Mismanagement and corruption in Iraq oil-for-food program
Iraq-UN, Politics, 9/7/2005

The Security Council today formally received the final report of the Independent Inquiry Commission (IIC) into charges of mismanagement of the United Nations Oil-for-Food Program under which the sanctions-bound regime of Saddam Hussein was allowed to sell oil to buy food and medicines.

The Commission head, former United States Federal Reserve Chairman Paul Volcker, presented the report to the Council in an open session attended by Security-General Kofi Annan.

Previous IIC reports have already concluded that the former Executive Director of the UN Office of the Iraq Program, Benon Sevan, "corruptly benefited" from his role in the program and accused former procurement officer Alexander Yakovlev of soliciting kickbacks.

But they also concluded that there was no evidence that Annan improperly influenced the procurement process in favour of Cotecna Inspection Services, which had employed his son, Kojo.

The earlier reports found evidence of mismanagement in the programme and the Secretariat has already measures to strengthen accountability, ethical conduct and management performance.

Annan today underscored the "vital importance" of enacting management reforms in the United Nations after the investigation found both misadministration and evidence of corruption.

"There are hard lessons for all of us to learn," Annan told the Council, after IIC head, former United States Federal Reserve Chairman Paul Volcker, presented the 15-member body with the report of the year-long investigation. "They are lessons about the importance of accountability, and particularly of having clear lines of responsibility and reporting, so that all officials, and all parts of the Secretariat, know exactly where their responsibilities lie," Annan added.

"They are lessons about oversight, and particularly about the need for mechanisms to ensure that, when oversight reveals deficiencies, someone takes prompt action to repair those deficiencies. And above all, they are lessons about the need for the United Nations to maintain the highest possible standards of integrity, and of effective performance."

Worth noting, that the US and the UK had lead the efforts of the oil-for-food- program, and sought and succeeded in drafting very tight control over the oil-for-food program as it related to the purchase of weapons or dual use items. It can be guessed that the issue of appropriate use of the funds and its management were not of equal concern to the US and the UK at that time.

Previous Stories:
  Annan lifts immunity of those accused of Oil-for-Food misconduct   (8/9/2005)
  Annan vows prompt action on Oil-for-Food report   (2/5/2005)
  US and British vengeance to destroy and control a nation's potential and development   (5/8/2002)

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