This story begins 18 months ago, in the fall of 2006, when correspondent Steve Kroft first reported that more than a billion dollars from the previous Iraqi Defense Ministry had been wasted, stolen or misappropriated. The money was supposed to supply the new Iraqi army with desperately-needed equipment to fight the growing insurgency. But according to audits conducted by the Iraqi government, and to Judge Radhi al Radhi, Iraq's top anti-corruption official, millions were misspent on old and antiquated equipment and the rest simply disappeared.
Judge Radhi told Kroft that he estimated that "more than half" of the $1.3 billion had been stolen. "As we hear from some friends abroad, that they never heard of such corruption and embezzlement to such a degree," he said.
According to James Mattil, Radhi's former advisor at the State Departmentsays shortly after the unclassified report was leaked to the press last summer, the State Department decided to make it classified.
Asked for what reason it was classified, Mattil said, "The embarrassment factor, I would think."
But the State Department's decision to try and bury the report didn't change the facts in Iraq. In some cases, Mattil says the corruption involves outright theft of government funds, or bribery, with some of the money finding its way into the hands of insurgents or Iraqi militias.
"In other cases, it is the militias and insurgents themselves who control some of the ministries, who are involved in the corruption and funding their activities through these actions," Mattil said.
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The memo prohibited investigations of current or former high level Iraqi officials without the permission of the prime minister himself.
"It basically put a stop to any anti-corruption activities within the Iraqi government. And it came directly from the prime minister's office," Mattil said.
"So the only way the prime minister could be investigated for corruption would be if he signed off on his own investigation?" Kroft asked.
"Correct," Mattil said.
http://www.cbsnews.com/stories/2008/04/11/60minutes/main4009328.shtmlThe Iraqis may need to go back to cutting hands off from those who steal. Too bad it looks like everybody there is in on it. Barack Obama's buddy, Tony Rezko is mentioned in connection to an Iraqi electrictrical contract.
