Volume 1 - Iraq Watch

Iraqi front companies with a number of subsidiariesoperating in Baghdad, Iraq, Dubai in the UAE,and Amman, Jordan. Al-Eman companies havebeen observed for the last 10 years as they procureddual-use and military goods for the Iraqi Government,and were heavily involved in the UN OFF kickbackscheme. Al-Gaaod used his relationships withSaddam and ‘Uday Saddam Husayn al-Tikriti, andHusayn Kamil to both acquire contracts for supplyingthe various ministries with sanctioned materials,smuggling oil, and he used those relationships tointimidate others.• Al-Eman is essentially a family-run business, withstrong family ties linking most of the subsidiaryfirms.• The accountants in Al-Eman are key figures withthe best overall knowledge of the company’s activities.• Al-Eman did considerable business with Syriathrough the “Syrian Protocol,” an arrangement offalse purchases and kickbacks that laundered fundsfor Iraqi purchases.The Al-Eman Group was also involved in the OFFkickback scheme through the Jordan National Bankand embassy commercial attaches. Upon completionof services under UN OFF, the Banque Nationale deParis deposited payments in the National Bank ofJordan, which provided banking services to Al-Eman.The National Bank of Jordan automatically deducteda 10-percent performance/kickback from the UN OFFpayment. The National Bank of Jordan then depositedthe kickback amount into accounts controlledby the Iraqi Regime. The CAs in the Iraq embassiesplayed a key role in orchestrating procurement andfinancial activity. The attaches arranged collectionand transferred kickbacks, and Al-Eman worked veryclosely with them.The Al-Eman NetworkDozens of companies were included in the Al-Emannetwork, most of which were either owned or operatedby members of the Al-Gaaod family. The followingtable (see Figure 52) is a sampling of some ofthe Al-Eman companies and their role in acquiringmaterials for the Iraqi government:Al-Gaaod’s Ties to Iraqi LeadershipAl-Gaaod was one of Saddam’s most trusted confidantsin conducting clandestine business transactions,often traveling abroad using an Ecuadorianpassport. Just prior to March 2003, he traveled toSweden and Ukraine on behalf of Qusay.• Al-Gaaod also had a close partnership with ‘Udayand Husayn Kamil, and was a key player in theMIC.• He assisted As’ad Al Ubaydi Hamudi, the brother ofDr. Nazar Al ‘Ubaydi Hamudi, a scientist involvedin producing chemical weapons, in obtaining contractswith the Al Qa’qa’a General Company, TheAtomic Energy Company, the Al-Karamah StateEstablishment the Al Basil General Company, theAl Muthanna State Establishment and over 25 othercompanies within the MIC from 1992 until 2002.• Al-Gaaod, Dr. Nazar, and Assad are all linked tothe Al Abud network described in the CW section ofthis report.Key Al-Eman Owners: Sattam Hamid FarhanAl-Gaaod and His Family. Extended family plays akey role in Al-Eman operations. As of March 2003,three of Sattam Hamid Farhan Al-Gaaod’s cousins ransubsidiary or affiliated companies in the network.• Jalal Al-Gaaod owns the subsidiary Sajaya.• Talal Al-Gaaod functions in a public relations rolefor the family.• Hamid Al-Gaaod is owner of the Al-Yanbu Company.The Iraqi Regime arrested both Talal and Hamid Al-Gaaod in 1996 as a result of unspecified financial andcontractual problems related to deals with the MoA.As of late 2001, Sattam Hamid Farhan Al-Gaaod’sbrother, Abd al-Salam Farhan Al-Gaaod was runninga firm called Al-Arab Agencies. This company wasused for shipping, operating primarily out of Basrah.Al-Arab handled many of the firm’s transport requirementsand petroleum exports via the Gulf.88