Volume 1 - Iraq Watch

information or justification, were kept at the Chiefof the Presidential Diwan’s office or the PresidentialSecretary’s office, depending on where therequest had been submitted.ISG has collected information concerning the natureof payments sought by the military and security servicesthrough the Diwan. However, this informationgenerally lacks detail.• For example, the IIS successfully sought additionalfunding of nearly 48.5 million Iraqi dinars ($2.5million—a conversion rate of 1,950 ID to the dollarwas used to convert 48.5 million ID to $25,000) toprovide weaponry and ammunition for the Jalal Al-Talibani Group in early 2002.Disbursal of Supplemental FundsAs stated by the Minister of Finance, the preferredmethod used to disburse requests for extra-budgetaryfunds was for the EAC to add the additional funds tothe requesting ministry’s budget. However in exceptionalcases, such as when requests were time sensitive,the funds would be paid directly to the ministry.Most transactions were conducted using accounts atthe Rafidian bank. Additional accounts were locatedat the CBI.According to MIC Director and Deputy Prime Minister,Abd al-Tawab Mullah Huwaysh, the MIC wouldapproach the Diwan for additional hard currencyfunds. Examples of such occasions occurring from2000-2002 included:• A payment of $42 million for an unsuccessfuldeal to purchase the Belarusian S-300 Air DefenseSystem, with payment split evenly between theMinistry of Finance and President Diwan.• $25 million for the purchase of 7.62-mm ammunitionfrom the Former Federal Republic of Yugoslavia(FRY) and Syria.• $25 million for the purchase of light weaponsand ammunition (including RPG-7 and KORNETATGMs) from Russia via a Syrian company.• $20 million for a maintenance facility for helicoptersand the purchase of Mi-17 and Mi-25 helicopterengines.• $8.5 million for a contract with the FRY companyORAO for a maintenance facility for MiG-21engines.• The purchase of 3,000 night-vision goggles fromUkraine.18