The Hindu : A 'model' of democracy

Online edition of India's National Newspaper
Friday, Apr 18, 2003

Opinion

Opinion - News Analysis

A 'model' of democracy

By K.K. Katyal

NEW DELHI APRIL 17. Just when the Bush administration professes to make the new Iraq a model of democracy in West Asia, it finds itself embroiled at home, diplomats here note, in a bitter controversy over the award of contracts for the reconstruction of that country. How does it square up, it is asked, with the assuring words of American diplomats who, while seeking support and understanding of various countries, India not excluded, for Washington's plan for regime change, said that they would have a share in the rebuilding of Iraq, ravaged by a decade of sanctions? There was also an unstated and implied part of the assurance — that there would be new opportunities for reconstruction because of the damage to be caused by the war.

What stands out at the moment are the charges of favouritism, of bending of rules. In an angry comment New York Times says: "The Iraq war was fought in the name of high principles. Victory should not turn into an undeserved financial bonanza for companies that have cultivated close ties with the Bush administration."

Critics were intrigued when, before the war, the subsidiary of Halliburton, headed by Dick Cheney for five years before he took over as Vice-President, was given contract for controlling fires of oil wells in Iraq that could be set ablaze by the Saddam regime. The deal was clinched without the normal processes — of calling for bids, etc. It did not go unnoticed though the administration was given the benefit of doubt — on the ground that it had to deal with a sudden, emergency situation and that normal commercial rules could not be followed. According to critics, this has turned out to be a rule, not an exception.

Going by the account of the daily, the Agency for International Development had limited bidding to a short list, mainly of government contracting insiders. Among these were Bechtel Group, which has a former Secretary of State, George Sultz, in its board and the Fluor Corporation.

"Companies unfairly excluded from bidding for these contracts are justifiably upset, including those in Britain, America's most important ally in Iraq,'' says New York Times. Under WTO rules, it notes, procurement contracts are supposed to be open to all bidders, domestic and foreign.

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