How the Bush Administration Aided Saddam on the Eve of Invasion

From Holden:

Wingers have been bloviating about the U.N. Oil-for-Food program for months now. But the fact is Saddam reaped substantially larger profits from oil sales outside of the Oil-for-Food program.

Today Sen. Carl Levin released e-mails confirming that the Bush assministration authorized illegal Iraqi oil sales as late as March 2003.

Link.

[An] e-mail, along with others released this week by Sen. Carl M. Levin (Mich.), the ranking Democrat on the Senate Governmental Affairs panel’s Permanent Subcommittee on Investigations, provides evidence that the Bush administration directly abetted Jordan’s efforts to build up its strategic reserves with smuggled Iraqi oil in the weeks before the United States invaded Iraq in March 2003.

The illicit oil exports took place outside the Iraq oil-for-food program, which the United Nations administered from 1996 to 2003. While allegations of corruption and mismanagement in that program are under investigation by five congressional committees, the Justice Department and a U.N.-appointed panel, the illicit oil exports outside the program have received less scrutiny. According to investigators, Iraq received more revenue from those exports than from the alleged oil-for-food kickbacks.

“The bulk of [Saddam Hussein’s] illicit oil sale revenues actually came from the money he received from unregulated sales of Iraqi oil, entirely outside of the oil-for-food program, primarily to Turkey, Jordan and Syria,” Levin said at a hearing Tuesday on the U.N. management of Iraqi oil revenue. “We and the rest of the world looked the other way from those sales even though they were prohibited by the U.N. sanctions regime.”

Levin disclosed Tuesday an e-mail describing how a Jordanian company, Millennium for the Trade of Raw Materials & Mineral Oils, sought approval from a U.S.-led international naval fleet to ship oil from an unauthorized Persian Gulf terminal at Khor al-Amaya. But the latest document reveals that Odin Marine Inc., a Stamford, Conn.-based shipping broker hired by Millennium to charter oil tankers, obtained a green light from officials at the Treasury Department’s Office of Foreign Assets Control.

[snip]

Under the [Oil-for-Food] program, Iraq was permitted to export oil from two terminals, at Mina al-Bakr on the Persian Gulf and Ceyhan in Turkey, with the proceeds placed in a U.N.-controlled bank account. The United Nations never authorized Hussein’s government to export oil from Khor al-Amaya.

Iraq sold $8 billion worth of oil to Jordan, Syria, Turkey and Egypt outside the oil-for-food program, according to a report by CIA adviser Charles A. Duelfer.

[snip]

Jordan authorized Millennium to charter several supertankers to ship massive quantities of oil from Khor al-Amaya on the eve of U.S.-led invasion, according to an e-mail from a Millennium employee.

Howard Jaffe, an attorney for Odin, wrote in a March 4, 2003, e-mail that he had phoned an official at the U.S. Office of Foreign Assets Control to seek approval for Millennium’s oil shipments.

Efforts to reach that official, a Foreign Service officer now based at the U.S. consulate in Jerusalem, were unsuccessful Wednesday.

“She called me back in about 2 hours and said that her office was ‘aware of the shipments and has determined not to take action,’ ” Jaffe wrote to an executive at Odin. “. . . It appeared that they do not want to harm Jordan by interfering with its quest for oil before the impending conflict by seizing it.”

Jaffe declined to comment on the contents of the e-mail, citing confidentiality agreements with other companies involved in the trade. But he said the U.N.-authorized Maritime Interdiction Force, which was led by a U.S. commander, “was very aware of what was happening. Inasmuch as it was set up by and for the United Nations, they knew or should have known what those guys were doing.”

Ahed Sokhon, a representative of Millennium, assured the oil shipping companies it had contracted that the trade was legal. In an e-mail obtained by the Senate committee, Sokhon said the U.S. government’s decision to waive sanctions on Jordan indicated that Millennium’s activities had the “full endorsement of both the executive and legislative branches of the United States.”