Secret Report: Corruption Is 'Norm' Within Iraqi Government

By David Corn, TheNation.com. Posted September 3, 2007.

As Congress prepares to receive reports on Iraq from General David Petraeus and U.S. Ambassador Ryan Crocker and readies for a debate on George W. Bush's latest funding request of $50 billion for the Iraq war, the performance of the government of Prime Minister Nouri al-Maliki has become a central and contentious issue. But according to the working draft of a secret document prepared by the U.S. embassy in Baghdad, the Maliki government has failed in one significant area: corruption. Maliki's government is "not capable of even rudimentary enforcement of anticorruption laws," the report says, and, perhaps worse, the report notes that Maliki's office has impeded investigations of fraud and crime within the government.

The draft -- over 70 pages long -- was obtained by The Nation, and it reviews the work (or attempted work) of the Commission on Public Integrity (CPI), an independent Iraqi institution, and other anticorruption agencies within the Iraqi government. Labeled "SENSITIVE BUT UNCLASSIFIED/Not for distribution to personnel outside of the US Embassy in Baghdad," the study details a situation in which there is little, if any, prosecution of government theft and sleaze. Moreover, it concludes that corruption is "the norm in many ministries."

The report depicts the Iraqi government as riddled with corruption and criminals -- and beyond the reach of anticorruption investigators. It also maintains that the extensive corruption within the Iraqi government has strategic consequences by decreasing public support for the U.S.-backed government and by providing a source of funding for Iraqi insurgents and militias.

The report, which was drafted by a team of U.S. embassy officials, surveys the various Iraqi ministries. "The Ministry of Interior is seen by Iraqis as untouchable by the anticorruption enforcement infrastructure of Iraq," it says. "Corruption investigations in Ministry of Defense are judged to be ineffectual." The study reports that the Ministry of Trade is "widely recognized as a troubled ministry" and that of 196 corruption complaints involving this ministry merely eight have made it to court, with only one person convicted.

The Ministry of Health, according to the report, "is a sore point; corruption is actually affecting its ability to deliver services and threatens the support of the government." Investigations involving the Ministry of Oil have been manipulated, the study says, and the "CPI and the [Inspector General of the ministry] are completely ill-equipped to handle oil theft cases." There is no accurate accounting of oil production and transportation within the ministry, the report explains, because organized crime groups are stealing oil "for the benefit of militias/insurgents, corrupt public officials and foreign buyers."

The list goes on: "Anticorruption cases concerning the Ministry of Education have been particularly ineffective….[T]he Ministry of Water Resources…is effectively out of the anticorruption fight with little to no apparent effort in trying to combat fraud….[T]he Ministry of Labor & Social Affairs is hostile to the prosecution of corruption cases. Militia support from [Shia leader Moqtada al-Sadr] has effectively made corruption in the Ministry of Transportation wholesale according to investigators and immune from prosecution." Several ministries, according to the study, are "so controlled by criminal gangs or militias" that it is impossible for corruption investigators "to operate within [them] absent a tactical [security] force protecting the investigator."

The Ministry of the Interior, which has been a stronghold of Shia militias, stands out in the report. The study's authors say that "groups within MOI function similarly to a Racketeer Influenced and Corrupt Organization (RICO) in the classic sense. MOI is a 'legal enterprise' which has been co-opted by organized criminals who act through the 'legal enterprise' to commit crimes such as kidnapping, extortion, bribery, etc." This is like saying the mob is running the police department. The report notes, "currently 426 investigations are hung up awaiting responses for documents belonging to MOI which routinely are ignored." It cites an episode during which a CPI officer discovered two eyewitnesses to the October 2006 murder of Amer al-Hashima, the brother of the vice president, but the CPI investigator would not identify the eyewitnesses to the Minister of the Interior out of fear he and they would be assassinated. (It seemed that the killers were linked to the Interior Ministry.) The report adds, "CPI investigators assigned to MOI investigations have unanimously expressed their fear of being assassinated should they aggressively pursue their duties at MOI. Thus when the head of MOI intelligence recently personally visited the Commissioner of CPI…to end investigations of [an] MOI contract, there was a clear sense of concern within the agency."

See more stories tagged with: iraq, maliki, corruption, david petraeus, ryan crocker

David Corn is the Washington editor of The Nation and the co-author of Hubris: The Inside Story of Spin, Scandal, and the Selling of the Iraq War and is the author of The Lies of George W. Bush. He writes a blog at davidcorn.com.

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