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Friday, October 17, 2008

Top GOP Fund-Raiser Tied to Iraq Fuel Contract

Source: NYT

The Democratic chairman of a House investigative committee presented documents to the Pentagon on Thursday alleging that a top Republican fund-raiser, Harry Sargeant III, has made tens of millions of dollars in profits over the last four years because his contracting company vastly overcharged for deliveries of fuel to American air bases in Iraq.

Mr. Sargeant, who is the finance chairman of the Florida Republican Party and a major fund-raiser for Senator John McCain, did not immediately return several messages left for him on Thursday, but in the past he has denied any improprieties on the part of the the company, International Oil Trading Company, known as I.O.T.C.

The company was briefly in the news over the summer when a former partner filed a lawsuit against Mr. Sargeant in a Florida circuit court. The former partner, a Jordanian named Mohammad al-Saleh, is the brother-in-law of the King of Jordan, and the court papers laid out what Mr. Saleh claimed was a seamy tale in which he obtained special governmental authorizations for the company to transport the fuel through Jordan and was then unlawfully forced out by Mr. Sargeant, who strongly disputed those allegations.

But the latest claims of impropriety by the company go much further. In a letter addressed to Defense Secretary Robert M. Gates, by Henry A. Waxman, the California Democrat who is chairman of the House Committee on Oversight and Government Reform, Mr. Waxman uses emails, company documents, Pentagon reports and other information to make the case that Mr. Sargeant repeatedly received contracts to deliver the fuel even though his company was never the lowest bidder for the work.

In one case, Mr. Waxman’s letter asserts, Mr. Sargeant’s company was actually the highest of six bids but received the contract anyway. In fact, Pentagon contracting officers complained that the company’s prices were unreasonably high and initially said they could not justify giving the work to Mr. Sargeant. But for reasons the company was never able to explain, Mr. Waxman’s letter indicates, no other American company was given an authorization to transport the fuel through Jordan. And when United States Central Command declared that the need for the fuel was urgent, the Pentagon was forced to award the contract to Mr. Sargeant’s company.
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