The Mother Of All Heists

(CBS)  This segment was originally broadcast on Oct. 22, 2006. It was updated on June 14, 2007.

President Bush says the United States can't leave Iraq until the country can govern and defend itself. Right now a number of inconvenient facts suggest it can do neither. Everyone knows about the chaotic security situation, but less has been reported about the rampant corruption that has infected a succession of Iraqi governments. In a story that first aired in Oct. 2006, Iraqi investigators told 60 Minutes that at least half a billion dollars that was supposed to equip the new Iraqi military was stolen by the very people the U.S. had entrusted to run it.

As correspondent Steve Kroft reports, it has been called one of the biggest thefts in history, the mother of all heists, and it happened right under the noses of U.S. advisors. But neither the United States nor its allies have shown much of an appetite for pursuing it.

---

"People have died. Monies have gone missing. Culprits are running around the world hiding and scurrying around. I have to ask myself, why has this happened? It is not every day that you get billion dollar scandals of this kind," says Ali Allawi, a Harvard-educated international banker who took over as Iraq's Minister of Finance in 2005.

When he entered office, was confronted with a gaping hole in the treasury. $1.2 billion had been withdrawn by the new Ministry of Defense to supply the Iraqi army with desperately needed equipment to fight the growing insurgency. Millions had been misspent on old and antiquated equipment, and Allawi says most of the money simply disappeared.

Allawi thinks that probably 750 to 800 million dollars were stolen. "It is a huge amount of money by any standard," he tells Kroft. "Even by your standards. It's one of the biggest thefts in history, I think."

The story begins in June 2004 when presidential envoy L. Paul Bremer turned over authority to the interim Iraqi government, which would run the country until elections could be held.

The insurgency was already gaining momentum, and with the newly-constituted Iraqi army riding into battle in unarmored pick-up trucks, and scrounging for guns and ammunition, the Iraqi Defense Ministry went on a billion-dollar buying spree with almost no oversight.

The contracts were paid in advance, with no guarantees, and most of them involved a single company.

"They were awarded, without any bidding, to a company that was established a few months prior with a total capital of $2,000," says Allawi. "So you had nearly a billion dollars worth of contracts awarded to a company that was just a paper company, whose directors had nothing to do with the Ministry of Defense or the government of Iraq."

The name of that company was Alain al Jaria, which in Arabic means "the ever-flowing spring." Its address in Amman, Jordan was a post office box, its telephone number a mobile phone. The principal was a mysterious Iraqi by the name of Naer Jumaili, and a half a billion dollars in Iraqi defense funds would eventually find their way into his private account at the Housing Bank of Jordan. The exact whereabouts of that money and the whereabouts of Mr. Jumaili are presently unknown.

The person who knows the most about the case, and in fact the only person who seems to be investigating it, is Judge Radhi al Radhi, Iraq's Commissioner of Public Integrity. It's his job to prosecute official corruption in Iraq, and it may be the most dangerous job in the country.

Twice tortured and imprisoned under Saddam Hussein, he now receives death threats from both the insurgents and from corrupt officials. Seven of his people have been killed.

Through an interpreter, Radhi tells Kroft he has 30 bodyguards. When he was told that lots of people would like to see him dead, Radhi replied, "I don't care. That's their problem."

Andy Court and Keith Sharman are the producers.

• 1
• 2
• 3
• Next Page »

[maknaama]

Greetings,

I have suspicion that Ziad Al-Cattan, and possibly his Minister at the time have information about the Kidnapping of an American in Baghdad, who is till this day being searched for by POW-MIA organization in Iraq.

During the interview while below comment is being made by Cattan: (Quote from interview & article 'The Mother of All Heists - reported by Steve Kroft of CBS).

'Cattan told 60 Minutes that U.S. and coalition advisers at the Ministry of Defense approved everything that he did'

A picture is shown of Coalition Forces, Cattan, and what he calls advisers.

I will ask that you glance at the man on the vary far right of the picture wearing a suit, and glasses looking down at his documents.

That man is my father (Abbas Kareem Naama), who was kidnapped on the morning of September 27, 2005. I was in Baghdad at the time of my fathers kidnapping, the day of his kidnapping, he was to be present at a meeting with Coalition Provisional Authority (CPA), Project and Contracting Office (PCO), which was latter turned into Golf Regional Division (GRD) officials, and other representatives of the Ministry of Defense (MoD), Cattan, etc.

My father had suspected, and identified contracts which were awarded to Ghost companies (companies that don't exists), hundreds of MoD staff that received salaries yet after he minor and personal investigations by my father would lead to the fact that these people did not exists. Expired medical equipment, medical supplies such as useless medicine which was also expired and no use to the Military or Civilian population. He was tasked to be a member of a MoD Advisory Committee to oversee Procurement. This committee was dealing directly under the command of the Iraqi Minister of Defense Hazim Al-Shaalan and oversight and approval of the CPA, and PCO. Keep in mind that all Iraqi politicians in power had a US/British advisor who would in directly/indirectly approve/disapprove of Iraqi Politicians posts which were assigned to them by CPA.

My father refused to approve of any fraudulent contracts. This caused Cattan and his internal web of hustler associates in MoD, including the Minister himself great grief because they needed the entire committee to approve, which was difficult due to my fathers presence, he posed a threat to their financial gains. My father being an Iraq/American felt an obligation to both American and Iraqi Citizens and would not stand a side as this deception took place. My father always complained to US CPA, and PCO Officials, however he was constantly brushed off as many of the organizations working in Iraq were in a battle for time, always fighting to beat a deadline no matter the cost.

What pushed my father over the top was the purchase of expired medical equipment, materials, and useless medicine which was also expired. My father being a former Military Officer recognized as a Lieutenant General and Pharmacist with his Bachelors in Science from Baghdad, Masters Degree in Biology from Manchester University, and after being a key leader of the 1991 uprising of Diwaniyah province against Saddam and the Bath Party, the entire family was forced to flee in exile, living a year and a half in Rufha Refugee Camps in Saudi Arabia, due to our condition we were granted Political Asylum through the UN efforts. This gave our father the opportunity to excel in his education and obtain his US Board of Medicine, having that type of background he felt a moral duty to his native birthplace, and to his new found home to not allow these men to go unnoticed.

My fathers kidnapping was not any hooligans, they were professionals and had proper attire. His kidnapping was not religious, sectarian, or terrorist, it was out of greed by thugs who wanted my father out of there way.

Thank you for your time, as the people of the world globe are faced with disaster everyday that is why I ask all who feel sympathy to use that energy to please pray not only for my family but the families and the great and kind nation of Japan and its people.

Anyone who can help in anyway even if just getting the word out, an need more detail regarding my fathers matter please email me.

[infam_rider]

I hope people reread this.

Maybe then.. they will point fingers at the countries allowing these thieves to spend that stolen money in their country. You know the rich guys building villas. Maybe those countries would expediate them to Iraq to stand trial and be accountable.

Amazing.. if I said Iraq had a sandstorm someone would find a way to point a finger at Bush.

I stopped blaming the President when Jimmy Carter was in office. That's why we have a system peeps.. checks and balances.

[bm6005]

What part of this surprises anyone? It's time, people, to march down Pennsylvania Ave. with pitchforks, shovels and torches, to take America back from this SCUM in Washington!!

[jjp735i]

"no one in the U.S. government would talk on camera about the missing $800 million. Off-camera, 60 Minutes was told that this was Iraqi money, spent by a sovereign Iraqi government, and therefore the Iraqis%u2019 business".

Our government is wrong! That was taxpayer money and yes our government should account for all of it. Shame on the media for not pushing the White House on this issue over the years. A simple report and repeat of old news is not reporting.

[mayihavemore]

Received training at National Defense University Washington, D.C. He doesnt remember! Can we train them or what? Priceless!

[formrusmcsgt]

Stabilizing Iraq could take as long as a decade, says the U.S. commander in Baghdad.

"In fact, typically, I think historically, counterinsurgency operations have gone at least nine or 10 years," Gen. David Petraeus said Sunday.

----

Petraus apparently is ignorant of Guatemala's 36 year insurgency or the 40 year old insurgencies in the Phillipines and Colombia that continue today.

[formrusmcsgt]

Yet more testimony to the absolute ineptitude of the Bush administration and it's absolutely woeful oversight.

Another disgrace for America at the hands of the neocons. If they couldn't take steps backwards, they'd take no steps at all.

[wogerwabbit]

"too many people in positions of power and authority in the new Iraq have been in one way or another found with their hands inside the cookie jar. And if they are brought to trial it will cast a very disparaging light on those people who had supported them and brought them to this position of power and authority."

which is exactly what's happing in America today and explains the grovelling neocon shills we suffer through here in order to attempt itelligent discourse about relevant issues.

Lars, patriot and the be-atch (can't remember her name), are just the most blatent sores on the noecon posterior so nakedly exposed to us in these surreal times. They're mooning us on the way out the door and I salute them, but these morons gotta go.

[pastdue1]

These monies are part of the "War on Terror," so mismanagement need not be justified nor traced. Besides, according to the Kentucky senator the blame is to be laid on the Iraqi. What a misnomer the "war on terror" phrase is. It was coined to confuse, defend and justify what is currently going on. Will we ever learn not to be deluded by slogans intended to instill fear.

[oleander8]

Same thing happened with a succession rulers in Viet Nam. The rich got richer and the US paid for it. And it may have been borrowed from China but the US still has to pay it back.