On
May 28, 2004, he was selected to be the Interim
Prime Minister of Iraq to govern the country beginning with the United States' handover of sovereignty (
June 30, 2004) until national elections, scheduled for early
2005. Although many believe the decision was reached largely on the advice of
United Nations special envoy to Iraq,
Lakhdar Brahimi, the
New York Times reported that Brahimi only endorsed him reluctantly after pressure from U.S. officials. (In response to a question about the role of the U.S. in Allawi's appointment, Brahimi replied:
“I sometimes say, I'm sure he doesn't mind me saying that,
Bremer is the dictator of Iraq. He has the money. He has the signature. Nothing happens without his agreement in this country.” Two weeks later, Brahimi announced his resignation, due to "great difficulties and frustration".
At the time of his nomination, Allawi was often described in the US mainstream media as a moderate Shia, a member of Iraq's majority faith, chosen for his secular, pro-American views. Later, as military situation in Iraq worsened and the death toll increased, coveraged became sometimes less flattering and included descriptions suggesting Allawi was Washington's
puppet (e.g. Newsweek:"
Iraq's New S. O. B."
http://www.msnbc.msn.com/id/5457368/, NYT: "
Dance of the Marionettes"). The BBC attributes his nomination to being "equally mistrusted by everyone" in Iraq. A secret document written in 2002 by the British Overseas and Defence Secretariat reportedly stated that within Iraq, Allawi was seen as "a western stooge" who "lacked domestic credibility".
On
June 28 2004 (two days early), the U.S.-led coalition handed over power to Allawi and the
Iraqi Interim Government, who were sworn in later that same day. After his interim government assumed legal custody of Saddam Hussein and re-introduced
capital punishment, Allawi gave assurances that he would not interfere with the trial and would accept any court decisions. In an interview with
Dubai-based TV station
al-Arabiya he said: "As for the execution, that is for the court to decide — so long as a decision is reached impartially and fairly."
On
July 17, two Australian newspapers, the
Sydney Morning Herald http://www.smh.com.au/articles/2004/07/16/1089694568757.html?oneclick=true,
http://www.commondreams.org/headlines04/0716-01.htm and
The Age http://www.theage.com.au/articles/2004/07/16/1089694560142.html?oneclick=true, published an article alleging that one week before the handover of sovereignty, Allawi himself summarily executed six suspected insurgents at a Baghdad police station. The allegations are backed up by two independent sources and the execution is said to have taken place in presence of about a dozen Iraqi police, four American security men and Interior Minister
Falah al-Naqib. Mr Allawi reportedly said that the execution was to "send a clear message to the police on how to deal with insurgents". Both Allawi's office and Naqib have denied the report. US ambassador
John Negroponte did not clearly deny the allegations. Additionally, the allegations made by
Sydney Morning Herald journalist Paul McGeough went largely unreported by mainstream American media. Iraq's Human Rights Minister Bakhtiar Amin pledged to investigate the allegations against his PM.
http://www.abc.net.au/news/newsitems/200407/s1156598.htm The stories were reported to have increased Allawi's reputation in Iraq as they convinced many that he had the fortitude to rule.
On
July 18, Iraqi militants offered a $285,000 reward for anyone who could kill Iyad Allawi.
During the summer of 2004, Allawi made several controversial decisions. Most notably, his decision to support the invasions of both
Najaf and
Falluja made him extremely unpopular amongst Iraq's Shia and Sunni populations. He also announced the creation of
General Security Directorate, a domestic spy agency, whose main role is to counteract terrorist groups and the
Iraqi insurgency. He recruited some former agents of Saddam Hussein's secret police to form the General Security Directorate. He gave himself the powers to declare
martial law. He closed the Iraqi office of
al Jazeera and nominated Ibrahim Janabi, a former Ba'athist and Mukhabarat officer, to head the newly created media regulator. He also made moves to eliminate
Muqtada al-Sadr from the scene.
Allawi led the Iraqi National Accord during the
January 2005 Iraqi election. His campaign was mainly characterised by his attempt to improve his image, which had been seriously damaged as a result of his many unpopular decisions. His campaign reached a low point when he visited the Imam Ali shrine in Najaf on December 4, 2004, where a group of angry shia worshipers hurled their shoes at him. Later on, in a face saving statement, Allawi claimed that it was an assassination attempt.
The INA polled a distant third, with 14% of the vote, suggesting a lack of domestic support for Allawi's rule. This was probably due to, among other factors, his past membership in the Baath party, numerous allegations of corruption and of financial fraud when he was prime minister (arrest warrants have been issued for ministers in his administration), and a real perception among Iraqis, both Shia and Sunni, that he has a somewhat thuggish character, reminiscent of Saddam Hussein. While he tried to give his bloc influence in the new assembly, at times courting mavericks and independents for support, the INA had almost no impact on subsequent political developments in the country.