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Iraq Wants Money Back (from Oil for Food fraud); Annan Promises Action
Reuters ^ | Feb. 4, 2005 | Evelyn Leopold

Posted on 02/04/2005 12:20:02 PM PST by QQQQQ

UNITED NATIONS (Reuters) - Iraq said it wanted its money back from the scandal-tainted U.N. oil-for-food program Friday as Secretary-General Kofi Annan vowed to get to the bottom of wrongdoing by U.N. staff.

"Huge sums of money which should have served the needs of the Iraqi people who were suffering at that time -- a lot of these resources were squandered and misspent," said Iraq's U.N. ambassador, Samir Sumaidaie.

Iraq, he said, should at minimum not have to pay for the independent probe set up by the United Nations from remaining oil-for-food funds. The inquiry panel has spent $30 million so far, with the approval of the Security Council.

A key report by Paul Volcker, the former U.S. Federal Reserve chairman appointed by Annan to probe the $67 billion program, found that the director of the plan, Benon Sevan, helped steer oil contracts to a relative of former U.N. Secretary-General Boutros Boutros-Ghali.

The report does not accuse any U.N. officials of getting bribes. But it says Sevan received $160,000 from an aunt in Cyrus, who has since died and had few resources.

"We are as determined as everyone to get to the bottom of this. We do not want this shadow to hang over the U.N.," Annan said as he arrived at headquarters.

Annan said U.N. officials would be disciplined and that if criminal acts were committed, diplomatic immunity would be lifted. He said he was consulting with lawyers on how to do this, as Sevan, who has denied he received as much as a penny, has retired and is on $1 a year retainer

Among other questionable deals in the report was one in which another U.N. official, Joseph Stephanides, colluded with a former British U.N. ambassador so that Lloyd's Register Inspection Ltd. could get a lucrative contract.

The report showed that if the humanitarian program were audited more thoroughly, it might have uncovered the cheating by Saddam Hussein's government. Most of his skimming, which some estimates put as high as $8 billion, was earned by illegal oil sales outside the program, some of them permitted by the council.

DUBIOUS CHOICES

Investigators questioned Boutros-Ghali for choosing the Banque Nationale de Paris, now known as BNP-Paribas, to handle the program's account. He did so after council members asked him to select a bank but was criticized for asking Iraq its preference.

He was in office in 1996 when the program was negotiated and the Volcker report alleged that Stephanides interfered in the awarding of contracts. But there are no allegations Boutros-Ghali deliberately undermined the program.

The program began in December 1996 and ended in November 2003, after the United States overthrew Saddam Hussein. Iraq was allowed to sell oil to buyers of its choosing and contract for food, medicine and other necessities to ease hardships caused by U.N. sanctions, imposed in mid-1990.

Volcker said his 240-page report was preliminary and that the final one would be produced in June. He said he may have another interim report to deal with the alleged role of Annan's son, who had worked in West Africa for Cotecna, another Swiss company that replaced Lloyd's in 1998 to inspect goods.

The Iraqi ambassador said the United Nations received $1.14 billion to administer the program and wanted to see how much actually reached its destination or was squandered by outside contractors working for the world body.

"The question arises whether the secretariat is subject to its own political culture, which tends to subvert the will of the Security Council," said Sumaidaie. "This is serious."

But he avoided blaming the Security Council, which had to approve contracts and whose key members were deadlocked in dealing with any improprieties on Iraq.

The U.S. Congress has initiated several investigations as has the U.S. Attorney's office.

Sen. Richard G. Lugar, the Republican chairman of the Foreign Relations Committee, said that "part of the blame for the current imbroglio lies with the U.N." but that one had to recognize that council members, including the United States "must also answer questions as to why they, too, did not pay greater scrutiny to this program."

But U.S. Rep. Henry Hyde, an Illinois Republican, said the Volcker report reinforced evidence of U.N. lapses in overseeing the program and "even the most rudimentary standards of accountability."


TOPICS: Foreign Affairs; Front Page News
KEYWORDS: annan; fraud; iraq; oilforfood; unitednations
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I think this is great, Iraq is taking on the United Nations. Go, free Iraq!
1 posted on 02/04/2005 12:20:04 PM PST by QQQQQ
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To: QQQQQ

They should start by searching Annan's office.


2 posted on 02/04/2005 12:21:46 PM PST by mainepatsfan
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To: QQQQQ

Good luck, Iraq.


3 posted on 02/04/2005 12:22:34 PM PST by spodefly (Yo, homey ... Is that my briefcase?)
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To: QQQQQ
So much for US sanctions starving all those Iraqi children.


4 posted on 02/04/2005 12:22:40 PM PST by rdb3 (The wife asked how I slept last night. I said, "How do I know? I was asleep!")
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To: QQQQQ

Look at Annan's and his son's offshore bank accounts.


5 posted on 02/04/2005 12:26:04 PM PST by lilylangtree (Veni, Vidi, Vici)
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To: QQQQQ

It is nice isn't it? It's amazing how different the reaction depending on who is asking the questions. Now that the questions are coming from a newly elected Iraqi government, The UN cannot hide or dodge the issue.


6 posted on 02/04/2005 12:26:34 PM PST by contemplator
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To: QQQQQ

Iraq vs. the U.N. This is an easier pick than New England vs. Philadelphia. GO, FREE IRAQIS! KICK THE U.N.'s butt!


7 posted on 02/04/2005 12:27:57 PM PST by doug from upland (THE RED STATES - celebrate a great American tradition)
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To: QQQQQ

I thought at first this was from Scrappleface, because I never dreamed the headline could be true. But good for them. If it was just the U.S. going after the $, we'd get blown off. But if Iraq goes after the U.N., maybe the world will take notice and hold those crooks at the U.N. accountable.


8 posted on 02/04/2005 12:28:09 PM PST by Joann37
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To: QQQQQ

Sounds like a fair demand.


9 posted on 02/04/2005 12:30:14 PM PST by srm913
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To: QQQQQ

Time for an arrest of Sevan, at the very least.


10 posted on 02/04/2005 12:30:16 PM PST by thoughtomator (How do you say Berkeley California in Aramaic?)
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To: QQQQQ
It gets better all the time!
11 posted on 02/04/2005 12:30:47 PM PST by SMARTY ("Stay together, pay the soldiers and forget everything else." Lucius Septimus Severus to his sons)
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To: QQQQQ

Iraq should sue the U.N. in the International Crimial Court!


12 posted on 02/04/2005 12:32:20 PM PST by Uncle Miltie (Democrat Obstructionists will be Daschled!)
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To: QQQQQ

Didn't Iraq's new government also tell the French they were not welcome?

Perhaps the Iraqis knew all along what was going on with the food-for-oil program / scandal. With Saddam gone they may have some powerful evidence against UN and other participants in the scam.

Please let all of that come out during the war crimes trials - we might see some big named Euroweenies heading for the Sudan.


13 posted on 02/04/2005 12:34:47 PM PST by BlessedByLiberty (Respectfully submitted,)
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To: QQQQQ

This should be fun to watch. U.S. out of the U.N. now.


14 posted on 02/04/2005 12:35:35 PM PST by Mark in the Old South (Note to GOP "Deliver or perish" Re: Specter I guess the GOP "chooses" to perish)
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To: lilylangtree

AND Chirac's; AND Schroeder's; AND Putin's; AND maybe Peanutman Carter's and the Clintons'(both of them).


15 posted on 02/04/2005 12:36:41 PM PST by Polyxene (For where God built a church, there the Devil would also build a chapel - Martin Luther)
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To: Polyxene

They can check my office any time. If they happen to find a few billion dollars just lying around, I'd be happier than a kid in a toy store.

I just wish I had a few billion dollars sitting around. Hold on, I didn't check behind the paintings... Drats, nothing!

We should toss the entire U.N. staff into a cell, toss away the key, and burn the U.N. charter. Can we do that? Is it legal to burn the U.N. flag? ;-)


16 posted on 02/04/2005 12:42:56 PM PST by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: QQQQQ

The movement is growing people. If you have not already done so, please sign the petition to get the UN out of the USA. Let's help relocate these anti-American thugs to some 3rd world shithole where they belong.

http://moveamericaforward.org/?Page=Petition


17 posted on 02/04/2005 12:45:04 PM PST by JarheadFromFlorida (Ooorahhhh........Get Some! Semper Fi')
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To: QQQQQ

Kofi has offered to write a personal check for the full amount!

I like the idea of the Iraqi government suing the UN in the ICC.


18 posted on 02/04/2005 12:46:40 PM PST by Owl558 (Please excuse my poor spelling)
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To: lilylangtree

I read in one place that Kofi's son finally admitted that he was getting kick backs. Never saw or have heard of it again. Is there any updates on that?


19 posted on 02/04/2005 12:48:18 PM PST by Holicheese (The Red Hat makes great mudslides)
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To: QQQQQ
I would not hold my breath waiting on anything from AH Annan.

I would not trust Annan in an outhouse with a muzzle on!!
20 posted on 02/04/2005 12:50:00 PM PST by Tannerone
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