Chevron, the second-largest American oil company, is preparing to acknowledge that it should have known kickbacks were being paid to Saddam Hussein on oil it bought from Iraq as part of a defunct United Nations program, according to investigators.
The admission is part of a settlement being negotiated with United States prosecutors and includes fines totaling $25 million to $30 million, according to the investigators, who declined to be identified because the settlement was not yet public.
Using an elaborate system of secret surcharges and extra fees, however, the Iraqi regime received at least $1.8 billion in kickbacks from companies in the program, according to an investigation completed in 2005 by Paul A. Volcker, the former chairman of the Federal Reserve.
According to the Volcker report, surcharges on Iraqi oil exports were introduced in August 2000 by the Iraqi state oil company, the State Oil Marketing Organization. At the time, Condoleezza Rice, now secretary of state, was a member of Chevron’s board and led its public policy committee, which oversaw areas of potential political concerns for the company. (emphasis placed by cactus)
Ms. Rice resigned from Chevron’s board on Jan. 16, 2001, after being named national security advisor by President Bush.
Sean McCormack, a State Department spokesman, referred inquires to Chevron.
According to Chevron’s Securities and Exchange Commission filings, the public policy committee met three times in the course of 2000. Chevron declined to comment about the private deliberations of its board.
No suprise. Cheney’s Halliburton dealt with Iraq and Libya. GW himself had ties to the Saudi and probably the Kuwaiti royal families as well. We’re governed by people that like to deal with tyrants and dictators, and who never pay any price for it.