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May 30, 2004
On Chalabi
Ah, well, a fine evening doing expense reports. I hate fucking expense reports. I suppose they're necessary (well, they are clearly) but bloody hell, I gots them in multiple currencies and the evil bitch of a controller wants a daily accounting on FX fluctuations, blah blah blah. Fucking Goldie trained bitch. Two hours and I only got two out of four done.
Well, on Chalabi:
This fine article from the Kevin Drum site I think, or something like that:
http://www.newyorker.com/printable/?fact/040607fa_fact1
Of which I focus on the following:
"After attending boarding school in England, Chalabi went to America to study math. Upon finishing his Ph.D., which was in the rarefied branch of geometry known as knot theory, Chalabi moved to Lebanon, to teach math at the American University in Beirut. In 1977, however, Crown Prince Hassan of Jordan invited him to found a new bank in the country, whose financial sector was largely dominated by Palestinians. With the help of royal patronage and of innovations previously unavailable in Jordan, such as consumer credit cards, computerized banking, and A.T.M.s, the company created by Chalabi, Petra Bank, grew impressively. [Interj: mild exageration there] Within a decade, it had become the second-largest bank in Jordan, and Chalabi became a rich and well-connected man in Amman. Like his father and grandfather, he extended easy credit to important benefactors. He boasted to an American friend that he had personally made Prince Hassan, the King’s brother, “a wealthy man.” (Prince Hassan, who continues to regard Chalabi as a friend, declined to be interviewed.) Chalabi lived with his family in the suburban hills outside Amman, in a house of his own design, surrounded by a collection of modern art. His children rode horses with the royal family. .... [omitted]
In 1989, however, Chalabi’s comfortable life collapsed amid allegations of criminality. Jordan’s Central Bank, facing a liquidity crisis, demanded that the country’s banks place thirty per cent of their foreign currency in its accounts. Petra balked, prompting an emergency audit. Chalabi betrayed little outward concern about this sudden turn. Patrick Theros, a former Ambassador to Qatar, who was then stationed in Jordan, had dinner at Chalabi’s home during this period. “He was completely charming, particularly to the ladies—he could talk about any subject,” Theros recalled. Two days later, Chalabi, who had apparently been tipped off about his impending arrest, fled. He forfeited many of his family’s assets, and resettled with his wife, Leila, and their four children in London.
On April 9, 1992, a military tribunal in Jordan delivered a two-hundred-and-twenty-three-page verdict, which concluded that Chalabi was guilty of thirty-one charges, including embezzlement, theft, forgery, currency speculation, making false statements, and making bad loans to himself, to his friends, and to his family’s other financial enterprises, in Lebanon and Switzerland. The Jordanian docket shows that Chalabi was sentenced to serve twenty-two years of hard labor, and to pay back two hundred and thirty million dollars in embezzled funds. An Arthur Andersen audit commissioned by Jordanian authorities found that the bank had overstated its assets by more than three hundred million dollars. In addition, a hundred and fifty-eight million dollars had disappeared from its accounts, apparently as a result of transactions involving people linked to the former management. (Swiss documents obtained by the Newsweek correspondent Mark Hosenball show that Socofi, an investment firm in Switzerland run by the Chalabi family, also collapsed under suspicious circumstances, leading to pleas of no contest by two of Chalabi’s brothers, Jawad and Hazam, in 2000.)
After Chalabi arrived in England, he claimed that the Petra affair had been a political frameup. He said that he was targeted because he had been an outspoken critic of Saddam (an assertion that is not unlike his recent defense in Baghdad), and claimed that he was indicted because the Jordanians were beholden to Saddam for oil and other economic aid. Chalabi, like many Iraqi exiles living in Jordan, had indeed opposed Saddam openly. However, a well-informed American friend of Chalabi’s could not recall other instances of Saddam forcing Jordan to clamp down on his critics there.
John Markham, a lawyer representing Chalabi, recently forwarded to me a previously undisclosed letter, which Chalabi claims is “the smoking gun” that proves his accusers are lying. During the trial proceedings, the Jordanian military prosecutor wrote to the country’s authorities that “the method of dealing with the Petra Bank and its liquidation was the result of personal hatred and envy.” The prosecutor blamed Said Nabulsi, the head of Jordan’s Central Bank. According to Markham, Nabulsi was complicit with Saddam.
In Jordan, banking officials scoff at Chalabi’s claims of innocence. Petra had opened a subsidiary in Washington, D.C., in 1983, and after the bank’s collapse, according to a top Jordanian finance official, investigators combed America for forty-five days, trying to locate the bank’s hidden assets. Almost all the assets listed on the books, the official said, were worthless, except for an auxiliary office that was listed as a repository for valuable bank records. The investigators soon discovered that the “office” was a country estate with a swimming pool, in Middleburg, Virginia. It belonged to the Chalabi family, which was charging the bank a monthly rent. “There was not one business record in the whole place,” the official said. “This man is a vicious liar. There is no end to it. It’s like you find someone killing with a gun in his hand, and he says he’s innocent. He just wears you down.” The official declined to be named, because he feared Chalabi’s influence. “He has more powerful friends in Washington than you or me,” he said, adding, “Really, some of your people are such suckers.”"
Emphasis added. On the very last line, oh yes, oh yes indeed. Just be polished, speak English well and you can so easily charm the fuckers who get all starrey eyed about Arab reform and blah blah.
I note that I know Nabulsi, personally although not well. He is presently in the private sector as the chief executive of a major financial institution here. I have never heard of him being connected with the Sadaam regime and per representations from people I know close to the key principals on this, while there was a personal angle in Nabulsi absolutely loathing Chalabi, it had nothing at all to do with politics or Sadaam, everything to do with personalities.
What I rather found interesting about the article was the items re Chalabi's motivations - i.e. the obession (cited in the article) with recovering the ancient feudal properties. One rather finds this rather more believable than the "democratization" pap that the gullible idiots among the Neo-Cons and their conservative fellow-travellers have lapped up with such enthusiasm.
Posted by The Lounsbury at May 30, 2004 10:55 PM
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Jan-Jul 2004
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