Investigators: Annan Failed to Curb Corruption in Oil-for-Food Program

[DeepModem Mom]

NYT:
Annan Failed to Curb Corruption in Iraq's Oil-for-Food Program, Investigators Report
By WARREN HOGE
Published: September 7, 2005


UNITED NATIONS, Sept. 6 - A yearlong investigation has concluded that Secretary General Kofi Annan failed to curb corruption and mismanagement at the United Nations, but it did not find evidence to support charges that he improperly influenced the scandal-tainted oil-for-food program.

"His sins were ones of omission basically; there were things that he might well have done and should have done that he didn't do," a senior investigator said Tuesday.

Typical of the lapses, the investigator said, was Mr. Annan's failure to look more thoroughly into the activities of his son, Kojo Annan, to see if his working for a company that received an oil-for-food contract posed a conflict of interest for his father.

The committee, led by Paul A. Volcker, a former chairman of the Federal Reserve Bank, found no evidence that Kofi Annan knew about the contract, but it found instances where Kojo Annan did try to influence it, and in general exploited his father's name, the investigator said....


http://www.nytimes.com/2005/09/07/international/07nations.html

[Fire Walk With Me]

1. Newsflash: BushCo destroy UN; colonize destablized countries

[daleo]

2. In other words, he did nothing wrong.

It was just another phony neo-con smear job.

[me b zola]

3. Meanwhile, back at the (Crawford) ranch

Possibly the most corrupt, incompetent,& murderous government in the history of man sits counting the profits from Halliburton stock. :grr:

[Old and In the Way]

4. Anin is in a rather awkward situation.

Who were the abusing companies? Oh, Halliburton was one.

[Lindacooks]

5. I could not care less about this.

Honestly. There are bigger fish to fry - namely the BFEE.

[ShockediSay]

6. And BushCo succeeded in totally corrupting US government n/t

[muriel_volestrangler]

7. Who knew Annan had so much in common with Thatcher and Bush Sr.?

Who both had sons who shamelessly exploited their parent's name in illegal deals (although they did it to a far greater extent)?

Strange how there were never huge investigations into those ...

[emad]

8. Corruption among UN senior staff, says inquiry: Times

Corruption among UN senior staff, says inquiry
From James Bone in New York



THE Volcker inquiry into the Oil-for-Food scandal called for a significant overhaul of the UN yesterday as it prepared to reveal details of “serious instances of illicit, unethical and corrupt behaviour” at the world body.

The three-member committee, led by Paul Volcker, the former chairman of the US Federal Reserve, released the preface to a 1,000-page report that is to be presented today to the UN Security Council.


“The main conclusions are unambiguous,” the panel declared. “The organisation requires stronger executive leadership, thoroughgoing administrative reform and more reliable controls and auditing.”

The five-page preface contained no details of the investigation into Kofi Annan, the UN Secretary-General, and his predecessor, Boutros Boutros Ghali, or other UN officials. But its conclusion that stronger executive leadership is required will add to pressure on Mr Annan to stand down.

“The reality is that the Secretary-General has come to be viewed as chief diplomatic and political agent of the UN,” the panel said. “The present Secretary-General is widely respected for precisely those qualities. In these turbulent times, those responsibilities tend to be all-consuming. The record amply reflects consequent administrative failings.”

http://www.timesonline.co.uk/article/0,,11069-1768927,00.html

[emad]

9. Q&A: what Volcker found

What is today's report about?

It is the much-awaited comprehensive report by the UN's own inquiry into corruption in its Oil-For-Food programme for Iraq. It is expected to reach almost 1,000 pages. The report has been drawn up by a panel led by Paul Volcker, the respected former chairman of the US Federal Reserve.

What was the Oil-for-Food programme?

It was set up by the UN Security Council to allow Iraq to sell limited quantities of oil in order to pay for imports of food, medicine and other humanitarian supplies while the country was under UN sanctions. The proceeds from Iraq's permitted oil sales were put in a UN escrow account and used to finance imports into Iraq.

What evidence of corruption have the previous reports found?

The Volcker Commission has issued three previous reports focusing on Benon Sevan, the head of the Oil-For-Food programme; Kojo Annan, the son of the UN secretary-general; and Alexander Yakovlev, a longtime UN procurement official.

Mr Sevan, a Cypriot, was accused of taking about 160,000 dollars in cash for steering contracts to a company run by a cousin and a brother-in-law of the former UN secretary-general Boutros Boutros Ghali. Mr Yakovlev, a Russian, quit the UN and has pleaded guilty to corruption charges brought by American prosecutors. Another UN official, Joseph Stephanides, from Cyprus has been summarily dismissed for helping a British firm win a border inspection contract - but he is appealing. Kojo Annan is expected to figure again in today's report.

Why has Kofi Annan been criticised?

The UN secretary-general's role has been questioned for two reasons. Firstly, he was the chief administrative officer of the organisation for much of the time when the corruption and abuses occured. Secondly, and perhaps more importantly, a UN contract was awarded to a Swiss firm called Cotecna that employed his son Kojo. The Volcker commission has been investigating whether the older Annan knew his son's company was trying to get UN business. But it is not expected to be able to reach a firm conclusion today.

What image has emerged of the workings of the UN?

The Oil-For-Food scandal has gradually spread to envelop more and more of the UN as one investigation led to another. Just last week, the Russian head of the UN's budget oversight committee was arrested on money laundering charges in New York in a case that grew out of the Oil-For-Food inquiry. One problem is that UN officials are generally protected from prosecution by diplomatic immunity, unless the UN secretary-general waives it.

Will the scandal damage the UN?

It already has. The Oil-For-Food scandal has put a huge dent in the UN's much-vaunted credibility. UN members, particularly the United States, will no doubt be more reluctant to entrust the UN with similar tasks for the foreseeable future. Depending on what other details come to light, the scandal could eventually even threaten the UN's existence by alienating its leading member, the United States.

Will today's report draw a line under the matter?

No, it is not the final word. The Volcker Commission itself will issue another report next month on corruption by private companies trading under the Oil-For-Food system.

In addition, after a separate investigation US federal prosecutors have brought charges against a number of Oil-For-Food figures, including an Iraqi-American businessman and a South Korean lobbyist accused of trying to bribe UN officials.

http://www.timesonline.co.uk/article/0,,3-1769208,00.html