Journalism
Billions Over Baghdad
The house is owned by Thomas A. and Konsuelo Howell, according to San Diego County records. The couple apparently bought it new in 1999. State records indicate that several companies operate from the house. One of them is called International Financial Consulting, Inc., though it isn't clear what this company actually does. Incorporated in 1998, I.F.C. was described as a venture in "business consulting," according to papers Howell filed with the state. The Howells are listed as the only directors.
Another company operating out of 5468 Soledad is called Kota Industries, Inc., whose stated business is the "sale of furniture, home furnishings, flooring," according to California records. Numerous business directories in the San Diego area ascribe similar activities to Kota, listing it as a remodeling, repairing, or restoration contractor. One directory describes its specialty as "kitchen, bathroom, basement remodeling." Again, the Howells are the only officers and directors.
In January 2004, in the business-names index of San Diego County, Thomas Howell indicated that a third company was now based at 5468 Soledad, noting that it was owned by International Financial Consulting. This new company was NorthStar.
How did someone whose line of work includes home remodeling end up getting the contract to audit the billions being airlifted to Iraq? Thomas Howell is 60; he and his wife have lived in San Diego for at least two decades. Over the years, the couple has also maintained addresses in Fort Lauderdale, Florida, and Laredo, Texas. Neighbors describe the Howells as pleasant, but can add little else. "I know them, but I don't know what they do," said one. "That's all I can tell you." Two others could say only that they saw the Howells occasionally in the neighborhood. Were they aware that a company with an Iraqi contract had operated from the house? "Really?" said one. "No. I didn't know that."
Thomas Howell refuses to discuss the NorthStar contract in detail. A telephone exchange with him, reached at 5468 Soledad Road, went as follows.
A woman answered, "Kota Industries."
A woman answered, "Kota Industries."
"Could I speak with Mr. Thomas Howell?"
"May I ask who is calling?" the woman asked.
"My name is Jim Steele."
"Wait just a second," the woman said.
A few moments later, a man came on the line. "Tom Howell," he said.
"My name is Jim Steele, and I am a writer with the magazine Vanity Fair. I would like to talk to you about NorthStar Consultants."
Howell said, "Well, let me find a contact who can talk all this stuff with you. What is your phone number, Jim?"
Howell repeated the number and added, "O.K. Let me get somebody who can discuss all this stuff for you."
"I'd just like to make sure here. Aren't you president of the company?"
"That's right," said Howell.
"But you can't "
"Well, I'm not I can't You want to talk about the D.F.I. [Development Fund for Iraq] and that sort of stuff?" asked Howell.
"Well, yeah."
"O.K.," Howell replied, "I'll get someone who's authorized to talk about all that. I'll have them give you a call or I'll call you and give you their number."
"Is this the military or your lawyer?"
"The military," said Howell, abruptly ending the conversation with "O.K. Thanks. Good-bye."
The next attempt was a visit to Howell's home the following day. A stylishly dressed woman emerged from behind a locked fence. "May I help you?" she asked. The woman confirmed that she was Konsuelo Howell, and explained that it would be impossible to speak with her husband. "He is out of the country."
He never did call back with the name of a Pentagon official "authorized" to speak about NorthStar. Nor did anyone from the Pentagon call. When a Pentagon public-affairs officer was queried about who might be able to discuss the contract, the officer said she needed a name, which, as it turned out, only Howell could provide. The Pentagon also failed to respond to a request for the information deleted from the NorthStar contract and the name of the person who had ordered it deleted.
When Howell was contacted again, three months later, he stated that the Department of Defense had told him that "they didn't have anybody anymore specifically tasked with answering these questions." As far as D.O.D. was concerned, Howell added, the issue was "closed." Once again he refused to discuss the NorthStar contract in any detail: "The way I normally work with all my clients is: my work is confidential," he said. "If they want to let it out, that's fine. But I work for them. It's their business." Howell did say that NorthStar was his one and only U.S. government contract. How did he land it? "I saw it published on the Web, that it was out for bids," he said.
As for how much auditing NorthStar really did in Iraq, the missing billions provide the best answer. The company did have personnel in Baghdad, though how many, and for how long, and for what purpose, is not known—another point Howell declines to discuss. Under the terms of C.P.A. Regulation No. 2, signed by Bremer on June 15, 2003, money coming into Iraq was supposed to be tracked by an "independent certified public accounting firm." Howell was not a certified public accountant, nor were any of the people who worked for him. Bremer seems to have been unaware of this detail. When he was asked at a congressional hearing earlier this year about NorthStar, he answered, "I don't know what kind of firm it was, other than it was an accounting firm." Would it upset him, a congressman asked, if he found out there were no accountants on NorthStar's staff? "It would," Bremer answered, ""if it were true."
It is true. And rather than reissue the contract to a certified public accountant, someone in the government contract office simply eliminated the requirement, thereby making Howell eligible for the work.