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US Turns Iraq Into "Free-Fraud" Zone: Report

Transparency International warned that Iraq could be the “biggest corruption scandal in history.” (Courtesy: NEWSWEEK).

CAIRO, March 28, 2005 (IslamOnline.net) – The US administration’s lenient line with fraudulent American contractors in Iraq would turn the occupied country into a “free-fraud zone,” leaving the money of US taxpayers at stake, NEWSWEEK revealed in its April 4 edition.

The administration has not derived a lesson from the Halliburton scandal as another contractor company, Custer Battles, has overcharged US occupation authorities by millions of dollars, according to the magazine.

“The government has not lifted a finger to get back the $50 million Custer Battles defrauded it of,” says Alan Grayson, a lawyer for two whistleblowers Pete Baldwin and Robert Isakson.

The pair sued the “nightmare” contractor on behalf of the US government under a US law intended to punish war profiteering.

Several Custer Battles “reconstruction” contracts refer to the other party as “the United States of America”.

T. S. Ellis III of the US District Court in Virginia has twice invited the Justice Department to join the lawsuit but received no response.

Biggest Corruption Scandal

The administration’s legal stance will open the door to much more fraud in the future, the mass-circulation weekly warned.

“If urgent steps are not taken, Iraq ... will become the biggest corruption scandal in history,” warned the anti-corruption group Transparency International in a recent report seen by NEWSWEEK.

Lawyers for the whistleblowers point out that President George W. Bush signed a 2003 law authorizing $18.7 billion to go to US occupation authorities in Iraq “as an entity of the United States government.”

Franklin Willis, a former senior adviser to the occupation government, known as the Coalition Provisional Authority, said Washington’s apathy has turned the Iraq occupation into a “free-fraud zone”.

Click Here to Read the Report in Full.

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