Possible source of Obama loans was Saddam's bagman

Bill Gertz:

New attention is being focused on indirect connections between Iraqi-British billionaire Nadhmi Auchi, who has been tied to illegal activities in Iraq and France, and Democratic presidential candidate Sen. Barack Obama.

Auchi gave at least $10.5 million to Obama fundraiser Antoin "Tony" Rezko, including a payment of $3.5 million that coincided with Mr. Obama's purchase in 2005 of a $1.65 million Chicago house, the London Times reported Tuesday. The newspaper said the timing of the payment and the house purchase, along with the purchase of land next door by Mr. Rezko's wife Rita from the same seller, raise questions about whether Auchi helped buy the house.

Bill Burton, a spokesman for Mr. Obama, would not answer when asked if Auchi helped buy the senator's house. He said the senator did not recall ever meeting Auchi, who was convicted of corruption charges in France in 2003.

A lawyer for Auchi told the London Times that his client is not aware that the money from a company linked to Auchi was used to buy Mr. Obama's house. The newspaper stated that Auchi and Mr. Obama had a brief encounter in 2004 at the Four Seasons Hotel in Chicago.

A 2004 Pentagon report obtained by The Washington Times identified Auchi as a global arms dealer and Iraqi billionaire "who, behind the facade of legitimate business, served as Saddam Hussein's principle international financial manipulator and bag man."

The report to the Pentagon inspector general stated that "significant and credible evidence was developed that a conspiracy was organized by Nadhmi Auchi to offer bribes to 'fix' the awarding of cellular licensing contracts covering three geographic areas of Iraq" under the U.S. Coalition Provisional Authority.

"Additionally, significant and credible evidence has been developed that Nadhmi Auchi has engaged in unlawful activities working closely with Iraqi intelligence operatives to:

• "Bribe foreign governments and individuals prior to Operation Iraqi Freedom to turn opinion against the American-led mission to remove Saddam Hussein.

• "Arrange for significant theft from the U.N. Oil-for-Food Program to smuggle weapons and dual-use technology into Iraq ....

• "Organize an elaborate scheme to take over and control the post-war cellular phone system in Iraq."

...

While I posted on the Times story earlier, Gertz's report on Auchi adds some interesting details to his back ground. It appears that interest in turning US opinion against the liberation of Iraq coincided with Obama's. I am not sure that this story will have much in the way of legs because the media has embraced Obama and has already discounted his association with Revko. If it was someone they did not want to win, they would probably be more interested.

Even if Obama did not actual know he was being used by Auchi, that is still a matter for concern, because it highlights his naivety.