Immunity for Iraqi Oil Dealings Raises Alarm
An executive order signed by President Bush more than two months ago is raising concerns that U.S. oil companies may have been handed blanket immunity from lawsuits and criminal prosecution in connection with the sale of Iraqi oil.
The Bush administration said Wednesday that the immunity wouldn't be nearly so broad.
But lawyers for various advocacy organizations said the two-page executive order seemed to completely shield oil companies from liability -- even if it could be proved that they had committed human rights violations, bribed officials or caused great environmental damage in the course of their Iraqi-related business.
"As written, the executive order appears to cancel the rule of law for the oil industry or anyone else who gets possession or control of Iraqi oil or anything of value related to Iraqi oil," said Tom Devine, legal director for the Washington-based Government Accountability Project, a nonprofit group that defends whistle-blowers.
Taylor Griffin, a Treasury Department spokesman, dismissed that interpretation, saying the president issued Executive Order 13303 to protect proceeds from the sale of Iraqi crude oil, which are supposed to go into a special fund that the United Nations set up in May to help rebuild the war-torn country.
"This does not protect the companies' money," Griffin said. "It protects the Iraqi people's money."
For instance, administration officials said, if an American energy company received a shipment of Iraqi crude, the money to pay for the oil would be off limits in any litigation. That way, they explained, the proceeds would be sure to find their way to where they belonged: the Development Fund for Iraq.
Administration officials said the intent of the executive order would become clear once regulations, now being drafted by the Treasury Department, were issued. "Rules are forthcoming
But Devine and others said the administration's stated intentions were not borne out by the sweeping language in the executive order.
"Unless they offer a different, credible translation for plain English, it's no solace that the administration meant something different," Devine said.
According to the order, "any attachment, judgment, decree, lien, execution, garnishment or other judicial process is prohibited, and shall be deemed null and void, with respect to the following:
"(a) the Development Fund for Iraq and
