Independent probe of Iraq oil-for-food programme

Secretary-General Kofi Annan has proposed an independent investigation of alleged corruption in the UN oil-for-food programme for Iraq following allegations that UN staff may have reaped millions of dollars from the programme that helped Iraqis cope with international sanctions.

In a letter to the Security Council outlining his proposal, Annan said that for the investigation to be “thorough and effective,” it would need the council’s support and the “active co-operation” of member states.

Annan said he would send another letter detailing how such an inquiry would be organised.

“I propose to establish an independent, high-level inquiry to investigate the allegations relating to the administration and management of the (oil-for-food) programme, including allegations of fraud and corruption,” he said in the letter released late Friday.

Annan’s spokesman, Fred Eckhard, has said that the secretary-general doesn’t have the authority to investigate allegations in the media about wrongdoing by governments or companies.

He explained that the oil-for-food programme “had no responsibility to oversee or investigate the kinds of contract skimming that have been reported in the media”.

He suggested that the Security Council might want to look at the actions of companies or governments involved in the programme, or possibly ask the committee that monitored sanctions to look into the allegations, or have governments investigate their own national companies.

The United Nations has sent two letters to the Iraqi Governing Council and the US-led coalition requesting evidence of allegations of corruption in the programme – the latest a week ago – but so far no evidence has been received, a spokesman said.

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.

The request 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 list purportedly includes Benon Sevan, who headed the oil-for-food programme and vehemently denies receiving “oil or oil monies from the former Iraqi regime”.

“We certainly knew there was skimming by Saddam and his cronies but with regard to UN officials, no,” a US official said on Thursday.

“We certainly hope there are no UN officials involved, but if there are some involved, then they should be held accountable.”

US congressional investigators said Saddam’s government reaped $10.1bn (€8.2bn) in illegal revenues related to the oil-for-food programme - much more than previous estimates.

“Hopefully the UN can build upon our work in looking at the books,” said Jeff Nelligan, spokesman for the US General Accounting Office, Congress’ investigative agency.

The Security Council established the programme in December 1996 to help Iraqis cope with UN sanctions imposed after Iraq’s 1990 invasion of Kuwait.

The programme, which ended in November, allowed the country 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.

Saddam’s government decided on the goods it wanted, who should provide them and who could buy Iraqi oil. The Security Council committee monitoring sanctions checked the contracts, primarily for dual-use items that could be used to make weapons.