. Petraeus, now a four-star general and seen in some quarters as a possible presidential candidate in 2012, has not come under suspicion himself, although he has said he needed to arm the Iraqi forces are quickly as possible before tracking systems - and the personnel to monitor them - had been put in place. Officers who served under him in the training program said that because of the pressing need to put Iraqi forces in the field they often cut administrative corners in drawing large numbers of weapons from depots.

 

John Tisdale, a former US Air Force master sergeant who ran one of the arms warehouses, told *The New York Times, that an Iraqi businessman, Kassim al-Saffar, managed a neighboring armory in Baghdad that he turned into his own arms bazaar, selling AK-47s and Glocks to anyone willing to pay cash, even US contractors, without US approval or maintaining the required records.

 

"This was the craziest thing in the world," Tisdale recalled. "They were taking weapons away by the truckload." Saffar denies any wrongdoing, but Tisdale said he saw briefcases stuffed full of US banknotes in Saffar's office. It was events such as this that led to the Pentagon and the Justice Department initiating criminal investigations into the disappearance of such large numbers of US weapons in a war zone.

 

An October 2006 audit conducted by the US government's special inspector general for Iraq reconstruction, Stuart Bowen, who has uncovered massive contract fraud in Iraq since the 2003 invasion, cited "questionable accuracy" and "incomplete accountability" by the Multi-National Security Transition Command-Iraq in its management of weapons destined for Iraqi forces. Petraeus, who had led an airborne division during the 2003 invasion, headed that command - universally known as "minsticky" after its military acronym MNSTC-I - from June 2004 until September 2005.

 

The US Government Accountability Office noted in a July 2007 report that until December 2005 the training command had no centralized records on weapons provided to Iraqi forces. It said that 185,000 AK-47 rifles, 170,000 pistols, 215,000 sets of body armor and 140,000 steel helmets had been issued up to September 2005. But because of poor record-keeping, it was not clear what happened to 110,000 of the AKs, 80,000 of the pistols and more than half of the body armor and helmets.

 

‘Ring of kickbacks’

 

In August 2007, the posse of US investigating agencies announced they had uncovered a web of corruption within the US military establishment in Iraq that was far larger than anything previously known. It involved the "purchase and delivery of weapons, supplies and other material to Iraqi and American forces." Amid reports that federal investigators suspected the loss of the weapons was the result of widespread corruption within the military contracting system, the agencies concluded that the network was "the largest ring of fraud and kickbacks uncovered in the conflict there."

 

Pentagon officials disclosed at that time there were at least 76 criminal investigations linked to fraud in Iraq, Kuwait and Afghanistan involving contracts worth more than $6 billion and - as of August 23 - more than $15 million in bribes. So far, 29 US military personnel and civilians suspected of involvement have been charged in US federal courts. Eight have pleaded guilty so far. More arrests are expected as the scale of the corruption is exposed.

 

The Pentagon, which has spent $19.2 billion building up Iraq's postwar forces, has suspended 22 companies and individuals from all dealings with the US military because of the fraud investigations. One company was Lee Dynamics International, which allegedly lies at the center of the massive network of fraud that has been linked to the disappearance of the US-supplied weapons. The US Army suspended Lee Dynamics from contracting on July 9, 2007. The company, whose headquarters are on the 15th floor of the Laila Tower building in Kuwait City's commercial district, is also being investigated by the Justice Department. Lee Dynamics was set up in Kuwait in 2005 by George H. Lee, a former US Army pay clerk, to cash in on the lucrative outsourcing contracts that accompanied the US invasion.

 

The company denies the bribery accusations and is appealing the suspension. In response, the US government disclosed details of the charges in court documents, including a seven-page statement by an army investigator who questioned Gloria Davis the day before she shot herself.

 

Gunrunning charges

 

Federal court papers show that the Defense Department took action against Lee Dynamics over allegations the company paid hundreds of thousands of dollars to numerous US officers in Iraq and Kuwait, including Major Davis, to secure contracts worth $12 million for warehouses in Iraq to store weapons and other equipment in 2004-05. During the period the weapons vanished Lee Dynamics operated warehouses in Taji, Umm Qasr, Ramadi, Mosul and Tikrit, although no direct link between the company and the missing weapons has been produced at this point.

 

However, Blackwater USA, the largest US private security firm operating in Iraq, is being investigated for allegations of smuggling weapons into Iraq. Blackwater, which is contracted to US diplomats in Iraq, is at the center of a wide-ranging scandal over the lack of accountability of US defense contractors operating in Iraq. Blackwater is currently under scrutiny in the US by a federal grand jury for the killing of 17 Iraqi civilians on September 16, 2007, allegedly by its employees. Little is known about that weapons investigation, although there has been speculation that the weapons found their way to the PKK, which the US has designated a "foreign terrorist organization."

 

Blackwater denies the gunrunning charges, but two former employees were sentenced to three years' probation by a North Carolina court on January 10 for smuggling weapons into Iraq. Details of the case have been kept secret by the court, which delivered lenient sentences because the men were cooperating with federal investigators.

 

The case took a bizarre twist on December 7, when the State Department's inspector-general, Howard Krongard, accused of impeding federal investigations of contract fraud in Iraq and Afghanistan that included Blackwater, resigned after it was revealed during a stormy November 14 Congressional hearing that his brother, former CIA executive director Alvin "Buzzy" Krongard, served on Blackwater's advisory board. "Buzzy" Krongard, who left the CIA in 2004, has been associated with Blackwater's founder, former Navy Seal Erik Prince, since 2002 when the company's fortunes took off with a $5.4 million "black contract" from the CIA for covert services in Afghanistan.

 

Offshore accounts

 

A central node in the web of military corruption was Camp Arifjan, a sprawling $200 million US logistics center in the Kuwait desert south of Iraq that played a central role in the US military supply chain. According to investigators, the biggest bribery case of the entire Iraq war occurred there. It centered on US Army Major John Cockerham, who headed the contracting program at Camp Arifjan. The 41-year-old officer has been in military custody since July 2007. He, along with his wife and sister, have been indicted on charges of taking $9.6 million in bribes from at least eight companies for defense contracts in Iraq and Kuwait.

 

In December 2006, investigators found handwritten ledgers at his Louisiana home with coded entries for an elaborate network of offshore bank accounts containing the bribe money. Gloria Davis worked on several contracts with Cockerham, who has been in military custody since July 2007 and has pleaded not guilty to all charges. Thirteen of the 29 people so far charged with corruption in federal courts were associated with the army's contracting operation in Kuwait.

 

External link: http://www.kippreport.com/article.php?articleid=1056&day=1

Back to news & media - year 2008

Back to main archive

Back to main index