NEW YORK: The US-led effort to rebuild Iraq was facing more criticism on Friday after the Texan businessman installed to run the country’s oil industry admitted having financial links to a company bidding for reconstruction work.

Philip Carroll acknowledged in an interview with the Los Angeles Times that he could be accused of a conflict of interest because of his relationship with a Californian company, Fluor, that has formed a joint venture with the British construction company Amec to bid for work to rebuild Iraq estimated to cost about six billion US dollars.

The disclosure will pile more pressure on to the Bush administration for its handling of the rebuilding programme.

The secret process of awarding multi-billion-dollar contracts to reconstruction companies, many with links to the administration, has proven contentious in the US and Europe.

Mr Carroll, 65, said he could “absolutely” see that his business interests with Fluor could cause controversy. He receives more than one million dollars a year from Fluor in retirement benefits and bonuses pegged to the company’s performance. He also owns about one million of its shares, worth about $34 million.

He said he would distance himself from any future contracts to ensure that there would be no appearance that he had influenced any decisions. He also said that he had fully disclosed his financial interests to the defence department.

“I know at this stage of my life I don’t want my reputation tarnished,” he said.

“And I will stay so far away from any consideration of the bidding process, evaluation process or even the administration and arbitration of things associated with any of those companies in which I have a financial interest.”—Dawn/The Guardian News Service.