Corruption: the 'second insurgency' costing $4bn a year

[DoYouEverWonder]

Julian Borger in Washington, David Pallister
Saturday December 2, 2006
The Guardian

The Iraqi government is in danger of being brought down by the wholesale smuggling of the nation's oil and other forms of corruption that together represent a "second insurgency", according to a senior US official. Stuart Bowen, who has been in charge of auditing Iraq's faltering reconstruction since 2004, said corruption had reached such levels that it threatened the survival of the state.

"There is a huge smuggling problem. It is the No 1 issue," Mr Bowen told the Guardian. The pipelines that are meant to take the oil north have been blown up, so the only way to export it is by road. "That leaves it vulnerable to smuggling," he said, as truckers sell their cargoes on the black market.

Mr Bowen, the Special Inspector General for Iraq Reconstruction (Sigir), cites Iraqi figures showing that the "virtual pandemic" of corruption costs the country $4bn (£2.02bn) a year, and some of that money goes straight to the Iraqi government's enemies. A US government report has concluded that oil smuggling abetted by corrupt Iraqi officials is netting insurgents $100m a year, helping to make them financially self-sustaining.

"Corruption is the second insurgency, and I use that metaphor to underline the seriousness of this issue," Mr Bowen said. "The deputy prime minister, Barham Saleh, told Sigir this summer that it threatens the state. That speaks for itself."

http://www.guardian.co.uk/Iraq/Story/0,,1962245,00.html

[marmar]

1. Can taxpayers file a mass class action lawsuit against the U.S. government?

For the return of wasted tax money in Iraq? I'm so sick of this bullshit.

[al bupp]

2. This article deserves a late night K & R /nt

[Earth_First]

3. $4bn a YEAR!? Shit, the occupation costs that per WEEK! n/t

[tanyev]

4. Is Halliburton in charge of the smuggling operation?

[Demeter]

5. And Here I Thought It Would Be US Corruption!

Then again, it is, sorta.

[robertpaulsen]

6. K & R!

:kick:

[Barrett808]

7. "Second" insurgency? Much of this cash is going directly to the "first "

The insurgency has no problems with funding.