- Information for this article comes from long-time business,
finance and political writer and analyst Bob Chapman who publishes the
bi-weekly International Forecaster. It's power-packed with key information
and a valued source for this writer. He obtained voluminous material directly
from its source. People need to know it. Read on.
- SueAnn Arrigo is the source. She was a high-level CIA
insider. Her title was Special Operations Advisor to the Director of Central
Intelligence (DCI). She also established the Remote Viewing Defense protocols
for the Pentagon in her capacity as Remote Viewing Advisor to the Joint
Chiefs of Staff (JCS). It earned her a two-star general rank in the military.
She called it a "ploy" so the Pentagon could get more of her
time and have her attend monthly Joint Chiefs of Staff meetings. Only high-level
types are invited, and she was there from October 2003 to July 2004.
- Part of her job involved intelligence gathering on Iraq
and Afghanistan - until August 2004 when she refused to spread propaganda
about a non-existant Iranian nuclear weapons program and left. She followed
in the footsteps of others at CIA who resigned for reasons of conscience
and became critics - most notably Ray McGovern, Ralph McGehee, and Phil
- On May 16, 2008, Arrigo sent extensive government corruption
and cover-up information to Henry Waxman, Chairman of the House Oversight
and Government Reform committee - in 12 separate cases. This article covers
four of them or about one-third of what Congress got. The 12 are explosive
and revealing but just the tip of the iceberg:
- -- of government corruption and war profiteering; --
sweetheart deals and kickbacks; -- high-level types on the take; -- trillions
of missing dollars; -- on September 10, 2001, Rumsfeld admitting "According
to some estimates, we cannot track $2.3 trillion in transactions;"
- -- imagine the current amount; -- its corrosive effect
on the nation; and people should
- -- demand accountability - who profits, who pays and
what are the consequences of militarism gone mad.
- SueAnn Arrigo offers a glimpse and at great personal
risk. In August 2001, DCI George Tenet told her to assemble "a moving
van full of Pentagon documents showing Defense Contractor kickbacks to
Pentagon officials." She did as instructed but not to expose corruption
as she learned - to conceal it and in her judgment so CIA could divert
defense business to Halliburton and "Carlyle-related contractors."
She stated: "The mood at the CIA and Pentagon was 'war is coming'
because the Bush Family stands to make billions from it -- so get ready."
- Arrigo was shocked at what she found and how brazenly
the Pentagon wrote it up because it feels untouchable, especially since
2001. That notion proved misguided after CIA used the material to blackmail
or bribe its officials "into 'working on' the Halliburton-Carlyle
team." Top CIA types were involved, and Tenet laid it out for Arrigo:
You've "given me the keys to the kingdom. (These) documents will make
- She collected three types. Her report covers one but
has plenty of incriminating evidence. Her precise recall of dates and names
is incomplete, but events are factually right and damning on how Washington
operates. It's always been this way but never to the degree as under George
Bush. Arrigo exposes the scheme - the systematic looting of the treasury
to enrich contractors and high-level officials at Pentagon, CIA and others
well-placed in government. Precise amounts are unknown, but at mimimum
are countless multi-billions, even trillions - at taxpayer expense and
diverted from essential social and infrastructure needs.
- Case 1: Ordering Unneeded New Fighter Aircraft
- Arrigo discovered high-level Pentagon corruption. It
involved bid-rigging and implicated "an Air Force general on the JCS
and a Defense Contractor, Boeing." She disclosed it to JCS Chairman
Hugh Shelton and DCI George Tenet, and in both instances drew blanks. She
also reported it to the Government Accountability Office (GAO), the investigative
arm of Congress. It was vetted and confirmed, but left unaddressed the
larger issue of whether new generation planes are needed at an enormous
cost to taxpayers. Arrigo believed not, and several Air Force generals
agreed. Not other JCS members, however, who she learned are on the take.
- There's more. They "had the gall to try to force
through another unneeded plane contract for Boeing." At an early 2004
JCS meeting, Arrigo complained about the previous undelivered order because
it didn't meet Pentagon specifications. Yet one general in particular tried
"to force the US military to buy another (unneeded) upgrade."
One other JCS member backed her to no avail, and the new order went through.
Arrigo rightfully concluded that new plane orders were to enrich Boeing
and high-level Pentagon types getting kickbacks for their cooperation.
- She also learned how much - an average $22,000 "for
each (JCS meeting) vote according to their bank" records. Not US ones.
CIA-arranged Swiss accounts specifically for this purpose. Everyone at
the meeting cashed in, except Arrigo and one dissenting general. More disturbing
is that this is standard Pentagon practice - handouts to contractors; kickbacks
to complicit brass; and taxpayers out multi-billions - year after year.
- Jeff St. Clair wrote about it in his 2005 book "Grand
Theft Pentagon: Tales of Corruption and Profiteering in the War on Terror."
It's an explosive account of how contractors like Halliburton, Lockheed
Martin, Boeing, Bechtel and the Bush family-connected Carlyle Group scam
multi-billions at taxpayer expense and not a whiff of it in the mainstream.
It's the reason US annual "defense" spending tops $1.1 trillion
(conservatively) with all military, homeland security, veterans, NASA,
debt service and other allocations included.
- Case 2: Halliburton Delivers Half Full Cartons to the
Pentagon's "Swing Shift"
- Arrigo refers to the Pentagon's Receiving Department
"swing shift" personnel. They alone are on the take so other
shifts are shut out and can't report it. As a CIA insider, she checked
and found damning evidence - about "the military (not) getting supplies
to the troops on time." She also learned that Halliburton has its
"Representative to the CIA," and one at the Pentagon as well.
Both get federal salaries but neither was "hired by CIA or the military
through their personnel departments. Neither had done military training
or trained at (CIA's) 'Farm' as a spy." Arrigo was disturbed and with
good reason when orders from the top said back off.
- It got worse. Arrigo worked at CIA for over 30 years
and reported directly to Tenet. But she wasn't prepared for what she found
- a new section at the Agency without her knowledge. It employed 40 people,
all working for Halliburton "while being paid by the US taxpayer as
if they were CIA." It was secret. No files were on them. They were
never interviewed, never vetted, and she concluded: "CIA had a back
door in its security to let Halliburton put anyone they wanted in (its)
hallways. It was an outrageous (breach) of US National Security,"
and in a post-9/11 "war on terrorism" climate.
- She was shocked and told Tenet. His reply: "Yes,
I know." Head of CIA building security also knew. Arrigo asked what
he'd do about it. His answer: "Keep my mouth shut so I can stay alive
and I suggest you do the same." She asked if he, CIA or Halliburton
would kill her if she talked. He didn't think so. Would national security
firm CACI do it because it's affiliated with Halliburton and also has a
CIA back door for its personnel at the Agency.
- Arrigo dug deeper. She got inside Halliburton's area
and asked questions. Why was the company shipping half the contracted for
amounts and shortchanging the troops and taxpayers. It was no different
for war zones. Halliburton "set up the same corrupt system of swing
shift receivers (for) at least 3 continents. They received the cartons
and signed (off) that the goods were all received properly. Then the shortages
later were chalked up to thefts or war damage, etc."
- Arrigo again informed Tenet. His answer: "This is
nothing new," then added: "Have a report about it on my desk
before Christmas (2001)." It got worse. Arrigo told Tenet he's responsible
for "correct(ing) Halliburton's short-shipping and its invasion of
the CIA." He said he couldn't because the White House tied his hands.
Call Congress, Arrigo said. DCI "should be a man of courage."
Tenet ignored her, so Arrigo faxed documents revealing Halliburton fraud
to GAO - omitting national security secrets. One of them crowed about the
scheme's profitability, and having high-level officials involved made it
- It was clever and even more devious than Arrigo imagined.
Halliburton uses each shortage complaint as a new order. "In that
way (it) never (loses) by having to make good for (what's) missing,"
and (it gets) paid double for the same merchandise.
- Arrigo knew too much, took risks to learn it, and what
happened next is shocking. Halliburton's "CIA Representative"
confronted her, tore out her phone, ransacked her office, removed every
shred of paper, and hauled her off bodily "to a prison cell"
inside its basement offices. She was intimidated and threatened. Thought
she might be killed. She survived, but the message was clear. She complained
to Tenet. Showed him her bruises. He responded dismissively: "There,
there, everything will be all right in the morning."
- GAO still has Arrigo's files. It began investigating
but stopped. She thinks that Congress can resume it and asked Waxman to
do it. That's where things now stand.
- Case 3: The White House Conspiracy to Cook the Books
- Halliburton, Carlyle and CIA
- In 2002, Arrigo tried a new tact - ingratiating herself
with "Halliburton's Man" and using it to her advantage. She offered
cooperation for access to his space and make him think she was on his side.
It worked, went on for four and one-half months through late May, and it
paid off - with plenty of insider knowledge "about Halliburton and
how it works." Enough to fill a book, she says, but her account sticks
- First off, it's pure myth that Dick Cheney stopped running
the company. "He called in orders to the man I worked for almost every
day and sometimes two or more times a day. He remained (Halliburton's)
functional head in all but name. No one....had the power to override his
orders." Second, Cheney never divested himself of Halliburton profits.
"He merely hid how (he got them) through a series of shell companies."
- One of Arrigo's jobs was to liaison between Halliburton
and CIA's "creative accounting departments." In other words,
their co-conspiratorial treasury looting efforts, and Arrigo got insider
access to it. Her advanced math and computer software training qualified
her. In a few months, she became expert in how CIA and Halliburton hid
their "financial illegalities."
- She explained - "Computers are good ways to fool
most people because (they don't) look inside of them." They can be
programmed "to print out one set of books for regulators, another
for Defense Contractors, another for the Pentagon, another for the taxpayer,"
and so forth. It's simple. Decide what you want, and machines will create
it in any desired form. The trick is doing it expertly, most criminals
can't, so they need professionals to do it for them. It means crimes are
never secret, and many computer experts know about them. CIA has always
been tainted, kept it secret since inception, so far has been untouchable,
but remains vulnerable to exposure by people of conscience like Arrigo.
- She explained: Halliburton has eight software programmers
at CIA. Its home office has many more. She was on conference calls with
60 of them on ways to conceal illegalities and assure none of it leaks
out. The company has less expertise than CIA so the Agency took charge
to make the two systems compatible. It took several years and over 100
programmers. They came, left for other jobs, and took insider knowledge
with them. It risks more leaks about Halliburton, other contractors, CIA,
the Pentagon, high-ups in government, and the Basel-based Bank of International
Settlements for its part in corruption.
- Many investigations are ongoing, but huge pressure is
exerted to quash them. It's feared leaks may unravel the whole scheme -
a vast corruption web involving countless numbers of contractors, related
companies, and many high level government and Pentagon insiders. Cover-up
software hides it. Taxpayers fund it. Amounts keep getting greater, and
they're up to unimaginable levels.
- Arrigo explained the system. Suppose Halliburton sold
product A in 100 Lot Sizes, in Quantity X at Price Y to the Pentagon on
a given date. Most civilian invoices disclose this. Pentagon ones don't
so contractors can cheat and Pentagon brass profit. Missing information
conceals whether all merchandise was delivered as nothing indicates quantities
shipped. Further, repackaging also hides proper amounts. Omitting the price
alone conceals whether a shipment was shorted, but CIA is more clever than
that. It experimented with "tested receivers at some of its front
companies" to learn how best to deceive them. What works best is "shifting
prices around like random noise" - one day this cost, another a different
one, and so forth.
- One company used a "gross overcharge method"
that looked suspicious. It got receivers to discover the real price, and
that defeated CIA's scheme. When it works, it cooks the books, and no one's
the wiser. Ledger entries are inflated, undercut, omitted, added, or varied
in amounts of similar transactions. Like a "professional crime institution,"
CIA is expert at falsifying books so no one catches on. How? By random
price variations to keep auditors off balance and unable to discover corruption
- Another example:
- CIA varies its front company prices monthly. Suppose
Halliburton made a purchase "when it (used) a cost inflation idea
of cheating. Halliburton (has) an incentive to inflate the cost of its
purchases (to) justify (its) high (price) to the military." So as
standard practice it uses CIA's highest price and claims that amount for
- But comparing two sets of books reveals the scheme. So
methodology became more sophisticated to conceal it. Halliburton takes
CIA prices and doubles them on its books. It then claims the Agency recorded
half the charge "accidently," says its front company promised
a 50% discount, but never delivered. CIA looks bad, and it balked. No matter.
Halliburton still does it, but CIA has "lots of fronts with lots of
customers and worse problems (to hide) than merely jacking up prices. Some
fronts (are) fictitious and (make) no products." Others have real
customers plus fake ones to launder money. CIA tries to "make (their)
crimes 'undetectable.' " Halliburton hopes to "sneak by"
until caught, then find a way to weasel out of it with minimal damage or
- Case 4: Halliburton's Rigged Back Door Accounting Computer
at the Pentagon
- In early 2002, GAO got damning evidence: that Halliburton
overbills and short-ships - deliberate fraudulent acts as standard company
practice, confident it can get away with it, and most often it does.
- GAO has the goods to expose it from Halliburton and Pentagon
invoices. They reveal a problem. They don't match, are grossly inflated,
and payments exceed amounts billed - by about 35%. Arrigo met with GAO
and compared notes. Halliburton has similar Pentagon and CIA-paid staff,
and George Bush approved it in a secret Executive Order Arrigo has for
proof. She gave it to GAO plus other documents showing national security
is compromised and taxpayers cheated - hugely.
- One document lists Halliburton's CIA and Pentagon staff,
what little official records discloses about them, their secret office
locations, and information on their private security staff. Arrigo discovered
that Halliburton's top CIA man served time for felony fraud. Another at
Pentagon was convicted as well - for stealing Army vehicles, then profiteering
by transshipping them overseas.
- Dick Cheney knew, blocked background checks to conceal
it, but Arrigo found out and about the Pentagon fraud that followed. She
has a handwritten Cheney memo instructing his man "to make sure that
the Pentagon pays us all that it owes us and then some." CIA's forgery
department verified the writing is Cheney's.
- Arrigo also has a letter from Halliburton's Pentagon
man to his CIA counterpart, and it's damning. He brags how he's "getting
more than we bargained for (from) the Pentagon" and suggested they
get together to compare notes. They did and Arrigo taped it. The evidence
once more is damning - about how easy it is to scam the system; befriend
accounting personnel; install company programmers; check bills supposedly
behind in payments; install a special software code for higher amounts;
and do all of the above at Pentagon and CIA.
- Arrigo informed George Tenet so he'd stop "Halliburton
from ripping off the American taxpayer via the CIA and Pentagon."
Tenet hardly blinked and responded casually: "Well, you certainly
have done a thorough job as usual." He then offered to inform the
White House to "correct the problem." Arrigo did herself, GAO
as well, and later learned that the Bush administration (likely Dick Cheney)
blocked an investigation.
- This article covers four of Arrigo's 12 cases. Their
evidence is damning and shows systemic contractor, government, CIA and
Pentagon fraud involving enormous amounts of money. One or more articles
will follow if more material can be obtained. It's not what Pentagon and
CIA want outed so getting it is never simple and revealing it not without
- Stephen Lendman is a Research Associate of the Centre
for Research on Globalization. He lives in Chicago and can be reached at
- Also visit his blog site at sjlendman.blogspot.com and
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