Identifier
Created
Classification
Origin
07BAGHDAD1945
2007-06-12 17:36:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

DEMARCHE: REMAINING OIL FOR FOOD CONTRACTS

Tags:  ECON EFIN IZ PREL 
pdf how-to read a cable
VZCZCXRO3068
OO RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #1945 1631736
ZNY CCCCC ZZH
O 121736Z JUN 07
FM AMEMBASSY BAGHDAD
TO RUCNRAQ/IRAQ COLLECTIVE IMMEDIATE
RUEHC/SECSTATE WASHDC IMMEDIATE 1662
C O N F I D E N T I A L BAGHDAD 001945 

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/10/2017
TAGS: ECON EFIN IZ PREL
SUBJECT: DEMARCHE: REMAINING OIL FOR FOOD CONTRACTS

REF: A. A. STATE 64688

B. B. BAGHDAD 1784

C. C. STATE 76747

Classified By: Ambassador Daniel Speckhard for reasons 1.5 (b) and (d).

C O N F I D E N T I A L BAGHDAD 001945

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/10/2017
TAGS: ECON EFIN IZ PREL
SUBJECT: DEMARCHE: REMAINING OIL FOR FOOD CONTRACTS

REF: A. A. STATE 64688

B. B. BAGHDAD 1784

C. C. STATE 76747

Classified By: Ambassador Daniel Speckhard for reasons 1.5 (b) and (d).


1. (C) In response to action request in reftel c, econoff met
with Ambassador Srood Najib, head of the International
Organization and Multilateral Cooperation Department,
Ministry of Foreign Affairs (MOFA),on Wednesday June 6.
Econoff re-iterated the USG,s desire to close-out remaining
Oil-for Food Program-related Letters of Credits (L/Cs) as
soon as possible. Najib noted that a number of Ministries
had responded to his request for information to finalize
outstanding L/C,s. Copies of those documents were to have
been provided to the USG; however, the individual responsible
for collecting the documents was unable to attend the meeting
due to military actions underway by the Coalition Forces in
the vicinity of the MOFA.


2. (C) Ambassador Najib discussed the problems of obtaining
the necessary documentation for deliveries. He noted a
number of problems. Deliveries of goods have been made
throughout the country and not just in Baghdad.
Communications are poor. In some cases authentication of the
goods is hampered by the fact that the individuals who
originally signed for the goods have retired, been killed, or
simply moved away. The question of corruption in Ministries
was also discussed, but this issue appears to be
insignificant in regard to other authentication problems.


3. (C) Najib also discussed at length the issues of
corruption by the sellers, which he views as different from
problems with authentication of delivery, but can include
that problem. In a number of cases deliverys have been made
of goods different from those originally ordered. Many
problems involve Russians who hold the largest amount of
outstanding claims. Najib discussed pursing legal claims
against those sellers who have not returned monies owed to
Iraq. He asked for USG assistance in pursing these Iraqi
claims. He was practically irritated by that he sees as the
failure of USG and other coalition partners to pursue
prosecutions related to OFF and to assist the GOI to recover
monies owed.


4. (C) Ambassador Najib plans to meet in New York in the
next several weeks with Deloitte Financial Advisory, and
investigate pursuing claims in court both in the US and in
other countries. He requested that econoff attend the
meeting, if available.


5. (C) Econoff contacted the Iraq Ministry of Oil (MinOil)
on the status of its outstanding claims and open L/C,s.
MinOil is the largest holder of claims and open L/C,s and is
still working on gathering information. The MoO voiced the
general concerns about the difficulty of establishing the
validity of claims similar to those expressed by Najib.
CROCKER