UN: Report: No Proof Annan Knew of Deal Bid (Volcker Oil-for-Food / Cotecna piece)

AP on Yahoo ^ | 3/29/05 | Edith M. Lederer - AP

[NormsRevenge]

NEW YORK - Investigators of the U.N. oil-for-food program in Iraq said Tuesday there was not enough evidence to show that Secretary-General Kofi Annan knew of a contract bid by his son's Swiss employer.

The report obtained by The Associated Press accused Annan's son, Kojo, and the company, Cotecna Inspection S.A., of trying to conceal their relationship after the contract was in place. It also criticized the U.N. chief for not determining the exact nature of his son's relationship with the firm.

The conclusion in the investigators' report was not the clear vindication that the secretary-general wanted, although the investigation led by former U.S. Federal Reserve Chairman Paul Volcker did not accuse the U.N. chief of corruption.

The report obtained Tuesday said "there is no evidence" the selection of Cotecna for an inspection contract "was subject to any affirmative or improper influence of the secretary-general in the bidding or selection process."

Investigators also said "the evidence is not reasonably sufficient" that Annan knew about Cotecna's bid in 1998.

The report is the second issued by the Volcker's team of investigators and comes a week after Annan called for the biggest overhaul of the United Nations in its 60-year history.

The report found that Kojo Annan was not forthcoming with either his father or the committee and accused him of consistently trying to hide the nature of his relationship with Cotecna.

It said there still were "significant questions" about Kojo Annan's business dealings with respect to the program, and an investigation was continuing.

In a letter annexed to the report, Kojo Annan's lawyer, William R. Taylor, rejected any claim that his client had not been wholly cooperative with the committee. But Taylor admitted that Kojo Annan had not told his father the entire truth.

"Mr. Annan has consistently acknowledged that he was not completely candid with his father when the Cotecna-U.N. contract first attracted publicity in late January 1999," Taylor wrote. "He regrets the embarrassment that omission caused to his father and to the United Nations and accepts responsibility for it."

The oil-for-food program was the largest U.N. humanitarian aid operation, running in 1996-2003. Saddam Hussein's government was allowed to sell oil in exchange for humanitarian goods as an exemption from U.N. sanctions imposed after Iraq's 1990 invasion of Kuwait.

In a bid to curry favor and end sanctions, Saddam allegedly gave former government officials, activists, journalists and U.N. officials vouchers for Iraqi oil that could then be resold at a profit. U.S. congressional investigators say Saddam's regime may have illegally made more than $21 billion by cheating the program and other sanctions-busting schemes.

Senior U.N. officials have insisted the secretary-general has no intention of stepping down, and U.N. spokesman Fred Eckhard has dismissed reports describing the secretary-general as weak and depressed.

Volcker also is investigating Benon Sevan, who headed the oil-for-food program. He has promised a final report in mid-summer.

In his first report in February, Volcker accused Sevan of a "grave conflict of interest," saying his conduct in soliciting oil deals from Iraq was "ethically improper and seriously undermined the integrity of the United Nations." He also questioned where Sevan got $160,000 in cash, calling it "unexplained wealth" despite Sevan's claim it came from his aunt.

Sevan's attorney has said he did nothing wrong.

Kojo Annan worked for Cotecna in West Africa from 1995 to December 1997 and then as a consultant until the end of 1998 — just when it won the oil-for-food contract. He remained on the Cotecna payroll until 2004 on a contract to prevent him from working for a competitor in Nigeria or Ghana, but that was only disclosed in November.

At the time, the secretary-general said he was "very disappointed and surprised" that his son continued to receive money.

Cotecna initially said Kojo Annan was only employed until 1998. It released details of his payments only last week, after a report in the Financial Times and the Italian business daily Il Sole 24 said he received more than $300,000, double the amount previously reported.

Cotecna spokesman Seth Goldschlager told the AP last week that Kojo Annan got more than $365,000 from the company — about $200,000 as a full-time employee and consultant from 1995-1998 and more than $165,000 from 1999 until February 2004 under the so-called "non-compete" contract.

He also disclosed that Volcker sought payment records from five companies linked to the firm for the years 1996 to 2004. The Swiss accounting firm BDO Visura is currently conducting an audit, expected to be completed at the end of April.

Goldschlager also confirmed reports in the two papers of three meetings between Kofi Annan and Cotecna executives and disclosed a fourth contact. Two were in social settings, one in Annan's U.N. office and one after the Cotecna contract was signed.

[NormsRevenge]

Former U.S. Federal Reserve chairman Paul Volcker, chief of the investigation probing the U.N. oil-for-food program in Iraq, ;leaves a meeting with Secretary General Kofi Annan at the United Nations, Tuesday March 29, 2005. A report to be released Tuesday will fault Annan for failing to take aggressive action to deal with possible conflict of interest in the awarding of a U.N. oil-for-food contract to Cotecna Inspection S.A., which employed his son, Kojo, in Africa, the officials said. (AP Photo/Richard Drew)

[Peach]

No evidence Annan knew that we KNOW about anyway.

[NormsRevenge]

(AFP/File/Pedro Ugarte)

UN Secretary General Kofi Annan carried out an 'inadequate' enquiry into possible conflict of interest over his son's employment by a Swiss firm with an oil-for-food contract, an investigative panel said.

[MisterRepublican]

AP reports: Fox investigation shows Foxes not involved in raid on chicken house.

[cyncooper]

There's never enough evidence to quite make that final conclusion with these characters.

I still hold out hope for the other investigations.

[b4its2late]

"the evidence is not reasonably sufficient"

But there must be something there....

[NutCrackerBoy]

That Annan failed to stop his son from cashing in on a crooked deal is pretty bad, but Oil-For-Food Fraud was a colossal failure of his management, if not outright graft. Kofi should be history.

[MaeWest]

"I did not have relations with that oil for food money."

[b4its2late]

You're absolutely correct.

[JarheadFromFlorida]

Anybody that beleives that coffecup Annan did not know anything about how much money his son Tojo was taking from Cotecna is a complete fool? Why would Contecna hire this little idiot in the first place? He had NO special talents or skills. The only that he had was a connection to the cashcow, the UN. They are all corrupt to the core.

If you have not already done so, please sign the petition to get the stinking, corrupt to the core UN out of the USA. Let's help relocate these anti-American thugs to some 3rd world shithole where they belong.

http://moveamericaforward.org/?Page=Petition

[JarheadFromFlorida]

The same liberals that were screaming day after day for the Head of Ken Lay for the corruption of Enron are the same ones that are silent or even support Annan in the UN oil for food corruption scandal that happened on his watch. Liberals make me sick.

[SunkenCiv]

"Investigators of the U.N. oil-for-food program in Iraq said Tuesday there was not enough evidence to show that Secretary-General Kofi Annan knew of a contract bid by his son's Swiss employer."

Because, y'know, there's not a chance that he ever talks to his son on the phone or anything, and would just happen to learn that the son's employer just got some new business. Nope.

[Hi Heels]

"UN: Report: No Proof Annan Knew of Deal Bid (Volcker Oil-for-Food / Cotecna piece)

NEW YORK - Investigators of the U.N. oil-for-food program in Iraq said Tuesday there was not enough evidence to show that Secretary-General Kofi Annan knew of a contract bid by his son's Swiss employer. "

No proof or not enough evidence? Which is it? There's a BIG difference.

[AIC]

Kofi Annan to Investigators of the U.N. oil-for-food program. How much will it cost for a clean slate? Can't do it. Then how much for not absolutely guilty report? Oh, you can do that for how much? OK go ahead I'll pay it. /sac

[dandiegirl]

Wasn't Marc Rich somehow implicated in this scandal? Makes me wonder if the Clinton's may somehow be involved. We will never know.

[WOSG]

"AP reports: Fox investigation shows Foxes not involved in raid on chicken house."

How would Fox News report that?

How about CNN - the Chicken News Network

[Mr. Buzzcut]

There's never enough evidence to quite make that final conclusion with these characters.

Reminds me of the whole Whitewater deal: plenty of evidence that the Clintons were probably guilty, but not enough to get a conviction on, so they skate.

[RazzPutin]

"Millions of dollars were wasted in politically motivated character assassination, and we were completely exonerated." --Every crooked leftist politician

[cyncooper]

Wasn't Marc Rich somehow implicated in this scandal? Makes me wonder if the Clinton's may somehow be involved. We will never know.

The House committee investigating this scandal submitted written questions to Rich. Not surprisingly, he wasn't very forthcoming. But the point is, this Volcker investigation is not the only one in progress. There's Hyde, there's Norm Coleman in the Senate, the DOJ has a guilty plea (Samir Vincent) and the Manhattan DA's office has one going.

Here's an article about Rich and I also direct your attention to the last paragraph:

Marc Rich Denies Strong Tie to Oil-for-Food