Military

DATE= 5/1/02

TYPE=CORRESPONDENT REPORT

TITLE=U-S / IRAQ OPPOSITION (L-ONLY)

NUMBER=2-289327

BYLINE=DAVID GOLLUST

DATELINE=STATE DEPARTMENT

CONTENT=

VOICED AT:

INTRO: The Iraqi umbrella opposition group, the Iraqi National Congress, says it has had to cease satellite television broadcasts into Iraq due to lack of funding by the United States. The State Department says it has had to stop funding to the group because of continued concerns about its accounting practices. V-O-A's David Gollust has details from the State Department.

TEXT: Officials here say the administration continues to support the Iraqi National Congress and its programs including the television service. But they say the United States cannot provide additional money until a new grant is negotiated that resolves U-S concerns about the way the I-N-C accounts for funds.

The comments here follow an announcement by the London-based opposition group that it has halted its television broadcasts beamed by satellite into Iraq because the State Department has not released any funds for the T-V project since February and it cannot pay its service providers.

The group said U-S money has been withheld despite Bush administration assurances of "full confidence" in the I-N-C and its television project, Liberty T-V which it called an important element in efforts to break Saddam Hussein's "stranglehold" on the media in Iraq.

The State Department has been engaged in an ongoing dispute with the I-N-C about the group's use of U-S aid and all but basic funding was suspended for several weeks early this year because of problems that emerged in a U-S audit.

State Department spokesman Richard Boucher says the United States would be happy to fund the broadcasts but it has to be done under conditions that insure the appropriate use of the money:

///BOUCHER ACTUALITY///

The fact is the United States has supported them consistently. We've been discussing a new grant to provide additional funds. They say they are out of money. We've been discussing with them a grant to provide additional funds, but frankly it's been complicated by the financial management practices that have continued to bedevil this whole operation.

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Mr. Boucher said about one-third of the 15-million dollars the United States has provided to the I-N-C to date has gone to the Liberty T-V project, which began its broadcasts into Iraq last August.

The State Department has also been involved in a dispute with the I-N-C over arrangements for a proposed conference the group hopes to convene soon involving hundreds of Iraqi opposition figures including former military officers. (Signed)

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