FROM THE OFFICE OF PUBLIC AFFAIRS

April 15, 2004
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Remarks of Deputy Secretary Bodman on the Designation of Front Companies,
Individuals of the Former Iraqi Regime

Thank you all for being with us today.  I want to thank Juan Zarate, the Treasury Department's Deputy Assistant Secretary for Terrorist Financing and Financial Crimes, and Tony Wayne, Assistant Secretary for the State Department's Bureau of Economic and Business Affairs, for joining me here today and for their continued hard work and leadership on the critically important effort of finding and repatriating Iraqi assets.  We have seen a great deal of very productive inter-agency collaboration in this effort, and I am grateful to both the State Department and Treasury teams for their tireless dedication.

I am very pleased to announce that, once again, the United States and the United Kingdom's efforts have resulted in substantial progress in the hunt for Iraqi assets.  Today we are designating a group of front companies of the former Iraqi regime, as well as individuals associated with those companies.  The commitment of our British allies played an important role in today's action and in the overall hunt for Iraqi assets. 

With this action, we begin the unveiling of Saddam's financial web around the world.  In the coming weeks and months, the Treasury Department plans to take similar actions against other operatives of the former regime.

The companies and individuals designated today were used by Saddam Hussein and his cronies to support their cruel and oppressive regime.  One company played a key role in the former Iraqi regime's schemes to obtain illicit kickbacks on goods purchased through the U.N. Oil-For-Food Program – a program intended to help Iraqi families – and attempted to procure a sophisticated surface-to-air missile system.  Another served as the commercial front for the Iraqi Intelligence Service.  Yet another bilked religious Iranian pilgrims out of roughly $500 million each year and directed it right into the regime's coffers. 

The United States is submitting the names of eight front companies and five individuals to the United Nations with the recommendation they be listed by the 1518 Committee under U.N. Security Council Resolution (UNSCR) 1483.  Three of these front companies and one of the individuals were previously designated by the Treasury Department.

Today's action, which was achieved through international cooperation, requires more of the same.  U.N. member states must now identify, freeze and transfer the assets, holdings and looted funds of Saddam Hussein and his regime officials, their immediate families, front companies and agents to the Development Fund for Iraq (or "DFI").  We also encourage other countries to undertake independent investigations to identify other Iraqi-related assets, publish similar listings and return identified funds to the DFI.  With U.S. leadership, nearly $6 billion of Iraqi assets and Hussein's pilfered funds have been frozen worldwide, and over $2.5 billion has been transferred by the U.S. and our global partners for the benefit of the Iraqi people.

The DFI is essential for rebuilding Iraq after decades of oppression.  A country that was once stagnant is now starting to flourish physically and economically.  The peace-embracing people of Iraq are seeing the construction of new schools, roads, hospitals and homes.  Iraqis are receiving the humanitarian support they were starved for under the former regime.  And the Iraqi economy is beginning to thrive, as more people find work and bring home legitimate wages for their families.

As President Bush has said, this Administration's commitment to the Iraqi people is unwavering.  A free, democratic and prosperous Iraq will contribute not only to peace in the Middle East region, but also to the security of all Americans. 

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