The Carlyle Group, a large investment firm linked to US and British politicians, has pulled out of a scheme to recover billions of dollars from Iraq, following the publication in The Guardian this week of documents detailing the secret proposals of a consortium with which it was involved. \nCarlyle published a withdrawal letter yesterday sent to other members of its consortium. \nThe consortium offered a confidential deal to use its political influence to collect a US$27 billion debt owed by Iraq to Kuwait, despite US pleas for debt forgiveness from other countries. \nA Carlyle partner, former US secretary of state James Baker, has been accused of a conflict of interest, because he has been touring the world demanding debt relief on behalf of US President George W. Bush, while his firm had a private interest in doing a special deal with Kuwait. \nCarlyle's letter, signed by its general counsel, Jeffrey Ferguson, and dated Oct. 13, says: "Carlyle does not want to participate in the consortium's work in any way, shape or form and will not invest any money raised by the consortium's efforts." \nThe letter also claims that at the time Baker was appointed the president's debt envoy that "Mr Baker understood that Carlyle would have no involvement with the consortium." \nCarlyle admits it was involved in the original scheme by a consortium of financiers and lobbyists, who lobbied Kuwait at a meeting on July 16 last year. \nDocuments from the consortium describe Carlyle's chairman, former US defense secretary Frank Carlucci, as the man who "played a convening and guiding role on behalf of Carlyle." \nThey also specifically mention Baker's name as one of the "leading individuals associated with Carlyle" who they claim will be free to play a "decisive role" once Baker retires from his "temporary position" as debt forgiveness envoy. \nThe scheme had two parts. The first was to turn over Kuwait's US$27 billion war reparations debt to a foundation set up by the consortium, which would then use its political influence to ensure Iraq was made to pay up. \nThe second part of the plan was to benefit Carlyle specifically, by handing over to them US$1 billion from Kuwait to manage in their investment funds. \nThe documents suggest that Carlyle scaled back its stated involvement in the scheme while Baker was in his official post, but Kuwait was informed by the consortium that this was temporary. \nThe letter to Kuwait with the detailed proposal confirming Carlyle's continuation as a participant was signed by another former secretary of state turned lobbyist, Madeleine Albright, by a Washington law firm, Coudert Bros, and by the consortium's leader, Shahameen Sheikh of the "International Strategy Group." \nIn its second change of position in as many days, Carlyle claimed yesterday in its letter that "Carlyle was never a member of the consortium." The previous day, its spokesman claimed Carlyle "withdrew" from the consortium after Baker became debt envoy last December. \nThe day before that, its spokesman Chris Ullman told The Guardian, Carlyle had merely "restricted" its consortium role.
Sitting in a lotus position, four men weave glittering beads through gold thread on an organza sheet, carefully constructing a wedding dress that would soon wow crowds at Paris Fashion Week. For once, the French couturier behind the design, Julien Fournie, is determined to put these craftsmen in the spotlight. His new collection, which showed in Paris on Tuesday, was entirely made with fabrics from Mumbai. He said that a sort of “design imperialism” means that French fashion houses often play down that their fabrics are made outside France. “The houses which don’t admit it are perhaps afraid of losing their clientele,” Fournie
A court in Thailand sentenced a 27-year-old political activist to 28 years in prison on Thursday for posting messages on Facebook that it said defamed the country’s monarchy, while two young women charged with the same offense continued a hunger strike after being hospitalized. The court in the northern province of Chiang Rai found that Mongkhon Thirakot contravened the lese majeste law in 14 of 27 posts for which he was arrested in August last year. The law covers the king, queen and heirs, and any regent. The lese majeste law carries a prison term of three to 15 years per incident for
Over a few hours under gray skies, dozens of combat planes and helicopters roar on and off the flight deck of the USS Nimitz aircraft carrier, in a demonstration of US military power in some of the world’s most hotly contested waters. MH-60 Seahawk helicopters and F/A-18 Hornet jets bearing pilot call signs such as “Fozzie Bear,” “Pig Sweat” and “Bongoo” emit deafening screams as they land in the drizzle on the Nimitz, which is leading a carrier strike group that entered the South China Sea two weeks ago. US Rear Admiral Christopher Sweeney, who is commanding the group, said the tour
A gunman killed 10 people and wounded 10 others at a Los Angeles-area ballroom dance club following a Lunar New Year celebration, setting off a manhunt for the suspect in the latest mass shooting tragedy in an American community. Captain Andrew Meyer of the Los Angeles Sheriff’s Department said Sunday that the wounded were taken to hospitals and their conditions range from stable to critical. He said the 10 people died at the scene in the city of Monterey Park. Meyer said people were “pouring out of the location screaming” when officers arrived at around 10:30 pm Saturday. He said officers then