Iraq promises to end secret food import deals

Iraq is starting public tenders to buy food, the country's trade minister said, in a move that could end years of secrecy and corruption in a sector worth billions.

Mohammad al-Jubouri told Reuters the ministry had already advertised to buy 100,000 tonnes of wheat flour in newspapers and on its website and would soon publish another tender to buy 100,000 tonnes of rice.

"We are opening the door in front of every one. There will be no favouritism. Everything will be on the Internet," Mr Jubouri said.

Iraq imports around $3 billion of food and distributes shipments free to the population in the form of rations - a legacy of crippling UN sanctions that helped drive the country into poverty.

Under the old system, tenders were private with only invited firms participating.

Trade officials have come under criticism for putting the same conditions on suppliers that were required under Saddam's Hussein rule, such as a readiness to deliver to all governorates and a preference for multiple suppliers, so raising costs.

Occupation officials who had ben running Iraq's food imports recommended that the interim government issue larger tenders which could save money and reduce corruption.

But a 25,000 tonne sugar tender issued this week was well below the 208,000 tonnes required. Other tenders have also been small - such as 1,000-2,000 tonnes of powdered baby milk.

Iraq's dependence on food imports extends to wheat, rice, pulses, sugar, tea, milk, salt, soap, detergent, cheese and tomato paste.

Iraq, the minister said, will stick to some pre-war tender conditions because they help ensure smooth supplies and suit the unstable situation of the country.

"Our policy is to keep working on improving the quality of the food basket and deal with the bottlenecks until strategic projects are implemented," he added, referring to congestion and a lack of equipment at Umm Qasr port.

Logistics, Iraqi mills and silos also needed an overhaul, Mr Jubouri said.

The minister, who served as the head of the State Oil Marketing Organisation after the war, was appointed to the interim government last month.

Oil sales and food procurement were tightly controlled by Saddam and his entourage before the war, and officials say suppliers routinely had to pay bribes.

But the practice of asking for kick-backs stopped after the war, Mr Jubouri said.

"Persecuting those who paid the bribes is a political decision," he said. "I can assure you that the contracts now strictly follow commercial principles."