Friday, May 30, 2008

McCain fundraiser sued by partner in lucrative contract with U.S. military

MSNBC

A little-noticed civil lawsuit in Florida is shining a light on an unusual but hugely profitable Pentagon contract to ship millions of gallons of aviation fuel to U.S. bases in Iraq through the kingdom of Jordan.

The deal involves a cast of influential characters, including the king of Jordan’s brother-in-law, who is suing Harry Sargeant III, a top Florida-based fundraiser for Sen. John McCain's presidential bid.

Sargeant is a Florida businessman and former Marine Corps pilot hailed by the McCain campaign as a "Trailblazer" for raising $100,000 or more in political donations. Through a company called International Oil Trading Co., or IOTC, Sargeant and a partner have a lucrative contract worth hundreds of millions of dollars per year to supply American military forces in Iraq with fuel, especially aviation fuel. The firm ships the fuel to Jordan and then trucks it across the border, where U.S. forces escort the convoys to air bases.


Sargeant’s IOTC has experienced phenomenal growth since the Iraq war started, transforming itself from an unknown business in 2004 to a major Pentagon contractor in only a few years.

The way the American military structured the deal, only a company with the blessing of the Jordanian government could win the contract. A bidder was required to have a Jordanian government "Letter of Authorization," and only IOTC received such a letter.

The lawsuit against Sargeant was filed April 10 in Florida state court by Mohammad Al-Saleh, who is married to the half sister of King Abdullah of Jordan. Al-Saleh’s suit says he essentially brokered Sargeant's contract by arranging the approval and cooperation of the Jordanian government, using his "connections and influence." The lawsuit alleges that Al-Saleh arranged for the Jordanian government “to issue a letter of authorization to IOTC.” Al-Saleh’s lawyer, Jonathan Frank, said, “Were it not for my client, they would not have been able to get that letter.”..........

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