It may well turn out to be the largest war profiteering in history.

[Guest guest]

BBC uncovers lost Iraq billions

By Jane Corbin

BBC News

 

A BBC investigation estimates that around $23bn (£11.75bn) may have

been lost, stolen or just not properly accounted for in Iraq.

 

For the first time, the extent to which some private contractors have

profited from the conflict and rebuilding has been researched by the

BBC's Panorama using US and Iraqi government sources.

 

A US gagging order is preventing discussion of the allegations.

 

The order applies to 70 court cases against some of the top US

companies.

 

War profiteering

 

While George Bush remains in the White House, it is unlikely the

gagging orders will be lifted.

 

To date, no major US contractor faces trial for fraud or

mismanagement in Iraq.

 

The president's Democrat opponents are keeping up the pressure over

war profiteering in Iraq.

 

Henry Waxman who chairs the House Committee on Oversight and

Government Reform said: " The money that's gone into waste, fraud and

abuse under these contracts is just so outrageous, its egregious.

 

" It may well turn out to be the largest war profiteering in history. "

 

In the run-up to the invasion one of the most senior officials in

charge of procurement in the Pentagon objected to a contract

potentially worth seven billion that was given to Halliburton, a

Texan company, which used to be run by Dick Cheney before he became

vice-president.

 

Unusually only Halliburton got to bid - and won.

 

Missing billions

 

The search for the missing billions also led the programme to a house

in Acton in West London where Hazem Shalaan lived until he was

appointed to the new Iraqi government as minister of defence in 2004.

 

He and his associates siphoned an estimated $1.2 billion out of the

ministry.

 

They bought old military equipment from Poland but claimed for top

class weapons.

 

Meanwhile they diverted money into their own accounts.

 

Judge Radhi al-Radhi of Iraq's Commission for Public Integrity

investigated.

 

He said: " I believe these people are criminals.

 

" They failed to rebuild the Ministry of Defence , and as a result the

violence and the bloodshed went on and on - the murder of Iraqis and

foreigners continues and they bear responsibility. "

 

Mr Shalaan was sentenced to two jail terms but he fled the country.

 

He said he was innocent and that it was all a plot against him by pro-

Iranian MPs in the government.

 

There is an Interpol arrest out for him but he is on the run - using

a private jet to move around the globe.

 

He stills owns commercial properties in the Marble Arch area of

London.

 

http://news.bbc.co.uk/2/hi/middle_east/7444083.stm