Bush special envoy embroiled in controversy over Iraq debt [View All]

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Mr Baker's Carlyle Group is in a consortium secretly proposing to try to collect $27bn (£15bn) on behalf of Kuwait, one of Iraq's biggest creditors, by using high-level political influence. It claims Mr Baker will not benefit personally, but the consortium could make millions in fees, retainers and commission as a result.

Other countries, including Britain, have been urged by Mr Baker to relieve the new Iraq regime of its $200bn debt burden. Iraq owes Britain approximately $1bn. One international lawyer described the consortium's scheme as "influence peddling of the crassest kind".


Kathleen Clark, a law professor at Washington University and a leading expert on government ethics and regulations, said this meant that Mr Baker was in a "classic conflict of interest".

"Baker is on two sides of this transaction: he is supposed to be representing the interests of the US, but he is also a senior counsellor at Carlyle, and Carlyle wants to get paid to help Kuwait recover its debts from Iraq." She added: "Carlyle and the other companies are exploiting Baker's current position to try to land a deal with Kuwait that would undermine the interests of the US government."

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http://www.guardian.co.uk/Iraq/Story/0,2763,1326037,00.html