CPA Comptroller Was An Ex-Con, Charged With Taking Bribes And Kickbacks Today

by Steve

After so many stories of Pentagon ineptitude under Donald Rumsfeld, it's not surprising to find out that his Coalition Provisional Authority hired an ex-convict to be a comptroller over millions of dollars in Iraqi reconstruction monies, only to see this sterling character accept bribes and kickbacks.

A North Carolina man who was charged yesterday with accepting kickbacks and bribes as a comptroller and financial officer for the American occupation authority in Iraq was hired despite having served prison time for felony fraud in the 1990's.

The job gave the man, Robert J. Stein, control over $82 million in cash earmarked for Iraqi rebuilding projects.

Along with a web of other conspirators who have not yet been named, Mr. Stein and his wife received "bribes, kickbacks and gratuities amounting to at least $200,000 per month" to steer lucrative construction contracts to companies run by another American, Philip H. Bloom, an affidavit outlining the criminal complaint says. Mr. Stein's wife, who was not named, has not been charged with wrongdoing in the case; Mr. Bloom was charged with a range of crimes on Wednesday.

But the list of charges does little justice to the astonishing brazenness of the accusations described in the complaint, including a wire transfer of a $140,000 bribe, arranged by Mr. Bloom, to buy real estate for Mr. Stein in North Carolina. The affidavit also says that $65,762.63 was spent to buy cars for Mr. Stein and his wife (he bought a Chevrolet; she a Toyota), $44,471 for home improvements and $48,073 for jewelry, out of $258,000 sent directly to the Bragg Mutual Federal Credit Union into accounts controlled by the Steins.

Much of this money was intended for Iraqi construction projects like building a new police academy in the ancient city of Babylon and rehabilitating the library in Karbala, the southern city that is among the holiest sites for Shiite Muslims.

After Mr. Stein awarded contracts for this work to Mr. Bloom, who eventually received at least $3.5 million himself, according to the complaint, the work often was not performed or was done shoddily, the prosecutors say.

The Pentagon, which had authority over the Coalition Provisional Authority until it was dissolved in June 2004, said yesterday that it was receiving numerous press queries on Mr. Stein's background and the circumstances of his hiring.

I’m sure glad that Paul Bremer earned that Presidential Medal of Freedom from Bush.

(Photo courtesy of MoveLeft)