NY Times: Insurgency Can Sustain Itself

U.S. Finds Iraq Insurgency Has Funds to Sustain Itself
By JOHN F. BURNS and KIRK SEMPLE

BAGHDAD, Nov. 25 — The insurgency in Iraq is now self-sustaining financially, raising tens of millions of dollars a year from oil smuggling, kidnapping, counterfeiting, connivance by corrupt Islamic charities and other crimes that the Iraqi government and its American patrons have been largely unable to prevent,a classified United States government report has concluded.

The report, obtained by The New York Times, estimates that groups responsible for many insurgent and terrorist attacks are raising $70 million to $200 million a year from illegal activities. It says $25 million to $100 million of that comes from oil smuggling and other criminal activity involving the state-owned oil industry, aided by “corrupt and complicit” Iraqi officials.

As much as $36 million a year comes from ransoms paid for hundreds of kidnap victims, the report says. It estimates that unnamed foreign governments - previously identified by American officials as including France and Italy - paid $30 million in ransom last year.

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