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Half oil-food firms said to pay kickbacks (UN Oil-F0R-Food)
AP on Yahoo ^ | 8/9/05 | Edith M. Lederer - AP

Posted on 08/09/2005 3:44:04 PM PDT by NormsRevenge

UNITED NATIONS - Half the 4,500 companies that took part in the U.N. oil-for-food program in Iraq paid kickbacks or illegal surcharges and are being given a chance to respond to the accusations, two top investigators told The Associated Press.

The U.N.-backed probe is expected to release a major report in early September on the $64 billion operation and a final report in October on the companies involved in the purchase of Iraqi oil or sale of humanitarian goods under the program, the investigators said.

"We will report on the management and the corruption," former U.S. Federal Reserve chairman Paul Volcker, who heads the investigation, said in an interview Monday. "We will talk about the benefits and the shortfall."

The oil-for-food program, launched in December 1996 to help ordinary Iraqis cope with U.N. sanctions imposed after Saddam Hussein's 1990 invasion of Kuwait, was one of the largest humanitarian programs in history. By most accounts, it achieved what it set out to do, becoming a lifeline for 90 percent of the country's population of 26 million.

Under the program, Saddam's regime could sell oil, provided the proceeds went primarily to buy humanitarian goods or pay war reparations. Saddam allegedly sought to curry favor with former government officials, activists, journalists and others by giving them vouchers for Iraqi oil that could then be resold at a profit.

Volcker said "the definitive list" of more than 4,500 private contractors involved in the program will include for the first time the entities behind so-called front companies.

"It will provide information of known or alleged beneficiaries of oil allocations or purchase contracts, and it will report the apparent payment of illicit surcharges on oil contracts and kickbacks on humanitarian contracts," Volcker told a news conference Monday.

Richard Goldstone, a former Yugoslav war crimes prosecutor and a member of Volcker's Independent Inquiry Committee, said afterward that many contracts were accompanied by side letters containing "evidence of kickbacks."

Before making allegations of illegal actions against companies, Goldstone said, "we are going through the painstaking process of giving them prior notice, and giving them the opportunity of saying why this would be unfair and incorrect."

Goldstone said about half the 4,500 companies would receive notices.

He said a substantial amount of evidence of kickbacks came from Iraqi files, and "a lot from U.N. documents," adding that some evidence also came from the committee's investigations.

In the October report, Goldstone said, "we will be selecting some companies for in-depth treatment to show how the Saddam regime used the oil program to solicit favors from government."

Volcker said he regrets that the investigation's final report on Secretary-General Kofi Annan's role in oil-for-food and recommendations for U.N. reform will be issued just weeks before a summit of world leaders in mid-September to overhaul the world body.

"I wish this report was out two months ago," he said in an interview. "It comes late, and it complicates it."

The third report by Volcker's committee released Monday said new e-mails suggesting Annan knew more than he said about a company which employed his son, Kojo, and won an oil-for-food contract "clearly raises further questions."

Volcker's eagerly awaited final assessment on Annan's involvement could affect the U.N. summit and the secretary-general's completion of his second five-year term, which ends on Dec. 31, 2006.

Mark Malloch Brown, the secretary-general's chief of staff, told reporters Monday that Annan expects "vindication" in the September report.

The timing may even be a good thing, though in an ideal world nobody would want a report of that magnitude "raining on your parade just a couple of weeks before a global summit," he said.

He said Volcker's accusation that oil-for-food chief Benon Sevan took $147,184 in illegal kickbacks and Monday's guilty plea by U.N. procurement official Alexander Yakovlev for soliciting an oil-for-food bribe and pocketing hundreds of millions of dollars in bribes on other contracts demonstrate the need for deep-rooted management reform of the United Nations.

"Maybe Mr. Volcker can give us what's needed to lift this issue above politics and say, `this U.N. that we all believe in badly needs a strengthening of its management systems,'" he said.

Volcker and Goldstone promised that management reforms will be a focus of their recommendations in the September report.


TOPICS: Breaking News; Business/Economy; Crime/Corruption; Extended News; Foreign Affairs; Front Page News; Government; Politics/Elections; War on Terror
KEYWORDS: annan; firms; food; half; kickbacks; oil; oilforfood; volcker
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1 posted on 08/09/2005 3:44:07 PM PDT by NormsRevenge
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To: NormsRevenge

Alexander Yakovlev, a Russian procurement officer, the first U.N. official to be charged in the oil-for-food scandal-tainted program, is seen at an undisclosed location in this undated image from a Russian television broadcast Tuesday, Aug. 9, 2005. Yakovlev pleaded guilty Monday to the charges and surrendered to FBI agents in Manhattan but was later released on $400,000 bail. He could face up to 20 years in prison for each of the three counts. (AP Photo/RTR Russian Channel)


2 posted on 08/09/2005 3:44:56 PM PDT by NormsRevenge (Semper Fi ... "To remain silent when they should protest makes cowards of men." -- THOMAS JEFFERSON)
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To: NormsRevenge

Benon Sevan, former head of the U.N. oil-for-food programme, addresses a news conference at the U.N. headquarters in Baghdad in this July 5, 1999 file photo. Sevan was accused on August 8, 2005 of getting nearly $150,000 in kickbacks funnelled to him by a relative of former U.N. Secretary-General Boutros Boutros-Ghali. Picture taken July 5, 1999. REUTERS/Faleh Kheiber/File


"TOUCHDOWN!!!"


3 posted on 08/09/2005 3:46:27 PM PDT by NormsRevenge (Semper Fi ... "To remain silent when they should protest makes cowards of men." -- THOMAS JEFFERSON)
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To: NormsRevenge
But, don't forget, Saddam and Sons were completely contained, indefinitely. LOL
4 posted on 08/09/2005 3:47:36 PM PDT by roses of sharon
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To: roses of sharon

Get em Mr. Bolton


5 posted on 08/09/2005 3:49:04 PM PDT by Rosemont
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To: NormsRevenge

Some of the bit players are on their way to jail, but when does the rotting carcass at the top go to jail?


6 posted on 08/09/2005 3:50:14 PM PDT by Brett66 (Where government advances – and it advances relentlessly – freedom is imperiled -Janice Rogers Brown)
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To: NormsRevenge
Bolton rides into town...


7 posted on 08/09/2005 3:51:35 PM PDT by Indy Pendance
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To: NormsRevenge; Howlin

I don't know if we'll ever know the extent of this, or if we'll ever know everyone involved. However, I'm glad that MSM can no longer ignore this story. For a long time, the only thing we learned about it was here on FR--certainly the news-pundits (past and present) didn't deem it worthy of air time.


8 posted on 08/09/2005 3:52:11 PM PDT by MizSterious (Now, if only we could convince them all to put on their bomb-vests and meet in Mecca...)
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To: NormsRevenge; All
Crosslinked:

Click this picture & go to the "last" for the latest UN scandals:


If you aren't informed about this stuff, you will be made sick. If you are informed, you will be made mad, all over again.

9 posted on 08/09/2005 3:53:14 PM PDT by backhoe (-30-)
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To: NormsRevenge
No way... </sarcasm>

U.S. DEPARTMENT OF STATE Office of the Spokesman For Immediate Release November 2, 2000 As Delivered

Remarks by Secretary of State Madeleine K. Albright and Question And Answer Session at National Press Club

Washington, D.C.

SECRETARY ALBRIGHT: Can I finish? So we were more concerned, I think, than anyone about the tragic situation for the people of Iraq. When I was Ambassador at the United Nations, we helped to write the Oil-for-Food program. It now is worth $20 billion. They are able to pump as much oil as they can, and the United Nations is distributing the food.

10 posted on 08/09/2005 3:54:09 PM PDT by michigander (The Constitution only guarantees the right to pursue happiness. You have to catch it yourself.)
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To: NormsRevenge

Sevan has threatened to pull a "Ron Brown" on the UN.
Don't be suprised if he's in a fatal one-car accident.


11 posted on 08/09/2005 3:56:43 PM PDT by stylin19a (In golf, some are long, I'm "Lama Long")
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To: stylin19a
I hear Fort Marcy Central Park is a great place to take a walk late at night.
12 posted on 08/09/2005 4:00:45 PM PDT by Fresh Wind (It is Watergate yet? Is it Watergate yet?)
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To: NormsRevenge

http://www.freerepublic.com/focus/f-news/1459518/posts

At the time in question, the U.S.-U.N. delegation was headed by Richard Holbrooke, Madeleine Albright was secretary of state.

"Of course they knew (of the improprieties). Why did they not act? Ask them," Sevan said.


13 posted on 08/09/2005 4:02:51 PM PDT by Mo1
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To: NormsRevenge

It's time for Kofiy to fess up. Deny - deny - deny and make counter accusations.


14 posted on 08/09/2005 4:03:16 PM PDT by sandydipper (Less government is best government!)
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To: stylin19a
He will end up committing "suicide" by firing a shotgun into the back of his head multiple times.
15 posted on 08/09/2005 4:07:01 PM PDT by gov_bean_ counter (Conservatives look at Iraqi dual use chemicals and see WMDs. Liberals see tomato gardens.)
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To: Mo1
...one of the largest humanitarian programs in history. By most accounts, it achieved what it set out to do, becoming a lifeline for 90 percent of the country's population of 26 million.

Oh really? Is that why there were storehouses and stockpiles of unopened food and supplies found by US soldiers in the invasion of Iraq?

16 posted on 08/09/2005 4:18:00 PM PDT by prairiebreeze (On behalf of America, I apologize to our fine military for the lies of the lib press and RATS.)
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To: MizSterious
You are spot on, dead aim, to the target right in your analysis.

MSM has been doing anything that the RATS want them to do, and in doing so they have run off most of their advertising and circulation base. Does that mean that they will finally cover stories that we have been talking about for YEARS? Don't count on it. FreeRepublic has all the information (facts) that they would ever need to give this story legs but they will drag their feet and continue to run the inaccurate and incomplete stories on page 10, Section D of the paper. THEY WON'T CHANGE! They are communists that want the world their way and they want you and I to adore them for it. Now, that ain't going to happen, but they still are devout to the ideology. They have no religion, therefore, this is their religion, as warped as that might sound to you and I, this is their Lord God Almighty.

Let's not worry ourselves about the MSM, let's keep getting the facts out on the Internet, and trust in our Lord God Almighty.....he's a better editor and mentor.

17 posted on 08/09/2005 4:28:51 PM PDT by timydnuc (I'll die on my feet before I'll live on my knees.)
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To: NormsRevenge

The dominoes are falling harder than the Rubberhead-to-Penske announcement.


18 posted on 08/09/2005 4:39:21 PM PDT by steveegg (Real torture is taking a ride with Sen Ted "Swimmer" Kennedy in a 1968 Oldsmobile off a short bridge)
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To: NormsRevenge
i am the great cornholeo...


19 posted on 08/09/2005 5:27:10 PM PDT by Chode (American Hedonist ©®)
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To: NormsRevenge

What did Kofi know, and when did he know it?


20 posted on 08/09/2005 5:47:07 PM PDT by gpapa (Voice of reason from the left coast)
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