Volume 1 - Iraq Watch

The MIC maintained bank accounts in Jordan for thepurpose of making foreign purchases. A senior executivein the MIC confirmed that the MIC Minister,Abd-al Tawab Mullah Huwaysh, directed the openingof accounts in Jordan. These accounts were in thename of the Iraqi CA in Jordan, Selman Kadurm AbdGhidau, and an unidentified accountant. The accountswere at five different Jordanian banks, but most ofthe money was deposited at the Al-Ahli (or JordanNational Bank) (see the Revenue section and theBanking section).Procurement Suppliers During the RecoveryPhase, 1996 to 1998After the onset of limited trade under the OFFprogram, during the “recovery” phase, the Regimewas better suited to offer either oil or cash for itsprocurement needs. ISG has identified companies inthe following seven additional countries willing toengage in unsanctioned trade with Saddam during thisphase: Syria, Turkey, South Korea, China, France, theformer Federal Republic of Yugoslavia, and Bulgaria.Syria began to emerge as a primary transshipmentand procurement facilitation partner, although Turkeyserved as a transshipment point, presumably focusingon consumer goods via its trade Protocol with Iraq.South Korean private firms traded in high technologyitems such as computer and communications equipment.Companies from China and France began negotiatingfor key equipment sales in this period. Theformer Federal Republic of Yugoslavia and Bulgarianfirms may have been willing to risk internationalscrutiny from trading with Iraq due to the lure of highprofits, lack of effective government oversight, andgovernment corruption in the wake of the collapse ofthe Warsaw Pact.SyriaSyria was Iraq’s primary conduit for illicit importsfrom late 2000 until OIF. Under the auspices of theIraq-Syria Protocol, Iraqi ministries and other entitieswould sign contracts with Syrian companies for goodsand services prohibited by the UN OFF program.SOMO databases show that Iraq signed contractsworth $1.2 billion, with payment dates from October2000 through April 2003. These contracts relate toIraq’s imports financed from SOMO accounts underthe Iraq-Syria Trade Protocol. The funds most likelycame from the protocol credit account controlled bySOMO.Military and security entities openly contracted withSyrian companies under the auspices of the Iraq-SyriaTrade Protocol, according to the SOMO database.• The MIC, MoD, and the Presidential Diwan (thelatter acting on behalf of the IIS, RG, and MilitaryIntelligence Division) contracted for $284 millionworth of goods—24 percent of the total procurementnoted.• Of this $284 million, 60 percent ($169 million)was signed with one company, SES International.When all Iraqi procurement entities are included,SES signed contracts worth a total of $187 million.Although the SOMO database does not include specificinformation about the goods contracted for, thebeneficiary companies listed include MIC researchcenters and manufacturing companies.• The MoT and the MoTC imported goods for theMoD and the security forces according to theSOMO database. The MoT imported goods valuedat $2.9 million and the MoTC imported goodsvalued at $8 million for the MoD. The MoT andMoTC contracted for an additional $9.9 millionin goods for Iraq’s Military Intelligence Division,General Security Division, and General Police Division.• The MoT often acted on behalf of other entities,including security and research entities such as theMIC and the IAEC, according to a former seniorIraqi government official. The MoT accounted for25 percent of the imports from Syria listed in theSOMO database. It is possible some of the MoTtransactions not specifically mentioned as being onbehalf of MoD or security forces aforementionedalso were destined for Iraqi security, industrial, andresearch facilities. How much of these other MoT102