Iraq oil-for-food kickbacks 'higher than suspected'

telegraph.co.uk ^ | 02/05/2004 | Philip Sherwell

[TaxPayer2000]

Kickbacks paid to Saddam Hussein's regime on contracts signed under the United Nations' oil-for-food programme were far higher than the 10 per cent rake-off previously assumed to be the norm.

In one of the many deals funded by UN-supervised oil exports from Iraq, a delivery of cameras and audiovisual equipment for the culture ministry - sent as "humanitarian" items, under a loophole - was valued at 100 per cent above its true cost.

According to new documents recovered in Baghdad, multi-million pound deals with the public works ministry for sanitation and water filtration equipment were often marked up by as much as 30 per cent.

The discrepancy represents the kickbacks for leaders and regime officials who skimmed off billions of pounds from the scheme that was supposed to provide food, medicine and essential supplies for the Iraqi people.

Some went straight into the bank accounts of Saddam, his family and supporters, in addition to officials who negotiated the deals. The Iraqi dictator, however, is also alleged to have paid millions of pounds in cash and oil trading vouchers to foreign companies and individuals from the kickbacks.

According to a Western official with access to the contracts, staff from the Coalition Provisional Authority who have been poring over more than 2,500 outstanding contracts worth almost £5.9 billion since the UN left Iraq last year, are shocked by the rake-offs.

Former Iraqi oil ministry staff had said that suppliers or middlemen were routinely required to add 10 per cent to the value of contracts to win a tender. As a result, when the CPA took over the administration of existing contracts, it assumed that the 10 per cent mark-up was correct.

Now, its latest discovery means that the total lost to kickbacks and surcharges could far exceed the American Congressional estimate of £2.6 billion. Oil smuggling is believed to have lined the coffers of Saddam's regime with a further £3.4 billion.

CPA staff believe that some border inspectors working for the Swiss company Cotecna at Iraqi frontier posts were bribed to turn a blind eye to discrepancies between goods that were contracted and what was delivered.

The inflated contracts were apparently not noticed or ignored at the UN in New York, even though strict checks were supposed to ensure that Iraq did not receive goods banned under economic sanctions.

Last week, a US Congressional investigator testified that UN auditors had refused to release 55 internal audits covering seven years of the oil-for-food programme to the General Accounting Office, the federal body carrying out one of the investigations into the scandal.

Joseph Christoff, a GAO official, said that the audits were shown routinely only to Benon Sevan, the UN Under Secretary General who ran the programme whose name was on a list of 270 companies and individuals who allegedly received vouchers. Mr Sevan has denied wrongdoing.

[rodguy911]

We will never "officially" know just what happened in the oil for kickbacks deal. It's to big to be let out. It would destroy the UN's credibility once and for all and too many of the wrong people don't want that to happen. Kick-backs and major corruption in business dealings are a way of life in the third world.

[anniegetyourgun]

The CPA work in just this area alone (uncovering these dirty little secrets) has been well worth the money!

[Free_at_last_-2001]

The UN involved in criminal activity with a Dictator - I'm shocked I tells ya shocked! - I wonder how long it will be before this is all Bush's fault!

[gaspar]

Bush has no reason to love or respect the UN leadership. Either they release the audits or the US should refuse to pay its dues.

[Libertina]

Actually, I believe we WILL know - and soon. There are lists, though some have "mysteriously" gone up in smoke at UN outside offices... But I read here on FR of one guy who's about to make them public. And it includes "journalists." CNN, anyone? This is really low behavior and there is nothing like the light of truth shining in...

[anniegetyourgun]

I'm not sure there is a link between my comment and yours. However, I'm still pleased with the work the the CPA is doing in Iraq going through these records of treachery. As for Bush, I think he's done more than any president in my lifetime to expose the U.N. for what it is - fraudulent and impotent.

[MizSterious]

"...far higher than the 10 per cent rake-off previously assumed to be the norm. "

So as far as the UN is concerned, skimming 10% is "the norm"? Consider how much 10% of the billions that pass through their hands would amount to. Yet, these people are so greedy, they're skimming far more. Out with them! Let them set up shop in Cuba or somewhere!

[gunnedah]

Clinton got his from China I guess Kerry was getting his from Saddam.

[backhoe]

Crosslinked- click the cute little picture:

[rodguy911]

I still say this story--the UN food for oil corruption scandal-- will never walk. There will never be legs for anything that could possibly devastate the sacred United Nations--it's the rats theme. The big NY Times/ Wash. Post types will never cover this the way it should be covered, they are too biased to the left. Without the UN security blanket the rats little to hold onto. It's their blame game symbol against free people. The UN represents the rats and socialism worldwide they have to much vested in it.

[lepton]

bookmark bump

[shield]

bmp

[ValerieUSA]

So, What did GW Bush know about this, and when did he know?

This is one time the libs won't ask their favorite question. They don't want to admit our President was suspicious of the UN whores from the very beginning - and he was right.

[Libertina]

Never walk? We'll just have to teach it to toddle, then ;) True, the alpha-lie channels will pretend not to notice (truly shocking, it is not?) but remember, we now have FOX and Talk Radio, and the Internet. We are not silent any loner.

[MamaLucci]

The UN represents the rats and socialism worldwide...

Yes, and that is why it MUST be exposed.