SueAnn Arrigo's Explosive Revelations

Exposing Pentagon and CIA Corruption
By STEPHEN LENDMAN

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 Agee.

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 me rich."

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 foolproof.

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 to highlights.

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 patterns.

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 its cost.

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 cost.

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 risks.

Stephen Lendman is a Research Associate of the Centre for Research on
Globalization.

http://www.counterpunch.org/lendman06112008.html