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U.S. Marines Guard $1B in Gold in Iraq

 
 
Reply Fri 18 Apr, 2003 10:52 pm
U.S. Marines Guard $1B in Gold in Iraq
U.S. Marines Safeguard Iraqi Bank Vaults Holding Nearly $1 Billion in Gold
The Associated Press
BAGHDAD, Iraq April 18, 2003

U.S. Marines with machine guns and tanks stood watch Friday over what they estimated was $1 billion in gold safeguarding bank vaults that withstood direct rocket-propelled grenade hits by robbers determined to fight their way in.

"Fort Knox doesn't have security like this," Staff Sgt. Jack Coughlin of the 3rd Battalion, 4th Marines said in a bank lobby, as shots rang out outside U.S. snipers dealing with robbers armed with AK-47s still roaming Baghdad's pillaged banking district.

Elsewhere in Baghdad, a U.S. Army patrol from the 3rd Infantry Division stumbled on an estimated $656 million in U.S. currency, the Los Angeles Times reported Friday night on its Web site.

The cash, which was believed to be authentic, was found in a Tigris River neighborhood where senior Baath party and Republican Guard officials lived, according to a Times reporter who accompanied the division.

"I need to call my wife and tell her we were multimillionaires for about three seconds," Staff Sgt. Kenneth Buff of the 4th Battalion, 64th Armored Regiment said as he stood next to a box stuffed with sealed bundles of currency.

Taylor Griffin, a U.S. Treasury spokesman, said any such cash retrieved would be held aside for the people of Iraq.

In the bank district, days of audacious daylight robberies, thwarted by Marines, left two blocks a gutted ruin. Scorch marks crowned the windows of several banks, shattered glass crunched thickly underfoot, and scattered documents lay heaped up and down the sidewalks.

Broken glass was inches deep in the Central Bank a burned-out shell of a building, its interior buried in twisted metal beams from the collapse of the roof and all nine floors under it.

The bank, by some accounts, holds some of the most precious items in Iraq: ancient gold artifacts that were taken from the National Museum for safekeeping before the U.S.-led war started, and stashed in the bank's vaults.

Some Marines suffered from smoke inhalation when entering the burned building. U.S. forces have deemed it too unsound structurally to investigate at length, said Marine Capt. Tim Walker, a 3rd Battalion company commander standing in Friday as Iraqi bank overseer.

So it remained a mystery whether museum artifacts were stashed there and survived.

At least nine huge vaults in the banking district were not destroyed, Walker said.

Intelligence reports given to the Marines indicated Baghdad's wealthy residents deposited their jewelry and other gold valuables in vaults before the war, Walker said. The estimated value was enormous $1 billion Marines estimate.

One of the nine room-size steel vaults showed the marks of a head-on RPG hit, Walker said.

He stood beside a small safe that hadn't fared so well. Its layers of metal were peeled back, its contents gone.

Robbers running through the district with acetylene torches and axes made easy work of such safes for days.

Medium-size vaults had fallen too, Walker said but to robbers who apparently had inside knowledge. "We found a lot with the keys in them, open and looted," he said.

To keep the surviving vaults safe, Marines on Friday stood guard at every street and every sewer cover, and snipers were deployed on roofs.

"Get out of here. Don't talk to me. Get out of here," a Marine told one Iraqi man, enforcing an absolute two-block wide no-go zone around the banks.

Marines fought some of the most intense battles of the war around the banks.

Finally, by Friday, they had beaten back robbers who had come on relentlessly with welding torches, explosives and automatic weapons.

"High-speed robberies," Coughlin said. "Anytime you use an RPG, I call that high-speed."

Robbers used all sorts of vehicles even an ice-cream truck to make their getaways.

The Marines stopped them, loading bales of stolen U.S. currency and Iraqi dinars into armored patrol vehicles for safekeeping at U.S. military bases in the Iraqi capital.

For the looters who came later, Marines used humiliation, and more than a little fear.

"We kind of zip-locked their hands behind them, and burned their clothes and shoes," Walker said which explained why journalists saw fleeing men in underwear in the district.

"We told them it's better for them they don't come back," he added.

Marines will head to southern Iraq in coming days, and turn the job of guarding Baghdad over to the U.S. Army.

That leaves Army soldiers with what Walker called the "headache" after the fight divvying up millions in gold among the clamoring owners, with scarcely a bank document left to outline ownership.
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BumbleBeeBoogie
 
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Reply Fri 18 Apr, 2003 11:08 pm
Soldiers Discover $650 Million cash in Baghdad
http://www.latimes.com/news/nationworld/iraq/inside/la-iraq-a041803cash_lat,1,1260385.story?coll=la%2Dhome%2Dheadlines

Soldiers Discover $650 Million in Baghdad
Boxes of U.S. currency are found by accident in an upscale neighborhood where Republican Guard, Baath party officials had lived.
By David Zucchino, Los Angeles Times Staff Writer
5:09 PM PDT, April 18, 2003
Times staff writer Warren Vieth, in Washington, contributed to this report.

BAGHDAD -- Two Army sergeants went searching for saws today to clear away branches that were blocking their Humvees. But they stumbled across a sealed-up cottage that aroused their curiosity -- and ultimately led to the discovery of an estimated $650 million in cash.

The sergeants tore down a cinderblock and concrete barricade blocking the cottage door and found 40 sealed, galvanized aluminum boxes lined up neatly on the stone floor. Breaking open one box, they were stunned to discover 40 sealed stacks of uncirculated $100 bills -- $100,000 per stack, or $4 million in the box. In all, the 40 boxes were assumed to contained $160 million.

But there was more.

In an adjacent cottage in an exclusive Tigris River neighborhood where senior Baath Party and Republican Guard officials had lived, the sergeants found another 40 aluminum boxes assumed to contain another $160 million in currency. In a matter of minutes, they had uncovered $320 million in cash.

"I need to call my wife and tell her we were multimillionaires for about three seconds," Staff Sgt. Kenneth Buff said as he stood next to a box stuffed with sealed bundles of currency.

Their discovery set off a nighttime search of abandoned mansion estates tucked among parks and canals. By 11 p.m., soldiers of the 3rd Infantry Division had found two more cottages containing at least 84 more boxes presumed to hold $336 million in cash, for a total of $656 million.

The loot apparently was hidden by fleeing Baath Party members and senior Republican Guard commanders who had lived in the wooded neighborhood just east of Hussein's Presidential Palace. Commanders scrambled to secure the area overnight before word of the discoveries triggered a crush of fortune seekers.

Officials did not immediately confirm that the currency was legal tender, but an Army private here who said he had worked for an armored car company examined the bills and called them genuine.

Taylor Griffin, a U.S. Treasury spokesman, offered assurances that any cash retreived from Hussein's regime would be held aside for the people of Iraq. "If we find money and it's not counterfeit, any assets belonging to Saddam Hussein and his cronies will be returned to the Iraqis," Griffin said.

Soldiers of the division's 4th Battalion, 64th Armored Regiment were ordered to stop searching the area shortly before midnight after commanders discovered $600,000 missing from an opened box. Officers said the cash was recovered in a tree and three soldiers were questioned.

The cash boxes were loaded onto trucks and escorted by military police to division headquarters at Baghdad's international airport for counting and security. Commanders said they did not know the ultimate disposition of the currency; cash recovered by the same battalion from a botched bank robbery Thursday was held for a new transitional government being formed, officers said.

The staggering sums illustrate the fabulous wealth accumulated by Hussein and his ruling elite. Searches of their luxurious homes in the two-mile-long palace complex over the previous week had found pricey automobiles, private zoos, expensive liquor, a cabin cruiser, huge weapons caches and gilded furniture, but very little reported cash.

Now it appears that Hussein's top echelon and perhaps Hussein himself -- was unable to carry out all of the regime's money when they fled the American attack on the capital, and instead sealed the currency in the cottages near their homes.

Officers said they did not know the source of the currency. Each aluminum box was sealed with metal rivets and hard plastic straps. Green tags read, in English and Arabic: "Jordan National Bank," followed by a serial number. That led to speculation among soldiers that the cash was payment by Jordan for the sale of Iraqi oil in violation of a United Nations embargo on Iraq.

A former Iraqi government official who requested anonymity said the money almost certainly was stashed away by members of the Baath Party's upper echelon, perhaps at the direction of Hussein himself or one of his two sons, Uday or Qusay.

The former official said Hussein's government received hard currency for virtually all of the illicit oil smuggling activity that has provided a critical source of revenue not subject to United Nations oversight under the oil-for-food program.

At the time of the first Gulf war in 1991, the former official said, Hussein's regime accumulated a cash hoard of $4 billion to $6 billion.

"I suspect they have been stashing funds for some time just in case this war didn't go well. I'm sure that if they keep searching, they'll find lots of these galvanized steel boxes all over the place," the former official said.

"It's either illicit money accumulated by Uday, who basically is in charge of the economy, trade, smuggling oil and what have you, or it was put there by the security people, who report to Qusay."

Cash has been the preferred medium for all off-the-books transactions in Iraq because bank transactions have been closely monitored since the first Gulf war, the former Iraqi official said. To transfer funds out of Iraq, government officials would physically transport it to another, friendly country, where it would be deposited in bank accounts and, if desired, transferred electronically to other locations.

"This is the way these people operate," the former Iraqi official said. "They take the money, secure it, and deposit it in Jordan or some other country where they have arrangements, say Tunisia or Yemen. From there, they shift it to places like Kazakhstan or Armenia."

Many of the seven-inch-thick $100,000 bundles were sealed in plastic shrink wrap and labeled "Boston series," "New York series," or "Richmond series," corresponding to the Federal Reserve Bank in those cities. The labels also listed the serial numbers of the bills, which were sequential new notes, many dated 1999 or 2001.

Other $100,000 bundles contained previously circulated currency, some dating to 1993. They were tied with string and rubber bands, each accompanied by a handwritten note with Arabic numerals. On the doors of at least two of the cottages, someone had taped a note containing a signature and notations in Arabic.

While luxury homes and compounds in the Presidential Palace complex have been searched several times by U.S. troops, soldiers have only recently begun moving through the neighborhoods of palm trees and flower nurseries about a mile east of the palace on the west bank of the Tigris. The 4th Battalion, whose soldiers discovered the hidden cash today, moved its command post from the Presidential Palace into a two-story mansion along the river on Tuesday.

Since then, Buff said, he and other battalion soldiers have driven past the cottages many times. But because the small structures were partially obscured by flowering trees and rose gardens, no one noticed that their doors and windows had been sealed, apparently recently, by cinder blocks and cement.

"We all must have gone by there a hundred times," Buff said. Buff and Sgt. First Class Daniel Van Ess said they stumbled on the cottages about 2:30 p.m. today when they got lost looking for a gardener's shack where Buff had seen two saws the day before. The sergeants had been ordered to cut down overhanging tree limbs that bang against passing Humvees and trucks.

When they noticed the crudely built cinderblock and concrete barricades sealing all openings to the cottages, they grabbed a crowbar and smashed through one barricade. Inside they found two small bedrooms with no furnishings, two well-scrubbed bathrooms and the 40 boxes of cash on the floor.

"We got suspicious because it just didn't seem right," Buff said. "We couldn't see any windows or door, but they had an air conditioner. It didn't add up."

When they pried open the first box, Van Ess said, "We were in shock. I think we'll be in shock for a while."

When news of the discovery reached the battalion command post in the mansion a few hundred yards away, 1st Sgt. Eric Wilson said, it got him thinking about a similar sealed-up cottage he had driven past the day before. He rounded up three men at dusk and they smashed the barrier with a sledgehammer.

Wilson said he was only mildly surprised when one of the boxes was opened and $4 million in a mix of circulated and uncirculated bills was found. Inside the cottage a reporter saw a total of 37 boxes believed to contain $4 million each, or $148 million in all.

Private First Class Justin Davis was overwhelmed. "We kind of figured we'd find something in there, but still, seeing all that money and all those boxes, it was breathtaking," he said

Tonight, soldiers from the battalion said they had found yet another barricaded cottage containing 47 boxes filled with an estimated $188 million in U.S. currency.

As Wilson and his men waited in the dark for a truck to arrive, the sergeant sat on a box they had opened. He and his men joked about trips to Las Vegas and about buying new houses.

Finally, Staff Sgt. Shelby Cross spoke of how difficult it was to stand and stare at millions of dollars. "It's a hard choice, but not a hard choice, you know?" he said. "You just have to do the right thing."

When the truck arrived, Private First Class David Lauderman, who said he once worked for an armored car company, inspected the notes to insure they were not counterfeit. Their watermarks appeared genuine, and they contained thin metal strips designed to foil counterfeiters.

"Watermarks, metallic strips, the ink doesn't rub off. It's our currency, genuine U.S. cash," Lauderman said.

Buff and Van Ess, meanwhile, had to walk back to the command post from the two cottages where they had set off the day's hunt for hidden cash. An Iraqi truck they had hot-wired and refurbished a few days earlier had been commandeered to take the 80 boxes and $320 million they had found to the division's airport headquarters.

They found a Humvee and headed to the highway in time to see military police vehicles escorting their truck towards the airport. They sat and watched, forlorn, as the truck they had lovingly brought to life disappeared in the evening dust.

"They can have the money," Buff said at last. "Just give us our truck back."
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