From an article on FNC:
Following the collapse of Saddam Hussein’s government in 2003, IRS criminal investigators opened an inquiry into Iraqi operations of Oil-for-Food and interviewed numerous mid-level government officials, former Iraqi ministers and other imprisoned officials and supplied information to Congress, CIA and IRS.
Commercial transactions and deposits were uncovered that implicated the Syrian government in the Oil-for-Food scandal.
The IRS learned through its interviews that Iraq’s State Oil Marketing Organization (SOMO) maintained accounts at the Commercial Bank of Syria (CBS) that received funds from the oil sales to Syria. Beginning in June 2000 and lasting until March 2003, Iraq and Syria set up a border trade protocol, which ultimately resulted in $3 billion worth of Iraqi oil being imported by Syria.
IRS investigators have concluded that the money was funneled through these accounts. About 40 percent was paid in cash while the other 60 percent came in “goods” such as arms.
Both the imports of oil and the exports of military supplies were illegal under U.N. sanctions imposed after the first Gulf War.
Funds in these accounts were used to purchase merchandise through Syrian suppliers, transferred in cash to Baghdad using a diplomatic courier, and used to pay the 10 percent kickback demanded by Iraq of all companies involved in the U.N. program, according to the House International Relations Committee.
And some of the highest officials in the Syrian government were part of the illegal trade, according to the probe.
IRS investigators have also determined that Syrian Defense Minister Mustapha Tlas received a “tribute payment” in return for permitting trade between the two countries in violation of U.N. sanctions. Tlas’ son, Firas, and other officials with personal ties to Assad, also received commissions for acting as intermediaries in military procurement contracts. Another intermediary was Thualhima Shaleesh, chief of the presidential bodyguard and cousin of the Syrian president.
One document details how Iraq’s Military Industrialization Commissio used intermediaries to arrange for arms imports. Another document says that a source at the Iraqi Ministry of Trade told the U.S. agents, “the majority of the Iraqi trade with Syria was transacted through [a company called] SEAS … belonging to Dr Asef Shaleesh. He mentioned that Shaleesh was related to the president of Syria.”
The Bush White House and previous administrations have known that Syria was violating the sanctions and importing enormous amounts of oil illegally from Iraq. In fact, one of former Secretary of State Colin Powell’s first trips was to the Middle East, including a stop in Syria, to urge Iraq’s neighbors to strengthen the sanctions against Saddam.
So what are we going to do about it? I predict nothing will be done about it.