Iraq to investigate UN oil-for-food programme
Reuters, 03.23.04, 10:31 AM ET
By Alistair Lyon
BAGHDAD, March 23 (Reuters) - Iraq's Governing Council decided on Tuesday to launch a formal inquiry into alleged corruption in the now-defunct U.N.-administered oil-for-food programme, a spokesman for council member Ahmad Chalabi said.
"Saddam Hussein was able to loot billions of (dollars of) Iraqi people's money under the supervision of the United Nations," spokesman Entifadh Qanbar told a news conference.
He said the council would hire international legal and accountancy firms to help the inquiry investigate "all personalities, companies, families, leaders, politicians all over the world who received these bribes".
Media reports have alleged that government officials, foreign firms and a senior U.N. official were among those who profited illegally from the humanitarian programme.
Chalabi heads the U.S.-backed council's finance committee, which has been making preliminary investigations.
The United Nations has already begun an in-house probe of its staff and U.N. Secretary-General Kofi Annan last week asked members of the Security Council for their support in a second independent, high-level inquiry into the allegations.
Annan has been under pressure to conduct an inquiry from U.S. officials searching for Saddam's suspected hidden assets.
One name on a published list was Benon Sevan, who ran the U.N. programme that began in December 1996 and ended a year ago. Oil companies chosen by Iraq put money into a U.N. escrow account out of which suppliers of civilian goods were paid to ease the impact of 1991 Gulf War trade sanctions on Iraqis.
Sevan has denied the allegations and U.N. officials have said they have not been given any documents.
Annan, in his letter to Security Council members on Friday, said the media allegations must be addressed "to bring to light the truth and prevent an erosion of trust and hope that the international community has invested in the organisation".
U.N. officials say any probe would need to look at foreign companies, suppliers, middle men who bought the oil and the French bank BNP-Paribas, which handled the U.N.-Iraq account.
The oil-for-food programme handled more than $65 billion in funds for food, medicine and other civilian goods. It was shut down last year after the U.S.-led invasion that toppled Saddam.
The U.S. General Accounting Office, an interagency body headed by the Treasury, is trying to locate and seize $10 billion to $40 billion in estimated hidden Iraqi assets.
The GAO said in a report last week that Saddam acquired $5.7 billion of these assets from the proceeds of oil smuggled through Syria, Jordan, Turkey and elsewhere.
Copyright 2004, Reuters News Service
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