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http://www.cbsnews.com/stories/2004/05/20/iraq/main618637.shtml

Ahmad Chalabi's Fall From Grace

May 21, 2004

(CBS/AP) Once cozy with the Pentagon, Iraqi National Congress leader Ahmad
Chalabi now is under fire — literally.

Iraqi police backed by American soldiers on Thursday raided the home and
offices of the controversial figure who provided the Bush administration
with prewar intelligence on supposed weapons of mass destruction in Iraq,
including the now-discredited information about mobile labs whose true use
is still a matter of debate.

Despite Chalabi's seat on the U.S.-handpicked Iraqi Governing Council, it
seems the Bush administration is going out of its way to ensure that the
man who made a career lobbying to get rid of former Iraqi President Saddam
Hussein has no American-backed political future in Iraq.

Senior U.S. officials have told 60 Minutes Correspondent Lesley Stahl that
they have evidence Chalabi has been passing highly classified U.S.
intelligence to Iran. The evidence shows that Chalabi personally gave
Iranian intelligence officers information so sensitive that if revealed it
could, quote, "get Americans killed." The evidence is said to be "rock
solid."

On Friday, Stahl reported that senior intelligence officials stress the
information Ahmad Chalibi is alleged to have passed on to Iran is of such a
seriously sensitive nature, the result of full disclosure could be highly
damaging to U.S. security. The information involves secrets that were held
by only a handful of very senior U.S. officials, says Stahl.

Meanwhile, Stahl reports that "grave concerns" about the true nature of
Chalabi's relationship with Iran started after the U.S. obtained
"undeniable intelligence" that Chalabi met with a senior Iranian
intelligence, a "nefarious figure from the dark side of the regime - an
individual with a direct hand in covert operations directed against the
United States."

Chalabi never reported this meeting to his friends and sponsors in the U.S.
government, says Stahl.

Other tense situations in recent months between the Bush administration and
Chalabi include:

# American officials have complained privately that Chalabi was interfering
with an inquiry into money skimmed from the U.N. oil-for-food program.

# Chalabi has recently accused the U.S.-led coalition of not going far
enough to give Iraqis sovereignty. He also fiercely resisted U.S. military
commanders' recent decision to soften rules blocking former members of
Saddam's ruling party from government jobs.

Chalabi still has strong supporters in Washington, and the Pentagon
continued to pay for intelligence provided by his organization until
recently.

It's unclear why Chalabi's home was raided Thursday. A senior coalition
official said an Iraqi judge had issued several warrants, and details would
be released later. Coalition Provisional Authority spokesman Dan Senor said
Chalabi and his group were not the targets.

Haidar Musawi, an aide of Chalabi's, said three security guards were
arrested, but they weren't linked to any allegations. Chalabi said his
chief security official, Aras Habib, was named in one arrest warrant but
was not detained.

Danielle Pletka, a vice president at the conservative American Enterprise
Institute, said she believes the raid was likely "political manipulation in
order to disable somebody who has been a thorn in the side of the CPA."

"We need the United Nations right now, and Chalabi is the prime mover
behind the investigation in the oil-for-food program," Pletka said.

The CIA — long suspicious of information provided by Chalabi's group — has
not been paying it for intelligence.

Last weekend, Secretary of State Colin Powell said for the first time on
NBC's "Meet the Press" that the United States was intentionally misled
about information on Iraq's much-debated mobile labs. Not said during the
show was that the information came from a defector connected to the Iraqi
National Congress.

"It turned out that the sourcing was inaccurate and wrong, and in some
cases deliberately misleading," Powell said, "and for that I am
disappointed, and I regret it."

For officials like Sen. Joe Biden, D-Del., the distancing from Chalabi has
been "a long time coming."

"I could never quite understand the incredible preoccupation of the
administration with Mr. Chalabi. I think that reliance has done us great
damage in terms of establishing legitimacy," Biden said.

Deputy Defense Secretary Paul Wolfowitz confirmed earlier this week that
the $340,000-a-month payments from the U.S. government to Chalabi's
organization for intelligence recently ended.

Wolfowitz said the decision was made as part of the upcoming transition to
Iraqi rule. "There has been some very valuable intelligence that's been
gathered through that process that's been very important for our forces,
but we will seek to obtain that in the future through normal intelligence
channels," he said.

Three weeks ago, one U.S. defense official justified the payments to the
Iraqi National Congress, saying the organization provided valuable tactical
intelligence to war planners. For instance, the official said, the INC may
hear that a shopkeeper was told not to open his store one day, indicating
an upcoming attack.

"It is a night-and-day difference" on the INC's information before and
after Saddam's fall, said the official, speaking on the condition of
anonymity. "They speak the language. They know the country."

Of all the controversies surrounding Chalabi, perhaps the most pointed has
been his group's prewar intelligence about Saddam's purported weapons of
mass destruction — the Bush administration's leading justification for the
war.

Chalabi has come under criticism because large stockpiles of these weapons
were never found.

Some U.S. officials were angered by comments Chalabi made in the London
press in February. "We are heroes in error," he told the Daily Telegraph in
Baghdad. "That tyrant Saddam is going and the Americans are in Baghdad.
What was said before is not important."

Intelligence and defense officials concede mistakes were made, including an
overlooked flag that one defector had previously provided bad information.
The defense official, who spoke on condition of anonymity, defended the use
of INC sources, saying they were only used to bolster cases that were
already being made.

At a press conference after Thursday's raid, Chalabi lashed out at the U.S.
occupation authority in Baghdad, complaining it was coddling former members
of Saddam's Baath Party and mistreating Iraqis.

"I am America's best friend in Iraq," Chalabi said.

 

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