Room 1201
11-17-2005, 03:34 AM
Good morning TMB-sorry I wasn't around sooner ;)
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Fraud charge for Iraqi contractor
A US businessman has been charged with bribing officials involved in the reconstruction of post-war Iraq, the New York Times has reported. The paper said Philip Bloom had been accused of paying $600,000 (£349,000) to staff in the Coalition Provisional Authority which ran Iraq until 2004.
Citing legal documents, the paper said Mr Bloom is alleged to have secured up to $3.5m in fraudulent contracts.
Anti-corruption groups have warned that fraud has become widespread in Iraq.
Soon after the invasion of Iraq, the US and other partners had pledged $20bn to rebuild the country, but many questions have been raised about how the money has been spent.
Fraud charges
Earlier this year, Transparency International said post-war Iraq could become the "biggest corruption scandal in history" if steps were not taken to improve public administration.
The New York Times said Mr Bloom appeared in court in Washington, DC on Wednesday where he was charged with conspiracy to launder money, wire fraud and interstate transportation of stolen property.
<table> <tbody><tr> <td width="5">
</td> <td class="fact"> <!--Smva--> This is the first case but it won't be the last
<!--Emva--> <!--Smva--> Jim Mitchell, Office of the Special Investigator General, Iraq Reconstruction <!--Emva--> </td> </tr> </tbody></table>
Mr Bloom, who had been living in Romania prior to his arrest, remained in custody on Thursday.
The New York Times also reported that two unnamed Coalition Provisional Authority (CPA) officials were named as co-conspirators in the alleged fraud in an affidavit placed with the court.
Alleged gifts
One of those cited in the affidavit, according to the newspaper, was comptroller and financing officer for the South Central Region in Iraq at the time of the alleged fraud.
Mr Bloom is alleged to have paid kickbacks to an unspecified number of officials to secure contracts to rebuild a police training facility and a library in southern Iraq.
He is also said to have bought the officials property in the US.
According to the Office of the Special Inspector General for Iraq reconstruction (Sigir), which conducted the investigation, Mr Bloom's accomplices ensured contracts were awarded to firms under his control.
Some of these firms did not exist, it is alleged, and did no work in Iraq.
"I believe that the financial and monetary transactions are part of a conspiracy to violate US law," the New York Times reported Patrick McKenna, a special agent at Sigir, as writing in the affidavit.
Mr Bloom's lawyers said they were in the process of reviewing the allegations against him.
Other cases
The US Department of Justice has been sent details of a dozen similar cases of alleged fraud which it is currently considering.
"This is the first case but it won't be the last," Jim Mitchell, a Sigir spokesman, told the New York Times.
The US-led administration which governed Iraq between April 2003 and May 2004 was beset by allegations of corruption and political favouritism in contract awards.
Financial auditors said in May that there was no record of how $100m in funding for reconstruction projects since 2003 had been spent.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/4445114.stm
Published: 2005/11/17 11:27:30 GMT
© BBC MMV
http://newsvote.bbc.co.uk/nol/shared/img/printer_friendly/news_logo.gif
Fraud charge for Iraqi contractor
A US businessman has been charged with bribing officials involved in the reconstruction of post-war Iraq, the New York Times has reported. The paper said Philip Bloom had been accused of paying $600,000 (£349,000) to staff in the Coalition Provisional Authority which ran Iraq until 2004.
Citing legal documents, the paper said Mr Bloom is alleged to have secured up to $3.5m in fraudulent contracts.
Anti-corruption groups have warned that fraud has become widespread in Iraq.
Soon after the invasion of Iraq, the US and other partners had pledged $20bn to rebuild the country, but many questions have been raised about how the money has been spent.
Fraud charges
Earlier this year, Transparency International said post-war Iraq could become the "biggest corruption scandal in history" if steps were not taken to improve public administration.
The New York Times said Mr Bloom appeared in court in Washington, DC on Wednesday where he was charged with conspiracy to launder money, wire fraud and interstate transportation of stolen property.
<table> <tbody><tr> <td width="5">
</td> <td class="fact"> <!--Smva--> This is the first case but it won't be the last
<!--Emva--> <!--Smva--> Jim Mitchell, Office of the Special Investigator General, Iraq Reconstruction <!--Emva--> </td> </tr> </tbody></table>
Mr Bloom, who had been living in Romania prior to his arrest, remained in custody on Thursday.
The New York Times also reported that two unnamed Coalition Provisional Authority (CPA) officials were named as co-conspirators in the alleged fraud in an affidavit placed with the court.
Alleged gifts
One of those cited in the affidavit, according to the newspaper, was comptroller and financing officer for the South Central Region in Iraq at the time of the alleged fraud.
Mr Bloom is alleged to have paid kickbacks to an unspecified number of officials to secure contracts to rebuild a police training facility and a library in southern Iraq.
He is also said to have bought the officials property in the US.
According to the Office of the Special Inspector General for Iraq reconstruction (Sigir), which conducted the investigation, Mr Bloom's accomplices ensured contracts were awarded to firms under his control.
Some of these firms did not exist, it is alleged, and did no work in Iraq.
"I believe that the financial and monetary transactions are part of a conspiracy to violate US law," the New York Times reported Patrick McKenna, a special agent at Sigir, as writing in the affidavit.
Mr Bloom's lawyers said they were in the process of reviewing the allegations against him.
Other cases
The US Department of Justice has been sent details of a dozen similar cases of alleged fraud which it is currently considering.
"This is the first case but it won't be the last," Jim Mitchell, a Sigir spokesman, told the New York Times.
The US-led administration which governed Iraq between April 2003 and May 2004 was beset by allegations of corruption and political favouritism in contract awards.
Financial auditors said in May that there was no record of how $100m in funding for reconstruction projects since 2003 had been spent.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/4445114.stm
Published: 2005/11/17 11:27:30 GMT
© BBC MMV