BY JAMES GLAN & ERIC SCHMITT OF THE NEW YORK TIMES BAGHDAD, Aug. 27 — Several federal agencies are investigating a widening network of criminal cases involving the purchase and delivery of billions of dollars of weapons, supplies and other materiel to Iraqi and American forces, according to American officials. The officials said it amounted to the largest ring of fraud and kickbacks uncovered in the conflict here.
The inquiry has already led to several indictments of Americans, with more expected, the officials said. One of the investigations involves a senior American officer who worked closely with Gen. David H. Petraeus in setting up the logistics operation to supply the Iraqi forces when General Petraeus was in charge of training and equipping those forces in 2004 and 2005, American officials said Monday. The inquiries are being pursued by the Army Criminal Investigation Command, the Department of Justice, and the Federal Bureau of Investigation, among other agencies.
In an interview on Aug. 18, General Petraeus said that with ill-equipped Iraqi security forces confronting soaring violence across the country in 2004 and 2005, he made a decision not to wait for formal tracking systems to be put in place before distributing the weapons.
“We made a decision to arm guys who wanted to fight for their country,” General Petraeus said.
But now, American officials said, part of the criminal investigation is focused on Lt. Col. Levonda Joey Selph [NOT pictured], who reported directly to General Petraeus and worked closely with him in setting up the logistics operation for what were then the fledgling Iraqi security forces.
That operation moved everything from AK-47s, armored vehicles and plastic explosives to boots and Army uniforms, according to officials who were involved in it. Her former colleagues recall Colonel Selph as a courageous officer who was willing to take substantial personal risks to carry out her mission and was unfailingly loyal to General Petraeus and his directives to move quickly in setting up the logistics operation.
The enormous expenditures of American and Iraqi money on the Iraq reconstruction program, at least $40 billion over all, have been criticized for reasons that go well beyond the corruption cases that have been uncovered so far. Weak oversight, poor planning and seemingly endless security problems have contributed to
many of the program’s failures.
The investigation into contracts for materiel to Iraqi soldiers and police officers is part of an even larger series of criminal cases. As of Aug. 23, there were a total of 73 criminal investigations related to contract fraud in Iraq, Kuwait and Afghanistan, Col. Dan Baggio, an Army spokesman said Monday. Twenty civilians and military personnel have been charged in federal court as a result of the inquiries, he said. The inquiries involve contracts valued at more than $5 billion, and Colonel Baggio said the charges so far involve more than $15 million in bribes. Just last week, an Army major, his wife and his sister were indicted on charges that they accepted up to $9.6 million in bribes for Defense Department contracts in Iraq and Kuwait.
That federal agency, the Special Inspector General for Iraq Reconstruction, responded with a report in October 2006 that found serious discrepancies in American military records of where thousands of the weapons actually ended up. The military did not take the routine step of recording serial numbers for the weapons, the inspector general found, making it difficult to determine whether any of the weapons had ended up in the wrong hands.
In July 2007, the Government Accountability Office found even larger discrepancies, reporting that the American military “cannot fully account for about 110,000 AK-47 rifles, 90,000 pistols, 80 items of body armor, and 115,000 helmets reported as issued to Iraqi security forces as of Sept. 22, 2005.” [via NEW YORK TIMES]
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