by Marinka Peschmann, Special to Canada Free Press
October 25, 2004
Over 3,500 humanitarian vendors and UN agencies in contracts with Saddam Hussein's Iraq received approximately $32.6 billion in sales for various goods and services during the 1996-2003 UN Food-for-Oil Program according to the Independent Inquiry Committee into the United Nations Oil-for-Food Program released last week. Under Hussein's reign Iraqis were brutalized, denied basic medical care and so far over 256 mass graves have been uncovered.
Saddam Hussein has not been questioned by the Independent Inquiry Committee, spearheaded by former U.S. chairman of the Federal Reserve Paul Volcker, but remains a possibility. Volcker was appointed last april by UN Secretary-general Kofi annan to head the inquiry, one of several ongoing probes into the UN Oil-for-Food program. Volcker met briefly with annan last Thursday before releasing the names of the humanitarian vendors and 248 companies who bought oil from Iraq under contracts totaling $64.2 billion dollars. "We [the committee] have some hopes that with having all the names out there it may encourage people to come forward,' said Volcker. "We invite people to come forward with regard to information they may have that they think is relevant."
Secretary-general annan maintains he is "encouraged that the Committee is working diligently on the inquiry and looks forward to receiving its final report," but conceded "that the constant campaign" into the Oil-for-Food Program "has, and the discussions have, hurt the UN."
"It has done damage, yes." annan said.
Saddam Hussein's government siphoned at least $2 billion from the UN's Oil-for-Food Program mostly though oil sales using kickbacks and surcharges according to Charles Duelfer, who released his report earlier this month. Duelfer's report further documented that "overall, illicit revenue streams meant to circumvent the sanctions gave Iraq an additional $11 billion."
Duelfer determined that Iraq's military spending soared from "$7.8 million in 1998 to $350 million in 2001." He noted that Hussein's most lucrative route to crush the sanctions began in the early 90s and came from direct agreements with governments to the tune of $7.5 billion.
The list of 248 companies from countries who participated in the Oil-for-Food Program includes: Russia: 35, United arab Emirates: 12, France: 8, Syria: 7, Turkey: 6, Jordan: 6, United States: 4, Sudan: 1, Canada: 1
Volcker cautioned that participation in the program "does not in itself carry an implication of illicit, unethical or corrupt behavior." Some companies on the list have been determined to be offshore and described as "fly-by-night," and "fronts." Volcker stated he "will not make allegations as we go along."
Volcker's $30 million budget is "provided by the UN" and authorized by resolution of the Security Council. He balked at the suggestion of any conflict of interest insisting his Committee is independent. Promising a full disclosure of the Committee's spending, "I believe that this investigation is very much in the interest of Iraq," said Volcker. "It may result in Iraq getting more money back then they would otherwise get."
Part of his committee's mandate is to examine "the manner in which the United Nations and related agencies administered the distribution of humanitarian aid" to provide "food and drugs to education, recreation, electrical infrastructure, communications, transportation and agriculture" in Iraq.
"Obviously, the UN must be concerned about these allegations. I'm concerned about these allegations." Volcker said, stressing he will go "wherever the facts lie." He emphasized that the accusations of corruption in the UN "are a priority."
On Saturday, the associated Press reported, "Interviews with dozens of former and current Iraqi officials by [U.S.] congressional investigators have produced new evidence that Saddam Hussein micro-managed business deals under the UN oil-for-food program to maximize political influence with important foreign governments like Russia and neighboring arab states."
Volcker expects to release his findings by late spring 2005.
Marinka Peschmann is a freelance writer whose first book collaboration, the best-selling The Kid Stays In The Picture; was made into a documentary. She's contributed to several books and stories ranging from showbiz and celebrities to true crime and politics.
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