Tuesday, November 3, 2015

Chalabi Finally Dies

Ahmed Abdel Hadi Chalabi (30 October 1944 – 3 November 2015) was an Iraqi politician.

He was interim Minister of Oil in Iraq in April–May 2005 and December 2005 – January 2006 and Deputy Prime Minister from May 2005 to May 2006. Chalabi failed to win a seat in parliament in the December 2005 elections, and when the new Iraqi cabinet was announced in May 2006, he was not given a post. Once dubbed the "George Washington of Iraq" by American supporters, he later fell out of favor and came under investigation by several U.S. government sources. He was also the subject of a 2008 biography by investigative journalist Aram Roston, The Man Who Pushed America to War: The Extraordinary Life, Adventures, And Obsessions of Ahmad Chaabi and a 2011 biography by 60 Minutes producer Richard Bonin, Arrows of the Night: Ahmad Chalabi's Long Journey to Triumph in Iraq.

Chalabi was a controversial figure, especially in the United States, for many reasons. In the lead-up to the 2003 invasion of Iraq, the Iraqi National Congress (INC), with the assistance of lobbying powerhouse BKSH & Associates, provided a major portion of the information on which U.S. Intelligence based its condemnation of the Iraqi President Saddam Hussein, including reports of weapons of mass destruction and alleged ties to al-Qaeda. Most, if not all, of this information has turned out to be false and Chalabi has been called a fabricator.  That, combined with the fact that Chalabi subsequently boasted, in an interview with the British Sunday Telegraph, about the impact that their alleged falsifications had on American policy, led to a falling out between him and the U.S. government. Furthermore, Chalabi was found guilty in the Petra banking scandal in Jordan.  In January 2012, a French intelligence official stated that they believed Chalabi to be an Iranian agent.

As a Banker in Jordan

In 1977, he founded the Petra Bank in Jordan.  In May 1989, the Governor of the Central Bank of Jordan, Mohammed Said Nabulsi, issued a decree ordering all banks in the country to deposit 35% of their reserves with the Central Bank.  Petra Bank was the only bank that was unable to meet this requirement. An investigation was launched which led to accusations of embezzlement and false accounting. The bank failed, causing a $350 million bail-out by the Central Bank.  Chalabi fled the country before the authorities could react. Chalabi was convicted and sentenced in absentia for bank fraud by a Jordanian military tribunal.  Chalabi maintained that his prosecution was a politically motivated effort to discredit him.

It was reported by BBC News in May 2015 that the Jordanian government was considering whether to pardon Chalabi, in part to ease the relations between Jordan and the new Iraqi government of which Chalabi was a member.  According to one report, Chalabi proposed a $32 million compensation fund for depositers affected by Petra Bank's failure. The website for Petra Bank contains a press release stating that Chalabi would refuse the pardon.  Although Chalabi always maintained the case was a plot to frame him by Baghdad, the issue was revisited when the U.S. State Department raised questions about the accounting practices of the Iraqi National Congress (INC).  According to The New York Times, "Chalabi insisted on a public apology, which the Jordanians refused to give."

Invasion of Iraq

Before the Iraq War (2003), Chalabi enjoyed close political and business relationships with some members of the U.S. government, including some prominent neoconservatives within the Pentagon.  Chalabi was said to have had political contacts within the Project for the New American Century, most notably with Paul Wolfowitz, a student of nuclear strategist Albert Wohlstetter, and Richard Perle. He also enjoyed considerable support among politicians and political pundits in the United States, most notably Jim Hoagland of The Washington Post, who held him up as a notable force for democracy in Iraq.  He was a special guest of First Lady Laura Bush at the 2004 State of the Union Address.

The CIA was largely skeptical of Chalabi and the INC, but information allegedly from his group (most famously from a defector codenamed "Curveball") made its way into intelligence dossiers used by President George W. Bush and British Prime Minister Tony Blair to justify an invasion of Iraq. "Curveball", Rafid Ahmed Alwan al-Janabi, fed officials hundreds of pages of bogus "firsthand" descriptions of mobile biological weapons factories on wheels and rails.  Secretary of State Colin Powell later used this information in a U.N. presentation trying to garner support for the war, despite warnings from German intelligence that "Curveball" was fabricating claims.  Since then, the CIA has admitted that the defector made up the story, and Powell said in 2011 the information should not have been used in his presentation.  A later congressionally appointed investigation (Robb-Silberman) concluded that Curveball had no relation whatsoever to the INC, and that press reports linking Curveball to the INC were erroneous.


An Afterword about Chalabi

Fiasco by Thomas E. Ricks is a famous book published in 2006 about the 2003 Iraq war.  Ricks sounds thumps Chalabi and the serious effort by elements at the Pentagon to make Chalabi the new head of state for Iraq after the American conquest of the nation in the spring of 2003.

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