March 19, 2007 Edition > Section: Foreign  <http://www.nysun.com/section/6>
<http://www.nysun.com/section/6>  > Printer-Friendly Version
Saudi Bank's Terrorist Ties Draw No Interest
Turtle Bay 
BY BENNY AVNI
March 19, 2007
URL: http://www.nysun.com/article/50747

Hoping to enlist help for Iraq from the so-called international community,
the Treasury Department, which serves admirably at the frontlines of
America's war on terror, may be going to bed with terrorists.

Washington has teamed up at the United Nations with the Saudi-backed
International Development Bank, which lists as clients two Palestinian Arab
funds that support families of Hamas terrorist suicide bombers.

The Treasury Department does a terrific job listing entities that support
terrorism, banning Americans and pressuring others from doing business with
them. It also is attempting to help Iraq become financially viable — a goal
that brought a deputy treasury secretary, Robert Kimmitt, to the United
Nations on Friday for a meeting of the International Compact with Iraq.

"The Iraqis have done their part," Mr. Kimmitt told reporters. "The question
now is what will the international community do?"

The United Nations has shied from any significant activity in Iraq since the
2003 war. But on Friday, more than 100 representatives attended the Iraq
compact gathering, which was presided over by Adel Abdul-Mahdi, the Iraqi
vice president. A senior U.N. official, Ibrahim Gambari, was designated as
the compact's co-chairman. The World Bank and the International Monitory
Fund are among the leading financial institutions involved.

One of last year's compact founders is the Saudi-backed IDB, which operates
under Shariah laws that forbid interest-based loans. Recently it has been
attempting to strengthen ties to U.N. agencies and other international
organizations.

At a press conference last November, I asked an IDB vice president, Amadou
Cissé, about ties to terrorism. In response, Mr. Cissé, a former prime
minister of Niger, said IDB has maintained a top AAA Moody rating for the
last four years and that the bank's board of directors' annual report is
publicly available.

A publicly available organizational chart on the IDB Web site details how
the bank finances two Palestinian Arab entities, Al Aqsa and Al Quds funds.
The funds, according to a Jerusalem Center for Public Affairs researcher,
Jonathan Halevi, were established at a February 2000 meeting of Arab finance
ministers, who pledged $693 million for the two entities.

One of the goals of the funds, according to documents translated from Arabic
by Mr. Halevi, was providing "aid to families of shahids," or martyrs, as
suicide bombers are called. The IDB was the conduit by which that funding —
by March 2002 it reached $680 million — was passed on to the two funds,
which are controlled by Hamas.

Al Aqsa and Al Quds funds are not listed by the Treasury Department as
terrorist-supporting entities, a spokeswoman for the department, Ann Marie
Hauser, told me by e-mail yesterday. "We've designated other entities with
similar names," she added, but such names are "extremely common in the
Muslim world."

"It will be a cold day in hell before the Treasury Department designates any
major Saudi entity involved in support for terrorism," a New Jersey-based
attorney, Gary Osen, who is working on several terror-financing cases, told
me. "From a geopolitical standpoint, it's impossible for the administration
to do so."

Washington needs Riyadh's help on Iran as well as on Iraq; hence the
compact, which was created last year by the Iraqi government and the United
Nations to obtain help from neighboring countries. The idea, I was told,
came from Prime Minister Blair of Britain, but it was adopted by a former
U.N. deputy secretary-general, Mark Malloch Brown.

The Saudis and other Gulf countries, however, are loath to support an Iraqi
government dominated by Shiite politicians they see as Iranian puppets. Also
Arab politicians find it much easier to pledge support for the likes of
Hamas than for Iraq.

Nevertheless they attended the Friday meeting, which U.N. reporters were
told was not a pledging exercise, but rather a promotion of good governance
in Baghdad through such projects as a five-year plan for rebuilding Iraqi
institutions.

Five-year plan? I thought even the most adamant Marxist regimes have done
away with those. I also thought anyone watching recent oil-for-food-related
federal criminal trials should be wary of the combination of money, Iraq,
and the United Nations.

The Treasury Department, meanwhile, should be aware that enlisting the likes
of the IDB to aid Iraq creates the impression — as the director of the
American Center for Democracy, Rachel Ehrenfeld, put it — that "one of its
hands doesn't know what the other is doing."

March 19, 2007 Edition > Section: Foreign  <http://www.nysun.com/section/6>
<http://www.nysun.com/section/6>  > Printer-Friendly Version





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