Volume 1 - Iraq Watch

OverviewExecuting Illicit Procurement inIraq: Ministries, Commissions,and Front CompaniesSaddam used his complete control over the IraqiGovernment to facilitate his illicit procurement programs.Almost every Ministry in the Regime assistedwith procurement in some way. Directed by Saddam,the Ministries of Foreign Affairs, Oil, and Tradehelped the former Regime orchestrate its primaryforeign objective of ending UN sanctions (see AnnexH: UN Security Council Resolutions Applicable toIraq).• The MFA curried favors at the UN. Amongother techniques and tactics used by the MFA, itbestowed oil allocations to nationals of the UNSCpermanent members to influence and divide thecouncil in order to erode sanctions. For additionaldetails on the MFA role in influencing the UNSC,see the RSI chapter.• The MoT established bilateral trade Protocols thatwere used to hide prohibited trade. The ministryused commercial attaches to pay for illicit procurement.• The MoD developed requirements, hosted andconducted foreign visits, and procured conventionalmilitary goods, the export of which breached UNsanctions.• The banking system established foreign accounts tohold illicit hard currency until it could be used forprocurement or smuggled into Baghdad.• The Ministry of Higher Education an ScientificResearch (MHESR) conducted dual-use research;procured and developed technical expertise inWMD-related fields and procured key technologiesthrough university systems.Saddam, however, relied on three organizations inparticular for the procurement of prohibited materialsto include potentially-WMD related or dual-use items(see Annex I: Suspected Iraqi Dual-Use ProcurementTransactions):• The MIC, headed by Huwaysh since 1997, andits associated front companies led Iraqi efforts toobtain prohibited military hardware and dual-usegoods.• The IIS was directed by Saddam to assist the MICwith procurement in 1998.• The Iraqi Atomic Energy Commission (IEAC) pursuedits own illicit procurement goals, occasionallywith MIC assistance.Ministry of Foreign AffairsDirected by Saddam, the Ministries of ForeignAffairs, Oil, and Trade helped the former Regimeorchestrate its primary foreign objective of endingUN sanctions. To pursue those objectives, the MFAimplemented a foreign economic strategy first aimedat ending UN sanctions (established since 1990) andsubsequently eliminating the UN’s OFF program.Another important MFA mission focused on supportingthe Regime’s illicit procurement mechanism. Inparticular, the MFA played a critical supporting rolein facilitating Iraq’s procurement of military goods,prohibited dual-use items, transporting cash andother valuable goods earned by illicit oil revenue,and forming and implementing a diplomatic strategyto end UN sanctions and the subsequent UN OFFprogram by nefarious means. The MFA facilitated,established, and maintained foreign government andbusiness contacts and provided Iraqi officials involvedin illegal international trade with financial and politicalsanctuaries.The MFA also assisted the implementation of financialtransactions and provided physical sanctuariesand political/diplomatic/commercial covers for otherIraqi intelligence officials involved in procurementactivities across Iraq’s borders. According to a formerCharge d’affaires at the Iraqi interests section inSyria, it was common practice for embassies to forwardforeign cash from the CBI overseas accounts inRegime Financeand Procurement53