‘Untouchable’ corruption in Iraqi agencies

'Get out of jail free card'
The law allows the prime minister to exempt Cabinet ministers from prosecution and allows ministers to exempt their employees from prosecution.

"This is tantamount to a get out of jail free card," Stuart Bowen, the special inspector general for Iraq reconstruction, told NBC.

Bowen pointed to the oil ministry case involving the three Shiites as a stark example of the problem. "It exposes the arbitrariness of Article 136B," he said.

Bowen said the provision "essentially acts as a bulwark against effective enforcement. If a minister wants to protect an employee from corruption charges, simply by fiat that minister can do so."

The top Iraqi anti-corruption investigator, Judge Rahdi al Rahdi, told NBC that "in many important cases, ministers did not give us the permission to take their employees to court, the prime minister's office did not give us permission to take ministers to court."

Rahdi said the total amount of missing money involved in his investigations into government misconduct is $11 billion.

Corruption is so serious that it is difficult for the government to function, according to Ali Allawi, a former Iraqi government minister.

"There's a serious problem in the Ministry of Oil," Allawi said, "There's a serious problem in the Ministry of Health. There's a serious problem in the Ministry of Trade, and really, there's a serious problem in every government department."

Americans 'must grin and bear it'
Allawi, who has written a book called “The Occupation of Iraq: Winning the War, Losing the Peace,” said corruption has shattered any faith in government. "In some cases there is ... despair that ... corruption has destroyed the ability of the government to provide services," he said.

The draft report obtained by NBC outlines some devastating cases in Iraq, like a "guns for cash scheme with the Mehdi Army" involving a candidate for the head of Iraqi intelligence.

On top of the troubles of the current oil minister, the report said a former acting minister of oil was indicted — a case blocked by high-ranking officials. In another case a former minister of transportation was indicted.

Last week Bowen issued a report finding the U.S. Embassy had not done enough to combat corruption.

Allawi argues that U.S. authorities can do little because of the Iraqi officials with whom they are dealing.

"The Americans who are supporting this political class, I believe really have no choice. This is a group they have been saddled with, or supported in power, and must grin and bear it," he said.

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