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THE MUSINGS OF A TRADITIONAL SOUTHERN DEMOCRAT

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Sid in his law office where he sits when meeting with clients. Observant eyes will notice the statuette of one of Sid's favorite Democrats.

Wednesday, November 18, 2009

First Iraq won't do business with the West; now Afghanistan: Afghan minister accused of taking bribe -- Massive mining project awarded to Chinese firm

From The Washington Post:

The Afghan minister of mines accepted a roughly $30 million bribe to award the country's largest development project to a Chinese mining firm, according to a U.S. official who is familiar with military intelligence reports.

The allegation, if proved true, would mark one of the most brazen examples of corruption yet disclosed in a country where the problem has become so pervasive that it is now at the heart of Obama administration doubts over Afghan President Hamid Karzai's reliability as a partner. The question of whether Karzai can address his government's graft and cronyism looms large as he prepares for his inauguration Thursday for a new term, and as President Obama completes a months-long strategy review that will define the future of U.S. involvement in Afghanistan after eight years of war.

Karzai is coming under intense international pressure to clear his cabinet of ministers who have reaped huge profits through bribery and kickback schemes. Although he announced a new anti-corruption unit this week, the president has been reluctant to fire scandal-tainted ministers in the past, and it is unclear whether he is ready to do so now. Meanwhile, Afghans' perceptions that they are ruled by a thieving class have weakened support for the government and bolstered sympathy for the Taliban insurgency.

In the case of the minister of mines, there is a "high degree of certainty," the U.S. official said, that the alleged payment to Mohammad Ibrahim Adel was made in Dubai, United Arab Emirates, within a month of December 2007, when the state-run China Metallurgical Group Corp. received the contract for a $2.9 billion project to extract copper from the Aynak deposit in Logar province. Aynak is considered one of the largest unexploited copper deposits in the world.

The selection of the Chinese firm, known as MCC, has angered some Afghan and American officials who worked on the bidding process with Adel. They say he was biased toward the company and did not give a fair hearing to the proposals of Western firms. But the issue has also gained urgency because the ministry is reviewing offers for another massive mining deal -- this time for an iron ore deposit west of Kabul known as Haji Gak -- for which MCC is the front-runner.

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