“We must put justice for American victims ahead of cash payments to the leading state-sponsors of terrorism”, Lance said. The money was converted into hard currency and bank notes before being transferred to an official from the Central Bank of Iran for transport to Tehran, according to the officials.
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Lisa Grosh, assistant legal advisor to the State Department’s Office of International Claims and Investment Disputes, said the settlement saved the US from paying more to Iran later through a judgement against them.
“The witnesses today only agreed under threat of subpoena” to appear before Congress, Duffy said. The administration had previously declined to say if the interest was delivered to Iran in physical cash, as with the principal, or via a more regular banking mechanism.
Republicans have denounced the initial $400 million transfer in January as a “ransom” payment to Iran, since it coincided with the release of four American prisoners the same day.
Republicans noted that it is unusual to make a payment in cash to another country and that it seemed as though the administration was trying to hide it.
163-a-02-(Christopher Backemeyer, assistant secretary of state for Iranian Affairs, testifying before House Financial Services subcommittee)-“for cash deal”-Assistant Secretary of State Christopher Backemeyer says the USA did not pay ransom”.
Following a closed briefing of lawmakers on the payments Tuesday, a Congressional staff member who participated told WSJ that the $1.3 billion was transferred through Europe in two payments on January 22 and February 5. It was originally believed and confirmed by the State Department that the Iran deal was just for $400 million.
USA officials have said they expected an imminent ruling on the claim and settled with Tehran instead.
The $1.3 billion came from a fund administered by the Treasury Department for settling litigation claims. Only one party acts as if there is an agreement, the Obama Administration. USA officials have maintained that cash was necessary because of US and global sanctions that have isolated Iran from the worldwide finance system. That’s how much the Obama administration now admits it sent Iran in cash earlier this year.
Meanwhile, in a reference to the Iran cash controversy, Texas Senator and former Republican presidential candidate Ted Cruz tweeted, “Americans deserve an explanation of why the Obama Admin is using their money not to fight terrorism, but to fund it”.
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The settlement pertained to a case before the Iran-United States Claims Tribunal, a court run out of the Netherlands founded in 1979. To avoid the ruling, the US government negotiated with Iran to pay $400 million plus the interest of $1.3 billion.
