Volume 1 - Iraq Watch

Figure 38. The MIC-MoD Special Committee for Procurement.Dual-Use Goods Procurement for the MoD.For routine procurement requirements, the Diwanreviewed the Minister of Defense’s requisitions andidentified an appropriate ministry to prepare the contractto purchase the items domestically or throughforeign sources.• Most Iraqi ministries served as false end-users forMoD dual-use goods procurement. For example,the Building Ministry purchased engineering equipmentand heavy machinery, the Health Ministryprocured medical equipment, and the TransportationMinistry obtained trucks for the MoD.• When possible, the MoD initiated contracts in coordinationwith the MIC. For example, if the MoDneeded vehicles it would go directly to the MICvehicle supplier.• Once the items were purchased and the deliverymade, the purchasing ministry would notify theMoD that its equipment had arrived. The MoDwould then arrange to deliver the shipment to itssubordinate units.The MoD reimbursed these other government ministries,via the Diwan, with money from the generalMoD budget—concealing the source of the money.The MoO, through SOMO, also helped the MoD byfunding purchases via the UN OFF program or withillicit oil revenue schemes.Procurement for the Republican Guard and SpecialRepublican GuardThe RG and SRG requested weapons systems andother military goods via the MoD. The MoD andMIC, in turn, used their associated front companiesand trade networks to procure conventional militaryequipment for the RG and SRG from foreignsources. Qusay Husayn, as the “Honorable Supervisor”of the RG and SRG, ensured they received themost modern military equipment in the Iraqi Army(see Iraq’s Security Services Annex for additionalinformation on the RG and SRG).RG and SRG Procurement Leadership andBudget. From 1996 until the fall of the Regime,Mahmud Rashid Ismail Al-Ani served as the Directorof Electrical and Mechanical Engineering in the RGand the chief procurement adviser to both the RG andSRG. He reported directly to the RG Chief of Staff,General Saif Al-Din Al-Rawi.• Al-Ani also monitored the manufacture of suppliesfor the RG. Consequently, he attended a monthlymeeting at the MIC with the Commander andDirectors of the RG.• Qusay reportedly respected Al-Ani’s technicalexpertise as evidenced by choosing him to representthe RG in overseas delegations.• Al-Ani also enjoyed a close relationship with Abdal-Tawab Mullah Huwaysh, the head of the MIC,most likely because they were related.64