However, as I noted in December, Jaresko headed a U.S. government-funded investment project for Ukraine that involved substantial insider dealings, including $1 million-plus fees to a management company that she also controlled.
Jaresko served as president and chief executive officer of Western NIS Enterprise Fund (WNISEF), which was created by the U.S. Agency for International Development with $150 million to spur business activity in Ukraine. She also was cofounder and managing partner of Horizon Capital which managed WNISEF's investments at a rate of 2 to 2.5 percent of committed capital, fees exceeding $1 million in recent years, according to WNISEF's 2012 annual report.
In the 2012 report, the section on "related party transactions" covered some two pages and included not only the management fees to Jaresko's Horizon Capital ($1,037,603 in 2011 and $1,023,689 in 2012) but also WNISEF's co-investments in projects with the Emerging Europe Growth Fund [EEGF], where Jaresko was founding partner and chief executive officer. Jaresko's Horizon Capital also managed EEGF.
From 2007 to 2011, WNISEF co-invested $4.25 million with EEGF in Kerameya LLC, a Ukrainian brick manufacturer, and WNISEF sold EEGF 15.63 percent of Moldova's Fincombank for $5 million, the report said. It also listed extensive exchanges of personnel and equipment between WNISEF and Horizon Capital.
Though it's difficult for an outsider to ascertain the relative merits of these insider deals, they involved potential conflicts of interest between a U.S.-taxpayer-funded entity and a private company that Jaresko controlled.
Based on the data from WNISEF's 2012 annual report, it also appeared that the U.S. taxpayers had lost about one-third of their investment in WNISEF, with the fund's balance at $98,074,030, compared to the initial U.S. government grant of $150 million.
In other words, there is another side of the Ukraine story, a darker reality that Friedman and the rest of the mainstream media don't want you to know. They want to shut out alternative information and lead you into another conflict, much as they did in Iraq.
But Friedman is right about one thing: "Ukraine matters." And he's even right that Ukraine matters more than the butchery that's continuing in Iraq.
But Friedman is wrong about why. Ukraine matters more because he and the other "group thinkers," who turned Iraq into today's slaughterhouse, are just as blind to the reality of the U.S. military confronting Russia over Ukraine, except in the Ukraine case, both sides have nuclear weapons.
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