Oil-for-food Scandal...

zenith-nadir

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Yesterday Dorian Gray posted a link to this news story about the United Nations bowing to international pressure to investigate allegations of corruption surrounding its oil-for-food programme.

In a letter to Kofi Annan, the UN Secretary General, an adviser to Iraq's interim governing council warns that the UN appeared to have "failed in its responsibility" to the Iraqi people and to the international community. "It will not come as a surprise if the Oil-for-Food Programme turns out to have been one of the world's most disgraceful scams, and an example of inadequate control, responsibility and transparency, providing an opportune vehicle for Saddam Hussein to operate under the UN aegis to continue his reign of terror and oppression," wrote Claude Hankes-Drielsma, a British businessman and former chairman of the management committee at Price Waterhouse accountants, on March 3.

Grammatron was correct to suggest it is important enough to have it's own thread.

Here's more background:Report: Saddam's Government Stole $10.1B

Saddam Hussein's government smuggled oil, added surcharges and collected kickbacks to rake in $10.1 billion in violation of the United Nations' oil-for-food program, congressional investigators said Thursday.

The estimate, much larger than previous calculations, comes as the United Nations considers expanding its probe into the humanitarian program, which allowed Iraq to sell oil for food and medicine.
So much for the bogus Iraqi-children-died-because-of-the-oil-for-food-program debate.
 
According to a CCN report I watched yesterday afternoon, a report was seized by coalition forces at the Ministry of Finance HQ in Baghdad, which includes a list of Western companies and individuals (most notably from France and Russia) who were purposeful conspirators. A company run by the UN Secretary General's son is also listed though Annan's son was not running the company at the time of its involvement.
 
Kodiak said:
According to a CCN report I watched yesterday afternoon, a report was seized by coalition forces at the Ministry of Finance HQ in Baghdad, which includes a list of Western companies and individuals (most notably from France and Russia) who were purposeful conspirators.

Here are a few more stories I found concerning that.

Saddam’s Gifts - ABC News

Oil experts detail how Saddam evaded UN sanctions - GasandOil.com

Iraqi govt. papers: Saddam bribed Chirac - UPI & Washington Times
 
more info: Annan seeks Iraq 'fraud' inquiry


20 March, 2004 - UN Secretary General Kofi Annan has called for an independent inquiry into allegations of fraud and corruption in its oil-for-food programme in Iraq.

People and firms from over 40 countries are alleged to have taken cut-price oil vouchers from the Iraqi regime.

Mr Annan proposed setting up an independent high-level inquiry to look into alleged corruption in the UN-run oil-for-food programme.
 
Who's on the cut-rate-oil list?

Russia
The Companies of the Russian Communist Party: 137 million
The Companies of the Liberal Democratic Party: 79.8 million
The Russian Committee for Solidarity with Iraq: 6.5 million and 12.5 million (2 separate contracts)
Head of the Russian Presidential Cabinet: 90 million
The Russian Orthodox Church: 5 million


France
Charles Pasqua, former minister of interior: 12 million
Trafigura (Patrick Maugein), businessman: 25 million
Ibex: 47.2 million
Bernard Merimee, former French ambassador to the United Nations: 3 million
Michel Grimard, founder of the French-Iraqi Export Club: 17.1 million


Syria
Firas Mostafa Tlass, son of Syria's defense minister: 6 million

Turkey
Zeynel Abidin Erdem: more than 27 million
Lotfy Doghan: more than 11 million

Indonesia
Megawati Sukarnoputri: 11 million

Spain
Ali Ballout, Lebanese journalist: 8.8 million

Yugoslavia
The Socialist Party: 22 million
Kostunica's Party: 6 million

Canada
Arthur Millholland, president and CEO of Oilexco: 9.5 million

Italy
Father Benjamin, a French Catholic priest who arranged a meeting between the pope and Tariq Aziz: 4.5 million
Roberto Frimigoni: 24.5 million

United States
Samir Vincent: 7 million
Shakir Alkhalaji: 10.5 million

United Kingdom
George Galloway, member of Parliament: 19 million
Mujaheddin Khalq: 36.5 million

South Africa
Tokyo Saxwale: 4 million

Jordan
Shaker bin Zaid: 6.5 million
The Jordanian Ministry of Energy: 5 million
Fawaz Zureikat: 6 million
Toujan Al Faisal, former member of Parliament: 3 million

Lebanon
The son of President Lahoud: 5.5 million

Egypt
Khaled Abdel Nasser: 16.5 million
Emad Al Galda, businessman and Parliament member: 14 million

Palestinian Territories
The Palestinian Liberation Organization: 4 million
Abu Al Abbas: 11.5 million

Qatar
Hamad bin Ali Al Thany: 14 million

Libya
Prime Minister Shukri Ghanem: 1 million

Chad
Foreign minister of Chad: 3 million

Brazil
The October 8th Movement: 4.5 million

Myanmar (Burma)
The minister of the Forests of Myanmar: 5 million

Ukraine
The Social Democratic Party: 8.5 million
The Communist Party: 6 million
The Socialist Party: 2 million
The FTD oil company: 2 million
 
More info: The Oil-for-Food Scandal


11 March 2004 - A letter has come to the Journal, (Wall Street Journal), supporting allegations that among those favored by Saddam with gifts of oil was Benon Sevan, director of the U.N.'s Oil-for-Food Program.

Mr. Sevan, through a U.N. spokesperson, has also denied the allegation.

A second document shown to the Journal is a chart in Arabic with the heading "Quantity of Oil Allocated and Given to Mr. Benon Sevan." ....total allocation awarded to Mr. Sevan in phases four through 13 is 14.2 million barrels, of which 7.291 million were actually disbursed, according to the document.

A U.N. culture of unaccountability is certainly also to blame. And Security Council members share responsibility for lax oversight, no doubt one reason there is so little appetite for an investigation.
 
QUESTION: what do you call the fact that the diplomats Saddam bribed with millions of stolen money (with the promise of more as long as he's in power) voted against the US invasion?

ANSWER: "The world says no to war".
 
Hmmmm

Kind of make you think about the "US just wants to steal Iraq's oil."

There were people already doing it.

You know the socialist fighters for international justice!!!

Maybe some were worried that the gravy train would end.

:p
 
Mike B. said:
Hmmmm...Kind of make you think about the "US just wants to steal Iraq's oil."There were people already doing it.You know the socialist fighters for international justice!!!Maybe some were worried that the gravy train would end.:p



You hit the nail on the head Mike, and strangely, other than me, seem to be the only one at JREF interested in the topic.

France, Russia, Syria, Jordan, etc, the parties against the invasion of Iraq were already stealing Iraqi oil at impossible prices!

And it may just turn out that the head of the U.N. oil-for food program, Benon Sevan, was involved as well. And the U.S. invasion F**KED it all up.

Put that in your pipe and smoke it it's-all-about-America-stealing-the-oil liberals. ;)
 
Am I allowed to be an "Its all about OPEC not controlling the oil" liberal? I know its not exactly the position you map out for all liberals but can I use it anyway?

Quick question....who controls Iraqs oil at the moment? Obviously not Saddam and obviously not anyone who had a deal (legal or not) with Saddam... If its a UN setup, who will control that UN setup? I bet you a dollar that whatever appears as an Iraqi government and whenever they are ever given control of the oil they won't be allowed to take it back into OPEC...
 
ZN:
"So much for the bogus Iraqi-children-died-because-of-the-oil-for-food-program debate."

Oh really?
Read this ZN. Then when you have rubbished it's claims give me your opinion and tell me why because I'm just dyin'ta know!

http://www.firethistime.org/herring.htm

Also:
Scandal at the U.N.
By WILLIAM SAFIRE

Published: March 17, 2004

The cover-up in the office of the U.N. secretary general of a multibillion-dollar financial fraud known as the Iraqi oil-for-food program is beginning to come apart.

The scandal has been brewing for years. The first I learned of it was in a New York Times Op-Ed article last April by the journalist Claudia Rosett charging that the U.N.'s secretive oversight of more than $100 billion in Iraqi oil exports and supposed humanitarian imports was "an invitation to kickbacks, political back-scratching and smuggling done under cover of relief operations."

After checking with Kurdish sources in Iraq, I reported that half the money allocated to their people had been blocked by Saddam "conspiring with bureaucrats in the U.N. Plaza."

Kofi Annan's right-hand man, Benon Sevan, had been named by the secretary general to head the oil-for-food program and report directly to him. Though he could not deny a favored French banking connection, Sevan branded as "inaccuracies" charges by Ms. Rosett and me of secrecy, citing a hundred audits in five years. But he refused to make public what companies in what countries got Saddam's largess.

Now, thanks to evidence of systematic thievery on a huge scale, discovered by free Iraqis in Baghdad, the whole rotten mess of 10 percent kickbacks on billions in contracts is coming to light. In detailed accounts, Susan Sachs in The Times, Therese Raphael in The Wall Street Journal, and Charles Laurence and Inigo Gilmore of London's Daily Telegraph have flipped over the flat rock of corruption.

Assistant Secretary General Sevan, now on an extended vacation until his retirement next month, denied through a spokesman "that I had received oil or oil monies from the former Iraqi regime" and demanded that his doubters produce documentary evidence. The Journal then produced a document in Arabic that suggests Sevan received an allocation of 1.8 million barrels of oil.

Under the U.N. bureaucracy's nose — and I suspect, in some cases, with its collusion — nearly three-quarters of the suppliers jacked up their prices to pay the 10 percent kickback. These included European manufacturers, Arab trade brokers, Russian factories and Chinese state-owned companies. Corruption's take — out of the mouths of hungry Iraqi children — was estimated by Sachs of The Times at $2.3 billion.

Hired by the U.N. to monitor these imports was a Swiss-based firm, Cotecna, which was paid out of the exorbitant fee the U.N. charged for overhead. Ms. Rosett, writing in National Review last week, notes that Kojo Annan, the secretary general's son, was once on staff and later a consultant to that tight-lipped company. In denying to The Telegraph in 1999 that he worked on the U.N. oil-for-food account, Kojo Annan said, "The decision is made by the contracts committee, not by Kofi Annan."

About that "661 compliance committee," on which the U.S. has a seat and to which the secretary general now wants to pass the buck: a U.S. official familiar with its operation tells me that "its purpose was formally to approve what the U.N. staff recommended. Only the U.S. and the U.K. experts ever put a hold on a contract, and that about items that had dual use in weaponry. Few U.S. firms got contracts, and those that did worked through middlemen to avoid the General Accounting Office."

Annan's office kept blaming the 661 committee and stonewalling the press until an irate Iraqi Governing Council hired the accountants KPMG and a law firm to investigate what its advisers told Annan was "one of the world's most disgraceful scams."

Under mounting pressure, this week the U.N. let it be known that its laughably titled Office of Internal Oversight Services would look into the matter. An internal whitewash? Not nearly good enough.

Will the Security Council appoint an independent counsel to clean house in an inept or corrupt Secretariat? No, because France and Russia had their hands in the kickback till.

But free Iraq, backed up by the U.S., is not helpless. Our Congress supplies 22 percent of the U.N. budget, and we have a right to an accounting. Chairman Henry Hyde, of House International Relations, calls this "an outrage" and will arrange for a G.A.O. briefing this week, to be followed by open hearings in April.

The U.N. can redeem its sullied reputation by helping to shape Iraq's future. To take up that challenge, it must have clean hands.
http://www.nytimes.com/2004/03/17/o...als and Op-Ed/Op-Ed/Columnists/William Safire
--------------------------------------------------------------------------------

Now, my understanding is that the original allegation was that Saddam's regime had a scam going with certain of its suppliers. They would overcharge by, say, 10% on goods supplied to Iraq and paid for by the oil-for-food programme. Part of this 10% 'levy' would be retained by them and part paid to Baghdad. All of Iraq's 'legal' oil revenues were handled by the UN through Escrow accounts - nothing was paid to Iraq. The scam, therefore, gave the Iraqi regime hard cash, something they were denied under UN Sanctions. It's quite plausible that something like this was going on - you'd expect any government to try to overcome such a restriction.
The plot thickened, however, when the Iraqi Government Council claimed to have found documentation suggesting that UN officials and their relatives were getting kick-backs. The IGC has sole access to the old regime's papers - officially, they are in the custody of Ahmed Chalabi who has a long history of inventing and forging evidence.

One of the journalists mentioned by William Safire, Claudia Rosett, is a doyen of William Kritol's rags - the Daily & Weekly Standards - the neocon Bibles. Both she and Safire are big supporters of the Iraq war and Mr Chalabi.

The US wants to regain the moral high ground on sanctions. Since every justification for the Iraq invasion (WMD, links to Al Qaeda etc) has fallen by the wayside, the 'coalition' is left with 'liberation' inspired by compassion for the Iraqis suffering under the tyrant - difficult to swallow given the 13 years of draconian sanctions. Now if everything can be blamed on Saddam - hey, the US WERE the good guys all along.

A further bonus is that the UN is discredited. Many Iraqis, including Grand Ayatollah al-Sistani, want the UN back in Iraq. I doubt the US does. Suggesting that the UN was running some sort of racket could well change minds about the desirability of UN involvement.
 
zenith-nadir said:
George Galloway, member of Parliament: 19 million

This is like the third time these kind of acusations have been made against this guy. While he is an idoit who should be sent to live on NK since he aparently likes dictators so much none of the pervious two have stuck. What makes you think this one will?
 
geni said:
This is like the third time these kind of acusations have been made against this guy. While he is an idoit who should be sent to live on NK since he aparently likes dictators so much none of the pervious two have stuck. What makes you think this one will?


I think you should ask George Galloway why his name is on Iraqi cheap oil lists. Not me.

Or is a huge Iraqi-American-British conspiracy to frame George Galloway?
 
ZN:
"Or is a huge Iraqi-American-British conspiracy to frame George Galloway?"

Like this one you mean?

Galloway wins damages for Iraq libel

Jamie Wilson
Saturday March 20, 2004
The Guardian

The anti-war MP George Galloway yesterday accepted £50,000 damages and a public apology from an American newspaper over a claim he was paid £10m by Saddam Hussein to oppose the conflict in Iraq.
The high court in London was told the allegation, based on forged documents given to a journalist by an Iraqi general, was "false and without foundation".

Mr Galloway immediately demanded a government inquiry, saying the documents were evidence of a dirty tricks campaign against him and other anti-war campaigners.

According to the article in the Boston-based Christian Science Monitor, the payments pointed to a concerted effort by the regime to win friends in the west who could promote Iraqi interests, first by lifting sanctions against Iraq, and later by blocking war plans.

One document was reported as stating that Mr Galloway was paid in return for his "courageous and daring stands against the enemies of Iraq, like Blair, the British prime minister, and for his opposition in the House of Commons and Lords against outrageous lies against our patient people".

However, tests found that the documents, dated 1992 to 1993, were in fact a few months old.

Mr Galloway's solicitor, Mark Bateman, told the court: "The allegations contained in the Christian Science Monitor's story that Mr Galloway opposed the UN-imposed sanctions on Iraq and, thereafter, opposed the recent conflict in Iraq because he had been paid by the Iraqi regime are false and without foundation.

"The allegations were highly defamatory of Mr Galloway. Understandably, they caused immense distress and anxiety to Mr Galloway, his family, his constituents and supporters. Mr Galloway was not willing to let his reputation be impugned in this way."

Julia Schopflin, for the paper's publisher, the First Church of Christ, Scientist, and its editor, Paul Van Slambrouck, said: "The Christian Science Monitor published the article based on documents which it believed were genuine but which it now accepts were forgeries.

"It deeply regrets that the article was published and again offers its sincere apologies to Mr Galloway."

Outside court, a smiling Mr Galloway refused be drawn on the amount of damages, except to say that they were "substantial". However a spokes-man for the paper in America said it had paid £50,000 to the MP for Glasgow Kelvin.

Mr Galloway said: "Baghdad is the forgery capital of the world, and this settlement demonstrates that there was a dirty tricks operation mounted against me and other prominent opponents of the war in the aftermath of the fall of the old regime ... irrefutable evidence of a conspiracy, committed against a British MP.

"I demand that the prime minister requires our staff in our embassy in Baghdad to investigate this matter - to interview this general, who is under their jurisdiction as the co-occupying power, to discover who forged these documents, why they forged these documents, and what other documents they forged."

Mr Galloway still faces a libel battle against the Daily Telegraph involving another set of documents, apparently discovered in a burned-out foreign ministry building in Baghdad and purporting to be from an Iraqi spy chief, that suggested he had demanded money from the Iraqi regime under the oil-for-food programme.

A letter in one of the Baghdad files written by the MP, nominating Jordanian businessman Fawaz Zureikat as his representative in Baghdad, is acknowledged as genuine. But at the time the allegations were made Mr Galloway insisted that others, alleging he received more than £375,000 a year and asked for it to be increased, were forged or faked.

Mr Galloway, expelled from the Labour party last year for urging British troops not to fight in the war, is also facing separate inquiries into his pro-Iraq fund, the Mariam Appeal, by the Charity Commission and by the parliamentary commissioner for standards.


http://www.guardian.co.uk/antiwar/story/0,12809,1174074,00.html
 
zenith-nadir said:



I think you should ask George Galloway why his name is on Iraqi cheap oil lists. Not me.

Or is a huge Iraqi-American-British conspiracy to frame George Galloway?

If past experiance is anything to go by someone (apart from me) has got it in for the guy. While I somehow doubt it goes up to govermant level it is quite posible that someone is trying to get the idoit
 
geni said:
If past experiance is anything to go by someone (apart from me) has got it in for the guy. While I somehow doubt it goes up to govermant level it is quite posible that someone is trying to get the idoit



All I know is this. A list was found. It had many names on it including George Galloway's. The U.N. has found it important enough to start an investigation.

Thank goodness Demon is around cuz he can save the U.N. alot of time and money because he can prove it is all a scam with a Guardian article.

By the way Demon, if you and William Safire are sure the multibillion-dollar financial fraud known as the Iraqi oil-for-food program is beginning to come apart how come U.N. Secretary-General Kofi Annan sent a letter on March 20th 2004, (3 days AFTER William Safire's op-ed piece), to the president of the Security Council proposing the establishment of an independent, high-level inquiry to investigate allegations of corruption in Iraq's oil-for-food program? Cause it's "coming apart"?
 
Am I allowed to be an "Its all about OPEC not controlling the oil" liberal?

Not really. You see, the point of this scandal is that it tore the mask of the "no war!" diplomats at the UN. While the talked a lot about how such a war was "illegal", "US imperialism", "a threat to world peace", blah blah blah, we now know the real reason behind their objection:

They didn't like the thought of the gravy train--millions Saddam stole from starving Iraqi children to bribe them with--would stop.

Your "heroes" in the UN, those moral, principled objectors to US war, turned out to be paid propagandists of the dictator.

I have to say, though, that I consider the bribed diplomats, if morally inferior, at least intellectually superior. At least they a). didn't really believe their own bulls--t, and b). were defending Saddam for a price.

The rank-and-file "no war!" crowd who parroted their cliched arguments actually BELIEVED the nonsense on their "protest signs", and was defending Saddam for free...
 
Hmmm...

What I am currently wondering are where all the "Unjust War/No War for Oil" Bush-haters are and what do they think about these developments?

You know... forum members like a_u_p and KOA, and to a lesser extent, Tricky, SubGenius, and Crossbow? There are others, I'm sure.

I have a feeling most would suddenly be turning on their skepticism switches...
 
Re: Hmmm...

Kodiak said:
What I am currently wondering are where all the "Unjust War/No War for Oil" Bush-haters are and what do they think about these developments?

You know... forum members like a_u_p and KOA, and to a lesser extent, Tricky, SubGenius, and Crossbow? There are others, I'm sure.

I have a feeling most would suddenly be turning on their skepticism switches...



So true.
 
Re: Hmmm...

Kodiak said:
What I am currently wondering are where all the "Unjust War/No War for Oil" Bush-haters are and what do they think about these developments?

You know... forum members like a_u_p and KOA, and to a lesser extent, Tricky, SubGenius, and Crossbow? There are others, I'm sure.

I have a feeling most would suddenly be turning on their skepticism switches...

I supported the war, but I think I'm going to have to give the benefit of the doubt to Tricky, SubGenius and Crossbow.

Even before the invasion, there were all sorts of indications that French and Russian companies were benefitting by having Saddam remain in power, and the three people mentioned above are reasonable enough to probably know that; they likely felt that the other reasons for opposing the war were more compelling.

Put it this way... I really dislike being characterized as a 'Bush supporter', just because I happen to think the invasion was a good thing (even though I recognize that Bush's emphasis on WMD was wrong and I had different reasons for supporting the invasion than Bush might have.) The least we can do is give the same consideration to the more reasonable people on the anti-war side and not criticize them unfairly if their opinions happened to agree with people who were less than reputable.
 

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