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View Diary: the largest one-time cash transfer in the history of the New York Fed (192 comments)

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  •  Here's a link to the actual report (4.00)

    Oh, and here's another good one, about the $1.5 billion inserted into the energy bill for R&D, with the fund to be administered by the oil corps. The 30-page subtitle was inserted after the bill was closed to further amendment, but before it was actually voted on:

    This shit just reeks. Let's get it out there, so more people know. And maybe they will actually vote this rancid group of thiefs and killers out of office.

    "Our lives begin to end the day we become silent about the things that matter." Dr. ML King, from a jail cell in Birmingham, Alabama in 1963.

    by bewert on Wed Aug 17, 2005 at 09:22:15 AM PDT

    [ Parent ]

    •  How can you vote them out, (none)
      when they own the voting machines?

      How can I fail the test, when I mark my own paper?

    •  Some good quotes from the report (4.00)
      "On March 20, 2003, President Bush issued an executive order transferring Iraqi
      assets, held in U.S. banks and frozen since Iraq's invasion of Kuwait, to a U.S.
      Treasury Special Purpose Account (TSPA) established at the Federal Reserve
      Bank of New York.1 Two months later, United Nations Security Council
      Resolution 1483 established the Development Fund for Iraq (DFI) to hold the
      proceeds of Iraqi oil sales, Iraqi assets frozen in bank accounts outside of the
      United States, and $8.1 billion in funds transferred from the U.N.-administered
      Oil-for-Food program.2 Control over these two funds -- as well as over cash
      from the former Iraqi regime seized within Iraq -- was given to the U.S.-run
      Coalition Provisional Authority."

      "Nearly half of the currency shipped into Iraq under U.S. direction -- more than $5
      billion -- flowed into the country in the final six weeks before control of Iraqi
      funds was returned to the interim Iraqi government on June 28, 2004. In the week
      before the transition, CPA officials ordered the urgent delivery of more than $4
      billion in U.S. currency from the Federal Reserve, including one shipment of $2.4
      billion -- the largest shipment of cash in the bank's history."

      "An official involved in the spending and disbursement of the Iraqi proceeds
      described an environment awash in $100 bills. One contractor received a $2
      million payment in a duffel bag stuffed with shrink-wrapped bundles of currency.
      Auditors discovered that the key to a vault was kept in an unsecured backpack.
      They also found that $774,300 in cash had been stolen from a vault. Cash
      payments were made from the back of a pickup truck, and cash was stored in
      unguarded sacks in Iraqi ministry offices. One official was given $6.75 million in
      cash and ordered to spend it in one week, before the interim Iraqi government
      took control of Iraqi funds."

      "Over $600 million in cash was shipped from Baghdad to four regions in
      Iraq to allow commanders flexibility to fund local reconstruction projects.
      An audit of one of the four regions found more than 80% of the funds
      could not be properly accounted for and that over $7 million in cash was
      simply missing."

      "CPA officials gave over $8 billion in cash to Iraqi ministries that had no
      internal or financial controls in place to handle such an influx of funds.
      The Special Inspector General found significant funds that appeared to be
      paid to "ghost employees" and billion-dollar discrepancies in some

      "Although Congress has conducted an extensive investigation of mismanagement
      in the U.N.-administered Oil-for-Food program, holding at least 13 hearings on
      the subject, Congress has, until now, failed to similarly review the U.S.
      administration of Iraqi assets and revenues by the CPA."

      "The Federal Reserve shipped $11,981,531,000 in U.S. currency to Iraq between
      May 2003 and June 2004, according to documents from the Federal Reserve Bank
      of New York.16 The cash was drawn from the DFI and TSPA accounts containing
      revenues from sales of Iraqi oil and frozen and seized assets of the former regime.
      The CPA also controlled $926,700,000 in U.S. currency seized within Iraq,
      mainly from the vaults of the former regime.17
      This currency was shipped to Iraq on pallets loaded into C-130 cargo planes. A
      standard pallet of U.S. currency contains 40 "cashpaks" of 16,000 bills each and
      weighs 1,500 pounds.18 In the thirteen months that the United States administered
      the DFI and TSPA, 484 pallets containing 19,360 cashpaks were shipped from
      New York to Iraq.19 These pallets held more than 281 million individual bills,
      weighing 363 tons.20 In total, the U.S. shipped to Iraq more than 107 million
      $100 bills."

      "Ultimately, the last-minute cash was sent to Iraq in two separate shipments:
      $2,401,600,000 on June 22, 2004, and $1,600,000,000 on June 25, 2004. The
      $2.4 billion delivered on these days replaced the December 2004 shipment as the
      largest pay out of U.S. currency in Fed history.
      In total, nearly $12 billion in cash flowed into Iraq. Of this amount, nearly half
      -- more than $5 billion -- was shipped into the country in the month before the
      The last-minute rush to spend Iraqi funds was halted by the Federal Reserve when
      the CPA transferred sovereignty to the interim Iraqi government on June 28,
      2004, two days earlier than had been scheduled. After the transfer on the morning
      of June 28, CPA officials twice sought additional withdrawals from the Federal
      Reserve accounts, but these were rebuffed."

      "In October 2003 a $1.4 million contract was awarded to North Star
      Consultants, Inc. that required the contractor to perform a review of
      internal controls and provide the CPA a written report of their evaluation.
      The North Star Consultants did not perform a review of internal controls
      as required by the contract. Consequently, internal controls over DFI
      disbursements were not evaluated. In addition, the Comptroller verbally
      modified the contract and employed the contractor to primarily perform
      accounting tasks in the Comptroller's officer."

      "Controls appeared to break down completely in the final days of CPA authority,
      just as billions of dollars in cash were being rushed into the country. A Special
      Inspector General audit found that CPA staff members were encouraged to spend
      cash quickly in its last days before the interim Iraqi government took control of
      the funds. In the South-Central region of Iraq, one disbursing official was given
      $6.75 million in cash on June 21, 2004, "with the expectation of disbursing the
      entire amount before the transfer of sovereignty" on June 28, 2004."

      Man,this is just outright theft on a huge, huge scale!

      "Our lives begin to end the day we become silent about the things that matter." Dr. ML King, from a jail cell in Birmingham, Alabama in 1963.

      by bewert on Wed Aug 17, 2005 at 11:07:34 AM PDT

      [ Parent ]

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