http://www.bellaciao.org/en/article.php3?id_article=5346Rice chooses Richard Jones for top Iraq position to reward him for helping steal millions?
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Unanswered Questions Remain on Rice’s Iraq Pick
WASHINGTON -- February 17 -- Today Rep. Waxman asked for a full explanation of the role of Ambassador Richard Jones, Secretary of State Rice’s choice to head U.S. Iraq policy, in the steering of a lucrative fuel contract to an obscure Kuwaiti company. The text of the letter follows:
February 17, 2005
The Honorable Condoleezza Rice Secretary of State U.S. Department of State 2201 C Street, NW Washington, DC 20520
Dear Madam Secretary:
Recent press accounts indicate that you intend to appoint Ambassador Richard H. Jones to a top post on your staff at the State Department.<1> In his new position as "special coordinator" for Iraq, he will answer directly to you on key issues related to Iraq, including reconstruction, governance, and economic development. Formerly, Mr. Jones served as Ambassador to Kuwait and as Ambassador Paul Bremer’s deputy at the Coalition Provisional Authority.
I am writing because there are many unanswered questions about why Ambassador Jones intervened on behalf of an obscure Kuwaiti company that was overcharging U.S. taxpayers and the Iraqi people to import gasoline into Iraq. This company, Altanmia, was a subcontractor under Halliburton’s Restore Iraqi Oil contract. Last year, State Department officials informed my staff that there were ongoing criminal investigations into actions by personnel at the U.S. Embassy in Kuwait with respect to this contract.<2> Subsequent press accounts reported that the Justice Department was also involved.<3> To date, I have not heard whether these investigations have been concluded or whether Ambassador Jones and other embassy officials have been cleared of wrongdoing.
With Rep. John Dingell, I first wrote to you in October of 2003 regarding the exorbitant prices Halliburton was charging to import gasoline into Iraq through its Kuwaiti contractor, Altanmia.<4> In October and November of 2003, we also wrote to several other Administration officials raising this issue.<5>
One month later, in December 2003, auditors at the Defense Contract Audit Agency (DCAA) agreed with our concerns and issued a draft audit report concluding that Halliburton and Altanmia had overcharged the U.S. government by as much as $61 million for gasoline imported from Kuwait into Iraq as of September 30. DCAA concluded that Halliburton "has not demonstrated ... that they did an adequate subcontract pricing evaluation prior to award" of the Altanmia subcontract.<6>
Despite these warnings, State Department documents obtained by the Committee on Government Reform show that rather than acting to halt these overcharges, senior State Department officials, including Ambassador Jones, intervened to pressure U.S. contracting officials to drop their efforts to find a less expensive source of gasoline. On December 2, 2003 - just nine days before DCAA publicly revealed its audit findings - Ambassador Jones sent an e-mail directing