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Ransom from italians seen as fueling crisis { September 29 2004 }

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   http://www.reuters.co.uk/newsPackageArticle.jhtml?type=worldNews&storyID=593122§ion=news

http://www.reuters.co.uk/newsPackageArticle.jhtml?type=worldNews&storyID=593122§ion=news

Ransom payments seen fuelling Iraq's hostage crisis
Wed September 29, 2004 07:18 AM ET

By Luke Baker
BAGHDAD (Reuters) - The release of two Italian aid workers in Iraq has raised hopes other hostages may soon be freed, but reports that a large ransom was paid may only feed the burgeoning hostage crisis.

The two Italians, Simona Pari and Simona Torretta, both 29, were freed on Tuesday after three weeks in captivity.

They had been seized along with two Iraqi colleagues from a central Baghdad office in a brazen attack witnesses described as very organised and probably carried out by a criminal gang.

Italy rejoiced in the women's freedom on Wednesday, but there were reports a substantial ransom had been paid.

Gustavo Selva, an Italian lawmaker, told French radio a ransom of around $1 million (550,000 pounds) -- a sum already mentioned in Arabic media reports in recent days -- had been handed over.

"In principle, we shouldn't give in to blackmail but this time we had to. Although it's a dangerous path to take because, obviously, it could encourage others to take hostages, either for political reasons or for criminal reasons," Selva told RTL.

"The sum is probably correct," he added.

Earlier this week, one of Kuwait's most respected newspapers, Al-Rai al-Aam, first raised the possibility that the two Simonas might be freed for cash, saying the kidnappers wanted $1 million, down from an initial demand for $5 million.

Senior Iraqi officials and foreign security consultants say ransom payments will only encourage further abductions, while pushing up captors' financial demands.

"The reason for the acceleration in kidnappings is simply because ransoms are being paid, that's it," said Sabah Kadhim, a spokesman for Iraq's Interior Ministry.

"As a government, we discourage the payment of any ransom. But we have information that kidnappers are being paid, perhaps not directly by governments, but via other channels, through clerics and others who have contact with the kidnappers.

"You can understand why they pay, but it fuels the problem."

HOSTAGE-TAKERS' HEAVEN

Around 130 foreigners have been seized in Iraq in a wave of abductions that began in April. Most of them have been released, but around 30 have been killed, some by beheading.

Over the past year or more, hundreds of Iraqis -- doctors, surgeons and prominent businessmen -- have been kidnapped by criminal gangs who demand ransoms of up to $100,000.

Now, with so many easily-identifiable foreigners in Iraq, criminals appear to have branched out, targeting more lucrative Westerners and foreign workers as well as locals.

Kadhim estimates that about 90 percent of the kidnappings in Iraq are carried out by criminal gangs, who then trade the captives on to militant Islamic groups and other factions.

"If the criminals don't get their money within 72 hours or so, they sell them up the chain to other groups," said a British security consultant who has been operating in Iraq for a year.

"There's vast amounts of money being paid, whether it's by companies, families or governments. It's a very, very good business," he said, speaking on condition of anonymity.

Working in the kidnappers' favour is Iraq's security disarray, along with everyone's preference for secrecy.

"Iraq is in chaos, it's a very murky environment, which suits criminals down to the ground," said the consultant. "Also, the people paying the ransom don't want publicity and nor do the criminals, so everything is clandestine and nothing gets out."

He expects kidnappings to continue for many months, with plenty of Western targets available. The campaign might only stop if all foreigners were to leave the country, he said.

Aware that it has a crisis on its hands, the Iraqi government has formed specialist hostage negotiation teams, helped by the FBI, CIA and other agencies. But it's an uphill struggle. There isn't even a criminal database in Iraq.

Meanwhile, the ransom payments not only fund criminals' lifestyles. Kadhim believes some Iraqi clerics have profited from acting as intermediaries in talks with kidnappers. And the security consultant said some of the money fuels the insurgency.

"There's evidence the cash gets split, with militants getting a share. $1 million buys quite a few RPGs (rocket-propelled grenades)," he said.



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