Posted on 02/02/2005 5:28:53 PM PST by ijcr
UNITED NATIONS (AP) - An eagerly awaited first report by former U.S. Federal Reserve chairman Paul Volcker into alleged corruption in the U.N. oil-for-food program in Iraq will be sharply critical of U.N. management in key areas and will target Benon Sevan, who ran the program, a source close to the investigation told The Associated Press on Wednesday.
The Volcker report, to be released Thursday afternoon, will focus on the administration, financial transactions, and internal auditing of the $60 billion program, all of which were "tainted badly," said the person with knowledge of the report.
The interim report will not address questions about U.N. Secretary-General Kofi 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.
Critics have raised questions about nepotism and whether Kojo Annan played any role in securing contracts for Cotecna - allegations he denies. Volcker is expected to address actions by the secretary-general and his son in a separate report later this winter, the source close to the investigation said.
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.
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. 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 source familiar with the investigation, speaking on condition of anonymity, said Sevan put himself in a serious conflict of interest and broke rules by participating in the selection of purchasers of Iraqi oil.
The Financial Times reported Tuesday that Sevan personally intervened to steer lucrative Iraqi oil contracts to Africa Middle East Petroleum, a Swiss-based oil trading company. The contracts could be sold to international traders for a markup of up to 35 cents a barrel, the paper said.
Sevan has repeatedly denied wrongdoing.
Last month, Volcker released more than 50 audits of the oil-for-food program carried out by the U.N.'s internal watchdog office, headed by Dileep Nair, who is also expected to be criticized in the report, the source familiar with the investigation said.
The audits detail how U.N. agencies working under the oil-for-food program allegedly squandered millions of dollars through suspect overpayment to contractors, mismanagement of purchasing and assets, and fraud by its employees.
In a briefing paper that accompanied the release of the audits, Volcker's Independent Inquiry Committee questioned why the auditors neglected the New York headquarters of the Office of the Iraq Program which Sevan headed. It said auditors also neglected the oil and humanitarian supplies contracts, and transactions through the program's account at the French bank BNP Paribas.
Investigators say Saddam's government used its control over contracting to corrupt the program.
Expectations that the preliminary report will produce real evidence are high, especially since Volcker has come under intense criticism for comments downplaying his potential findings.
Annan told reporters Wednesday the United Nations is already taking measures to strengthen some management practices and will implement Volcker's recommendations.
He added that he has already asked the General Assembly to review the mandate of the U.N. watchdog office, which was created 10 years ago, "to see how we can strengthen it and give it appropriate authority to do its work."
Mark Malloch Brown, the secretary-general's new chief of staff, said Monday Volcker will probably "land some very heavy blows."
Asked about his comment, Annan quipped with a laugh, "Do I look worried?"
"We will look at the report when it comes," he said. "Obviously there will be some, maybe, harsh judgments."
Maybe it will be as severe as the CBS report. /sarcasm
"The oil-for-food program, launched in December 1996 to help ordinary Iraqis cope ............. quickly became a lifeline for 90 percent of the population.
what a bare-faced lie!
I heard a report the other day that tied Volker to a company benefiting from... drum roll... oil for food. We'll just see what weasle words and phrases show up in this report, and which don't. I've seen so many scam investigations in the last twelve years, I'm just not buying anything sight unseen anymore. Volker, you've got a rep on the block. Don't choke now!
As if Congress could run an investigation. LOL
Breathing down his back? Who's breathing down theirs?
Since AP is the same outfit that reported a GI Joe doll as a hostage, I no longer take them seriously as news outfit.
Ooooh. I bet they're shaking in their boots at the thought of some harsh words.
Not a bad deal for Coffee Anon and his cohorts. A few uncomfortable moments from some old cigar chompin' dude in exchange for millions and billions of untracable petro dollars.
It would be nice if the report just laid the facts on the table.
...Annan quipped with a laugh, "Do I look worried?" ...
You'll get yours Kofi. If not in this life, the next.
Unfortunately, no matter what may be in it, the Volker commission is also tainted badly and cannot be trusted.
Kofi says, don't worry, be happy!
Thanks for the post.
Coughing Anus will get his due. He'll get to watch as his beloved UN is defunded by the US, withers, and dies.
Volker needs to be replaced. He has outrageously close financial ties to TotalFinaElf and Bank Paribas--the French oil company and bank at the center of the scandal. His report may sound tough, but will whitewash offical UN corruption. Paul volker can no longer be trusted.
Dunno.....Beelzabubba may be assigned to "rescue" the U.N. Picture a world with one Clinton running the U.N. and the other one in the Whitehouse. Scary, huh?
Picture Clinton getting the UN job, and the US withdrawing from the UN in response. (Plus rescinding ALL treaties signed with the UN.)
Besides, I don't think Bubba's health is too good. It seems he's not long for this world by looking at him. I'd be afraid of Hillary somehow working herself into a Supreme Court position where she could de facto write laws that lived for generations more than I fear her as POTUS.
Volker is NOT going to produce the "report" we all demand..
Volker is part of the "clan" to cover up the crimes..
The U.N. will simply up a sacrificial lamb to slaughter -- then the rest will remain in the shadows with the stolen loot..
Kofi Anus and others must resign...
Someone must file charges and put some bastards in prison..
YES - some U.N. officers in PRISON..
Semper Fi
* Bold script added by me
I will believe this so-called 'Harshly Critical' Report is really that when I see it. And what sanctions will be imposed as a result - Severe looks?
The scramble has been on for many months, and it continues at present, in the effort to hide actual wrongdoings and excuse the inexcusable. The avarice and greed that inhabits the UN and which ,in recent years has begun to overwhelm many US Private and Public institutions, thrives in an environment of toothless, showcase committees who dawdle over producing meaningless, cynical 'Reports'. In the modern age it seems there is no need for an outmoded concept - Accountability and Responsibility.
Fat chance
Please see my post 18
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