Hi-Tech Healthcare in Iraq, Minus the Healthcare

The Rationalization of Healthcare in Iraq

This article is a great read, and it comes courtesy of Corp Watch. I love the specials these guys publish. Last year, on October to be precise, they broke the story about how the Kuwait contractor than is building the U.S. embassy in Iraq is smuggling low-paid South Asians into Iraq – slave labor basically – to save themselves a few bucks, with the U.S. State Department turning a blind eye, which is ironic to say the least because they publish a yearly “Trafficking in Persons” report.

Now, they have a special on Iraq’s broken healthcare system. It’s quite long, with plenty of interviews, stories and excellent sourcing, and while its main focus is corruption, they do cover most of the basics, like how non-governmental organizations (NGOs) are trying to operate in Iraq, and how all of the promised hospitals – including the Basra Children’s Hospital, which was highly touted by Laura Bush and Condi Rice – are not being completed, or not being built at all.

Of course, Iraq is a land of opportunity, if you are a war profiteer big-name contractor. Take the above mentioned Basra Children’s Hospital. According to CorpWatch:

(all emphasis is mine)

Cancer Hospital Remains Unfinished

Most prominent among the long list of failures is the Basra Children’s Hospital, which was intended as crown jewel of U.S. aid to Iraq. Instead, it has become a showcase for everything that went wrong. In August 2004, USAID awarded the $50 million contract to build the Hospital to Bechtel, a San Francisco-based engineering company, one of the largest engineering companies in the world, which has become synonymous with the building of nuclear power plants, gold mines and large projects like the new Hong Kong airport.

The idea was to create a state-of-the-art facility to treat childhood cancer, a pressing need in a city where cancer rates have skyrocketed following the first Gulf War. (Contested data link the rise in cancer to extensive U.S. use of depleted uranium weaponry in the region.)

The facility, championed by the First Lady Laura Bush and Secretary of State Condoleezza Rice, looked suspiciously like a political propaganda effort. And as with much U.S. aid, it was designed with little local consultation: the city lacked clean water and already has a leukemia ward where lack of funding means that each bed is shared by two or three children.

The hospital was planned by Project Hope, a charity headed by John P. Howe III, president of the University of Texas, San Antonio, and a Bush family friend. Project Hope had built similar hospitals in Poland and in China. Howe pushed the project after Rice and Bush invited him to visit Iraq to assess the country’s healthcare system.

Before construction began in August 2005, the project attracted skeptics, who were concerned that it was a white elephant. Republican Congressman Jim Kolbe criticized the project: “Why build a hospital for kids, when the kids have no clean water?” the Arizonan asked. But it went ahead: No new technology would be spared in this showcase facility featuring with 94 beds, private cancer suites, CAT scans, a linear particle accelerator for radiation therapy, no.

But like every so many U.S.-initiated projects, the money to build this fancy facility would disappear when things went wrong. A year after the August 2005 groundbreaking, the project became a target for attacks, according to the company. The price tag rose from $50 million to an estimated $169.5 million. Cliff Mumm, president of the Bechtel infrastructure division, predicted that the project would fail. “It is not a good use of the government’s money” to try to finish the project,” Mumm told the New York Times. “And we do not think it can be finished.”

In July 2006, Bechtel was asked to withdrew from the project, which is now on hold. USAID spokesman David Snider’s cheerful spin on the stall was that the contract did not actually require the company to complete the hospital. “They are under a ‘term contract,’ which means their job is over when their money ends … (so) they did complete the contract.”

So Bechtel got to keep the money – U.S. taxpayer’s money – and the hospital is “on hold”. Because corporate profits are way more important than sick children.

Lets take another contractor: Parsons Global, a Pasadena, California-based engineering company.

The convoy of flat-bed trucks picked up its cargo at Baghdad International Airport last spring and sped north-west, stacked-high with crates of expensive medical equipment. From bilirubinmeters and hematology analyzers to infant incubators and dental appliances, the equipment had been ordered to help Iraq shore up a disintegrating health care system. But instead of being delivered to 150 brand-new Primary Health Care centers (PHCs) as originally planned, the Eagle Global Logistics vehicles were directed to drop them off at a storage warehouse in Abu Ghraib.

Not only did some of the equipment arrive damaged at the warehouse owned by PWC of Kuwait, one in 14 crates was missing, according to the delivery documents. The shipment was fairly typical: Military auditors would later calculate that roughly 46 percent of some $70 million in medical equipment deliveries made to the Abu Ghraib warehouse last spring had missing or damaged crates or contained boxes that were mislabeled or not labeled at all.

Not that it really mattered. Just over three weeks before the April 27th delivery, the U.S. Army Corps of Engineers had canceled the construction of 130 of the 150 PHCs for which the materiel was intended. As a result, the equipment that could help diagnose and treat Iraqi illness (and escalating bomb or gun injuries) now sits idle waiting for someone to figure out what to do with it.

[…]But if Iraqis have failed to benefit from the idle PHCs, the $70 million contract to supply them has been a shot in the arm for Parsons Global. The Pasadena, California-based engineering company reaped a $3.3 million profit according to an audit report issued by the Special Inspector General for Iraq Reconstruction (SIGIR), an independent U.S. government agency. And that is in addition to the $186 million that U.S. taxpayers shelled out to Parsons to build dozens of clinics that have yet to dispense a single aspirin.

Again, go read the entire article here. There is much to discuss, so feel free to comment away. Is it any wonder why Iraqis want us out of Iraq?

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