10.3  |  Reconstruction: oil, commercial interests, debt relief, asylum and stabilisation policy

US Government did not take actions in relation to the DFI which were incompatible with

the resolution. She continued:

“The fact that the resolution imposes joint responsibility gives the UK a locus to

argue with the US that we should be fully involved in the decision-taking process.

Anything less would be legally risky.”

304.  The following day, 10 June, the CPA issued a regulation that gave Ambassador

Bremer, as “Administrator of the CPA”, authority to oversee and control the

establishment, administration and use of the DFI and to direct disbursements from the

DFI “for those purposes he determines to be for the benefit of the Iraqi people”.161

305.  The regulation also established a Program Review Board (PRB) to develop funding

plans and make recommendations to Ambassador Bremer on expenditures from the

DFI, “in consultation with the Iraqi interim administration, when established”.

306.  The CPA issued a further regulation on 18 June, detailing the operation of the

PRB.162 Voting members of the PRB included representatives of the Iraqi Ministry of

Finance and the UK. Non-voting members included the representatives of the IMF,

World Bank, UN Special Representative of the Secretary-General (SRSG), and IAMB.

307.  An IPU update on reconstruction which was sent to No.10 on 20 June advised

that the DFI regulations “met some, but not all of our key requirements”.163

308.  The UK’s efforts to scrutinise disbursements from the DFI are considered later in

this Section.

309.  Mr Andy Bearpark, a UK national, arrived in Baghdad on 16 June to take up the

post of CPA Director of Operations.164

310.  Mr Bearpark told the Inquiry that, shortly after arriving in Baghdad, Ambassador

Bremer asked him to take on responsibility for all the Iraqi infrastructure Ministries with

the exception of the Ministry of Oil.165 At that point, his title had changed to Director of

Operations and Infrastructure.

311.  The Inquiry asked Mr Bearpark why he had been excluded from the oil sector.166

He responded:

“It was never, ever said to me officially – and it was certainly never, ever put in

writing, but every member of my staff … said that it was perfectly obvious that

161 Coalition Provisional Authority, Regulation No.2, 10 June 2003, Development Fund for Iraq.

162 Coalition Provisional Authority, Regulation No.3, 18 June 2003, Program Review Board.

163 Letter Owen to Rycroft, 20 June 2003, ‘Iraq: Reconstruction Priorities’ attaching Paper IPU,

20 June 2003, ‘Iraq Reconstruction: 30 Day Priorities, 5 June 2003’.

164 Paper Cabinet Office, 18 June 2003, ‘Update for Ministers’.

165 Public hearing, 6 July 2012, page 5.

166 Public hearing, 6 July 2012, page 71.

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