Tuesday, August 23, 2016

Iran Received $1.3B Balance Within Two Months of Initial $400M Cash Payment

    Less than two months after Iran received $400 million in foreign currency in January, the top state sponsor of terror in the world acquired another $1.3 billion in cash from the United States, based on statements of US government officials. A state department official confirmed to THE WEEKLY STANDARD via email that the payment occurred before March 17, and President Obama, while addressing the initial $400 million payment, acknowledged on August 4 that payments to Iran must be made in cash because "we don't have a banking relationships with Iran... We could not wire the money."
    Until last week, the Obama administration would not even confirm that the $1.3 billion balance had been paid. However, once the Wall Street Journal broke the story that the initial $400 million cash payment had coincided with the release of five American detainees by Iran, more details were revealed. But the State Department continued to decline to provide the "tick-tock" on the payment schedule.
    As it turns out, the State Department had already revealed back on March 17 that the $1.3 billion payment had been made at that time. On February 4, Rep. Ed Royce, chairman of the House Foreign Affairs Committee, wrote a letter to Secretary of State John Kerry demanding a detailed explanation of the entire $1.7 billion agreement including the timing of payments.
     On March 17, Julia Frifield, Assistant Secretary of State for Legislative Affairs, replied to Royce's letter (a month after Royce's requested deadline.) Frifield wrote, "Iran received the balance of $400 million in the Trust Fund as well as roughly $1.3 billion representing a compromise on the interest.”
    Monday, a state department official responded to THE WEEKLY STANDARD via email, saying "I can confirm that the payment was made before Assistant Secretary Frifield’s letter on March 17, 2016, in which she said the payment had been made."
    Though the official would not confirm the "mechanics" of the payment, the August 4 statement of President Obama leaves no other alternative than that the $1.3 billion was also paid in cash.
    Assistant Julia Frifield also wrote in her March 17 latter that “[t]he payment for the compromise that was reached on interest, of approximately $1.3 billion, has been provided out of the Judgment Fund.” A search of the Treasury Department's Judgment Fund website, however, lists no such payment. The Treasury Department had not yet responded to a request for an explanation of the missing information.

Note: A version of this post first appeared at The Weekly Standard.

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