Posted on 02/03/2005 2:44:16 PM PST by NormsRevenge
UNITED NATIONS (AP) - Secretary-General Kofi Annan is taking disciplinary action against the head of the U.N. oil-for-food program in Iraq following an investigation of alleged corruption in the humanitarian program, a senior U.N. official said Thursday.
The decision came after a report by former Federal Reserve Chairman Paul Volcker accused program chief Benon Sevan of unethical conduct and Joseph Stephanides of manipulating an oil-for-food contract, according to Mark Malloch Brown, Annan's chief of staff.
At the time the contract was awarded, Stephanides was chief of the U.N. Sanctions Branch and deputy director of the Security Council Affairs Division in the U.N. Department of Political Affairs. He now heads the division.
Former U.S. Federal Reserve Chairman Paul Volcker speaks in the lobby of the United Nations in New York on Thursday. Volcker presented his report to U.N. Secretary General Kofi Annan in the morning.
Snort.
He shall be spanked with a wet noodle.
Censure?
Well, well, this didn't take long, did it?
It's not going to work; Volcker clearly said that Kofi and son will be dealt with in a separate report.
@!##@$^%#&*!
Don't get me started :)
United Nations Secretary General Kofi Annan, left, walks with Benon Sevan, executive director of the United Nations Office of Iraq Program, following a meeting at U.N. headquarters in this April 3, 2003 file photo. Former U.S. Federal Reserve chairman Paul Volcker says his investigation of corruption in the oil-for-food program in Iraq found that program director Sevan engaged in "an irreconcilable conflict of interest" by choosing the companies that bought Saddam Hussein's oil. The 200-page report was scheduled to be released by Volcker Thursday afternoon, Feb. 3, 2005.
Gee, is Sevan still in Cyprus? If so, did Volker fly out to talk to him? Or did they just play phone tag?
Iraq welcomes Oil-for-Food report
http://www.bakersfield.com/24hour/world/story/2086608p-10150970c.html
MARIAM FAM, Associated Press Writer
BAGHDAD, Iraq (AP) - Iraq's human rights minister welcomed the report on the sweeping investigation of the U.N. oil-for-food program, saying those responsible for management should be brought to justice and Iraqis should be financially compensated.
"Through the report it has become clear to us that some of those who were shedding crocodile tears for Iraqi children shamelessly, showed their ugly face by stealing Iraqi children's bread," Human Rights Minister Bakhtiyar Amin told The Associated Press.
The report accused program chief Benon Sevan of a "grave conflict of interest," saying his conduct in soliciting oil deals was "ethically improper and seriously undermined the integrity of the United Nations."
Despite Sevan's claims that he never recommended any oil companies, the investigation by former U.S. Federal Reserve Chairman Paul Volcker concluded that the official repeatedly solicited allocations of oil from Iraq under the program and "created a grave and continuing conflict of interest."
"We expect that there will be a wider and a deeper investigation continuously until those who benefited from the coupons will be all brought before justice and the resources stolen be returned back to the Iraqi people," Amin said. "This money should be paid back."
He added that the findings shouldn't be used to tarnish the whole United Nations, which he said was a big organization of "decent people."
He asked that a better monitoring system be put in place to prevent and deal with corruption.
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, quickly became a lifeline for 90 percent of the population.
Former Federal Reserve Chairman Paul Volcker waits before opening a press conference on the Independent Inquiry Committee's report on the United Nations' Oil For Food Program Thursday, Feb. 3, 2005, in New York. Volcker said his investigation of corruption in the oil-for-food program in Iraq found that program director Benon Sevan engaged in "an irreconcilable conflict of interest" by choosing the companies that bought Saddam Hussein's oil. Mark Peith, a member of the committee, is seated at left.
It's all a bunch of BS.
yeah but wait....there's more.....there are still investigaions going on and what the English guy from I think the Heritage Group said this morning, that more stuff was gonna be coming out soon.......so I'm waiting to see. Koffi throwing marshmellows doesn't impress me much
Was that Nile Gardner?
yes Nile.....I love him but I can't remember if he is from Heritage or the American Enterprise Institute......he is very well informed and intelligent
Heritage last I knew. He's a good egg.
"... Ooooh, dealt with seperately."
DUH! He'll have a separate private plane to leave the USA.
:)
Laughable.
aticle update..
http://story.news.yahoo.com/news?tmpl=story&cid=514&e=1&u=/ap/20050203/ap_on_re_mi_ea/oil_for_food_investigation_18
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UNITED NATIONS - Secretary-General Kofi Annan (news - web sites) is taking disciplinary action against the head of the U.N. oil-for-food program in Iraq (news - web sites) following an investigation of alleged corruption in the humanitarian program, a senior U.N. official said Thursday.
The decision came after a report by former Federal Reserve (news - web sites) Chairman Paul Volcker accused program chief Benon Sevan of unethical conduct and Joseph Stephanides of manipulating an oil-for-food contract, according to Mark Malloch Brown, Annan's chief of staff.
At the time the contract was awarded, Stephanides was chief of the U.N. Sanctions Branch and deputy director of the Security Council Affairs Division in the U.N. Department of Political Affairs. He now heads the division. Malloch Brown did not say what disciplinary steps would be taken but said they would be announced early next week.
Although Sevan said he never recommended any oil companies, the investigation led by Volcker concluded that he repeatedly solicited allocations of oil from Iraq under the program and "created a grave and continuing conflict of interest."
Volcker also said there was "convincing and uncontested evidence" that the selection of the three U.N. contractors for the oil-for-food program Banque Nationale de Paris, Saybolt Eastern Hemisphere BV and Lloyd's Register Inspection Limited did not conform to established financial and competitive bidding rules.
Sevan denied any wrongdoing, the report said, but it added that evidence from Iraqi officials contradicted those denials. However, a summary of the report's findings did not accuse Sevan of any criminal actions.
Volcker's committee said it investigated allegations that Sevan, while executive director of the oil-for-food program, requested oil allocations from the Iraqi government on behalf of the African Middle East Petroleum Co. Ltd. Inc., a Swiss-based oil trading company known as AMEP.
The committee concluded that Sevan solicited and received several million barrels of allocations on behalf of AMEP in 1998-2001. Those allocations generated $1.5 million in revenues, the report said.
Those solicitations "presented a grave and continuing conflict of interest, were ethically improper, and seriously undermined the integrity of the United Nations (news - web sites)," the report said.
The report said Sevan "was not forthcoming to the committee when he denied approaching Iraqi officials and requesting oil allocations on behalf of AMEP."
In a separate investigation by U.S. arms inspector Charles Duelfer, allegations surfaced that Sevan may have personally profited by receiving vouchers to sell Iraqi oil. According to the Duelfer report which got its information from the former Iraqi oil ministry Sevan allegedly received vouchers for 7.3 million barrels of oil through various companies and representatives that he recommended to Iraqi ministries.
The financial take would have been in the range of $700,000 to $2 million, depending on oil prices.
The oil-for-food program, launched in December 1996 to help ordinary Iraqis cope with U.N. sanctions imposed after Saddam Hussein (news - web sites)'s 1990 invasion of Kuwait, quickly became a lifeline for 90 percent of the population.
Under the program, Saddam's regime could sell oil, provided the proceeds went primarily to buy humanitarian goods and pay reparations to victims of the 1991 Gulf War (news - web sites). Saddam's government decided on the goods it wanted, who should provide them and who could buy Iraqi oil. But the Security Council committee overseeing sanctions monitored the contracts.
The program ended in November 2003, after the U.S.-led war that toppled Saddam. Allegations of corruption first surfaced in late 2000, with accusations that the Iraqi leader was putting surcharges on oil sales and pocketing the money.
The report by Volcker's committee said the budgeting, accounting, auditing and administration of the program was relatively disciplined, although there were isolated violations.
However, it highlighted flaws in the auditing of the program, saying there was insufficient funding and staff, and poor planning. It stressed that important areas of the program were never reviewed, and it called for greater transparency and accountability.
The interim report did not address questions about Annan or the employment of his son, Kojo, by the Swiss company, Cotecna Inspection SA, which had a U.N. contract to certify deals under the oil-for-food program. It said that topic would be addressed in another report.
Volcker said he intended to issue a definitive report this summer on the entire management and oversight of the program, including the role of the U.N. Security Council, the U.N. Secretariat and the U.N. agencies that administered the program in Iraq.
Volcker said the investigation also will focus on some of the parties involved in selling Iraqi oil or purchasing goods under the program.
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