Egypt: Where does US aid end up?


We know that the United States provides military aid to the Mubarak regime. But where does much of the money actually end up (leaving aside the ‘commissions’)?

According to Amy Goodman of

… Mostly to U.S. corporations. I asked William Hartung of the New America Foundation to explain:

“It’s a form of corporate welfare for companies like Lockheed Martin and General Dynamics, because it goes to Egypt, then it comes back for F-16 aircraft, for M-1 tanks, for aircraft engines, for all kinds of missiles, for guns, for tear-gas canisters [from] a company called Combined Systems International, which actually has its name on the side of the canisters that have been found on the streets there.”

Hartung just published a book, “Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex.” He went on: “Lockheed Martin has been the leader in deals worth $3.8 billion over that period of the last 10 years; General Dynamics, $2.5 billion for tanks; Boeing, $1.7 billion for missiles, for helicopters; Raytheon for all manner of missiles for the armed forces. So, basically, this is a key element in propping up the regime, but a lot of the money is basically recycled. Taxpayers could just as easily be giving it directly to Lockheed Martin or General Dynamics.”

Likewise, Egypt’s Internet and cell phone “kill switch” was enabled only through collaboration with corporations. U.K.-based Vodafone, a global cellular-phone giant (which owns 45 percent of Verizon Wireless in the U.S.) attempted to justify its actions in a press release: “It has been clear to us that there were no legal or practical options open to Vodafone … but to comply with the demands of the authorities.”

Narus, a U.S. subsidiary of Boeing Corp., sold Egypt equipment to allow “deep packet inspection,” according to Tim Karr of the media policy group Free Press. Karr said the Narus technology “allows the Egyptian telecommunications companies … to look at texting via cell phones, and to identify the sort of dissident voices that are out there. … It also gives them the technology to geographically locate them and track them down.”

It’s the typical modus operandi. We give you financial aid but you have to spend it doing business with our corporations.

That may help explain why the United States is so reluctant to stop military aid to Egypt.

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5 Feb 2011 10.16pm

The biggest industry that create job for USA : military business. That’s why Obama are so reluctant to cease overseas military operations.

Now come back to Malaysia, I am NOT IMPRESSED when the news report Malaysia navy capture some Somalian pirates during an attack on MISC tanker. From the news, it say it is a “routine escort mission”. Nobody enlightened Malaysian that WHO PAY THE FUEL and MAINTENANCE cost for such mission. In most USA military operation, it is Japan paying some bill for the fuel. Now, tell me MISC are paying the bills.

5 Feb 2011 7.49pm

As NNKhoo says no free lunch in this world. If you are US taxpayers and is jobless, one demand where is his tax goes to? At least it is better than AMNO/Gerakan. WE pay tax and get nothing because one resides in opposition area even if he votes for AMNO….

5 Feb 2011 7.08pm

Where there is money, it is easy to find legal ways to take a cut from the potty.

Otherwise how on earth could Razak Baginda (wife’s) company pick up a RM535million commission for those Scorpene submarines?