WASHINGTON,
Sept. 29 A group of businessmen linked
by their close ties to President Bush (news
- web
sites), his family and his administration
have set up a consulting firm to advise companies
that want to do business in Iraq (news
- web
sites), including those seeking pieces
of taxpayer-financed reconstruction projects.
The firm, New Bridge Strategies, is headed
by Joe M. Allbaugh, Mr. Bush's campaign manager
in 2000 and the director of the Federal Emergency
Management Agency (news
- web
sites) until March. Other directors include
Edward M. Rogers Jr., vice chairman, and Lanny
Griffith, lobbyists who were assistants to
the first President George Bush and now have
close ties to the White House.
At a time when the administration seeks Congressional
approval for $20.3 billion to rebuild
Iraq, part of an $87 billion package for
military and other spending in Iraq and Afghanistan
(news
- web
sites), the company's Web site, www .newbridgestrategies.com,
says, "The opportunities evolving in Iraq
today are of such an unprecedented nature
and scope that no other existing firm has
the necessary skills and experience to be
effective both in Washington, D.C., and on
the ground in Iraq."
The site calls attention to the links between
the company's directors and the two Bush administrations
by noting, for example, that Mr. Allbaugh,
the chairman, was "chief of staff to then-Gov.
Bush of Texas and was the national campaign
manager for the Bush-Cheney 2000 presidential
campaign."
The president of the company, John Howland,
said in a telephone interview that it did
not intend to seek any United States government
contracts itself, but might be a middleman
to advise other companies that seek taxpayer-financed
business. The main focus, Mr. Howland said,
would be to advise companies that seek opportunities
in the private sector in Iraq, including licenses
to market products there. The existence of
the company was first reported in The Hill,
a Congressional newspaper.
Mr. Howland said the company was not trying
to promote its political connections. He said
that although Mr. Allbaugh, for example, had
spent most of his career "in the political
arena, there's a lot of cross-pollination
between that world and the one that exists
in Iraq today."
As part of the administration's postwar work
in Iraq, the government has awarded hundreds
of millions of dollars in contracts to American
businesses. Those contracts, some without
competitive bidding, have included more than
$500 million to support troops and extinguish
oil field fires for Kellogg, Brown & Root,
a subsidiary of Halliburton, which Vice President
Dick Cheney (news
- web
sites) led from 1995 until 2000.
Of the $3.9 billion a month that the administration
is spending on military operations in Iraq,
up to one-third may go to contractors who
provide food, housing and other services,
some military budget experts said. A spokesman
for the Pentagon (news
- web
sites) said today that the military could
not provide an estimate of the breakdown.
Administration officials, including L. Paul
Bremer III, the top American official in Iraq,
have said all future contracts will be issued
only as a result of competitive bidding. Already,
the Web site for the Coalition Provisional
Authority, http:// cpa-iraq.org/, lists 36
recent solicitations, including those for
contractors who might sell new AK-47 assault
rifles, nine-millimeter ammunition and other
goods for new army and security forces.
New Bridge Strategies was established in May
and recently began full-fledged operations,
including opening an office in Iraq, its officials
said. They added that a decision by the Governing
Council of Iraq to allow foreign companies
to establish 100 percent ownership of businesses
in Iraq, an unusual arrangement in the Mideast,
had added to the attractiveness of the market.
Mr. Howland is a principal of Crest Investment
in Houston and was president of American Rice,
once a major exporter to Iraq. Richard Burt,
ambassador to Germany in the Reagan administration
and a former assistant secretary of state,
and Lord Powell, a member of the British House
of Lords and an important military and foreign-policy
adviser to Prime Minister Margaret Thatcher,
are among the 10 principals.
Mr. Allbaugh, the chairman, spent most of
his career in Texas politics before Mr. Bush
appointed him to head the federal disaster
agency. Mr. Allbaugh, who now heads his own
consulting firm here, did not return calls
to his office today.
Mr. Rogers, the vice chairman who was a deputy
assistant to the first President Bush and
an executive assistant to the White House
chief of staff, is also vice chairman of Barbour
Griffith & Rogers, one of the best-connected
Republican lobbying firms in the capital.
Mr. Rogers founded it in 1991 with Haley Barbour,
who became chairman of the Republican National
Committee (news
- web
sites) and is now running for governor
of Mississippi.
Shortly after leaving the White House, Mr.
Rogers was publicly rebuked by the first President
Bush after he signed a $600,000 contract
to represent a Saudi, Sheik Kamal Adham, who
was a main figure under scrutiny in a case
that involved the Bank of Commerce and Credit
International. Mr. Rogers canceled his contract
to represent the sheik, former head of Saudi
intelligence.
Mr. Griffith, a director of the new company,
is chief operating officer of Barbour Griffith
& Rogers, which he joined in 1993. He
was special assistant for intergovernmental
affairs to the first President Bush and later
worked under him as an assistant secretary
of education.
Until November, Mr. Rogers's wife, Edwina,
was associate director of the National Economic
Council at the White House. Reached by telephone
today, Mr. Rogers said he did not want to
speak for the record and referred a reporter
to Mr. Howland.
The company Web site says the company was
"created specifically with the aim of assisting
clients to evaluate and take advantage of
business opportunities in the Middle East
following the conclusion of the U.S.-led war
in Iraq."


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