The Real Oil-for-Food Scam
Last year, right-wingers in Congress began kicking up a fuss about how the United Nations had allegedly allowed Saddam Hussein to rake in $10 billion in illegal cash through the Oil for Food program. Headlines screamed scandal. New York Times’ columnist William Safire referred to the alleged U.N. con game as “the richest rip-off in world history.”
But those who knew how the program had been set up and run – and under whose watch – were not swayed.
The initial accusations were based on a General Accounting Office report released in April 2004 and were later bolstered by a more detailed report commissioned by the CIA.
According to the GAO, Hussein smuggled $6 billion worth of oil out of Iraq – most of it through the Persian Gulf. Yet the U.N. fleet charged with intercepting any such smugglers was under direct command of American officers, and consisted overwhelmingly of U.S. Navy ships. In 2001, for example, 90 of its vessels belonged to the United States, while Britain contributed only four, Joy Gordon wrote in a December article for Harper’s magazine.
Most of the oil that left Iraq by land did so through Jordan and Turkey – with the approval of the United States. The first Bush administration informally exempted Jordan from the ban on purchasing Iraqi oil – an arrangement that provided Hussein with $4.4 billion over 10 years, according to the CIA’s own findings. The United States later allowed Iraq to leak another $710 million worth of oil through Turkey – “all while U.S. planes enforcing no-fly zones flew overhead,” Gordon wrote.
Scott Ritter, a U.N. weapons inspector in Iraq during the first six years of economic sanctions against the country, unearthed yet another scam: The United States allegedly allowed an oil company run by Russian foreign minister Yevgeny Primakov’s sister to purchase cheap oil from Iraq and resell it to U.S. companies at market value – purportedly earning Hussein “hundreds of millions” more.
“It has been estimated that 80 percent of the oil illegally smuggled out of Iraq under ‘oil for food’ ended up in the United States,” Ritter wrote in the U.K. Independent
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