There have been a lot of stories told about the $400 million that was paid to Iran (coincidentally just as some American hostages were being released). Yesterday Claudia Rosett posted an article in the New York Sun that offers an interesting explanation as to where the $400 million came from.
The article reports:
Congressional investigators trying to uncover the trail of $1.3 billion in payments to Iran might want to focus on 13 large, identical sums that Treasury paid to the State Department under the generic heading of settling “Foreign Claims.”
The 13 payments when added to the $400 million that the administration now concedes it shipped to the Iranian regime in foreign cash would bring the payout to the $1.7 billion that President Obama and Secretary Kerry announced on January 17. That total was to settle a dispute pending for decades before the Iran-U.S. Claims Tribunal in at The Hague.
…The Judgment Fund has long been a controversial vehicle for federal agencies to detour past one of the most pointed prohibitions in the Constitution: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”
The Judgment Fund, according to a Treasury Department Web site, is “a permanent, indefinite appropriation” used to pay monetary awards against U.S. government agencies in cases “where funds are not legally available to pay the award from the agency’s own appropriations.”
In March, in letters responding to questions about the Iran settlement sent weeks earlier by Representatives Edward Royce and Mike Pompeo, the State Department confirmed that the $1.3 billion “interest” portion of the Iran settlement had been paid out of the Judgment Fund. But State gave no information on the logistics.
Aside from the fact that we are funding a regime that is using the money to fund attacks against American civilians and servicemen, I would like to note that the Tribunal at the Hague decided that America owned money to a known sponsor of terrorism. Based on that decision, I don’t think the Tribunal at The Hague is force for global peace. Giving money to a known sponsor of terrorism is not a good idea under any circumstances.