U.S. Businessman Allegedly Bribed Officials in Iraq

Nov. 16, 2005 — An American businessman has been charged with bribing officials with the Coalition Provisional Authority in Iraq in exchange for reconstruction contracts, ABC News has learned.

Philip Bloom is accused of providing hundreds of thousands of dollars in bribes and kickbacks to the comptroller for the South Central Region of Iraq in Al Hillah, Iraq. The comptroller's job was to make certain the bidding process was fair and aboveboard.

According to the newly unsealed affidavit, "The investigation has revealed that contracts were awarded to businesses controlled by Bloom through a rigged bidding process, that the work was ordered by certain of Bloom's co-conspirators, and that such contracts were authorized for payment by Bloom co-conspirators (in some cases without any performance of the contracts by Bloom's companies)."

Bloom operated and controlled several construction and service companies in Iraq and Romania, which were awarded contracts from the Coalition Provisional Authority — South Central Region in Al-Hillah, Iraq, according to the affidavit. Those corporations include Global Business Group, GBG Holdings and GBG Logistics Division.