James Baker's Double Life (Carlyle Scam)

[sjdnb]

http://www.thenation.com/doc.mhtml?i=20041101&s=klein

James Baker's Double Life
A Special Investigation

by Naomi Klein

Research support for this article was provided by the Investigative Fund of The Nation Institute.

When President Bush appointed former Secretary of State James Baker III as his envoy on Iraq's debt on December 5, 2003, he called Baker's job "a noble mission." At the time, there was widespread concern about whether Baker's extensive business dealings in the Middle East would compromise that mission, which is to meet with heads of state and persuade them to forgive the debts owed to them by Iraq. Of particular concern was his relationship with merchant bank and defense contractor the Carlyle Group, where Baker is senior counselor and an equity partner with an estimated $180 million stake.

Until now, there has been no concrete evidence that Baker's loyalties are split, or that his power as Special Presidential Envoy--an unpaid position--has been used to benefit any of his corporate clients or employers. But according to documents obtained by The Nation, that is precisely what has happened. Carlyle has sought to secure an extraordinary $1 billion investment from the Kuwaiti government, with Baker's influence as debt envoy being used as a crucial lever.

The secret deal involves a complex transaction to transfer ownership of as much as $57 billion in unpaid Iraqi debts. The debts, now owed to the government of Kuwait, would be assigned to a foundation created and controlled by a consortium in which the key players are the Carlyle Group, the Albright Group (headed by another former Secretary of State, Madeleine Albright) and several other well-connected firms. Under the deal, the government of Kuwait would also give the consortium $2 billion up front to invest in a private equity fund devised by the consortium, with half of it going to Carlyle.

The Nation has obtained a copy of the confidential sixty-five-page "Proposal to Assist the Government of Kuwait in Protecting and Realizing Claims Against Iraq," sent in January from the consortium to Kuwait's foreign ministry, as well as letters back and forth between the two parties.

[yardwork]

1. Glad to see this getting some publicity

We owe Michael Moore a debt of gratitude for putting a lot of this information on the silver screen. None of it was new information but MM was the first to take it main stream. Now it's trickling out into traditional media.

[whistle]

2. James Baker is a crook and a traitor

[sonias]

3. MSNBC has a story on this too

Influence peddling charged over Iraq’s debt
http://www.msnbc.msn.com/id/6242360/
In meeting after meeting, President Bush's special envoy, former Secretary of State James Baker, has lobbied world leaders to reduce the crushing debt owed by Iraq.

But at the very same time, a high-powered consortium — including Baker's firm, the Carlyle Group, former Secretary of State Madeleine Albright and other Washington heavyweights — has been pitching a seemingly conflicting proposal. The plan urges one of the wealthiest nations in the Middle East to maximize what it collects from Iraq.

How? By hiring the consortium.

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No surprises here. The war was about oil and how these rich business bastards could make themselves richer. Nobel mission, my ass. They cover all their scams with their fight for freedom.

Don't like seeing Former Secretary Albright mixed in this but she hasn't always been clean about her compassion either.

Sonia

[GoBlue]

4. Carlyle (now) Disavows Plan to Get Kuwait Business

http://www.washingtonpost.com/wp-dyn/articles/A30798-2004Oct13.html

[RaleighNCDUer]

5. And this surprises who?

[Moderator]

6. Duplicate of

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=900668

however, this is The Nation...will move rather than lock.