Subject: [NEXTEL-1] U.S. authorities in Iraq deny probe Contracts to build cellular network not on hold, officials say

From: [email-masked]
Date: Wed, 12 Nov 2003 13:35:08 -0500

IRAQ Build out- Is it ON or OFF???
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U.S. authorities in Iraq deny probe Contracts to build cellular network not on
hold, officials say

FINANCIAL TIMES

Nov. 11 — The U.S.-led Coalition Provisional Authority governing Iraq denied on
Tuesday claims that contracts to build an Iraqi cellphone network had been put
on hold to investigate allegations of nepotism.

“THE CPA DOES not require, has not requested and is not carrying out further
investigations into the winning companies and their investors,” said Charles
Heatly, spokesman for the CPA.

U.S. officials told the Financial Times on Monday the CPA had been advised to
put on hold hundreds of millions of dollars worth of mobile telephone contracts,
while they investigate allegations that the bidding process was hijacked by
associates of the new Iraqi governing council.  When the Iraqi Ministry of
Communications last month awarded three Middle Eastern consortia two-year
licenses to build and operate wireless phone networks, the deals were heralded
as a breakthrough for regional operators willing to invest in the new Iraq.

But a U.S. administration official speaking on condition of anonymity said the
U.S.-led Coalition Provisional Authority in Iraq has been advised to postpone
signing the contracts. CPA lawyers in Iraq made the recommendation to delay
signing the contracts for 10 days to allow time to investigate claims of
cronyism by the Iraqi authorities in awarding the licenses, the official said.

At the Pentagon, the Department of Defense’s

Inspector General has separately been asked to investigate how the telecom
licences were awarded.

The request is understood to focus on the role of Nadhmi Auchi, the Iraqi-born
billionaire businessman, in the Orascom group, one of the successful consortia.

Another senior CPA official said the U.S. occupying authorities have been struck
by the resilience of corrupt business practices in Baghdad, where members of the
new Iraqi regime have used power for personal gain.  Commenting on the Iraqi
ministry’s award of the licenses, a U.S. official said on Monday: “The question
is who did what due diligence, and when?” Amid increasing suggestions of
cronyism in handing out contracts, the CPA is preparing to establish a new Iraq
Infrastructure Reconstruction Office to oversee how contracts are awarded.

Haider al-Abadi, Iraq’s communication’s minister, dismayed the CPA last month
when he announced that he would hold discussions with the three winners about
awarding a fourth license before their contracts had expired, the official said.

http://www.msnbc.com/news/991989.asp?0si=-&cp1=1#BODY

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