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THE CONFLICT IN IRAQ

Advocates of War Now Profit From Iraq's Reconstruction

Lobbyists, aides to senior officials and others encouraged invasion and now help firms pursue contracts. They see no conflict.

July 14, 2004|Walter F. Roche Jr. and Ken Silverstein | Times Staff Writers

WASHINGTON — In the months and years leading up to the U.S.-led invasion of Iraq, they marched together in the vanguard of those who advocated war.

As lobbyists, public relations counselors and confidential advisors to senior federal officials, they warned against Iraqi weapons of mass destruction, praised exiled leader Ahmad Chalabi, and argued that toppling Saddam Hussein was a matter of national security and moral duty.

Now, as fighting continues in Iraq, they are collecting tens of thousands of dollars in fees for helping business clients pursue federal contracts and other financial opportunities in Iraq. For instance, a former Senate aide who helped get U.S. funds for anti-Hussein exiles who are now active in Iraqi affairs has a $175,000 deal to advise Romania on winning business in Iraq and other matters.

And the ease with which they have moved from advocating policies and advising high government officials to making money in activities linked to their policies and advice reflects the blurred lines that often exist between public and private interests in Washington. In most cases, federal conflict-of-interest laws do not apply to former officials or to people serving only as advisors.

Larry Noble, executive director of the Center for Responsive Politics, said the actions of former officials and others who serve on government advisory boards, although not illegal, can raise the appearance of conflicts of interest. "It calls into question whether the advice they give is in their own interests rather than the public interest," Noble said.

Michael Shires, a professor of public policy at Pepperdine University, disagreed. "I don't see an ethical issue there," he said. "I see individuals looking out for their own interests."

Former CIA Director R. James Woolsey is a prominent example of the phenomenon, mixing his business interests with what he contends are the country's strategic interests. He left the CIA in 1995, but he remains a senior government advisor on intelligence and national security issues, including Iraq. Meanwhile, he works for two private companies that do business in Iraq and is a partner in a company that invests in firms that provide security and anti-terrorism services.

Woolsey said in an interview that he was not directly involved with the companies' Iraq-related ventures. But as a vice president of Booz Allen Hamilton, a consulting firm, he was a featured speaker in May 2003 at a conference co-sponsored by the company at which about 80 corporate executives and others paid up to $1,100 to hear about the economic outlook and business opportunities in Iraq.

Before the war, Woolsey was a founding member of the Committee for the Liberation of Iraq, an organization set up in 2002 at the request of the White House to help build public backing for war in Iraq. He also wrote about a need for regime change and sat on the CIA advisory board and the Defense Policy Board, whose unpaid members have provided advice on Iraq and other matters to Defense Secretary Donald H. Rumsfeld.

Woolsey is part of a small group that shows with unusual clarity the interlocking nature of the way the insider system can work. Moving in the same social circles, often sitting together on government panels and working with like-minded think tanks and advocacy groups, they wrote letters to the White House urging military action in Iraq, formed organizations that pressed for invasion and pushed legislation that authorized aid to exile groups.

Since the start of the war, despite the violence and instability in Iraq, they have turned to private enterprise.

The group, in addition to Woolsey, includes:

* Neil Livingstone, a former Senate aide who has served as a Pentagon and State Department advisor and issued repeated public calls for Hussein's overthrow. He heads a Washington-based firm, GlobalOptions, that provides contacts and consulting services to companies doing business in Iraq.

* Randy Scheunemann, a former Rumsfeld advisor who helped draft the Iraq Liberation Act of 1998 authorizing $98 million in U.S. aid to Iraqi exile groups. He was the founding president of the Committee for the Liberation of Iraq. Now he's helping former Soviet Bloc states win business there.

* Margaret Bartel, who managed federal money channeled to Chalabi's exile group, the Iraqi National Congress, including funds for its prewar intelligence program on Hussein's alleged weapons of mass destruction. She now heads a Washington-area consulting firm helping would-be investors find Iraqi partners.

* K. Riva Levinson, a Washington lobbyist and public relations specialist who received federal funds to drum up prewar support for the Iraqi National Congress. She has close ties to Bartel and now helps companies open doors in Iraq, in part through her contacts with the Iraqi National Congress.

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