ERIK BLUHM on Coastal California Fictions

Zeitlist: Culture
5 Overlooked Literary Sketches of Coastal California
by Erik Bluhm

There’s nothing wrong with skimming through The Grapes of Wrath or Two Years Before the Mast the night before your book group meeting, but California belles-lettres offers so much more than the oft-told tales of the family Joad. There’s a whole sagging shelf, in fact, of obscure printed-page pleasures out there in your local used book shop.

Moran of the Lady Letty by Frank Norris (1899). Best known for penning the Golden State’s other geo-socialist epic — the 688-page, aptly titled The Octopus — this Bay Area adept delivered a half-dozen novels in his brief lifetime, before ceding the title of California’s literary Man o’ War to an up-and-coming Jack London. This particular novella — a love story between an effete city boy and a Scandinavian sea captain’s lusty daughter — unfolds in great cinematic form, panning from genteel Frisco life to scenes of violent shanghaiing, high seas roguishness, and swarthy pirates shivving each other on Baja beaches. A turn-of-the-last-century page turner!

The Dolphins of Altair by Margaret St. Clair (1967). Sixty-eight years later, science-fiction writer Margaret St. Clair bettered Norris’ offshore chicanery by throwing in a pod of vengeful dolphins armed with purloined explosives. Tired of being poked and prodded by scientists, the rogue sea mammals team up with some antisocial humans to extract a little payback. They start by dropping a mine in an offshore earthquake fault, and then get more creative, melting the icecaps with some sort of magically charged quartz crystals. The result is rapidly rising sea levels and pretty much total destruction of the human race, all with front row seats for the victorious home team. “We swam closer,” recalls one dolphin. “The California current [was] alive with sharks, and no wonder. Among the floating timbers, sides of houses, sheets of plastic and uprooted trees were many bodies. The sharks slashed and tore at the fresh dead, greedily delighted, and when one body was stripped as clean of flesh as its clothing would allow, there was always another body to take its place at the sharks’ feast.”

Comrades by Thomas Dixon (1909). Egged on by a modern-day Joan of Arc named Barbara Bozenta — whose incendiary speeches ignite the ire of self-respecting California capitalists statewide — a cadre of red flag-wavers plop down enough bread to buy their very own island off the coast of Santa Barbara, where they set up a real-life Commie paradise with self-sufficient farming, rough-hewn attire and equal wages for all. The Brotherhood of Man’s hopes to attract 5,000 loyal workers, send out its own bohemian emissaries, and conjure “a new social order, a higher civilization, a new republic!” are dashed when the greed from the mainland manages to paddle across the channel. Even Bozenta’s inspiring doggerel (“Nations are but the dung-heaps out of which the fair flower of world-democracy is slowly growing.”) is no match for the seductive hum of capitalism.

High on Gold by Lee Richmond (1972). The story of two California dreamers a century apart. First, Joshua Aarons mingles with Mormons and digs for treasure in the Gold Rush. Disheartened by the greed and avarice around him, he retreats to an island called Anahita off the Golden Gate to ponder his mortal existence. One hundred twenty years later, Boston acid-head Gerveys Lecompte, on a quest for gold of a leafier variety, stumbles into Anahita — “now the mecca of hippiedom” — only to lose himself “in a fog of dope and disillusionment.” Try and imagine James Michener adapting Been Down So Long It Seems Like Up to Me into a romance novel. Then pull a tube and try again.

Street Magic by Michael Reaves (1991). When the Queen of Fairie “locked down the gates of her land to all but the highest born,” the cast-out “scatterlings” somehow found themselves trapped in San Francisco’s Tenderloin district dodging junkies, skinheads and tranny hookers. Follow the sad-eyed waifs as they huddle in their “magic nests” in the Panhandle, shivering in threadbare Velvet Underground T-shirts. Or root them on as they trick “round ears” into handing over their Muni fare with “sparkly magic from their fingertips.” The best (if not only) portrait of late ’80s S.F. before the interweb blitzkrieg killed The City dead. Who knew the gateway to the Fair Realm was right down the street from The Stud?

SATURDAY AT NEW IMAGE.

“70 MORE ARTISTS TO BE ANNOUNCED !!!”

FEBRUARY 18 – MARCH 18, 2006

Opening – SATURDAY FEBRUARY 18, 2006 7-10PM

Live performances by the Artists!!!!

West Coast Release Party Extravaganza
For the Paper Rad Book!!!!

.
New Image Art Gallery presents: 70 MORE ARTISTS TO BE ANNOUNCED!!! a group show of artists from Providence, RI and Philadelphia, PA. The artists include Brian Chippendale, Devin Flynn, Leif Goldberg, Jung Hong, Takeshi Murata, Paper Rad, Erin Rosenthal, and Andrew Jeffrey Wright.

Leif Goldberg and Erin Rosenthal will present “Pictures From A Dark Mirror,” paintings and collages on wood panel accompanied by a short text/poem.

Current and founding member of Philadelphia’s Space 1026, Andrew Jeffrey Wright studied animation at RISD and has won the top prize at the New York Underground Film Festival. Wright’s highly limited edition handmade books have gained an international following. He will be showing paintings, drawings, photos and video.

Brian Chippendale, worse half of the music duo lightning bolt will be presenting silkscreened prints, collages and debuting the diorama record shack stocked to the brim with a CD or two.

Jung Hong, renowned for channeling rare birds in her sleep will be showing silkscreened prints, collages and flip books, and will perform a real live flip!

Paper Rad The artist collective from Massachusetts will have a book signing during the opening. Paper Rad members have collaborated on everything from books, and videos to installations and their amazing website since they met in Boston as students. They are inspired by the throwaway culture of the 1980’s.

ALICE COLTRANE RETURNS.

from the Thurs., Feb 16 UCLA Daily Bruin

Soul ‘Trane
By Michelle Castillo
mcastillo@media.ucla.edu

Very few people have the ability to make a comeback after being gone for over a quarter century. However, if there was anyone up to the challenge, it would be Alice Coltrane.

“I couldn’t feel a time difference. It felt like a continuation to me,” said Coltrane, an innovative jazz pianist and the widow of jazz great John Coltrane.

Saturday, Alice Coltrane will perform at Royce Hall as part of the UCLA Live series. Dwight Trible and his quintet will open for her. The UCLA performance will mark the first time Trible, who calls his music spiritual jazz, will perform with Coltrane.

“It’s a very high honor ñ in fact one of the highest honors that I can have in this music,” said Trible. “She’s a very spiritual person. She’s always trying to help people and bring them closer to the source. Being on the same stage as her, or at least to be associated with her, is truly a blessing.”

After a 26-year hiatus from her previous album, 1978’s “Transfiguration,” which was recorded live at UCLA, Coltrane released “Translinear Light” in 2004. She was compelled to return to recording music by son Ravi Coltrane, who begged her for five years before she finally acquiesced to his request. “Translinear Light” combines the modern sounds created by the synthesizer with traditional jazz rhythms.

“It was really fun recording,” Coltrane said. “(Ravi) was the one who really pleaded and begged ñ he told me, ‘Everywhere I go people are asking (about you).'”

Although she did not release any albums during the 26-year gap between releases, Coltrane was still active in helping other artists record their music. But her main focus during her break from recording was to find spiritual enlightenment. Coltrane found it more important to discover her spirituality instead of pursing a second career, and she spent much of the time reading about Buddhist theory and other religions of the African and Asian worlds. Her studies clearly influenced “Translinear Light” through the mystical melodies woven throughout the songs.

Her interest in music began early. Even at a young age, her mother knew the musical realm would be a significant part of Coltrane’s life.

“My mother told me that as a baby anytime I heard music on the radio, I would crawl up to it and stay there and listen and listen and listen,” Coltrane said. “She said, ‘It’s a baby! How is it that (with) any music, she is attracted to it?'”

Coltrane found every opportunity to become immersed in the art of sound. She took an active role in educating herself about music.

“When I was 7 years old, I remember asking a lady if she would teach me music,” Coltrane said. “I was very shy, and she wasn’t a piano teacher, but I asked her to teach me piano. I studied classical music for 10 years. It was very enlightening.”

However, Alice Coltrane gained most of her fame as wife and fellow bandmate of John. The pianist is proud to be associated with the man who was arguably the greatest jazz musician of his era, and feels no regret at not being able to shrug off the inevitable comparisons and be judged on her own merits. Instead, she embraces his memory and uses him to inspire her work.

“(Being married to John) was one of the best experiences of my life,” Coltrane said. “He was a man of extraordinary intelligence and art. I like the way he talked ñ he had humor. But his mind for music was beyond anything I had seen. He was at the level of genius in terms of his music.”

John asked his wife to be part of his musical legacy by replacing his original pianist McCoy Tyner and have her join his band. Many were skeptical about this decision, including Coltrane herself. Despite her talent and aptitude, she was still shocked that John would even consider her to be part of his music.

“He had such insight. I was surprised that he asked me to join the band,” she said. “(It was) not that I felt unqualified or not up to level; it wasn’t a matter of music or ability. It was just the number of talented people in the music world.”

John still lives on in Coltrane’s music and heart. Her music is influenced by her husband’s work, but she adds a spiritual tone that makes it all her own.

“I knew that there wouldn’t be anyone who would stand in his shadow,” said Coltrane. “I had never seen anyone up to his level. I thought that it might be unfair to be with someone else knowing that I would knowingly or unknowingly compare everyone else to him.”

Despite being in the music industry for several decades, she still remains as passionate about her art as she was the day she began making music.

“I’m sure I will always be close to music,” Coltrane said. “Even though 27 years passed, I’m still very involved with it. The music will never change.”


ALICE COLTRANE at UCLA Royce Hall
Sat, Feb 18 at 8pm
Tickets are $45, 35 & 25. Available online at
http://www.uclalive.org/Event.asp?Event_ID=276
or call 310.825.2101

ANOTHER SMOOTH MOVE BY IDIOT DEMOCRATS.

Iraq vet Hackett drops out of Ohio Senate race

Tuesday, February 14, 2006; Posted: 10:53 a.m. EST (15:53 GMT)

NEW YORK (AP) — Iraq war veteran Paul Hackett, a Bush administration critic who had been recruited by top Democrats to run for U.S. Senate, said Tuesday he was dropping his campaign and declared his political career over.

Hackett said he was pressured by party leaders to drop out of the Senate primary and run for the House instead.

National Democratic leaders, especially Sen. Charles Schumer, chairman of the Senate campaign committee, had told Hackett’s top fundraisers to stop sending money, Hackett told The Associated Press on Tuesday.

“My donor base and host base on both coasts was contacted by elected officials and asked to stop giving,” Hackett said. “The original promise to me from Schumer was that I would have no financial concerns. It went from that to Senator Schumer actually working against my ability to raise money.”

Schumer, who represents New York, was not immediately available for comment.

“I made this decision reluctantly, only after repeated requests from party leaders, as well as behind-the-scenes machinations, that were intended to hurt my campaign,” Hackett said in a statement announcing the end of his campaign.

The deadline for candidates to file for the May 2 primary is Thursday.

Hackett, a Cincinnati attorney and Marine Reservist, captured national attention last summer by blasting Bush’s war policies, raising huge sums on the Internet and capturing 48 percent of the vote in one of the country’s most conservative House districts. Republican Jean Schmidt won the special election in a tight race.

Hackett had declared his candidacy for Republican Mike DeWine’s Senate seat after it appeared Democratic Rep. Sherrod Brown would not run.

A few days afterward, Brown announced that he would run, and national Democrats privately began urging Hackett to step aside for the more seasoned politician.

Democrats also considered Schmidt vulnerable in a rematch against Hackett. She was widely criticized for saying in a House floor speech about a troop pullout recommendation by Rep. John Murtha, a decorated Vietnam veteran: “Cowards cut and run, Marines never do.”

But Hackett said he had already told other Democrats he would not enter the congressional race.

“I said it. I meant it. I stand by it,” Hackett said Tuesday. “At the end of the day, my word is my bond and I will take it to my grave.”

“Thus ends my 11-month political career,” he said.

Cronyism and Kickbacks in Iraq Reconstruction

LRB | Vol. 28 No. 2 dated 26 January 2006

Cronyism and Kickbacks

Ed Harriman on the economics of reconstruction in Iraq

US General Accountability Office
| Link: http://www.gao.gov
US Special Inspector General for Iraqi Reconstruction
| Link: http://www.sigir.mil
International Advisory and Monitoring Board
| Link: http://www.iamb.info

There is a Ôø?reconstruction gapÔø? in Iraq. According to the US Special Inspector General for Iraqi Reconstruction (SIGIR), Ôø?in the coming year, the amount of money needed by the Iraqi government to carry out the daily operations of its existing health, water, oil and electrical infrastructure, as well as to complete and sustain planned reconstruction projects, will outstrip the available revenue.Ôø? The US General Accountability Office (GAO) told Congress that the Iraqis still need Ôø?additional training and preparation to operate and maintain the power plants, water and sewage treatment facilities, and healthcare centres . . . to ensure that the billions of dollars . . . already invested in IraqÔø?s infrastructure are not wastedÔø?.

The sums are simple. Reconstruction will cost considerably more than originally imagined. The American administration has committed most of its funds. The Iraqis have neither the money nor the expertise to run the projects that have been completed. ThereÔø?s little transparency or accountability. To judge from the audits published so far, at least $12 billion spent by the Americans and by the Iraqi interim and transitional governments has not been properly accounted for. Almost three years after the fall of Saddam, the GAO reports, Ôø?it is unclear how US efforts are helping the Iraqi people obtain clean water, reliable electricity or competent healthcare.Ôø? The Bush administration has decided to provide no more reconstruction funds.

The auditors who have discovered IraqÔø?s deepening financial crisis have been ignored. They asked the US ambassador and the US military commander in Iraq for their views. Neither replied. The US State Department was to submit estimates of how much it will cost to complete all American-funded projects in Iraq to the White House Office of Management and Budget. The Office wonÔø?t discuss the matter. Earlier this month, Brigadier-General William McCoy told reporters: Ôø?The US never intended to completely rebuild Iraq . . . This was just supposed to be a jump-start.Ôø?

According to American officials behind the sandbags and razor wire of the US embassy in Baghdad, life for ordinary Iraqis is on the up and up, thanks to their efforts. They claim that 143 water and sanitation projects had been completed by July 2005, but the GAO is not convinced, pointing out that the officials Ôø?could not document the location, scope and cost of these projectsÔø?, and that Ôø?reporting only the number of projects . . . provides little information on . . . the amount and quality of water reaching Iraqi households.Ôø? US officials also say that 145 American-financed health clinics had been completed by the end of August. Ôø?However, the data available do not indicate the adequacy of equipment levels, staffing levels or quality of care,Ôø? according to the GAO. A US official told the GAO that Ôø?without full power supply . . . these clinics will be able to provide only the most basic services and limited or no maternal and/or paediatric services.Ôø?

It is now a year and a half since the Coalition Provisional Authority (CPA), the US body which administered Iraq, handed over the running of the country to the Iraqi interim government, and the management of US projects to the new US embassy in Baghdad. Millions of Iraqis now have mobile phones, but they donÔø?t have clean water, the streets are awash with sewage, the electricity often fails and most hospitals are in a terrible state.

The Iraqi public has not been getting value for money, while myriad contractors, bureaucrats and politicians Ôø? American and Iraqi Ôø? have been getting stonkingly rich, a situation that the CPA fostered.* When the auditors first commented on the CPAÔø?s lack of accountability, its boss, Paul Bremer, bullishly replied that their report Ôø?does not meet the standards Americans have come to expect of the inspector generalÔø?. In his just published memoirs, Bremer dwells on infighting within George BushÔø?s cabinet and his claim that he tried and failed to get the number of US troops in Iraq increased. Bremer also says that he Ôø?realised there would be corruption at many levels of Iraqi society in the months and years to come. But I also hoped that the independent anti-corruption institutions we had created would eventually prevail.Ôø?Ôø?

The auditorsÔø? investigations into financial abuse under BremerÔø?s CPA in IraqÔø?s South-Central region found hard evidence of mendacity and theft. Two men have been arrested in the US. Philip Bloom is charged with conspiracy, fraud, money laundering and other offences. He is said to have rigged bids and bribed CPA officials who awarded his companies contracts worth $3.5 million. Bloom appears to be a small-time wheeler-dealer. More interesting is Robert Stein, his alleged co-conspirator, who was the CPAÔø?s Comptroller and Funding Officer for the South-Central region. Stein has been convicted of fraud and sued for embezzlement in previous business dealings with the US military in the States. He is a private contractor. ItÔø?s odd that he, rather than a federal employee, was put in charge of a reconstruction kitty of some $82 million in cash. Stein kept the value of the contracts he awarded and the payments he authorised just below the threshold above which more senior approval was required, or submitted them on forms intended for smaller sums. Because he was spending Iraqi money, he was not subject to the tight federal standards that would have applied had he been spending American taxpayersÔø? dollars.

In return for allegedly granting BloomÔø?s companies contracts, including to build a police academy at Babylon and Ôø?to rehabilitateÔø? the Karbala library, Stein and his wife are accused of receiving $683,284.93 from Bloom. Some $267,000 was transferred into their personal bank accounts. Other payments went directly to creditors in SteinÔø?s hometown of Fayetteville, North Carolina: $36,348 to jewellers, $140,000 to a local real estate firm, more than $100,000 to local car dealerships. Credit card bills, local and federal taxes, a $10,000 Treasury bill and $200 owing on a court settlement were paid. SteinÔø?s position at CPA regional headquarters appears to have offered him the opportunity to tidy up his domestic finances. To Bloom he must have seemed an excellent business partner, often authorising cash payment for the total value of contracts the same day they were signed.

At the police academy, however, money was spent on overpriced equipment that was not needed, and often not delivered, SIGIRÔø?s auditors report. One generator was missing, another was broken. A small fleet of all-terrain vehicles never arrived. Of $7.3 million spent, some $2 million has not been accounted for. The library at Karbala is described in the audit as Ôø?the focal point for academic and professional learning in the areaÔø?, and Ôø?the areaÔø?s richest source of Arabic translations of the most important Western works of history, literature, philosophy, politics and scienceÔø?. Some $2.1 million was awarded on contracts to refurbish it, buy books and train library staff. The auditors found that the library manager, who has been there for twenty years, had never been told of the contracts, or that more than 30,000 books should have been delivered Ôø? they werenÔø?t Ôø? or that there was a grant to train his staff. They also found plastic chairs where metal ones had been paid for, only a handful of computer terminals instead of the dozens ordered, and no internet access, although it had been paid for. The library and police training school should be showcase projects, but what the auditors discovered makes nonsense of the CPAÔø?s self-regarding mission to save and rebuild Iraq. There is a question of administrative oversight to be answered here.

Buried in one of the appendices of an earlier SIGIR audit (of April 2005) is a report that the division level agent for South-Central Iraq was fired by BremerÔø?s Baghdad office on 30 May 2004. That agent was Robert Stein. Yet he was allowed to carry on. Ôø?The division level agent made or authorised disbursements in the amount of $1,496,562 after his authority to make cash disbursement was revoked,Ôø? the appendix says. He also approved funding of $499,000 for a Ôø?project modificationÔø? and an electronic fund transfer of $300,423 on 28 June, the day the CPA closed.

The auditors hope that arresting these two Americans will show Iraqis that American wrongdoing will be punished. But Stein and Bloom are small beer, as are the two military officials who have since been arrested in connection with the Ôø?bribes, kickbacks and gratuities, amounting to at least $200,000 per monthÔø? paid by Bloom in spring 2004 Ôø?to CPA-SC (South-Central) officials . . . in order to obtain contractsÔø?, according to SteinÔø?s arrest warrant.

The CPA in al-Hillah managed a Rapid Regional Response Program, which was intended to Ôø?create local jobs, support local industries and stimulate the economyÔø?. A recent audit discovered that there are no accounts for $20.5 million of $20.8 million spent on 74 projects. Ostensibly the money was intended to fund local projects which would Ôø?assist in strengthening the governorÔø?s ability to promote the Diwaniyah peopleÔø?s welfareÔø?, Ôø?aid the Iraqi Democratic Gathering Regional Centre to assist in activities against the Mahdi Army and Moqtada SadrÔø? or Ôø?clean up the Barnoon village and install civic prideÔø?. But the auditors Ôø?could not determine how grant recipients actually used the cash that South-Central region distributedÔø?. They could Ôø?not determine what benefit, if any, the Iraqi people receivedÔø?.

It appears that CPA officials handed stacks of $100 bills to local dignitaries and others whose support they wanted and whose intelligence they needed, to dispose of as they saw fit. The Ôø?reconstructionÔø? projects seem to have been part of a Ôø?hearts and mindsÔø? campaign and it may never have been intended that the funds be properly accounted for. A woman from al-Hillah told me that $100,000 designated for a local womenÔø?s centre with which she was involved was handed over to a local dignitary who, she alleges, used it to finance his election campaign. The money came from the Development Fund for Iraq: it was, in other words, Iraqi money handed over to the Americans under UN Security Council Resolution 1483 to be spent Ôø?in a transparent manner to meet the humanitarian needs of the Iraqi peopleÔø?.

The problem for the American occupation is that the Iraqis can see whatÔø?s been going on: broken and missing equipment, shoddy workmanship, contracts mysteriously awarded to politiciansÔø? and civil servantsÔø? brothers-in-law, missing millions. ItÔø?s unlikely that the full extent of corruption under the CPA will ever be known. KPMG auditors, working on behalf of the IAMB, report simply that Ôø?the former CPA did not maintain complete accounting records in respect of contractual commitments.Ôø? They also found that the US embassy canÔø?t account for all the contractual commitments made with $2.8 billion of Iraqi funds which were handed over to it during the first half of 2005.

The behaviour of IraqÔø?s interim and transitional governments is equally disturbing. The SIGIR auditors write that while they Ôø?documented mismanagement and lack of accountability and potential fraud in the handling of (CPA) fundsÔø?, Iraqi auditors Ôø?have similarly pointed to mismanagement, lack of accountability and potential fraud in handling operating funds of the (Iraqi) ministriesÔø?. A year ago the SIGIR auditors reported that $8.8 billion, virtually all the money spent by the Iraqi interim government, was not properly accounted for.

A year and about $30 billion later, KPMG has found that the Iraqi Ministry of Finance is, by and large, following standard accounting procedures. Audit departments have been established in most Iraqi ministries, but in many they seem to be largely ignored. The most recent KPMG report, covering the first six months of 2005, cites numerous instances in which contracts worth hundreds of millions of dollars have been awarded without tender, paperwork is non-existent, and there is no evidence that goods and services have been delivered.

A culture of cronyism and kickbacks thrives within the Ministries of Construction and Housing, Oil, Trade and Electricity Ôø? the ones the Iraqis allowed KPMG to inspect. The government barred the auditors from the Ministries of Defence and the Interior. The Electricity Ministry wouldnÔø?t let them see some of its accounts. At the Oil Ministry the auditors Ôø?were specifically denied access to the relevant accounting recordsÔø? for fuel oil exports. They discovered that the state oil marketing organisation has kept back more than $168 million, rather than depositing it with the government to be accounted for. Almost three years after the invasion, IraqÔø?s oil exports are still not being monitored, so there is no way of confirming how much is exported and sold. This is unlikely to change soon.

On 16 May last year, the Iraqi Supreme Board of Audit submitted a confidential report to the prime minister detailing corruption in weapons deals, worth almost $1.3 billion, which were contracted by the Ministry of Defence during the last eight months of Iyad AllawiÔø?s government. AllawiÔø?s Ôø?interim governmentÔø?, which was in power from June 2004 until April 2005, was largely picked and approved by the Americans. On 10 October 2005, 23 arrest warrants were issued, including ones for AllawiÔø?s defence minister, General Hazem Shaalan, several Iraqi officials in his ministry, and AllawiÔø?s ministers of labour, transport, electricity and housing (the minister for transport previously worked for Boeing; the minister for electricity came from a big US engineering firm). By then Shaalan was comfortably settled in his London home, several of the others had decamped to join the growing colony of SaddamÔø?s Baathist cronies living in high style in Jordan, and the money had disappeared.

Shaalan has protested his innocence. Ôø?The Iraqi people are the smartest in the region and know exactly the game that is going on,Ôø? he said. Yet he has some explaining to do, not least with respect to two contracts with Pakistanis, which he personally signed, for more than $500 million. No details were given as to the numbers, types or models of equipment ostensibly purchased. Ôø?It was not possible to determine whether the items were supplied,Ôø? the confidential report says. There is also the matter of his verbal instruction to an official to give more than $1 million in cash to a businessman to buy cars for his ministry. The Supreme Board of Audit found that the records of the vehicles bought donÔø?t match those of the companies from which they were supposedly purchased, and that $100,000 of the cash is unaccounted for.

The minister didnÔø?t sign every contract himself. His deputy secretary general, Ziyad al-Qataan, handled much of the paperwork for several contracts in which full payment, in cash, was made up front to Iraqi and other Arab businessmen acting as middle men for Polish, American and other military equipment firms. Hundreds of millions of dollars were transferred from the Iraqi governmentÔø?s holdings into bank accounts in Lebanon, Jordan and elsewhere. Some $201 million in cash was taken out of the country through Baghdad airport, in violation of currency control regulations. Many of the contracts had an 18-month delivery time, hopelessly long for equipment urgently needed by the new Iraqi armed forces to whom the Americans say they are going to hand over so that US troops can be withdrawn.

Much of the equipment Ôø? helicopters, uniforms, armoured cars, bullet-proof vests, ammunition, winter coats Ôø? has never turned up, or has turned out to be grossly substandard and overpriced. For example, the ministry paid an Emirates firm $113,000 apiece for 230 land cruisers that usually cost $35,000 each. The ministry paid more than $300,000 over the top for 2500 bullet-proof vests. There is also the matter of a $9-million contract for 300,000 Ôø?defective hand grenadesÔø?.

The rot doesnÔø?t stop with AllawiÔø?s defence minister and his top civil servants. Last year the commander of Iraqi ground forces had his Ôø?rest houseÔø? furnished with sofas, bedroom furniture and gold-plated chandeliers, all paid for, according to the confidential Supreme Board of Audit report, at inflated prices out of the Iraqi public purse. The ministry stumped up $27,500 to get the occupant of another house to move out so the ministryÔø?s inspector general could move in. The report also reveals that several Iraqi unit commanders routinely claimed and then seem to have kept for themselves the inflated salaries of hundreds of troops, many of them ghost soldiers. In one National Guard regiment almost $120,000 was stolen in one month.

Corruption also has the result that everything has to be paid for twice. New funds have to be found to complete or repair projects on which much has already been squandered. The Iraqi government and the US administration face a deepening funding crisis that nothing short of billions of dollars and a halt to the insurgency can forestall. But US policy has made such a crisis inevitable. The idea was that once the Americans had projects Ôø?up and runningÔø?, the Iraqis would take over, pay for and run them. Most of the big contracts for major infrastructural reconstruction Ôø? sewage, clean water and electricity Ôø? have gone to a few large American engineering firms which have charged top-dollar prices for goods and services bought largely in the United States. Consequently, much of the money for reconstruction from American funds has never left the US, and much of the IraqisÔø? own money from the Development Fund has also been paid to American firms.

Then thereÔø?s the increased cost of rebuilding Iraq as a result of the continuing war. The US embassy has cut its budget for reconstructing the water and sanitation system by more than $2 billion, largely to pay for security and to repair what the insurgents and US marines destroy. Security costs can add 25 per cent to budgets. There are twice as many private mercenaries as British troops in Iraq. To pay them, development projects across Iraq are being scrapped and scaled back.

This is only part of the story. The occupation authorities have generally stipulated that new machinery should be installed (most of it imported, largely from Coalition firms), when they could instead have given relatively small sums directly to Iraqi managers so that they could repair the machinery they already had or buy spare parts. As it is, Ôø?the IraqisÔø? capacity to operate . . . the power plant infrastructure and equipment provided by the United States remains a challenge at both the plant and ministry levels,Ôø? the GAO reports.

Ôø?Iraqi power plant officials from 13 locations throughout Iraq,Ôø? the GAO goes on, Ôø?stated that their training did not adequately prepare them to operate and maintain the new US-provided gas turbine engines.Ôø? As Iraq has little natural gas, Ôø?some Iraqi power plants are using low-grade oil to fuel their natural gas combustion engines. The use of oil-based fuels, without adequate equipment modification and fuel treatment, decreases the power output of the turbines by up to 50 per cent, requires three times more maintenance, and could result in equipment failure and damage,Ôø? the GAO points out. ItÔø?s hardly surprising that there are daily power cuts.

The last guy to get a piece of the action has often been the Iraqi sub-sub-sub-contractor who has been encouraged to cut corners in part because his slice of the contract price is too meagre properly to carry out the job. Across Iraq, much of what hasnÔø?t been stolen has been skimped on. Schools, clinics, sewage projects, all described as completed by the US embassy, will soon need major repairs as well as regular maintenance work carried out by trained staff overseen by Iraqi civil servants. The Iraqi government will have to pick up the tab.

According to the 2003 UN/World Bank Joint Iraqi Needs Assessment, Ôø?Iraq produced enough water before the 1991 Gulf War to supply more than 95 per cent of urban Iraqis and 75 per cent of rural Iraqis. By 2003, these production levels had fallen to about 60 per cent and 50 per cent respectively,Ôø? though much of this was not potable because of contamination. By this time, the sewage system in Baghdad had failed too, and back-ups of raw sewage were flooding the streets, less than 10 per cent of the urban population outside Baghdad had sewage systems, and not one treatment plant was operational in the whole of Iraq. The UN/World Bank assessment found that at least $4 billion was needed to restore the water and sewage systems to pre-1991 levels, with another $2.8 billion to build new plants and lay new pipes. The Americans budgeted $4.6 billion of US money to do the job.

But the job hasnÔø?t been done. First, as the GAO reports, the estimates were way too low, by as much as 50 per cent. An embassy official told the GAO that the American Ôø?construction programme was underfunded from the startÔø?. Since September 2004, as I mentioned, the Americans have cut their sanitation and water budget by almost half. The State Department reported that as of April 2005, 64 projects were complete and 185 were in progress. But the GAO adds that Ôø?State was unable to provide a list of those completed projects, which would enable us to evaluate the significance of the project numbers in terms of scope of work, cost or size.Ôø?

The State Department was similarly unable to say how many Iraqi homes are now receiving clean water and are hooked up to the sewage system. A recent US quality of life survey in Iraq Ôø?found that just over half of respondents rated their water supply as poor to fair and over 80 per cent rated their sewerage and wastewater disposal as poor to fair.Ôø? The GAO believes that even these dismal figures are underestimates. The embassy has awarded 54 Ôø?task ordersÔø? worth $1.2 billion for water treatment plants, dams, irrigation projects and city water supplies to three British and American engineering firms. As of June 2005, only one of the firms, Bechtel, had completed any projects, and most of the 18 it had completed were months late. The GAO discovered that Ôø?approximately $52 million of the $200 million in completed large-scale water and sanitation projects were either not operating or were operating at lower capacity . . . One repaired wastewater plant was partially shut down due to the looting of key electrical equipment . . . Two projects lacked a reliable power supply, one lacked sufficient staff.Ôø? Another lacked both, while the Ôø?repaired water plants in one southern governorate lacked adequate electricity and necessary water treatment chemicalsÔø?.

Under contracts paid out of US funds, the contractor has to keep completed projects up and running for 90 days. After that, maintenance and running costs are to be paid by the Iraqi government. More than a year ago, Bechtel warned the embassy that Iraqis might not be able to run the facilities they had repaired and installed, especially those with new Western equipment. Ôø?Bechtel estimated that water and wastewater plants had only about one-third of the staff needed,Ôø? the GAO said. Because of power cuts, the plants needed back-up generators, but these Ôø?needed diesel fuel to power them and that was not always availableÔø?. The companyÔø?s contract did not allow for funding for spare parts. Ôø?Without these spares or the funds to buy them, Iraqi staff would likely have to cannibalise parts . . . borrowing parts from one machine to repair others.Ôø? Bechtel also reported that Ôø?Iraqi staff did not undertake repairs until a situation became critical.Ôø?

Last spring the embassy agreed to set up a modest fund to train Iraqis. The embassy described this as Ôø?moving from the previous model of building projects and turning them over to Iraqi management towards a Ôø?build-train-turnover systemÔø?.Ôø? The GAO commented that Ôø?US assistance efforts do not address the long-term ability of the Iraqi government to support, staff and equip these facilities.Ôø?

According to the latest SIGIR report, as of September some $425 million had been set aside by the embassy Ôø?to develop sustainment programmes for infrastructure facilities and to promote capacity-building initiatives within Iraqi ministriesÔø?. SIGIR was, however, Ôø?unable to determine how these efforts were supporting sustainment goals. For example, many activities are associated with basic operations, maintenance and management of the delivered facilities.Ôø? The GAO is more forthright: Ôø?a number of critical infrastructure facilities constructed or rehabilitated under US funding have failed, will fail, or will operate in sub-optimised conditions following handover to the Iraqis.Ôø? Essentially, the occupation authorities have been awarding contracts that are heavy at the front end, where the American contractors take their profits, and light on budgeting for crucial local, labour-intensive maintenance and support.

Furthermore, the American embassy doesnÔø?t know or isnÔø?t saying how much money is left for these contracts. It told the GAO that its water and sanitation objectives are Ôø?classifiedÔø?. KPMG auditors, concerned only with Iraqi funds managed by the US embassy, discovered that, for a sample of outstanding contracts worth $606 million, the embassy database overestimated outstanding costs by some $518 million (85 per cent) compared to the costs they found when they looked at the contract files. The auditors say they were informed that the embassyÔø?s accounting and contracting databases for DFI funds would not be reconciled before the handover to the Iraqis at the end of last month. WhatÔø?s more, they Ôø?found that US agencies have not developed a comprehensive strategy and implemented procedures for the handover of DFI contract administration to the Government of IraqÔø?. It appears that the embassy may be holding back several hundred million dollars of Iraqi funds that should now be with the Iraqi government.

Then there is the embassyÔø?s other pot of money, the US funds allocated by Congress, some $1.2 billion of which is still uncommitted. Ôø?But using uncommitted funds to pay additional sustainment costs would require cancelling planned projects,Ôø? SIGIR auditors point out. So SIGIR tried to get the embassy to do a cost-to-complete exercise to get some idea of what needs to be done. The embassy didnÔø?t have the information available. The US military said it doesnÔø?t have to provide cost-to-complete data.

The auditors estimate that the Iraqis will need between $750 million and $950 million annually to operate and maintain US funded projects. The Iraqi budget for this year is estimated already to be underfunded by $4.8 billion. Ôø?According to senior US advisers to the Iraqi ministries, funding for existing infrastructure support is a fraction of what is necessary,Ôø? SIGIR says. These advisers stated that this yearÔø?s budget Ôø?contains little or no funding for operations and maintenance activities for existing infrastructureÔø?. In the Ministries of Defence and the Interior, Ôø?the combined gap between requirements and anticipated funding has been estimated at $7 billion for the calendar year 2006,Ôø? SIGIR reports. The Supreme Board of Audit found that the Iraqi MoD has Ôø?no independent department for warehousingÔø?, and nowhere to store material ordered from overseas. The auditors noticed that equipment was stored Ôø?in courtyards, parks and hallwaysÔø?. Of IraqÔø?s 116 police and armed forces battalions, only one is considered by the US military as ready to be trusted to conduct counter-insurgency operations on its own. If the American-led occupation authorities and their Iraqi allies cannot perform better in these strategically important ministries, there seems little hope for the success of basic social programmes.

The 2003 UN/World Bank assessment found that some $56 billion was needed to get Iraqi society on its feet again. The Iraqis themselves will not be able to afford it; Congress has already voted some $20 billion for Iraqi reconstruction and President Bush cannot ask for more. So much for what was to be the Marshall Plan in the Middle East.

US agencies have been looking for various ways to get the Iraqis to pay for what is largely an American failure. IraqÔø?s oil revenues could be $10 billion higher next year if international oil prices continue to rise. But the government is committed to spending this on increasing production, which now hovers around pre-invasion levels. The GAO estimates that it will cost an estimated $30 billion over several years to double oil output and repair sabotage damage.

The Iraqis could borrow. Of some $13 billion pledged by international donors, $10 billion is in the form of loans Ôø? mostly from Japan, the IMF and World Bank Ôø? on which the Iraqis have prudently drawn less than $500 million. The American auditors point out that the Iraqi government could Ôø?saveÔø? several billion by stopping subsidies on basic foodstuffs ($4 billion), fuel ($2.4 billion), water and electricity. This, SIGIR says, Ôø?could ease some of the financial stress the new Iraqi government is facing and open up funding streams for infrastructure sustainmentÔø?. It could also transform an insurgency into open rebellion.

Footnotes

* See Ed HarrimanÔø?s previous piece in the LRB, 7 July 2005.

Ôø? My Year in Iraq: The Struggle to Build a Future of Hope by Paul Bremer and Malcolm McConnell (Simon and Schuster, 432 pp., Ôø?18.99, February, 0 7432 7389 3).

Ed Harriman is a journalist and television documentary film-maker.