America and the New American Century by Chris Wogan

By Chris Wogan

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In addition, the American taxpayer financed the guarantees and insurance that freed up almost $6 billion for Iraq to use for buying those weapons of mass destruction that you hear about all of the time. So not only were American taxpayers financing the guarantees, they ended up paying a hefty sum for Iraqi nonpayment. The BNL Scandal Due to working with Iraq under guarantees from the CCC and Eximbank, officials at the Atlanta-BNL had acquired a close relationship with Iraqi officials. Close enough, in fact, to loan Iraq large sums of money with 5-7 year maturities for Iraq’s reconstruction programs following the end of the Iran Iraq War in 1988.

As a result of the scandal, numerous administration officials and others were indicted for their parts in the Iran Contra scandal. A majority of the officials pleaded guilty. Poindexter, North, Weinburger, and McFarlane were all convicted, but Poindexter and North’s charges were vacated due to their protected testimony during the Iran Contra investigation. President Reagan, Vice President Bush, and CIA Director Casey were all implicated during numerous testimonies, but no connection could be made between the three and the illegal diversion of funds.

Luckily for Bush, however, his administration was still in power and had successfully stonewalled Congressman Gonzalez’s investigations. Gonzalez outlined how the BNL was working alongside the US Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) and the Export-Import Bank (Eximbank), both of which provided Iraq with guarantees and insurance backed by US taxpayer dollars (totaling around $6 billion) despite Iraq’s history of delinquencies and nonpayment of loans. Following the guarantees from the US government, the BNL worked alone to 20 America and the New American Century provide additional loans amounting to billions of dollars to Iraq against US laws and regulations.

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