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Texas Oil Man Indicted in Iraq Oil for Food Scandal

Reported by Donna - April 14, 2005

For anyone who has been watching our coverage on the Iraq Oil for Food Scandal, it's been quite apparent that Fox has jumped all over this story, while other news media have not. Fox has tried to denegrate the UN on the Oil for Food Program every chance they can get. Today's news had to be a little disheartening.

In fact, Shepard Smith, who called it the 'UN' Oil for Food Scandal said that the man indicted was an American with no ties to the UN.

On Studio B today, Smith announced that an indictment had been handed down for a Texas oil man, David Chalmers, of Bay Oil Company. He went to their expert on the Oil for Food Scandal - Jonathon Hunt, who confirmed that this was the second time anyone had been indicted in the scandal and the first time an American businessman had been indicted (the first indictment was issued to an Iraqi/American earlier this year).

Mr. Chalmers was charged with paying millions of dollars in secret and illegal funds to Saddam Hussein instead of the funds going to the Oil for Food Program. The video cut to FBI Assistant Director, John Klochan, who said that Mr. Chalmers conduct was unconscionable, motivated by greed and flouted the law and made a mockery of the stated aims of the Oil for Food Program and he willingly conspired with a foreign government with whom we were on the brink of war.

Hunt said that the Justice Department estimates that Bay Oil had done 100 million dollars in business with the Iraqi regime. Hunt went on
to say that a complaint was also unsealed against a South Korean citizen who posed as an Iraqi agent for the Oil for Food Program and who had dealings with the Iraqi/American who received the first indictment.

Lastly, Hunt said that, "Significantly, the US Attorney said a high ranking UN official who dealt with the South Korean citizen and the Iraqi/American citizen, 'may' have accepted bribes." (Hunt's said this in an excited way) He finished his report by saying that the name of this UN official has not been released and government officials say it is likely more indictments will be handed down.

Comment: Is it the UN Oil for Food Scandal, or is it simply the Iraq Oil for Food Scandal? Fox insists on referring to it as the 'UN Oil for Food Scandal. So far the indictments that have been handed down have been for an Iraqi/American citizen, a South Korean citizen and today a Texan oil businessman. As Smith said, the Texas oil businessman, David Chalmers, had 'no' ties to the UN.

Something that the Assistant FBI Director said also caught my attention - he claimed that these dealings were done with a foreign country with whom we were on the verge of war with. Hasn't the Oil for Food Program been going on since the sanctions were started in the early 90's? Did Mr. Chalmers wait until we were on the 'brink of war' to start being corrupt?

I will continue to follow Fox's coverage of the Oil for Food Program. The ties seem to be far reaching and why is it no surprise that a Texas Oil Company was involved?

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