Laura Rozen has a great new investigative piece at Mother Jones about the very lucrative business and security activities undertaken in post-2003 Kurdistan by former Israeli Mossad head “Danny” Yatom and his Israeli-US dual-national associate Shlomi Michaels.
HT: Wired’s “Danger Room”.
Rozen describes Michaels thus,
- He was a former commando with Israel’s elite internal counterterrorism force, the Yamam; he had since become one of the middlemen who work the seams between the worlds of security, intelligence, and international business, along with a few more colorful sidelines including a private investigations/security business in Beverly Hills.. [H]is business partner was former Mossad head Danny Yatom. Before arriving in Washington, Michaels, a dual Israel-US citizen, ran a string of businesses in Beverly Hills… After 9/11 he left Los Angeles, alighting first in New York (where he taught counterterrorism for a semester at Columbia University) and then in DC, where he would soon launch a lucrative venture to cash in on the Iraq War and its aftermath.
Here were some of his activities:
- He helped introduce information in Washington that the United Nations’ Iraq oil-for-food scheme was riddled with corruption—a matter that became a key GOP talking point for promoting the war. Later Michaels helped the Kurds find Washington lobbyists (Rogers’ BGR) who would make the case that Kurdistan was owed some $4 billion in oil-for-food back payments. In June 2004, during his last days in Iraq, US Iraq proconsul Paul Bremer sent three US military helicopters loaded with $1.4 billion in 100-dollar bills to Kurdistan, according to the Los Angeles Times. The money helped finance Kurdish infrastructure and development contracts that Michaels and his business partners then contracted with the Kurdish government to build and secure…
One Michaels/Yatom joint venture, Kudo AG (short for Kurdish Development Organization), registered in Switzerland, won a major contract to serve as the Kurdish government’s general contractor for the $300 million project to rebuild Irbil’s Hawler International Airport. According to an associate familiar with Michaels’ Kurdish ventures, the deal was structured such that Kudo (a joint venture between Michaels and Yatom and their Kurdish associate representing one of Kurdistan’s two ruling parties) was to get paid 20 percent of every contract awarded in the airport project. Though it’s not clear how much Kudo was ultimately paid, that ratio would have made its contract worth roughly $60 million. (Michaels declined to comment for this story.)
Michaels also won a smaller contract with the Kurdish Minister of Interior to provide counterterrorism training and equipment; in 2004, Michaels brought several dozen Israeli ex-security officials as well as bomb-sniffing dogs, secure communications equipment, and other military gear into a camp in northern Iraq.
As Rozen tells it, Michaels and Yatom had some plans that didn’t work out. One was a 2004 offer to sell some alleged “evidence” about Saddam’s former WMD programs to the CIA for $1 million. The CIA, very sensibly, didn’t buy. Also, the two men’s plan to provide security services to the Kurdish Regional Government had to be curtailed after Turkey raised complaints– and the Israeli security services suddenly (a little late in the day?) ‘discovered’ laws that forbade Israeli nationals from entering Iraq Iraq without explicit permission or from dealing in defense equipment without the requisite license…