America's new leading export: Insider deals, front companies, and bribes. I still remember Riverbend's post about ridiculously high US estimates for bridge work. Now I understand why. There are pockets to pad, and investors to pay.
So, what do Riverbend, a concerned Iraqi woman, and Josh Marshall, a liberal US columnist, have in common? Let's just say they are arriving at the same conclusions, at the same time. Josh Marshall, meet Riverbend. Riverbend, meet Josh Marshall. Time to trade some notes.
Part of today's latest entry from Riverbend:
As for employing the locals… things are becoming a little bit clearer. Major reconstruction contracts are being given to the huge companies, like Bechtel and Halliburton, for millions of dollars. These companies, in turn, employ the Iraqis in the following way: they first ask for bids on specific projects. The Iraqi company with the lowest bid is selected to do the work. The Iraqi company gets *exactly* what it bid from the huge conglomerate, which is usually only a fraction of the original contract price. Hence, projects that should cost $1,000,000 end up costing $50,000,000.Now, call me naïve, or daft, or whatever you want, but wouldn’t it be a. more economical and b. more profitable to the Iraqis to hand the work over directly to experienced Iraqi companies? Why not work directly with one of the 87 companies and factories that once worked under the ‘Iraqi Military Council’ and made everything from missiles to electrical components? Why not work directly with one of the 158 factories and companies under the former Ministry of Industry and Minerals that produced everything from candy to steel girders? Why not work with the bridge, housing and building companies under the Ministry of Housing that have been heading the reconstruction efforts ever since 1991?
Some of the best engineers, scientists, architects and technicians are currently out of work because their companies have nothing to do and there are no funds to keep them functioning. The employees get together a couple of days a week and spend several hours brooding over ‘istikans’ of lukewarm tea and ‘finjans’ of Turkish coffee. Instead of spending the endless billions on multinational companies, why not spend only millions on importing spare parts and renovating factories and plants?
But Riverbend, that would clearly be socialism in it's worst form! Not even one Bush associate can buy a new home in the French Riviera with that plan! Why are you trying to engage in such class warfare? (My irony should be apparent, on so many different levels).
It gets worse. This Riverbend post from a month ago is must read material:
Listen to this little anecdote. One of my cousins works in a prominent engineering company in Baghdad- we’ll call the company H. This company is well-known for designing and building bridges all over Iraq. My cousin, a structural engineer, is a bridge freak. He spends hours talking about pillars and trusses and steel structures to anyone who’ll listen.As May was drawing to a close, his manager told him that someone from the CPA wanted the company to estimate the building costs of replacing the New Diyala Bridge on the South East end of Baghdad. He got his team together, they went out and assessed the damage, decided it wasn’t too extensive, but it would be costly. They did the necessary tests and analyses (mumblings about soil composition and water depth, expansion joints and girders) and came up with a number they tentatively put forward- $300,000. This included new plans and designs, raw materials (quite cheap in Iraq), labor, contractors, travel expenses, etc.
Let’s pretend my cousin is a dolt. Let’s pretend he hasn’t been working with bridges for over 17 years. Let’s pretend he didn’t work on replacing at least 20 of the 133 bridges damaged during the first Gulf War. Let’s pretend he’s wrong and the cost of rebuilding this bridge is four times the number they estimated- let’s pretend it will actually cost $1,200,000. Let’s just use our imagination.
A week later, the New Diyala Bridge contract was given to an American company. This particular company estimated the cost of rebuilding the bridge would be around- brace yourselves- $50,000,000 !!
Something you should know about Iraq: we have over 130,000 engineers. More than half of these engineers are structural engineers and architects. Thousands of them were trained outside of Iraq in Germany, Japan, America, Britain and other countries. Thousands of others worked with some of the foreign companies that built various bridges, buildings and highways in Iraq. The majority of them are more than proficient- some of them are brilliant.
Now, take into account this post from Josh Marshall. Everything becomes clear:
File this one under Un-#$%@#*&-believable.Let me introduce you to New Bridge Strategies, LLC. New Bridge is 'Helping to Rebuild a New Iraq' as their liner note says.
Here's the company's new blurb from their website ...
"New Bridge Strategies, LLC is a unique company that was created specifically with the aim of assisting clients to evaluate and take advantage of business opportunities in the Middle East following the conclusion of the U.S.-led war in Iraq. Its activities will seek to expedite the creation of free and fair markets and new economic growth in Iraq, consistent with the policies of the Bush Administration. The opportunities evolving in Iraq today are of such an unprecedented nature and scope that no other existing firm has the necessary skills and experience to be effective both in Washington, D.C. and on the ground in Iraq."
A 'unique company'? You could say that. Who's the Chairman and Director of New Bridge? That would be Joe M. Allbaugh, President Bush's longtime right-hand-man and until about six months ago his head of FEMA. Before that of course he was the president's chief of staff when he was governor of Texas and campaign manager for Bush-Cheney 2000.
Allbaugh was part of the president's so-called 'Iron Triangle' -- the other two being Karl Rove and Karen Hughes. And now Allbaugh's running an outfit that helps your company get the sweetest contracts in Iraq? That sound right to you? Think he'll have any special pull?
Visit the site to see their "interactive map of Iraq [which] will show areas of opportunity in the post-war rebuilding effort for specific industries."
It's James Fisk and Jay Gould of Arabia. Unbelievable ...
Some heads need to roll over this shit. Heads in the Bush administration.