Panel to Probe Alleged U.N. Oil-for-Food Corruption

Panel to Probe Alleged U.N. Oil-for-Food Corruption
Saturday, March 20, 2004

UNITED NATIONS — An independent commission will investigate allegations that United Nations staff collected millions of dollars in illegal profits from the program that allowed Iraq to sell some of its oil to pay for food during the years of economic sanctions.

U.N. Secretary-General Kofi Annan announced plans Friday for an independent commission that would go beyond an internal United Nations probe of alleged corruption and mismanagement in the oil-for-food program.

Annan made the announcement in a letter to the Security Council.

The world organization has been hit with allegations that U.N. staff may have reaped millions of dollars from the oil-for-food program that helped Iraqis cope with U.N. sanctions.

U.S. congressional investigators have also looked into the program, charging this week that Saddam Hussein's government smuggled oil, added surcharges and collected kickbacks to rake in $10.1 billion in violation of the United Nations' oil-for-food program.

"Hopefully the U.N. can build upon our work in looking at the books," said Jeff Nelligan, spokesman for the U.S. General Accounting Office.

The U.N. chief said in the letter he wants "an independent, high-level inquiry to investigate the allegations relating to the administration and management of the program, including allegations of fraud and corruption."

Annan's letter didn't elaborate on how an independent probe would be handled. He said he would address this in a further letter.

"I think we need to have an independent investigation, an investigation that can be as broad as possible to look into all these allegations which have been made and get to the bottom of this because I don't think we need to have our reputation impugned," Annan said.

Annan indicated he didn't need security council approval for the probe, but said he wanted its support.

The oil-for-food program was established by the U.N. Security Council in December 1996 to help the Iraqi population cope with U.N. sanctions imposed after Iraq's 1990 invasion of Kuwait.

The program, which ended in November, allowed the former Iraqi regime to sell unlimited quantities of oil, provided the money went primarily to buy humanitarian goods and pay reparations to victims of the 1991 Gulf War.

Annan's decision followed publication in the Iraqi newspaper Al-Mada of a list of about 270 former Cabinet officials, legislators, political activists and journalists from more than 46 countries suspected of profiting from Iraqi oil sales.

The United Nations has already sent two letters to the Iraqi Governing Council and the U.S.-led coalition requesting evidence of corruption in the program — the latest a week ago.

In late January, the Governing Council asked the country's Oil Ministry to gather information on allegations that Saddam Hussein's regime bribed prominent foreigners with oil money to back his government.

U.S. Investigating If Saddam Diverted Oil-for-Food Money

U.S. Investigating If Saddam Diverted Oil-for-Food Money
Saturday, March 20, 2004

KUWAIT CITY — America is looking into reports that Saddam Hussein diverted money from a U.N. aid program for Iraq, Secretary of State Colin Powell said Saturday during a stopover in Kuwait.

U.S. congressional investigators have charged that Saddam's regime amassed $10 billion through oil smuggling, illegal surcharges and kickbacks from the U.N. oil-for-food program. An Iraqi newspaper has published a list of about 270 former Cabinet officials, legislators, political activists and journalists in about 46 countries suspected of profiting from the scam.

"We are concerned, deeply concerned, that money that was supposed to be going to help the Iraqi people was diverted by Saddam Hussein, once again demonstrating the nature of that regime," Powell told reporters.

"That money was not used for food or health care or clean water," he said. "It was used for palaces and debauchery."

Powell said Washington would assist the investigation that U.N. Secretary-General Kofi Annan proposed Friday.

The oil-for-food program, which ended in November, was set up by the U.N. Security Council to enable the Saddam regime to sell oil on condition that the proceeds were used to buy humanitarian goods for the Iraqi people and pay reparations for the 1991 Gulf War.

Powell spoke at the end of his six-day tour of Asian and Middle East nations. During his hours in Kuwait, he talked with the emir, the foreign minister and the prime minister.

Powell arrived from Saudi Arabia, where he said the United States would help Arab countries move toward democracy, but it has no intention of imposing that system.

While the United States stands ready to help, "each nation has to find its own path and follow that path at its own rate of speed," he said.

Powell said he was encouraged that the Arab League is discussing the possibility of adopting a resolution calling for political reform. He said he had contacted many Arab leaders on what a reform resolution might contain.

Powell: U.S. Concerned on Oil-for-Food Diversions

Powell: U.S. Concerned on Oil-for-Food Diversions
Saturday, March 20, 2004

KUWAIT CITY — U.S. administrators in Iraq have frozen records of a U.N. aid program to help investigators looking into possible corruption during the Saddam Hussein era, Secretary of State Colin Powell said Saturday during a stopover in Kuwait.

U.S. congressional investigators have charged that Saddam's regime amassed $10 billion through oil smuggling, illegal surcharges and kickbacks from the United Nations' 1996-2002 oil-for-food program. An Iraqi newspaper has published a list of about 270 former Cabinet officials, legislators, political activists and journalists in about 46 countries suspected of profiting from the scam.

"We are concerned, deeply concerned, that money that was supposed to be going to help the Iraqi people was diverted by Saddam Hussein, once again demonstrating the nature of that regime," Powell told reporters.

"That money was not used for food or health care or clean water," he said. "It was used for palaces and debauchery."

Powell said Washington would assist the investigation that U.N. Secretary-General Kofi Annan proposed Friday.

The oil-for-food program, which ended in November, was set up by the U.N. Security Council to enable the Saddam regime to sell oil on condition that the proceeds were used to buy humanitarian goods for the Iraqi people and pay reparations for the 1991 Gulf War.

Powell spoke at the end of his six-day tour of Asian and Middle East nations. He said that after the U.S.-led coalition hands power to Iraqis on June 30, Iraqi and coalition forces would be able to defeat the insurgents and "terrorists from outside the country."

"They will not prevail. They will be defeated," he said. "But while they are still around, they are causing considerable trouble."

Powell arrived Friday from Saudi Arabia, where he said the United States would help Arab countries move toward democracy, but it has no intention of imposing that system.

He reiterated this position in Kuwait, where the government has rejected Washington's Greater Middle East Initiative on the grounds that reform cannot be imposed from outside.

"It wasn't a list of reforms we presented to them and said 'please agree'," Powell said of the initiative.

The United States wanted not to impose, but to "help others achieve" reform, he said.

Powell said he was encouraged that the Arab League is discussing the possibility of adopting a resolution calling for political reform. He said he had contacted many Arab leaders on what a reform resolution might contain.