Bush special envoy embroiled in controversy over Iraq debt (Carlyle Group)

[Roland99]

http://www.guardian.co.uk/Iraq/Story/0,2763,1326037,00.html

President Bush's special envoy, James Baker, who has been trying to persuade the world to forgive Iraq's crushing debts, is simultaneously working for a commercial concern that is trying to recover money from Iraq, according to confidential documents.
Mr Baker's Carlyle Group is in a consortium secretly proposing to try to collect $27bn (£15bn) on behalf of Kuwait, one of Iraq's biggest creditors, by using high-level political influence. It claims Mr Baker will not benefit personally, but the consortium could make millions in fees, retainers and commission as a result.


In the statement to Judge Gonzales, Mr Harris wrote that "Secretary Baker has renounced his partnership share of future benefits, if any, that might constitute a conflict with his official duties and he will not benefit personally through his Carlyle partnership income from his work as a special government employee."

But the proposed deal with Kuwait is so large that it is hard to see how Mr Baker could be prevented from benefiting: Carlyle stands to land a $1bn investment, which is 10% of the firm's total equity funds.

And under the proposal, the firm would be benefiting from that investment for at least 12 years.