Tuesday, May 08, 2007
That's Why We Thought He Had Weapons...
...we paid for them.
- Chevron Seen Settling Case on Iraq Oil
May 8, 2007
Chevron, the second-largest American oil company, is preparing to acknowledge that it should have known kickbacks were being paid to Saddam Hussein on oil it bought from Iraq as part of a defunct United Nations program, according to investigators.
The $64 billion program was set up in 1996 by the Security Council to help ease the effects of United Nations sanctions on Iraqi civilians after the first gulf war. Until the American invasion in 2003, the program allowed Saddam's government to export oil to pay for food, medicine and humanitarian goods.
Using an elaborate system of secret surcharges and extra fees, however, the Iraqi regime received at least $1.8 billion in kickbacks from companies in the program, according to an investigation completed in 2005 by Paul A. Volcker, the former chairman of the Federal Reserve.
According to the Volcker report, surcharges on Iraqi oil exports were introduced in August 2000 by the Iraqi state oil company, the State Oil Marketing Organization. At the time, Condoleezza Rice, now secretary of state, was a member of ChevronÕs board and led its public policy committee, which oversaw areas of potential political concerns for the company.
Ms. Rice resigned from Chevron's board on Jan. 16, 2001, after being named national security advisor by President Bush.
