Volume 1 - Iraq Watch

Procurement LeadersProcurement LeadersAbd al-Tawab MullahHuwayshTahir Jalil HabbushIn 1997 Abd al-Tawab Mullah Huwaysh became Ministerof the Military Industrialization Commission (MIC),and he reinitiated links with the IIS to join forces onprocurement. Dr. Hadi Tarish Zabun was an importantplayer in the MIC in terms of granting contracts to Iraqifront companies as head of the “Special Offi ce,” a staffsection within the MIC. Director Huwaysh determinedwhat items were needed and then Dr. Zabun acted asa liaison between the IIS and the MIC to secure andgrant the contracts. According to Dr. Zabun the IIScontrolled MIC security and MIC security controlled allvisas, foreign travel, and permission to talk to foreigncompanies for all MIC employees. Tahir Jalil Habbushal-Tikriti as head of the Iraqi Intelligence Service (IIS)was in charge of placing IIS offi cers in locations internaland external to Iraq. This facilitated the developmentof business relationships with foreign countries purchasingprohibited goods for Iraq. The IIS had its ownsecurity; however, there is evidence that the SpecialSecurity Organization (SSO) headed by Walid HamidTawfi q al-Tikriti provided security for goods from theIraqi border to the end users in Iraq in 1997, accordingto sensitive reporting.Figure 46. IIS procurementleadership.Walid Hamid Tawfi qIntelligence Section, designated M4/4/5. Dr. Zabun’s“Special Office” cooperated closely with M4/4/5 tofind sellers of the sensitive materials and equipmentsought by MIC. M4/4/5 desk officers worked closelywith IIS officers in overseas stations to find the suppliers.Desk officers had specific country responsibilities.• After reorganizing the M19 Directorate into theM4/8 Division in 1998, the IIS operated severalfront companies in Syria, according to a formerhigh-ranking IIS officer. The Director of M4/8 wasHasan al-’Ani.• Dr. Zabun coordinated the entire MIC—IIS businessdealings, with much of the coordination occurringdirectly between the Director of M4/4/5 andDr. Zabun.• For example, one officer was responsible for allSyrian and Bulgarian procurement; another wasresponsible for Russian and Yugoslav procurement,while others handled actions with North Korea,Egypt, and elsewhere. Directives and other communicationswith the IIS stations in embassies abroadwere transported via diplomatic pouch.• The IIS, along with an Armenian-Iraqi namedOhanes Artin Dosh, established a front companyin Switzerland with several subsidiaries, accordingto a high-ranking Iraqi official with directaccess. Jaraco SA, a firm operated by Esfandiar andBahman Bakhtiar was another IIS Front Company.The Iraqi Government gave the Bakhtiars 150,000Swiss francs to establish this company. An unwrittenagreement allocated equal shares of Jaraco tothe IIS and to the Bakhtiars.In some instances the sensitivity of the relationshipbetween Iraq and the foreign country was such thatit was easier for the company to set up a branchwithin Iraq to broker deals rather than for Iraq tooperate within the foreign country. Most reportingsuggests that IIS did place officers in foreign countriesto operate companies; however, one former IISofficer with direct access stated that the IIS dealt withforeign companies through branches located in Iraqand exploited the employees of these companies.• According to a high-level MIC official, NeptunTrading Company had an office in Baghdad upuntil OIF. An alleged Russian military intelligence78