Advocates of War Now Profit From Iraq's Reconstruction

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.