Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Oil-for-Food: The U.N. View
Wall Street Journal ^ | April 30, 2004 | EDWARD MORTIMER

Posted on 04/30/2004 5:57:26 AM PDT by OESY

As the June 30 deadline for the restoration of Iraqi sovereignty approaches, it is becoming clear that the U.N. will be called on to play a crucial role in the transition -- by helping to choose a caretaker government, which will be in charge of Iraq from July 1 until elections are held in January 2005, and by advising on the conduct of those elections.

Some critics of the U.N., particularly well represented on this page, have been seeking to question its fitness for this role by seizing on allegations of corruption and mismanagement in the "Oil-for-Food" program, through which, from 1996-2003, the Security Council sought to relieve the suffering inflicted on ordinary Iraqis by sanctions aimed at Saddam Hussein's regime. These allegations are as yet unsubstantiated. But Secretary-General Kofi Annan is taking them very seriously. Last week he appointed a panel of eminent persons to investigate.

It's hard to imagine people better qualified for this than the three Mr. Annan chose: Paul Volcker, former head of the Federal Reserve; Richard Goldstone, who played a key role in South Africa's Truth and Reconciliation Commission, which conducted a searching inquiry into the abuses of the apartheid regime; and Mark Pieth, one of the world's leading experts on bribery and money-laundering. All three have the highest reputation for integrity, expertise and an ability to get at the truth.

They will investigate not only actions by U.N. officials but also those of agents and contractors engaged by the U.N., or by Iraq, in connection with the Oil-for-Food program. They will have access to all U.N. documents and personnel. The Security Council has called on all governments to cooperate fully. Mr. Annan has promised to take action against any U.N. officials found guilty of wrongdoing, and will not allow any who are found to have broken the law to claim immunity. As Mr. Volcker has said, "There is always some damage in the accusations, but what seems to be important is finding out whether there is any substance to those. If there is any substance to them, get it out there, get it out in a hurry and cauterize the wound."

No one should prejudge the panel's findings. For the moment, we have only allegations -- some precise, against named individuals; others vague and general; and quite a few based on misunderstandings about the nature and purpose of the program.

Some widely quoted figures are clearly wrong. For instance, Oil-for-Food was not "a $100 billion plus program," unless you count the money twice, adding oil exports to humanitarian imports. Iraqi oil sales under the program totaled $64.2 billion in the seven years of its life.

Next, the estimate of the General Accounting Office (GAO) that "from 1997-2002, the former Iraqi regime attained $10.1 billion in illegal revenues from the Oil-for-Food Program" is misleadingly phrased, since more than half that figure ($5.7 billion) relates to "oil smuggled out of Iraq" in violation of U.N. sanctions. This had been going on for years before the program was established, and was quite unconnected with it.

U.N. officials had neither mandate nor capacity to police such smuggling. That was the task of the Multinational Interception Force created by the Security Council in 1990, and of national authorities in the countries through which the oil passed. When the Oil-for-Food program was set up, its agents were authorized only to check the quantities of oil exported legally by Iraq, through two specified export points.

That leaves $4.4 billion -- if GAO figures are correct -- which may have been "skimmed off" in two ways:

• First, there is evidence that Saddam deliberately underpriced his oil, so that, instead of the full price going into the U.N. escrow account, a secret premium could be demanded from purchasers, which was not declared to the U.N. but either paid into secret accounts or pocketed by middlemen to whom Saddam gave negotiable vouchers as political favors. The U.N.'s oil overseers got wind of this practice in 2000 and alerted the Security Council -- which agreed, some months later, that henceforth Iraq should be required to fix its prices retroactively, reducing the scope for illicit premiums.

• Secondly, Saddam encouraged companies from which he was buying food and other items authorized under the program to overprice their goods, and required them to pay back the difference -- not into the U.N. escrow account but into secret accounts of his own. This abuse was much harder for U.N. officials to detect. In some cases they did query the prices and, if no satisfactory answer was given, reported their concerns to the Security Council's sanctions committee, which gave final approval to the contracts. The whole program was designed and supervised by the Council, all of whose 15 members served on this committee. Any one of them could put a contract on hold for further investigation. The U.S. and Britain put thousands of contracts on hold, citing fears that the goods involved might have military uses. In no such case since 1998 did they cite concerns about the price or quality of the goods. Only after Saddam's fall was the full extent of these "kickbacks" revealed.

• Finally, whatever illicit gains Saddam may or may not have been able to skim off, the program did provide a basic food ration for all 27 million residents of Iraq. Between 1996-2001, the average Iraqi's daily food intake increased from 1200 to 2200 kilocalories per day. Malnutrition among Iraqi children dropped by 50% during the life of the program, as did deaths of children under five in the center and south of the country. During the same period, polio was eradicated from Iraq, thanks to vaccination campaigns funded by the program.

The combined pressures of sanctions and Saddam's oppressive regime undoubtedly made the '90s a dark decade for most Iraqis. The blame belongs mainly to Saddam, who not only imposed his brutal rule but also brought down the wrath of the world on his country -- first by invading Kuwait and then by refusing full cooperation with U.N. disarmament inspectors. The Oil-for-Food program was an effort to spare ordinary Iraqis some of the bitter hardships that their leaders had brought upon them. No doubt it could have been better designed, and better implemented. But in its basic mission, it succeeded.

Mr. Mortimer is director of communications in the office of the U.N. Secretary General.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Editorial; News/Current Events; Politics/Elections; War on Terror
KEYWORDS: annan; bush; gao; goldstone; iraq; oilforfood; pieth; saddam; un; unitednations; volcker

1 posted on 04/30/2004 5:57:26 AM PDT by OESY
[ Post Reply | Private Reply | View Replies]

To: Senator Kunte Klinte
Why would Kerry support a corrupt, ineffective organization like the U.N. under Annan unless the "Corrupt Party" in US politics saw an advantage?

The U.N. is reviled in Iraq for supporting Saddam, and prefers to cut-and-run over summoning the courage to stand up to dictators. Forget WMD, the U.N. inspectors couldn't find 5.7 million barrels of oil that were being smuggled out of Iraq daily under the Oil-For-Food program, or could they? I think I'm beginning to see why Kerry likes them.

2 posted on 04/30/2004 5:57:57 AM PDT by OESY
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY
Using the arguments of Fast Eddie Mortimer, one could defend the Mafia and Columbian drug lords because they use some of their money "legitimately". There needs to be indictments, convictions, and a general disbandment of the UN (the RICO acts are tailor-made for this kind of situation).
3 posted on 04/30/2004 6:07:46 AM PDT by steveegg (Radical Islam has more in common with Islamic populations than the mainstream media has with America)
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY
"Between 1996-2001, the average Iraqi's daily food intake increased from 1200 to 2200 kilocalories per day. Malnutrition among Iraqi children dropped by 50%"

Would a FReeping nutritionist weigh in on this? TO my layman's ear, 2200 "kilocalories" sounds like 1000x2200 calories, or 2,200,000 calories for "the average Iraqi's daily food intake."

They'll need Tae-Bo before they need anymore food!
4 posted on 04/30/2004 6:08:20 AM PDT by Gefreiter
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY
Do they have subpoena power? Any teeth?
5 posted on 04/30/2004 6:09:23 AM PDT by mewzilla
[ Post Reply | Private Reply | To 1 | View Replies]

To: OESY
But in its basic mission, it succeeded.

Guess it depends on your definition of success, Mr. Mortimer. Why don't you go to Iraq, peedle that line there, and see how Iraqis feel about it.

6 posted on 04/30/2004 6:11:33 AM PDT by mewzilla
[ Post Reply | Private Reply | To 1 | View Replies]

To: mewzilla
peedle=peddle (Freudian slip)
7 posted on 04/30/2004 6:11:53 AM PDT by mewzilla
[ Post Reply | Private Reply | To 6 | View Replies]

To: Gefreiter
Dietary Calories (capital C) is one physics kilocalorie. I think most European packages list kilocalories.
8 posted on 04/30/2004 6:12:29 AM PDT by KarlInOhio (Clinton, advised by Dick Clarke, did nothing. - Ann Coulter 4/1/04, How 9-11 Happened)
[ Post Reply | Private Reply | To 4 | View Replies]

To: OESY
"No doubt it could have been better designed, and better implemented. But in its basic mission, it succeeded."

In other words, "yeah, sure, we were corrupted and we enabled and strengthened a murderous dictator to continue his reign of terror against his own people while thumbing his nose at UN weapons inspectors and continually firing on aircraft enforcing the no-fly zone, but other than that, we succeeded. You can trust the UN to get the job done! Wait 'til you see how we run Iraq after the Americans are gone!"

9 posted on 04/30/2004 6:12:58 AM PDT by GBA
[ Post Reply | Private Reply | To 1 | View Replies]

To: mewzilla
I actually like peedle better.
10 posted on 04/30/2004 6:16:28 AM PDT by Bahbah
[ Post Reply | Private Reply | To 7 | View Replies]

To: OESY
I was finding this article very hard to believe. Then I scrolled down and saw who the writer (liar) was. The UN spin has begun.
11 posted on 04/30/2004 6:17:54 AM PDT by Bahbah
[ Post Reply | Private Reply | To 1 | View Replies]

To: KarlInOhio
A few more specifics. A calorie (small c) is the amount of energy needed to raise the temperature of 1 gram of water by 1 degree Celsius. A kilocalorie (or dietary Calorie) is the amount of energy needed to raise the temperature of one kilogram of water by 1 degree Celsius.

Someone burning 2000 Calories (or kilocalories) per day is consuming energy at about 100 watts.

12 posted on 04/30/2004 6:18:57 AM PDT by KarlInOhio (Clinton, advised by Dick Clarke, did nothing. - Ann Coulter 4/1/04, How 9-11 Happened)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Bahbah
So... what he's saying is that the corrupt weasels didn't get as much money as reported. Does that mean we were betrayed for less money than has been reported? That the French are cheaper whores?

Seems to me Judas was Judas. Whether it was 30 pieces of silver or 20 pieces of silver doesn't make much difference.
13 posted on 04/30/2004 6:26:14 AM PDT by get'emall (Kofi Annan: The Lawn Jockey at the Intersection of Corruption and Lies)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Bahbah
peedle better...and jelly?
14 posted on 04/30/2004 6:43:59 AM PDT by steve8714
[ Post Reply | Private Reply | To 10 | View Replies]

To: OESY
If the UN is on the up-and-up, why did the accounting records disappear?
15 posted on 04/30/2004 7:30:38 AM PDT by thoughtomator (yesterday Kabul, today Baghdad, tomorrow Damascus)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson