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WAR: U.S. Govt. Ignored Reports of Iraqi Oil Smuggling

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posted on Jan, 13 2005 @ 05:56 PM
A joint investigative effort between the U.K.'s Financial Times and an Italian business daily has turned up evidence that the United States government received information of oil smuggling by Iraq, but did nothing. The smuggling, a direct violation of United Nations sanctions, involved 14 oil tankers engaged by a Jordanian company and resulted in no less than $150 million in illegal profits for Saddam Hussein and his cronies.
For months, the US Congress has been investigating activities that violated the United Nations oil-for-food programme and helped Saddam Hussein build secret funds to acquire arms and buy influence.

President George W. Bush has linked future US funding of the international body to a clear account of what went on under the multi-billion dollar programme.

But a joint investigation by the Financial Times and Il Sole 24 Ore, the Italian business daily, shows that the single largest and boldest smuggling operation in the oil-for-food programme was conducted with the knowledge of the US government.

Oil traders were told informally that the US let the tankers go because Amman needed oil to build up its strategic reserves in expectation of the Iraq war.

Last week Paul Volcker, head of the independent commission created by the UN to investigate failures in the oil-for-food programme, confirmed that Washington allowed violations of the oil sanctions by Jordan in recognition of its national interests.

Please visit the link provided for the complete story.

This alleged smuggling took place in January 2003, while the Bush administration was blaming Hussein for aiding and abetting the 9/11 hijackers. The American people were being told that Iraq had weapons of mass destruction, and that sovereign nations around the world could be targeted and attacked. If these allegations of US complicity are true, then our government allowed the illegal sale of Iraqi oil outside the UN sanctions, theoretically increasing the amount of WMDs that Hussein possessed and placing the rest of the world in even greater danger.

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posted on Jan, 13 2005 @ 06:26 PM
They knew about the smuggling long before 2003.

A GAO report from May 2002 had the names of the countries the oil was being smuggled to and had an estimate of how much oil was being smuggled. May 2002 Report

Although the oil for food program controls most of Iraq’s oil revenues in an escrow account (more than $51 billion since the program was established), we conservatively estimate that Iraq has illegally earned at least $6.6 billion since 1997—$4.3 billion from smuggling and $2.3 billion in illegal surcharges on oil and commissions from its commodity contracts.
For example, in 2001, we estimate that Iraq earned $1.5 billion by smuggling oil through Jordan, Syria, Turkey, and the Persian Gulf. U.S. government and oil industry sources indicate that the quantity of oil being smuggled varies by destination over time. Oil industry experts estimate that Iraq smuggled out as much as 480,000 barrels of oil per day in March 2002. (See table 1.)

Table 1: Estimates of Smuggled Oil, March 2002
Source: Middle East Economic Survey.

Exit route Barrels per day
Jordan 75,000 to 110,000
Syria 180,000 to 250,000
Turkey 40,000 to 80,000
Persian Gulf 30,000 to 40,000
Total 325,000 to 480,000

The information on the smuggling was repeated in a CBO report in September of 2002.
They even accounted for how that money from the smuggled oil oil would be used in the reconstruction of Iraq once the smuggling was stopped: Sept 2002
Currently, about 80 percent of Iraq’s oil production is being used to purchase imports under the United Nations Oil for Food Program or for domestic consumption. And, in the near term, Iraqi oil exports cannot be expanded without large-scale investment and development of infrastructure. Thus, the primary source of additional funds for reconstructing Iraq would be the proceeds from the legitimate sale of the approximately 400,000 BPD that are currently smuggled out of the country to pay for the importation of items that violate United Nations sanctions.
Assuming that a postconflict Iraq complied with all U.N. resolutions and removed the basis for the current economic sanctions, and assuming also that its oil production infrastructure was undamaged, Iraq could pay for reconstruction costs by using funds generated from that 400,000 BPD of oil and still have enough to pay for its country’s current level of imports.
At today’s oil prices, production at that level would amount to approximately $3 billion a year.

Oil is smuggled through Syria (180,000 to 250,000 BPD); Jordan (75,000 to 110,000 BPD); Turkey (40,000 to 80,000
BPD); and other Persian Gulf states (30,000 to 40,000 BPD). See General Accounting Office, Weapons of Mass
Destruction: U.N. Confronts Significant Challenges in Implementing Sanctions against Iraq, GAO-02-625 (Washington,
D.C., May 2002).

[edit on 13-1-2005 by AceOfBase]

posted on Jan, 13 2005 @ 06:38 PM
The difference this time is that the US knew as it was happening, but did nothing. We knew that the tankers were offloading oil in the Persian Gulf without a UN inspection; we knew that the payments had been made off the books.

When other countries did this, we called it "immoral."

This quote from the article sums it up for me:

"Although the financial beneficiaries were Iraqis and Jordanians, the fact remains that the US government participated in a major conspiracy that violated sanctions and enriched Saddam's cronies," a former UN official said. "That is exactly what many in the US are now accusing other countries of having done. I think it's pretty ironic."

posted on Jan, 13 2005 @ 07:36 PM
The Irony all alone companies link to US has been dipping in the food for oil, but lo and behold they are "protected"

Now this is not a surprised sooner or later it was going to happened the truth was going to come out.

Is like everything US knows about it but it does nothing to stop it.

But it feels good calling others thief and abusers.

posted on Jan, 13 2005 @ 07:50 PM
The US did nothing because Jordan is their ally, to which greenbacks flowed for their backing on the war. Of course there were American firms involved, politicians gladly hiding their names under the guise of the privacy act lest their donations dry up. The object was to list all of the pro-Iraqi, anti-war countries and demonize them in the eyes of Americans. The ploy worked only to rally Bush backers, who immediately poured it on via the internet with the intent of spreading the word of the evil empires and present an image of a pristene and above board see no evil, hear no evil, do no evil fairy tale type American politician and businessman. As always, the 49 point something thinking Americans saw through this ruse, and so did the rest of the world.

Now the question is, how much coverage if any will the US media give these off-shore reports?

posted on Jan, 13 2005 @ 07:53 PM
I tell you what I will like to see how FOX is going to do the news on this one, after all they were screaming a top of their long of the indecency of the UN and how their dirty hands was all over it.

posted on Jan, 13 2005 @ 08:09 PM

Originally posted by marg6043
I tell you what I will like to see how FOX is going to do the news on this one, after all they were screaming a top of their long of the indecency of the UN and how their dirty hands was all over it.

Um... WE WENT TO WAR WITH IRAQ. I don't see how that is doing nothing.

Think about it... what WOULD 'doing something' have been? Uh... it would have translated to going against the UN and fighting Hussein's regime.

posted on Jan, 13 2005 @ 09:02 PM
You know what as days go by and more stuff comes out it gets to the point that people will care less, Onlyinmydreams.

Life has a way of letting things happend I guess is call destiny.

But somebody will pay at the end.

posted on Jan, 13 2005 @ 11:35 PM

Originally posted by marg6043
You know what as days go by and more stuff comes out it gets to the point that people will care less

This is so sad because it is true.
The recent US elections proves this. All the stones thrown (at either side0 really meant nothing. No changes, just more high level thievery.

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