Arming The Gulf Arabs: War Among The Corrupt and the Bribed

Corruption in the Gulf:
A war of words has been raging among the Gulf Arab rulers and their media surrogates about corruption. It concentrates on Saudi Arabia and Qatar, and was triggered by the British Serious Fraud Office (SFO) investigation of bribes paid over time to senior members to the Saudi royal family by BAE, a major arms manufacturer in connection with the huge, $84 billion, Al-Yamamah deal. The report was ignored by most 'moderate' Arab media, especially in the Persian Gulf states, but was reported extensively in Aljazeera, stationed in Qatar, as well as some Arab newspapers that are printed in Europe. Saudi-owned outlets, including offshore Saudi media giants such as Alarabiya TV, Alhayat and Ashaq Alawsat newspapers predictably declined to report.
British media agree that the government's recent decision to abort the investigation has saved a pending GBP 20 billion deal for 72 Eurofighter Typhoon jet fighters: the Saudis had brought immense pressure to end the investigation, threatening to cancel the contract. The Times of London reported today, in a typically British understatement, that "The SFO investigation is understood to have deeply embarrassed members of the Saudi royal family."
A British delegation was attending a United Nations conference on fighting corruption in Amman, denouncing sleaze and corruption 'wherever it can be found', when news broke out that the British government has decided to abandon the SFO inquiry into the bribery case 'in the interests of national security'. The Economist has a leader this week titled " Bribe Britannia".
(Q: are these huge payments of bribes tax deductible?)

The Saudis have countered with allegations of corruption and kickbacks among Qatari sheikhs. Given the tense diplomatic/foreign relations between the two countries, it was natural that the Saudi allegations picked the Qatari Foreign Minister as a target.
Nobody actually denies specific allegations of being corrupt, but each one tries to show that the other is corrupt as well, perhaps even more corrupt if at all possible. Most people in the Gulf GCC states are stoic about the whole thing: they know that corruption and kickbacks (often called commissions and paid to influential potentates, their children and their wives) are part of life in the oil era; just like death and taxes (the taxes would be in the West, of course).

Gulf Economics:
Saudi Arabia's finance Minister has finally said that it is possible that the unified GCC currency will not become a reality by the appointed date, 2010. Oman has already publicly opted to stay out, and this may have encouraged others to balk. It now looks like the currency plan will be postponed beyond 2010.

Iraq:
Iraqi and Arab media reports that former Minister of Electricity Ayham Al-Samarrai has escaped jail with the help of hired foreign security experts, alleged to be Americans. He was in prison on charges of corruption and embezzlement while he was minister under former prime Minister Ayad Allawi. Al-Samarrai is reported to hold dual U.S and Iraqi citizenships.

Iran:
Presidnet Ahmadinejad has suffered a moderate defeat in local and council elections. In response, he went out and claimed again that his country is now a 'nuclear power'. (Who is his Karl Rove?)
University students in Tehran seem to be gearing up for some confrontation with him because of alleged meddling in university affairs. The United nations Security Council may be getting closer to an agreement on sanctions, probably a much weaker resolution than the United States and her Arab allies would like.
Cheers
Mohammed