IRAQ: "INSURGENCY" IS FINANCIALLY 'SELF-SUSTAINING'

Oil deals help pay for Iraqi attacksCorrespondents in Baghdad
November 27, 2006

THE Iraq insurgency has become financially self-sustaining, raising tens of millions a year from oil smuggling, kidnapping, counterfeiting, corrupt charities and other crimes, according to a US government report.

The classified report, obtained by The New York Times, estimates that groups responsible for insurgent and terrorist attacks in Iraq are raising $US70 million ($90.7million) to $US200 million a year from illegal activities.

The report says $US25 million to $US100 million of that comes from oil smuggling and other criminal activities involving the state-owned oil industry, which are aided by "corrupt and complicit" Iraqi officials.

Up to $US36 million a year comes from ransoms paid over hundreds of kidnappings. Unnamed foreign governments - identified in the past by senior US officials as including France and Italy - paid kidnappers $US30million in ransoms last year alone, the report says.

"If recent revenue and expense estimates are correct, terrorist and insurgent groups in Iraq may have surplus funds with which to support other terrorist organisations outside of Iraq," the newspaper quoted the report as saying.

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1) Oil deals help pay for Iraqi attacks