The bank case lies at the heart of what the president’s critics have dubbed Iraqgate–the administration’s failed policy of appeasement toward Saddam Hussein in the years leading up to Desert Storm. In June, Christopher Drogoul, the manager of the BNL’s tiny Atlanta branch, pleaded guilty to charges of acting alone in making $4 billion in illegal loans and loan guarantees to Iraq. But earlier this month, federal prosecutors allowed Drogoul to withdraw his plea. And this fall, under pressure from the Senate’s Select Committee on Intelligence, the CIA revealed it possessed information indicating that bank officials in Rome did know about the transactions.
In an unusual display of public sparring, CIA officials say Justice told the agency not to reveal documents showing Italian officials were in on the loans. Barr says that isn’t true. The mystery deepens daily. Who knew and when? Was the United States protecting Italy, other allies or itself? It isn’t clear who benefited from the suppression of evidence, but the latest revelations can’t help Bush.
