Making a Killing in Iraq
Even as McCain was lobbying hard for the Telecom industry in the late 1990s, the Arizona Senator worked overtime to build up the case for war in the Middle East. McCain served as the honorary co-chair-- of the Committee for the Liberation of Iraq, a group which helped push for official government as well as public support for the invasion of Iraq after the 9/11 terror attacks.
In the aftermath of the invasion, the telecoms scrambled to get a piece of the action as Iraq was opened up for business. Cellular giant Qualcomm managed to exert political influence over the Pentagon which in turn pressured the Coalition Provisional Authority to change an Iraqi police radio contract to favor Qualcomms patented cellular technology.
Whats more, the Pentagon hired MCI---the former World Com, which had declared bankruptcy amidst an accounting fraud scandal in July, 2002---to build a small wireless phone network in Iraq. Incensed, Democratic Senator Ted Kennedy urged major federal agencies to stop doing business with bankrupt telecom giant MCI and explain why its record $9 billion accounting fraud should not disqualify the company from receiving lucrative government contracts.
As it turned out Kennedy was right to harbor suspicions about the dodgy company. After the Coalition Provisional Authority issued MCI cell phones to U.S. personnel in Baghdads Green Zone, problems arose. Reportedly, cell phone owners received monthly bills as high as $10,000. The individuals had never received bills, leaving the impression that the phone calls, which cost $1.25 a minute, were free. The U.S. State Department subsequently decided to shut the phone calls down.
AT&T, McCains second largest corporate backer, also fell into controversy. After the invasion, the telecom giant received an exclusive contract to provide pre-paid calling cards to military personnel stationed in Iraq. But U.S. soldiers quickly complained about the exorbitant prices they had to pay under the arrangement.
According to the Newark Star Ledger, many pre-paid AT&T cards bought in the United States and shipped to soldiers in Iraq allowed only a fraction of the minutes promised on the cards. Even the cards bought in Iraq, which an AT&T spokesman said were a better bargain for the troops, cost between 19 and 21 cents a minute for a call.
House Representative Frank Pallone, Democrat of New Jersey, was disturbed by the price gouging. AT&T should be required to provide a clear and straightforward system of calling time that will make it easier for our troops to call home,-- Pallone said in a statement. It disturbs me to think that companies are more interested in making a buck on our soldiers in Iraq than providing the quality services they have been paid to provide.--
Truly, it can be said that the telecoms have been making a killing in Iraq, their war profiteering greased by their long-time ally, John McCain.
excerpted from Nikolas Kozloff @ Counterpunch
