<http://www.indianexpress.com/> 



Monday, February 06, 2006

 


 



International


 

 

 


'Oil graft fuels insurgency'


 


Corruption A serious threat to Iraq's economic rebirth


 


ROBERT F WORTH & JAMES GLANZ BAGHDAD


 


Iraq, February 5 Iraqi and American officials say they are seeing a
troubling pattern of government corruption enabling the flow of oil money
and other funds to the insurgency and threatening to undermine Iraq's
struggling economy. 

In Iraq, which depends on oil for revenues, the officials say any diversion
of money to an insurgency that is harming its citizens and infrastructure is
a menace for the country. 

In one example, a member of the Iraqi National Assembly has been indicted in
the theft of millions of dollars meant for protecting a critical oil
pipeline against attacks and is suspected of funneling that money to the
insurgency, said Radhi Hamza al-Radhi, the chairman of Iraq's Commission on
Public Integrity. The indictment has not been made public. 

The charges against the Sunni lawmaker Meshaan al-Juburi, are far from the
only indication that the insurgency is profiting from Iraq's oil riches. 

On Saturday, the director of an oil storage plant near Kirkuk was arrested
with other employees and police officials, and charged with helping to a
mortar attack on the plant on Thursday, a Northern Oil Company employee
said. 

Ali Allawi, Iraq's finance minister, estimated that insurgents reap 40 to 50
per cent of all oil-smuggling profits in the country. Offering an example of
how illicit oil products are kept flowing on the black market, he said the
insurgency had infiltrated senior positions at the refinery in Baiji and
terrorised truck drivers there. This allows the insurgents to tap the
pipeline, empty the trucks and sell the oil or gas. 

"It's gone beyond Nigeria levels now, where it really threatens national
security," Allawi said. "The insurgents are involved at all levels." 

American officials echo that view. 

"It's clear that corruption funds the insurgency, so you have a real threat
to the new state," said an American official involved in anti-corruption
efforts. 

Not all the corruption is related to the insurgency. But American and Iraqi
officials say its scale is so broad as to be a serious threat to Iraq's
economic rebirth. 

-      The New York Times

URL: http://www.indianexpress.com/full_story.php?content_id=87350

 

 


 

 

 



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