Scandal at the U.N.

The cover-up in the office of the U.N. secretary general of a multibillion-dollar financial fraud known as the Iraqi oil-for-food program is beginning to come apart.

The scandal has been brewing for years. The first I learned of it was in a New York Times Op-Ed article last April by the journalist Claudia Rosett charging that the U.N.'s secretive oversight of more than $100 billion in Iraqi oil exports and supposed humanitarian imports was "an invitation to kickbacks, political back-scratching and smuggling done under cover of relief operations."

After checking with Kurdish sources in Iraq, I reported that half the money allocated to their people had been blocked by Saddam "conspiring with bureaucrats in the U.N. Plaza."

Kofi Annan's right-hand man, Benon Sevan, had been named by the secretary general to head the oil-for-food program and report directly to him. Though he could not deny a favored French banking connection, Sevan branded as "inaccuracies" charges by Ms. Rosett and me of secrecy, citing a hundred audits in five years. But he refused to make public what companies in what countries got Saddam's largess.

Now, thanks to evidence of systematic thievery on a huge scale, discovered by free Iraqis in Baghdad, the whole rotten mess of 10 percent kickbacks on billions in contracts is coming to light. In detailed accounts, Susan Sachs in The Times, Therese Raphael in The Wall Street Journal, and Charles Laurence and Inigo Gilmore of London's Daily Telegraph have flipped over the flat rock of corruption.

Assistant Secretary General Sevan, now on an extended vacation until his retirement next month, denied through a spokesman "that I had received oil or oil monies from the former Iraqi regime" and demanded that his doubters produce documentary evidence. The Journal then produced a document in Arabic that suggests Sevan received an allocation of 1.8 million barrels of oil.

Under the U.N. bureaucracy's nose — and I suspect, in some cases, with its collusion — nearly three-quarters of the suppliers jacked up their prices to pay the 10 percent kickback. These included European manufacturers, Arab trade brokers, Russian factories and Chinese state-owned companies. Corruption's take — out of the mouths of hungry Iraqi children — was estimated by Sachs of The Times at $2.3 billion.

Hired by the U.N. to monitor these imports was a Swiss-based firm, Cotecna, which was paid out of the exorbitant fee the U.N. charged for overhead. Ms. Rosett, writing in National Review last week, notes that Kojo Annan, the secretary general's son, was once on staff and later a consultant to that tight-lipped company. In denying to The Telegraph in 1999 that he worked on the U.N. oil-for-food account, Kojo Annan said, "The decision is made by the contracts committee, not by Kofi Annan."

About that "661 compliance committee," on which the U.S. has a seat and to which the secretary general now wants to pass the buck: a U.S. official familiar with its operation tells me that "its purpose was formally to approve what the U.N. staff recommended. Only the U.S. and the U.K. experts ever put a hold on a contract, and that about items that had dual use in weaponry. Few U.S. firms got contracts, and those that did worked through middlemen to avoid the General Accounting Office."

Annan's office kept blaming the 661 committee and stonewalling the press until an irate Iraqi Governing Council hired the accountants KPMG and a law firm to investigate what its advisers told Annan was "one of the world's most disgraceful scams."

Under mounting pressure, this week the U.N. let it be known that its laughably titled Office of Internal Oversight Services would look into the matter. An internal whitewash? Not nearly good enough.

Will the Security Council appoint an independent counsel to clean house in an inept or corrupt Secretariat? No, because France and Russia had their hands in the kickback till.

But free Iraq, backed up by the U.S., is not helpless. Our Congress supplies 22 percent of the U.N. budget, and we have a right to an accounting. Chairman Henry Hyde, of House International Relations, calls this "an outrage" and will arrange for a G.A.O. briefing this week, to be followed by open hearings in April.

The U.N. can redeem its sullied reputation by helping to shape Iraq's future. To take up that challenge, it must have clean hands.

more than $100 billion in U.N.-approved contracts for Saddam to sell oil and buy humanitarian supplies

Annan's own son, Kojo Annan, to the Switzerland-based firm, Cotecna, which from 1999 onward worked on contract for the U.N. monitoring the shipments of Oil-for-food supplies into Iraq. These were the same supplies sent in under terms of those tens of billions of dollars worth of U.N.-approved contracts in which the U.N. says it failed to notice Saddam Hussein's widespread arrangements to overpay contractors who then shipped overpriced goods to the impoverished people of Iraq and kicked back part of their profits to Saddam's regime.

Cotecna was hired by the U.N. on December 31, 1998. Shortly afterward, press reports surfaced that Kojo was a partner in a private consulting firm doing work for Cotecna, and that just 13 months previously he had occupied a senior slot on Cotecna's own staff. Asked about this in 1999 by the London Telegraph, a U.N. spokesman, John Mills, replied that the U.N. had not been aware of the connection, and that "The tender by Cotecna was the lowest by a significant margin."

Cotecna — while employing Kofi's son in any capacity — put in the lowest bid by far for the job of authenticating Saddam's Oil-for-Food imports, is not necessarily reassuring. Cotecna, which got paid roughly $6 million for its services during that first year (the U.N. will not release figures on Cotecna's fees over the following years)

Oil-for-Food was run out of the U.N. Secretariat, reporting directly to Annan, who regularly signed off on the six-month phases of the program.

Kofi Annan's official U.N. biography notes that shortly before his promotion to Secretary-General "he led the first United Nations team negotiating with Iraq on the sale of oil to fund purchases of humanitarian aid."

Timmerman, who worked as a journalist in France for eighteen years and knows the players on both sides, lifts the veil of Jacques Chirac's scandalous love affair with Saddam Hussein, beginning in 1975, when he took him on a tour of top-secret French nuclear facilities. The French attitude toward the dictator, which seemed to baffle American politicians, was in fact entirely predictable. Put bluntly, it was all about money, oil, and guns. Chirac needed Saddam's oil and Saddam's money, and Saddam needed French weapons and French nuclear technology.

Despite this, the relationship between France and America was not only amicable but at times very mutually beneficial. That was until the most recent war on Iraq, where France turned the tables, engaging in dirty diplomacy and helping to sway other European countries to their side. French war coverage was not merely one-sided: It was viciously inaccurate, skewed, and openly anti-American. Timmerman also presents incredible new evidence of France's duplicity, including the fact that the French stood to gain $100 billion from secret oil contracts they had concluded with Saddam Hussein.

Shocking new revelations in The French Betrayal of America

The French president lied to Bush and to the public about the war in Iraq.
President Jacques Chirac had personally told President George W. Bush well ahead of time that France would be at America's side.

France urged Saddam to commit genocide.

Saddam launched his genocidal campaign against the Marsh Arabs in southern Iraq to make their region "safe" for French oil engineers.

France helped build Saddam's long-range missiles and nukes. Based on exclusive access to new documents, provided by Iraq to the United Nations -- that French defense companies were key partners in helping Saddam Hussein perfect the long-range missiles that killed U.S. soldiers in Saudi Arabia in 1991 and rained terror onto Israel.

Chirac has blocked cooperation on a high-profile terrorism case.
France's top counter-terrorism judge was ordered to stop cooperating with the United States in the prosecution of Zacarias Moussaoui despite mounds of documents that would have helped the United States to convict Moussaoui of conspiracy to commit mass murder.

France illegally sold U.S. military secrets to Saddam Hussein.
A prominent French defense company shipped U.S.-designed laser designator pods to Iraq in the 1980s that compromised the most high-tech weapons in the U.S. arsenal.

President Mitterrand, a Socialist, became Ronald Reagan's best ally in Europe.

The French Betrayal of America reveals the extent of French strategic and intelligence cooperation with the United States at the peak of the Cold War, in areas that will surprise readers on both sides of the Atlantic. The French ran a key agent inside the KGB, whose "cosmic" reach -- right up to the general secretary of the Communist Party of the Soviet Union -- hastened the collapse of the Soviet Union.

President Chirac almost went to jail for corruption.
Chirac was on the verge of getting indicted on corruption charges in 1999 until he cooked up an immunity deal with the head of the French Supreme Court, former Socialist foreign minister Roland Dumas. While the French corruption scandals are well known in France, they have rarely been reported in the United States and will alternately shock and amuse American readers.

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It is time for the United Nations to move to Paris.