Democrats want review of exports to Iran

WASHINGTON — Two House Democrats are asking congressional investigators to examine U.S. exports to Iran to see whether approval procedures are being abused in light of a dramatic increase in the dollar value of shipments there over President Bush's first seven years in office.

House Foreign Affairs Chairman Howard Berman of California and committee member David Scott of Georgia asked the Government Accountability Office for the review.

They say they are reacting to an Associated Press report earlier this year that chronicled a nearly twentyfold increase in the dollar value of U.S. exports to Iran, from about $8 million in 2001 to nearly $150 million in 2007.

The AP found cigarettes, bull semen, military apparel and a grab-bag of other U.S. goods including musical instruments and brassieres went Iran's way during that period in addition to medical supplies, corn and soybeans.

'Deeply disturbing'

The exports were sent under agricultural, medical and humanitarian exemptions to U.S. sanctions on Iran. The Bush administration has declined to say who is getting the export licenses.

"The revelations in the AP article are deeply disturbing, particularly at a time when Iran continues to pursue its nuclear program in defiance of the will of the international community," the lawmakers told the GAO in a letter last week.

The AP found the government's own records showed at least $106,635 in military rifles and $8,760 in rifle parts and accessories going to Iran, along with thousands of dollars worth of military aircraft parts.

The Bush administration looked into those exports after the AP questioned officials. It said the rifles and parts actually went to Iraq, and that Iran was erroneously entered on the shipping record.

Leftover F-14 parts

At least $13,000 in "aircraft launching gear and/or deck arrestors" equipment needed to launch jets from aircraft carriers, actually went to Italy, not to Iran as records showed, the administration said.

"In light of this odd circumstance, your report also should address the following questions: Is the U.S., in fact, selling military equipment to Iran? If not, what is the explanation for recording errors indicating that such sales did, in fact, take place?" the lawmakers told the GAO. "Why was nobody aware of the recording errors until the AP story appeared?"

Bush earlier this year signed legislation banning the Pentagon from selling its leftover F-14 fighter jet parts, a move prompted by the AP's reporting on security gaps in Defense Department surplus sales that made them a prime hunting ground for buyers for Iran and other countries.

Iran, allowed by the U.S. to buy Tomcats decades ago when the two countries were still allies, is believed to be the only country trying to keep the old fighter jets airworthy.

By SHARON THEIMER Associated Press

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US charges Dubai firms over illicit Iran Exports

NEW YORK/DUBAI // Five Dubai-based companies are among 16 firms and individuals charged by the United States with exporting “dual use” items to Iran that could be used to make weapons and explosives.

Eight individuals and eight companies based in Malaysia and Iran as well as Dubai have been accused of buying US-made goods and transporting them to Iran through countries including the UAE, Malaysia, England, Germany and Singapore.

A sealed indictment issued by a federal grand jury on the seventh anniversary of the September 11 attacks, unsealed late Wednesday, alleged there was a case to answer.

Iran is subject to UN sanctions related primarily to material used in the manufacture of weapons of mass destruction, in addition to unilateral sanctions imposed by the United States, which prohibit the sale of most goods of US origin to the Islamic republic. The charges relate only to alleged violations of the unilateral US embargo.

Saeed al Marri, the deputy director of the Federal Customs Authority, said the UAE was committed to upholding sanctions imposed through the United Nations.

“If there is a UN resolution regarding certain goods not going to Iran, we will uphold it,” he said.

The electronic items which the five UAE-based firms are accused of exporting to Iran are “dual use” products that could have civilian or military applications.

The US has previously accused Iran of using such items to manufacture the improvised explosive devices (IEDs) that have been responsible for the deaths of US soldiers in Iraq and Afghanistan.

Nasser Hashempour, the vice president of the Iranian Business Council in Dubai, said the historical business, cultural and family links between the GCC states and Iran meant the United States was seriously challenged in imposing unilateral sanctions in this region, especially on dual-use goods easily obtained by civilians.

“An individual can buy something from a supermarket here and take it to Iran,” he said. “How can you stop that? It is untraceable.

“The ties between Iranians and the Gulf countries are unbreakable. Unfortunately, in a very unprofessional way, the US has approached businessmen here and asked them not to trade with Iran, which I don’t think would ever work in this region.”

In a separate development, the US Treasury said it would impose sanctions on six Iranian military companies because of their roles in Iran’s nuclear and ballistic missile programmes.

“The US government is wielding a powerful array of authorities against Iran’s proliferation supply chain,” Adam Szubin, director of the US Treasury’s foreign assets control office, said.

“In concert with today’s unsealed indictment against Iran’s suppliers and middlemen, [the] Treasury is levying sanctions against Iranian military end-users that procured goods from those named in today’s indictment.”

The indictments came after a two-year investigation following a 2006 case involving the Dubai-based Mayrow General Trading, which the US accused of diverting controlled US goods to Iran that found their way into bombs used in Iraq. The company, which still has an address and phone number listed in Deira, could not be reached for comment yesterday.

As well as Mayrow General Trading, the recently charged companies include Dubai-based Atlinx Electronics, Micatic General Trading, Madjico Micro Electronics and Al-Faris. Also charged were Neda Industrial Group, an Iran-based business, and Eco Biochem and Vast Solution of Malaysia.

The US is seeking the extradition of eight individuals currently overseas but authorities did not say if they had been arrested. They were Ali Akbar Yahya and Farshid Gillardian, both Iranian nationals who are naturalised British citizens; FN Yaghmaei, Bahman Ghandi and Ahmad Rahzad, all Iranian nationals; Kaam Chee Mun, a resident of Malaysia; Djamshid Nezhad, a resident of Germany, and Majid Seif, an Iranian national residing in Malaysia.

The US authorities are still investigating the case and have appealed to people with knowledge of the companies’ activities or the individuals to contact them. Some of the charges against individuals, relating to violations of the Iran Trade Embargo, carry sentences of up to 20 years in prison.

Sharmila Devi and Gregor McClenaghan

http://www.thenational.ae/article/20080918/NATIONAL/307082198/0/art

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