Follow the money

George W Bush undertook to bring prosperity to the Iraqi people. Yet while oil revenue is soaring, p

One morning at the end of January this year, emergency workers in Baghdad converged on al-Rasheed Street, where a major fire had engulfed Iraq's Central Bank. No one had been killed in the still-smouldering ten-storey building, but the bank's records had gone up in smoke. Financial documents concerning billions of dollars had been turned to ash. As a comparison, it would be as if the records of the Bank of England had been accidentally incinerated.

The fire was no accident. "It's still being investigated, but it was arson," said Stuart Bowen, the American special inspector general for Iraq reconstruction, who examines how the United States spends its billions in Iraq. He has a thorough understanding of the failures of Iraq's reconstruction efforts.

Bowen, who spoke by phone from Baghdad, would not speculate as to the motive for the Central Bank fire, but other sources familiar with the case believe the torch job was intended to remove records of misconduct, theft or malfeasance. Photographs of the destruction show the twisted wreckage of a huge computer server.

Burning evidence is a time-honoured, if crude, way of covering tracks, but it is seldom so audacious in scope. The scale of corruption is equally audacious; it reaches staggering levels throughout the Iraqi government.

Consider: the leading former anti-corruption judge and his top investigator both fled the country in fear for their lives last August and are seeking political asylum in the US. The judge testified to the US Congress that "corruption in Iraqi today is rampant across the government, costing tens of billions of dollars".

The US secretary of state, Condoleezza Rice, has also called corruption in Iraq "pervasive".

"Follow the money!" advised the legendary source known as Deep Throat in All the President's Men, the book about the Watergate scandal in the White House. Wise advice in general for an investigative journalist, or anyone else, trying to understand motive and patterns. The trouble is, it is virtually impossible to follow the billions of dollars pouring into Iraq.

It has been five years since Paul Wolfowitz, then US deputy defence secretary, famously predicted to Congress that Iraq "could finance its own reconstruction, and relatively soon". Wolfowitz and his neocon colleagues had relied on the Iraqi politician Ahmad Chalabi for their information, and his predictions of oil wealth were alluring. Wolfowitz told the US Congress that "the oil revenues of Iraq could bring between $50bn and $100bn over the course of the next two or three years".

It was a wild overestimation. The real expectation for Iraq at that time was that it would sell about $12bn in oil for 2004 and an estimated $15bn in 2005. Nonetheless, in the long run, Wolfowitz may be proved right.

Bowen believes the Iraqi budget could exceed $50bn for 2008. Chiefly, he credits soaring oil prices. Costly oil, devastating to western econo mies, is giving Iraq's shaky government a windfall. "At $102 a barrel," Bowen says, "an extraordinary amount of revenue is going to be flowing into the government of Iraq's coffers."

But once it gets there, how will that $50bn be spent, and who will control it? Bowen, who has investigated American corruption in dealing with Iraqi counterparts, warns that "there are two pathways. One is to put the resources to beneficial use and that would require fighting corruption seriously."

The alternative, Bowen said, is grim. "Corruption could become worse because the opportunity to steal obviously expands with the growth in revenues." More money might simply mean more theft.

There is plenty of cause for concern in the various postwar government departments. In the defence ministry, procurement fraud allegedly topped $1bn in 2004. Investigators claim there have been large-scale diversions of medicines in the health ministry. In the oil ministry, high-level officials have been charged with stealing fuel.

Bribery and embezzlement

There is also concern about the ministry of finance, through which most of the $50bn oil revenue will ultimately be disbursed. Here, according to a draft US report on corruption in Iraq last year, "bribery and embezzlement are the most numerous bases for investigations".

The kidnapping of a British IT consultant, seized from the finance ministry last May, has also raised suspicions that some people may have been attempting to destroy evidence of corruption. A group of British contractors had just arrived on-site. A security team of well-trained veterans escorted Peter Moore, a computer expert contracted to a US company called BearingPoint, into the building. At this point, a platoon-strength posse of Iraqis, "dressed in police uniforms", according to press accounts, roared up in vehicles. They headed straight for their objective - the computer expert and his guards. Outgunned and apparently unclear whom they were dealing with, the British team put up no fight. The computer expert and his four-man detail were snatched away. It looked like an "arrest" but in reality it was a kidnapping.

For some time, US and UK forces launched noisy sweeps through Sadr City and other Shia districts. A source close to the case says the reason the kidnappers were "dressed in police uniforms" was that they were indeed police. It was a branch within the police loyal to the Sadr militia, explains the source.

Now, following the release of a hostage video at the end of last month, it is known that the men are being held by a group calling itself the Shia Islamic Resistance of Iraq. In the video, a man identified as Moore pleads for help. His captors are demanding the release of nine prisoners held by the British, and the Prime Minister, Gordon Brown, has become personally involved, appealing for the release of the British hostages.

However, both Iraqi and American investigators believe the kidnapping, like the Central Bank arson, was not initially an act of terrorism in the usual sense of the word but, more precisely, organised or business crime. The motive was to stop the consultant from installing a computer system which would introduce more accountability into the ministry's accounting systems.

It is hardly unusual in the 21st century to computerise records that deal with billions of dollars, and the project in hand was intended to centralise and automate Iraq's spending. The aim was to ensure accountability and financial transparency. Over the years, however, the Iraqis have objected to automation. As one American working with them explained, some feared that the system "would impose too much transparency".

Before the kidnapping, the project was near completion and due to go online. After the men were snatched, that all stopped. The "Iraq Financial Management Information System" was abandoned. The finance ministry still handles its paperwork the old-fashioned way.

Five years after the invasion, the Iraqi government has designated 2008 the "Year of Reconstruction and Anti-Corruption". By this summer, a windfall of oil money will be pouring into Baghdad. Whether the structures are in place for the beleaguered citizens of Iraq to enjoy the benefit is far less certain.

Aram Roston is the author of "The Man Who Pushed America to War: the Extraordinary Life, Adventures and Obsessions of Ahmad Chalabi", newly published by Nation Books (£15.99)

Clarification

On 13 March 2008 we published an article, "Follow the money", which made allegations about accounting procedures at the Trade Bank of Iraq. We now accept that there is no evidence to suggest that there has been any wrongdoing by the Trade Bank of Iraq or its chairman and we are happy to make that clear.

Killing figures

0 number of Commons votes on Iraq since invasion in 2003

1 number of Commons debates on the war between July 2004 and January 2008

£1bn annual cost of Iraq War to British taxpayer

$5bn cost of ten days' fighting in Iraq

50 percentage of trained Iraqi doctors who have left their country since war began

175 British soldiers killed in Iraq

3,980 US troops killed

7,987 Iraqi Security Force personnel killed

81,874 - 89,353 documented civilian deaths to 10 March

25,000 number of children forced out of their homes every month during 2007

This article first appeared in the 17 March 2008 issue of the New Statesman, Iraq: the war that changed us

MATTHIAS SEIFARTH FOR NEW STATESMAN
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Moby: “The average American IQ is around 98”

Moby, the vegan king of chill-out pop, talks wealth, David Bowie’s hat and the average intelligence of his fellow Americans.

In January 2012, two women walking their nine dogs on the hill beneath the Hollywood sign found a man’s severed head wrapped in a plastic bag. His decomposing feet and hands were discovered nearby. First theories pointed to the work of a Mexican drug cartel, or the murderous Canadian porn actor Luka Magnotta. The story piqued the interest of the electronic dance music mogul Moby, who wrote about it in a New Statesman diary in May this year.

Today, the smell of cedar and pine hits you on the canyon path, which is hot, steep and sandy – an immediate wilderness in one of LA’s most exclusive areas. The Griffith Observatory shines like a strange white temple on the hill. Brad Pitt, a local resident, was doorstepped after the head was discovered: he lives near Moby on the streets of Los Feliz, near Griffith Park, where the only sounds are hedge strimmers and workmen’s radios. Moby’s 1920s mansion is all but obscured by Virginia creeper.

As we sit down at his kitchen table, Moby tells me that the body parts were found to belong to a 66-year-old Canadian flight attendant called Hervey Medellin. Shortly before Medellin’s disappearance, his boyfriend, Gabriel Campos-Martinez, had used a computer in the flat they shared to find an article titled, “Butchering of the human carcass for human consumption”. The head, feet and hands showed signs of having been frozen: the rest of the body was never found. He says it was one of those rare times in life where reality was more intriguing than the conspiracy theories.

Moby, of course, eats no meat. Fifteen minutes’ drive away in the hipster neighbourhood of Silver Lake, his vegan bistro, Little Pine, serves a variety of plant-based dishes, proceeds from which go to animal rights organisations including the Humane Society and Peta. His own music is never played there. We are meeting to talk about his new album – but, he says: “It’s 2016 and people neither buy nor listen to albums. And they certainly don’t listen to the 16th album made by a 51-year-old musician. I don’t care if anyone gives me money for this music or for live shows ever again. Once a record’s released, I couldn’t care less what happens with it. I liked making it, but I don’t care.”

He is currently working his way though the stages of grief outlined by the psychiatrist Elisabeth Kübler-Ross. To denial, anger, bargaining, depression and acceptance he has added a new phase: Schadenfreude. On the night of the US election, he left the house at 6pm west coast time to watch the coverage with some friends. He checked his usual round of sites on his phone: CNN, the New York Times, the Washington Post, Nate Silver’s FiveThirtyEight, the Guardian, the Huffington Post, the BBC, politico.com. He was concerned to see that no one was calling any of the early states; with Obama’s election, exit polls suggested the victory by noon. Days earlier, Moby had been predicting humanity’s “wake-up call” in the form of the destruction of Greenland or a zoonotic virus – but not this. He is softly spoken, with a quick laugh and the kind of intelligence that seems to warm him up from the inside when he talks, but today he is angry.

“It is disturbing on so many levels,” he says. “One, that we have elected an inept racist as president. Two, just seeing how dumb and delusional so many Americans are. Because really – in terms of the subsets of people who would vote for Trump – you have to be delusional, or racist, or stupid. I am so confused as to the fact that such a high percentage of Americans are either really stupid or incredibly bigoted.”

The stupidity of Americans is, he says, a matter of “anthropological curiosity” – or simply demographics. “The average American IQ is around 98,” he notes. “So that honestly means – in a vaguely non-pejorative way – that there are a lot of really, really dumb people. The nonsense that people were spouting before the election – that Trump was a good businessman, for example? This phenomenon has been particularly egregious of late: people have an almost adversarial relationship with evidence. Climate-change deniers are another example.”

As a self-described old-timey alcoholic, Richard Melville Hall (nicknamed Moby by his father in honour of his great-great-great-uncle Herman) has a pervasive interest in neurochemistry. He uses it to explain much of the past six months in Western politics. Our failing political systems – the subject, in fact, of the album he doesn’t want to talk about – are underpinned by “a kind of delusional motivation, which is basically to ignore the countless things that are actually going wrong in the world and focus all your attention on things that are arbitrary. In the United States, you have people who have perfectly good jobs in safe communities who are obsessed about Mexico, crime and unemployment. We have these quasi-Orwellian responses to stimuli, and they come from a place of fear and scarcity. Humans are still built to amass as much wealth as possible, and fight off the enemies as quickly as possible, but the only threats are the ones we generate ourselves.”

There’s a dishcloth on the table, a few magazines, a bit of a draught and Moby in a black hoodie pouring two glasses of water.

Fear and scarcity pervade American society, he says, because social policy is an extension of corporate process and “nothing is free from the cadres of professional lobbyists”. Meanwhile the ravenous news consumption that helped drive Trump reflects a human addiction to the “neurochemical jolt” of engaging with the media.

“People have a profound and almost feral attachment to that which makes them feel good in the moment,” he says. “Without thinking of long-term consequences, does their belief give them a shot of dopamine right at this second? If so, they hold on to it. Eating junk food, voting Brexit and voting for Trump.”

 

***

 

Moby is the model of an addictive personality well-practised at controlling itself. He was a fully fledged alcoholic by his early twenties: at ten, he’d been given champagne and made himself the promise, “I always want to feel this good.” Now, he cannot touch a drink, but his modern-day addiction, he says without a beat, is his phone. Every thought is pursued to extremes. He recently released an animated video for a new song, “Are You Lost In the World Like Me?”, showing a procession of grotesque, phone-addicted cartoon characters filming a girl as she throws herself off a skyscraper and hits the ground.

The house is vaguely baronial, airy and open-plan: all dark wood and furniture polish. An Annie Hall poster in the pool house; a coyote postcard on the kitchen wall.

This particular property is a result of serious downsizing: Moby has a habit of buying very big places, doing them up and then moving out. When he was still in New York, he bought a remote mountaintop retreat in Kent Cliffs, 50 miles north of Manhattan. He created a magnificent bedroom of 1,500 square feet with ten skylights – but quickly learned he could only get a decent night’s sleep when he pulled his mattress into the cupboard. He told the New York Times that, living all alone in the big house, he “felt like Orson Welles at the end of Citizen Kane”.

He moved to LA in 2010, swapped vodka for quinoa smoothies and took the keys for another large building – the Wolf’s Lair, the turreted, 1920s Gothic castle in Hollywood once inhabited by Marlon Brando, with the swimming pool historically used for porn movies and the hidden tiki bar. He bought it for $4m and sold it for $12.5m four years later – allegedly to Banksy. He rattled around in that house, too. Right on cue, he tells me: “I felt like Orson Welles at the end of Citizen Kane.”

On the one hand, these were sensible ­investments for the man who’s sold 20 million records; on the other, large impersonal spaces appealed to Moby long before he was in a position to buy them. Raised by his single mother on food stamps and welfare in Darien, Connecticut, he started his adult life squatting an abandoned lock factory, where he could ride his moped around his bedroom, piss into a bottle and read battered Star Trek paperbacks while working on early demo tapes, rather like a ragged, vegan version of the boy in the movie Big.

He was very happy in his penniless state, as he records in his memoir, Porcelain. He’d like to propose something he calls the End of Wealth – but we’ll come back to that.

In the past few years Moby has broken free from the “Beckettian purgatory of touring”. When his biggest-selling album, Play, was released in 1999, his music career was effectively “over”. Before Play, he had changed creative direction, going from progressive house to ambient to thrashy punk – to which he has just returned – and no one knew what to do with him. The only reason he hadn’t been dropped by his UK label, Mute Records, was that its owner, Daniel Miller, was “an old egalitarian socialist”.

Play sampled slave songs of the Deep South – recorded by the ethnomusicologist Alan Lomax in the 1940s – and wove them into a backdrop of cerebral chill-out. The songs of pain and emotion took on an eerie neutrality, and TV shows and ad companies came calling. He was approached by Will and Grace and Grey’s Anatomy. At that point, selling records and touring were still more lucrative than licensing a song to TV – and licensing a song to TV was still considered selling out. But Moby considers himself an ugly duckling: “If someone who was once unattractive suddenly gets asked out on loads of dates, of course they say yes a lot.” He licensed every song on Play and it became the soundtrack of the millennium.

His memoir was unusual because it concentrated on the ten-year period before he got famous. It captured his enthusiasm – and his strangeness – at its source and showed him to have a sense of humour that may have passed people by the first time round. “I’m in London! London!” he wrote. “Benny Hill, Joy Division, Peter O’Toole!” He visited the vegan café in Covent Garden.

The book is filled with money: or with the constant, practical concern of not having it. Navigating poverty is an everyday routine: he is an “alchemist” turning used beer bottles into nickels at the recycler, and thence into soya milk and oranges. In his early twenties he becomes a Christian, partly so that he can repeat the Sermon on the Mount at Bible classes in the households of Greenwich Village and “judge” the rich children.

Book two, which Faber & Faber is waiting for, is more difficult. The period of his fame and fortune in the 2000s is too much of a cliché. “Ten years ago I was entitled, narcissistic, bottoming out, alcoholic, selfish and feral. Robbie Williams has done that story, so has Ozzy and Mötley Crüe. Who wants to read that? It’s tautological.”

Instead, he has decided to write about the first ten years of his life. It will look into his relationship with his mother, who loved him but raised him in various drug dens. He was at her side when she died in 1997, but he missed her funeral, having woken late in the morning to discover that at some point in the night he must have got up and set his alarm clock three hours late. He took a taxi to the wake, worrying about the fare, and for reasons he can’t really explain, turned up cracking jokes.

He has a strange nostalgia for the kinds of friendships you have in early adulthood, when everyone is equal, “before that point when someone starts making money and they think they’ve won: they’re going to have access to a different kind of happiness”.

In 2003, when he turned 38, he was famous, wealthy and miserable. “I’ve been able to see and inhabit almost every stratum on the socioeconomic scale, from extreme poverty and obscurity to wealth and fame, and it gives me an insight into it,” he says. “Because a lot of people who experience wealth are born into it, and a lot of people who experience poverty never leave it. I can safely say that for me there has been no causal effect between increased fame and wealth and increased basic happiness and well-being.”

When Moby talks about himself, he applies many apologetic epithets: clichéd, meditating, yoga-loving, mealy-mouthed. In 2007 he developed mobygratis.com, a large online resource offering independent film-makers and film students a licence to use his music for free. If their films are commercially successful, the revenue from licence fees must go to the Humane Society. He says he wants to propose a more rational, evidence-based approach to wealth.

“We are still attached to the idea of the redistribution of wealth,” he says. “As progressive lefties, we’re all brought up to think that is a good idea. In the old days, it meant the difference between eating and not eating. Nowadays the person on $30,000 consumes twice the calories of the millionaire, and has a bigger TV and works fewer hours.

“There is an underlying assumption that if wealth were distributed more evenly then people would be happier, but there is unfortunately very little anthropological or sociological evidence to support that idea, unless there are institutions to support the basic needs of community, like food and shelter. Confusing materialism with happiness is the essence of our culture.”

While west LA is plastic surgery and gold-plated toilets, he says, his own neighbourhood is “David Lynch wearing an old T-shirt and mowing the lawn”. Among the millionaires of Los Feliz, conspicuous consumption is frowned upon. He knows several who live “incredibly austere lives. I was having tea with Jim Carrey the other day. He’s basically just giving everything away. He just realised that owning three planes was stressing him out . . .”

In his New Statesman diary, Moby said that life in LA offered him miles and miles of lavender-scented name-dropping.

“Coldplay played the Rose Bowl recent­ly,” he says. “And the Rose Bowl holds 75,000 people. It’s a struggle for me to sell 2,000. At first, I winced with a little jealousy. But then I thought, ‘If my career was at that Coldplay level, how would that actually affect my daily existence? Would it make my shoes fit better? Would it make the water pressure in my shower better?’ As long as you’ve satisfied the basic hierarchy of needs – enough to eat, clean air to breathe, bears not eating your legs – happiness is all where and how you put your attention.”

***

He goes to his kitchen cupboard and from among the colanders and measuring jugs he extracts a black velvet fedora – size seven, silk-lined, from a London company established in 1879. In green marker around the inside rim are the words “With love from David – Christmas 2005”. Bowie gave it to him over Christmas dinner that year. “It’s the hat that he wore in The Man Who Fell to Earth,” Moby says. “There’s this amazing picture of him wearing it with John Lennon and it’s clearly when he was doing a lot of cocaine.”

Moby lived on Mott Street in Little Italy and Bowie lived on Mulberry Street. “I had a little roof deck, and he had a beautiful roof terrace, and we could wave at each other.” They were neighbours and friends, worked on music together, went on tour together, had barbecues together. He says the title of Bowie’s last album, Black Star, is a reference to the 1960 Elvis Presley song of the same name “about the end of a life” (“And when a man sees his black star,/He knows his time, his time has come”).

“David had been sick for a long time,” he says. “Or ill, as you say in the UK. So, David had been ill for a long time. I was very pleased that . . . after he died, people were asking me, ‘How do you feel?’ and I’m like, ‘Actually, I’m just kind of happy that he lived as long as he did.’ Because I . . . had thought, yeah, I had thought that he was going to die a little before that. So.”

The Radiohead singer Thom Yorke lives just up the street from him in Los Angeles but Moby has never met him “as far as I know”. Apart from Bowie, he claims not to have musician friends.

“Musicians – and I’m sure you’ve encountered this many times – have a sense of self-importance that is off-putting,” he says. “It is very hard to be friends with someone who thinks that just by showing up, they’re doing something special. At the end of the day, you want to say to them, ‘You know what? You wrote a couple of good songs. Let’s put it in perspective.’”

He was born on 11 September 1965, and on his 36th birthday he watched the twin towers burning from his roof deck. He tells me that when the second plane hit and it became clear the first was no accident, he heard “the cumulative effect of ten thousand rooftops covered with people, and the weirdest scream. A scream of horror but also a scream of understanding.”

Fifteen years on, he talks about this year’s politics as a Manichaean thing. “Half the world are motivated by fear and desire to move backwards, and the other half are motivated by optimism and a desire to move forward rationally. It’s religious tolerance versus fundamentalism; it’s racism versus inclusion. I wonder if there’s a way we can make peace with that whole other half of humanity who are holding on to a non-evidence-based approach to the future. But I don’t know what it is.” He has known Hillary Clinton for two decades, was a vocal supporter of hers during the election run and released a pair of anti-Trump tracks for Dave Eggers’s music project 30 Days, 50 Songs.

He says that many celebrity Clinton backers were cautious to come out for her during the primaries “because Bernie supporters wanted to crucify you. Now Trump has united and inspired Democrats more than anything since the Vietnam War.”

The election result, he says, might just be “the equivalent of a crystal meth addict going on one last bender. Maybe this bender will finally convince Americans to stop voting for Republicans. Because they are terrible. There has always been an understanding that if everyone in America voted, there would be no Republican politicians. The reason Republicans win is that most Americans don’t vote.

“Those of us on the left who were brought up to be tolerant of people who had different opinions from us – well that’s great, ­unless the opinions are bigoted and wrong. If someone is a climate-change denier, they are wrong. If someone voted for Brexit, they are wrong. If someone voted for Trump, they are wrong. There is a lot of ambiguity in the world, but not about these things.”

The clock ticks towards 11.15am and Moby, ever punctual, is done.

“These Systems Are Failing” is out now on Little Idiot/Mute

Kate Mossman is the New Statesman's arts editor and pop critic.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump