UN Oil-for-Food Chief Received Bribes

Written by Administrator

Tuesday, 09 August 2005

An independent panel has accused the head of the UN oil-for-food program for Iraq of corruption and receiving bribes, voicing concern about UN chief Kofi Annan's knowledge of the scandal, the worst in the world body’s history. An interim report released Monday, August 8, by the commission led by former US Federal Reserve chairman Paul Volcker said, "On the basis of available evidence," the report concluded that Benon Sevan "corruptly benefited" from the scheme and recommended that his immunity be lifted, reported Agence France-Presse (AFP). It said that Sevan, a 67-year-old Cypriot, personally received $147,184 from oil sales kickbacks under the 64-billion-dollar program. The oil allocations were made, at Sevan's request, to the African Middle East Petroleum, headed by Egyptian Fakhry Abdelnour, a cousin of former UN secretary general Boutros Boutros-Ghali. Cash was deposited December 1998-January 2002 to bank accounts of Sevan and his wife in New York, the panel said. Sevan, who fled to Cyprus two months ago, resigned ahead of the announcement of the charge, which he denied and accused Annan of "sacrificing" him, his lawyer said. Sevan had retired from the United Nations but remained on staff, receiving a symbolic salary of one dollar a year to maintain his diplomatic immunity. That job was given to Sevan after he was suspended in February to ensure that he would cooperate with the Volcker panel. Volcker said Sevan "has not responded to our efforts to contact him." The oil-for-food program ran from 1996 until 2003, when US-led forces invaded Iraq to oust then-president Saddam Hussein and occupy it. It allowed Baghdad to sell oil in exchange for humanitarian goods the country lacked due to sanctions. Admission Furthermore, Alexander Yakovlev, a former UN procurement officer also accused of oil-for-food corruption, pleaded guilty in a US court Monday of receiving hundreds of thousands of dollars in kickbacks from firms seeking UN contracts. The office of Manhattan District's Attorney David Kelley said Yakovlev, a Russian, pleaded guilty to three charges -- conspiracy, fraud and money laundering. Yakovlev, who faces 20 years in jail for each count, is charged with receiving money from three firms as part of a contract to airlift goods for the UN. He is accused of having set up a company, Moxyco, to handle the illicit payments, receiving transfers on accounts in Antigua in the Caribbean and in Switzerland in exchange for information and assistance for these companies. The Volcker commission also said that evidence gathered against Yakovlev was "sufficiently strong" that his UN immunity should be removed. He had "secretly participated in a scheme to solicit a bribe" from a company bidding for an oil inspection contract, the commission said. The Volcker panel also revealed evidence "of more corrupt activity by Mr. Yakovlev, including his receipt from various other United Nations contractors of more than 950,000 dollars in payments to an offshore bank account." Annan's aide Mark Malloch Brown said the UN chief had complied with the immunity request, adding, "We believe Mr. Yakovlev is already in custody." Yakovlev recently resigned his UN post after allegations that he had awarded a UN contract to a company that employed his son. US authorities have also filed criminal charges against Sevan. Annan’s Knowledge The panel also addressed "serious questions" already raised in its March report about Annan's son, Kojo Annan, once employed by the Swiss firm Cotecna, which was awarded in 1998 a $10 million a year to inspect shipments entering Iraq as part of the UN program. Volcker said a recently discovered e-mail "raises a further question about the secretary general's knowledge of their interest" and "appears authentic." The e-mail indicated that then-Cotecna vice president Michael Wilson, an Annan family friend, had spoken with Annan and his entourage in November 1998. "The e-mail concluded -- and I quote -- that the collective advice was that we could count on their support," Volcker said. "The new evidence clearly raises further questions. Questions we have not been able to answer to our satisfaction for this report," he added. Annan said in March that the report exonerated him. But Volcker pointedly said in his new report: "I would not call that exoneration." The Volcker panel also said it expected to review its conclusions in a comprehensive report to be released in early September, less than two weeks before the United Nations is to host a summit of world leaders that is to endorse Annan's ambitious UN reform package ahead of the next General Assembly session. The commission is to publish another report in early October giving a definitive list of the more than 4,500 private contractors that engaged in the purchase of oil for the sale of humanitarian and other goods to Iraq under the corruption-riddled program.

< Previous		Next >