oracle
12-12-2002, 12:59 PM
Kofi Annandersen (http://www.opinionjournal.com/columnists/cRosett/?id=110002335)
Enron-style accounting at the U.N. Oil-for-Food Program.
BY CLAUDIA ROSETT
Wednesday, September 25, 2002 12:01 a.m. EDT
Who is Saddam Hussein's biggest business partner?
The United Nations. The same U.N. whose secretary-general, Kofi Annan, stands as one of the chief ditherers over removing Saddam. Here are the ingredients of a conflict of interest.
Under the U.N.'s Office of the Iraq Program, which supervises the six-year-old Oil-for-Food Program, the U.N. has had a hand in the sale of more than $55 billion worth of Iraqi oil. Iraq ships oil out to U.N.-approved buyers under the terms of the sanctions agreement. The U.N. vets the inflow of "humanitarian" imports into Iraq.
The process is simple. Iraq contracts to import goods, and the U.N. gives the outside vendors cash collected from the oil sales. The U.N. has approved about $34 billion in such deals so far. The money it hasn't yet doled out--at least $21 billion--sits in U.N.-administered bank accounts. U.N. officials refuse to divulge much information about these accounts--not even the countries in which they're held.
Measured in dollars, this is by far the U.N.'s largest program. The sums involved are large enough--and their handling has been perverse enough--for this program to deserve more attention than it has so far received.
<center>---------------------------</center>
Conceived in 1995 as a way to deliver humanitarian aid despite sanctions against Iraq, Oil-for-Food has matured into an unholy union between Saddam Hussein, with his command economy, and the U.N., with its big, buck-passing bureaucracy. By now, the two are effectively partners in what might just as well be called the Oil-for-U.N.-Jobs program. Even with its weapons inspectors barred from the country, the U.N. by now has 10 agencies employing 900 international staffers and 3,000 Iraqi nationals inside Iraq to administer the program, plus another 120 or so in New York.
Combining Iraq's oil exports and aid imports, they oversee a flow of funds averaging about $15 billion a year, more than five times the U.N.'s core annual budget. Even assuming the utmost integrity by the U.N. staff, it is worth asking whether Mr. Annan and his entourage might by now have a stake in the status quo. In which case, listening to Mr. Annan's views on Iraq makes about as much sense as once upon a time heeding Arthur Andersen's pronouncements on Enron.
Making this picture all the more Enron-like is the extent to which Mr. Annan and his crew have winked at Iraq's gross violations of U.N. agreements, and not only on weapons inspections. The U.N. sanctions on Iraqi oil sales were meant to stop Saddam from diverting oil revenues to his own uses. Instead, they provide a facde of control that is dangerously misleading. Saddam has been getting around the sanctions via surcharge-kickback deals and flat-out smuggling, to the tune of $3 billion a year, according to the dossier released yesterday by Britain's Prime Minister Tony Blair.
Back in May, The Wall Street Journal's Alix Freedman and Steve Stecklow gave a thoroughly documented account of how Iraq "has imposed illegal surcharges on every barrel of oil it has sold, using a maze of intermediaries to cover its tracks." Last week, the Washington-based Coalition for International Justice released an exhaustively researched 70-page report, detailing Saddam's dodges and how this year alone, despite "smarter" U.N. sanctions, he will rake in billions for his "personal treasury." When President Bush on Sept. 12 addressed the U.N., he charged that Saddam has "subverted" Oil-for-Food, "working around the sanctions to buy missile technology and military materials."
...
CLick here to read more (http://www.opinionjournal.com/columnists/cRosett/?id=110002335)
Enron-style accounting at the U.N. Oil-for-Food Program.
BY CLAUDIA ROSETT
Wednesday, September 25, 2002 12:01 a.m. EDT
Who is Saddam Hussein's biggest business partner?
The United Nations. The same U.N. whose secretary-general, Kofi Annan, stands as one of the chief ditherers over removing Saddam. Here are the ingredients of a conflict of interest.
Under the U.N.'s Office of the Iraq Program, which supervises the six-year-old Oil-for-Food Program, the U.N. has had a hand in the sale of more than $55 billion worth of Iraqi oil. Iraq ships oil out to U.N.-approved buyers under the terms of the sanctions agreement. The U.N. vets the inflow of "humanitarian" imports into Iraq.
The process is simple. Iraq contracts to import goods, and the U.N. gives the outside vendors cash collected from the oil sales. The U.N. has approved about $34 billion in such deals so far. The money it hasn't yet doled out--at least $21 billion--sits in U.N.-administered bank accounts. U.N. officials refuse to divulge much information about these accounts--not even the countries in which they're held.
Measured in dollars, this is by far the U.N.'s largest program. The sums involved are large enough--and their handling has been perverse enough--for this program to deserve more attention than it has so far received.
<center>---------------------------</center>
Conceived in 1995 as a way to deliver humanitarian aid despite sanctions against Iraq, Oil-for-Food has matured into an unholy union between Saddam Hussein, with his command economy, and the U.N., with its big, buck-passing bureaucracy. By now, the two are effectively partners in what might just as well be called the Oil-for-U.N.-Jobs program. Even with its weapons inspectors barred from the country, the U.N. by now has 10 agencies employing 900 international staffers and 3,000 Iraqi nationals inside Iraq to administer the program, plus another 120 or so in New York.
Combining Iraq's oil exports and aid imports, they oversee a flow of funds averaging about $15 billion a year, more than five times the U.N.'s core annual budget. Even assuming the utmost integrity by the U.N. staff, it is worth asking whether Mr. Annan and his entourage might by now have a stake in the status quo. In which case, listening to Mr. Annan's views on Iraq makes about as much sense as once upon a time heeding Arthur Andersen's pronouncements on Enron.
Making this picture all the more Enron-like is the extent to which Mr. Annan and his crew have winked at Iraq's gross violations of U.N. agreements, and not only on weapons inspections. The U.N. sanctions on Iraqi oil sales were meant to stop Saddam from diverting oil revenues to his own uses. Instead, they provide a facde of control that is dangerously misleading. Saddam has been getting around the sanctions via surcharge-kickback deals and flat-out smuggling, to the tune of $3 billion a year, according to the dossier released yesterday by Britain's Prime Minister Tony Blair.
Back in May, The Wall Street Journal's Alix Freedman and Steve Stecklow gave a thoroughly documented account of how Iraq "has imposed illegal surcharges on every barrel of oil it has sold, using a maze of intermediaries to cover its tracks." Last week, the Washington-based Coalition for International Justice released an exhaustively researched 70-page report, detailing Saddam's dodges and how this year alone, despite "smarter" U.N. sanctions, he will rake in billions for his "personal treasury." When President Bush on Sept. 12 addressed the U.N., he charged that Saddam has "subverted" Oil-for-Food, "working around the sanctions to buy missile technology and military materials."
...
CLick here to read more (http://www.opinionjournal.com/columnists/cRosett/?id=110002335)