Goose the Blog 2.0

"Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother's eye." Matthew 7:5

The Washington Post says that the Treasury Department promised not to interfere with illicit oil sales from Iraq to regional allies outside the UN oil-for-food program.

UNITED NATIONS, Feb. 16 -- The Treasury Department provided assurances that the United States would not obstruct two companies' plans to import millions of barrels of oil from Iraq in March 2003 in violation of U.N. sanctions, according to an e-mail from one of the companies.

Diplomats and oil brokers have recently said that the United States had long turned a blind eye to illicit shipments of Iraqi oil by its allies Jordan and Turkey. The United States acknowledged this week that it had acquiesced in the trade to ensure that crucial allies would not suffer economic hardships.

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The illicit oil exports took place outside the Iraq oil-for-food program, which the United Nations administered from 1996 to 2003. While allegations of corruption and mismanagement in that program are under investigation by five congressional committees, the Justice Department and a U.N.-appointed panel, the illicit oil exports outside the program have received less scrutiny. According to investigators, Iraq received more revenue from those exports than from the alleged oil-for-food kickbacks.

"The bulk of [Saddam Hussein's] illicit oil sale revenues actually came from the money he received from unregulated sales of Iraqi oil, entirely outside of the oil-for-food program, primarily to Turkey, Jordan and Syria," Levin said at a hearing Tuesday on the U.N. management of Iraqi oil revenue. "We and the rest of the world looked the other way from those sales even though they were prohibited by the U.N. sanctions regime."

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