"I think we can do business with this man," Kofi Annan.

2% right off the top

"WHEN UNITED NATIONS SECRETARY GENERAL Kofi Annan quipped several years ago that he could "do business" with Saddam Hussein, he meant it figuratively. In light of the substantive charges coming out of the ever-expanding Oil-for-Food scandal, the throwaway line seems revealing or at least ironic.
"I think we have to take him literally," says Republican senator Norm Coleman, who is leading one of eight investigations into the corruption and mismanagement of the U.N.'s largest-ever humanitarian relief effort.
The basic outline of the scandal is simple: Saddam Hussein used the Oil-for-Food program to circumvent U.N. sanctions imposed after the Gulf war and to enrich himself and his allies. He did this by bribing leading journalists and diplomats and demanding kickbacks from those who profited from selling Iraqi oil. That he was able to do so indicates at least that the U.N. badly mismanaged the program it set up in December 1996. None of this is particularly astonishing. No one is surprised to learn that Saddam Hussein cheats, that politicians take bribes, and that the competence level of the U.N. bureaucracy is, well, suboptimal."

From the start the United Nations was bought with Saddam's money. The United Nations became an enabler of theft and greed all for the 2% off of the top. Saddam an old briber from way back knew exactly what he was doing, he knew that kind of money flowing in to the UN would give him carte blanche with what ever he wanted to do, he paid everyone who put their hands out including members of the Security Council and their governments. Ron

Please give the boxes back, pleads Mr. Volcker

Henry Hyde is laughing

"Mr. Parton, a former FBI agent, and a fellow investigator quit Mr. Volcker's $30 million investigation last month to protest the soft treatment they felt was given to U.N. Secretary-General Kofi Annan.

Mr. Volcker also said the congressional committees probing the $10 billion Iraq oil-for-food scandal should immediately return more than a half-dozen boxes of documents Mr. Parton turned over to the House International Relations Committee Thursday in response to a subpoena. Mr. Parton's cooperation with Capitol Hill committees would violate the U.N. inquiry's immunity and also a confidentiality agreement he signed when he joined the inquiry last year.

Paul Volcker, the head of the U.N.-appointed panel probing the oil-for-food scandal, yesterday asked Congress to drop its efforts to force an investigator who resigned from the panel to testify about any top-level corruption at the world body."

Sen. Coleman and Rep. Hyde must have a great deal of satisfaction hearing Mr. Volcker ask for the evidence back that Mr. Parton brought to them. Henry Hyde was treated like like a child by Kofi Annan when he asked for cooperation by formal letter in April of 2004. Mr. Annan didn't even have the courtesy to give Mr. Hyde a reply for over 6 months. We can see by the information that has dribbled out just why Mr. Annan didn't want to cooperate, his son and most of the Secretariat and even the former Secretary General of the United Nations, Mr. Boutros-Boutros Ghalli were involved in scamming. Mr. Annan's former chief of staff Mr. Riza tried his best to run boxes and boxes and hundreds of thousands of pieces of evidence for 24/7 through the shredders; how galling it must be that Hyde and Coleman got some of it before it could be destroyed.

Henry Hyde finally gets the respect due

Now Henry has the information

 Robert Parton, a former FBI agent and the top investigator with the United Nations' $30 million oil-for-food investigation, delivered at least a half-dozen boxes of documents to comply with a subpoena issued last week by the House International Relations Committee.

    Committee Chairman Henry J. Hyde, Illinois Republican, praised Mr. Parton for complying and warned Mr. Volcker's panel against seeking retribution for his cooperation.
    "It is my hope and expectation that neither the United Nations nor the [Volcker] inquiry will attempt to sanction Mr. Parton for complying with a lawful subpoena," Mr. Hyde said yesterday.

Senator Coleman gets UN records

This will be interesting

Documents inolving actions taken by U.N. Secretary-General Kofi Annan (search) in the Oil-for-Food investigation were handed over to Congress on Wednesday night, FOX News has learned.
The documents were given to federal lawmakers by Robert Parton (search), a former senior investigator on the Independent Inquiry Committee (search) probing the $64 billion program.
Parton and Miranda Duncan (search), who both resigned from the panel last month in protest, have accused the IIC of downplaying Annan's role in the Oil-for-Food corruption scandal in an interim report released by the panel last March.

Kerry campaign worker disregards United Nations Charter provisions.

Senator Coleman will subpoena Robert Parton and Miranda Duncan to testify.

Volcker say's they have immunity

Senator Coleman, who has called on Mr Annan to resign for mismanagement, vowed to force a showdown by issuing the subpoenas anyway. “I spoke with Mr Volcker and expressed my grave and growing concerns about the credibility and independence of the investigation into the criminal misconduct that occurred in the UN Oil-for-Food programme,” he said.

Questions have been raised about Mr Volcker’s impartiality by the resignation of the two investigators and by his ties to a company once run by Maurice Strong, a Canadian tycoon and diplomat under investigation by the Volcker panel.In the 1960s Mr Strong, 76, ran Power Corporation of Canada, which later hired Mr Volcker as a paid consultant. The UN is refusing to reveal whether Mr Strong played any role in recommending Mr Volcker for his post as head of the Oil-for-Food inquiry.

Just who is this Maurice Strong everyone is not talking about? Why, he is the man who single handly put together the "Kyoto Protocols" and what is that you might ask? Well, basically its a way to get the industrial nations of the world to buy hot air credits from China and a few other places. Here is an article where you can get a very good idea what is transpiring. article

Senator Coleman to subpoena former investigators

Please don't do it, asks Volcker

How ironic. When he took on the task of heading up the oil-for-food investigation, Paul Volcker brushed off criticism that without subpoena power, his committee would be toothless. Now rebel investigators under him, as well as a key witness whose testimony he has pooh-poohed, are about to be subpoenaed by Congress.
And even worse for Mr. Volcker, the plan to subpoena the two investigators who have quit the Independent Inquiry Committee, Robert Parton and Miranda Duncan, plus a former business partner of Kojo Annan, Pierre Mouselli, is designed to expose inadequacies in the U.N.-mandated investigation by showing that it went too soft on Secretary-General Annan.

Iqbal Riza recieves "get out of jail free" card from Kofi.

Don't worry about It, says Kofi

Secretary General Kofi Annan said Thursday that he had decided there were no grounds for disciplining his former chief of staff, Iqbal Riza, who was criticized by the independent committee investigating the oil-for-food program for ordering the shredding of three years of files.

"While those actions were careless, I do not believe they can be construed as deliberate attempts to impede the work of the independent inquiry committee," Mr. Annan said April 19 in a letter to Mr. Riza that was released Thursday. His reference was to the panel headed by Paul A. Volcker, the former Federal Reserve chairman. "I accept your apology and assure you that I still have great faith in your professionalism and well-known

Maurice Strong and nepotism, hat tip to Roger Simon

To soft on Kofi says Senator Coleman

No cooperation says Volcher

The Senate panel probing the U.N. oil-for-food scandal will subpoena two investigators who quit the United Nations' own inquiry on the grounds that it was too soft on Secretary-General Kofi Annan.
    The announcement yesterday by Sen. Norm Coleman, Minnesota Republican, was the latest sign of the growing antagonism between congressional investigators and the $30 million U.N.-appointed inquiry headed by former Federal Reserve Chairman Paul Volcker.

Another UN Resignation, Bertini this time.

You know what jumps off of ships?

Kofi Annan "reluctantly" accepted another resignation on Tuesday. The latest one is from Under-Secretary-General for Management Catherine Bertini. It was Bertini who cleared UN auditor Dileep Nair of a wide range of allegations including corrupt practices and violating Staff Regulations in November 2004. Dileep Nair, as Canada Free Press reported in March, is the embattled-by-Paul-Volcker UN auditor accused of "misusing Oil-for-Food funds and violating UN Staff Regulations."

Nair left the UN last week maintaining his innocence. Bertini will leave the UN at the end of this month.  Canada's Louise Fréchette, Kofi’s #2, who blocked Nair from reporting Oil-for-Food audit irregularities to the UN Security Council remains at the UN intact.

Benan Sevan wants legal fee's paid by UN

Sounds like a warning to UN

Benon Sevan, who once headed the United Nations' oil-for-food program, hinted in a recent letter to the U.N. chief of staff, Mark Malloch Brown, that he would consider retributions against the organization if it refused to reimburse the mounting legal fees he has incurred while attempting to fend off allegations related to the progra

The April 10 letter to Mr. Malloch Brown was penned by Mr. Sevan's somewhat lower-profile lawyer, Eric Lewis. Mr. Lewis demanded that the United Nations reconsider its prior decision not to reimburse the legal fees incurred by Mr. Sevan as result of oil-for-food accusations.

Mr. Lewis implied in his letter that Mr. Sevan could go public with the circumstances surrounding the initial promise by the United Nations to cover Mr. Sevan's legal fees - and the organization's subsequent about-face. Mr. Sevan's knowledge of the program might include potentially damaging information about several U.N. officials.

Volcker tries to defend probe

More smoke and mirrors

"I thought we criticized him rather severely; I would not call that an exoneration," Volcker said in an interview broadcast on Fox News.

Volcker's remarks followed the recent resignations of two of his top investigators, Miranda Duncan and Robert Parton.

Parton, a former FBI agent who served as Volcker's senior investigative counsel, quit out of frustration that the report did not provide a more critical account of Annan's handling of the $64 billion humanitarian program, a source close to Parton said on the condition of anonymity.

Don't forget the Kanadian Konnection

Don't forget Canadian Louise Frechette

Volcker’s number two man former Canadian spy chief Reid Morden

Paul Volcker: Just fishing with the Canadians at Power Corp.

Some more on Mr. Strong

$8 Billion missing in new UN scandal

$10 Billion shortfall because of Canadian Kyoto Protocols, gee thanks Mr. Strong

Annan wants to "reform" the U.N. again

Claudia Rosett

Since the U.N.'s self-described dawn of integrity three years ago (one of several such sunrises since Mr. Annan became secretary-general in 1997), we have seen the sex-for-food scandal in the Congo, featuring the rape of minors by U.N. peacekeepers, which continued well after press disclosures last year prompted a U.N. internal investigation. We have seen theft at the World Meteorological Association, scandal in the U.N. audit department, the resignation over sexual harassment charges of the refugee high commissioner Ruud Lubbers, turmoil within the Electoral Assistance Division, and allegations of corruption involving the U.N.'s Geneva-based World Intellectual Property Organization. We have seen rebellion by the U.N. Staff Union against "senior management, and a raft of resignations by senior U.N. officials who nonetheless linger on the premises on official salaries of a dollar a year, plus the various perquisites and connections the place affords.

UN staff have recommended that Maurice Strong be suspended according to report.

IMPORTANT UPDATE: Investigators Robert Parton (senior investigative counsel) and Miranda Duncan (deputy counsel) have resigned because information was not being followed up by the Volcker Committee!!! These are two of the top three field investigators for the committtee. Only Michael Cornacchia remains. Hat tip to Roger L. Simon

Maurice Strong resigns

Maurice Strong knows "`Koreagate Man'"

What else don't we know

Strong, got his start in the world of business by Paul Desmarais’ Montreal-based Power Corporation. Desmarais is a key figure in Paribas BNP, Saddam’s favourite bank, officials of which are said to be "cooperating with investigators" in the oil-for-food probe.

Strong also happens to be a power behind the throne in Canadian politics as senior advisor to adscam, scandal-plagued Canadian Prime Minister Paul Martin--also launched into the business world by Power Corp.

Kofi Annan’s special envoy to Korea Maurice Strong admits he knows "Koreagate Man" Tongsun Park and even that Park invested in an "energy company" with which he was associated in 1997--but flatly denies any involvement in the scandal-ridden UN oil-for-food program.

As Kofi Annan’s special envoy to Korea, Strong returns from his Korean trips to openly criticize the U.S. Strong told CBS’s Dan Rather on May 26, 2004: "The single most important thing that comes out of my discussions there is the strong conviction that the country is threatened by the United States. They contend that this is the reason, and the only reason, that they require nuclear weapons."

Another Canadian implicated in huge theft of 8 Billion

$425 Million of aid money missing in Canada

Kofi blames others for his incompetence

Is Kofi saying he didn't know?

"Every man and his dog is buying Iraqi oil," said one oil trader quoted by the Times of London in early 2001. The same story described "total anarchy" and "flagrant disregard of U.N. Security Council resolutions" in Oil for Food. A myriad of shady middlemen had moved in after the world's major oil companies shunned Iraq in response to Saddam's widely publicized demand the previous year for illegal kickbacks on oil contracts.

This open and flagrant corruption--the Times story was one of many--is the best evidence of Kofi Annan's unfitness to continue to lead the U.N. It's not merely that it all happened on his watch, but that it was allowed to happen in plain view."

U.N. underwriting: Not another dime

It's official: Kofi says the US and England did it.

Kofi blames US

"U.N. Secretary-General Kofi Annan, who earlier angered the United States and Britain by calling the Iraq war 'illegal,' has upset both nations again -- this time accusing them of allowing Saddam Hussein to enrich himself selling oil outside the U.N.-run oil-for-food program.
    Mr. Annan set off the latest dispute on Thursday by asserting that Saddam made more money smuggling oil to Jordan and Turkey -- under the noses of the United States and Britain -- than he skimmed from the 1996-2003 U.N.-run oil-for-food program.

Mr. Annan just can't make something like this fly. Even though his hand picked investigators led by Mr. Volcker does his best to hide information that is cascading forth, Mr. Volcker can't keep it all in and we learn of such things as paper shredding by Kofi Annan's Chief of Staff.

"The most significant finding in the Volcker Report is undoubtedly the revelation that Kofi Annan's then-Chief of Staff Iqbal Riza authorized the shredding between April and December 2004 of thousands of UN documents--the entire UN Chef de Cabinet chronological files for the years 1997, 1998 and 1999, many of which related to the oil-for-food program."

Only in the never-never land of UN bureaucracy could you find some one like Kofi Annan and his Secretariat. This organization is dangerous and has to be down sized for our safety, it is trying to gain a position of more power than its member states. It is an unelected group of nameless and unaccountable greymen who have brought forth genocide's, rapes, pedophilia and the most monumental theft of all time.

The United State has to stop buying into the UN bureaucracy, its an incremental thing that they are attempting and the only thing they need is time and they have decades to outlast any opponent. First the "Kyoto Protocol" and then the ICC and now the Law of the Sea, just a little bit at a time until we have something out of Orwell's 1984. Ron

Kojo's friend in UN bribery investigation

UN's Kofi Annan has to explain the shreding

What about the coverup Kofi?

"The most significant finding in the Second Interim Report is that Iqbal Riza, Kofi Annan’s chief of staff, authorized the shredding of thousands of U.N. documents between April and December 2004. Among these documents were the entire U.N. Chef de Cabinet chronological files for 1997, 1998, and 1999—many of which related to the Oil-for-Food Program.

Riza approved this destruction just 10 days after he had personally written to the heads of nine U.N.-related agencies that administered the Oil-for-Food Program in Northern Iraq, requesting that they “take all necessary steps to collect, preserve and secure all files, records and documents…relating to the Oil-for-Food Programme.”[8] The destruction continued for more than seven months after the Secretary-General’s June 1, 2004, order to U.N. staff members “not to destroy or remove any documents related to the Oil-for-Food programme that are in their possession or under their control, and to not instruct or allow anyone else to destroy or remove such documents.”[9]

Significantly, Kofi Annan announced the retirement of Mr. Riza on January 15, 2005—the same day that Riza notified the Volcker Committee that he had destroyed the documents.[10] Riza was immediately replaced by Mark Malloch Brown, Administrator of the U.N. Development Programme."

At the United Nations, the senior administrator under Kofi Annan has willfully and deliberately shredded documents that pertained to the greatest rip off in history and Annan lets him retire the same day that he notified Volcker of the documents destruction. The records were so voluminous that it took seven months to shred them all and Annan professes he knows nothing about it, can there be anyone that would believe such a lie. The responsibility stopped with Annan and for this if nothing else he should be forced to resign. Ron

Kofi Aide Shredded Thousands of Documents

Seven full months of shredding and he has immunity

It is hardly surprising that Volcker has struggled to find evidence of "improper influence" if a great deal of vital evidence has ended up in a shredder. Despite UN protestations, this latest report will add to a growing picture of mismanagement, incompetence, and unaccountability in a world body in deep crisis and in serious need of reform.

The most significant finding in the Volcker Report is undoubtedly the revelation that Kofi Annan's then-Chief of Staff Iqbal Riza authorized the shredding between April and December 2004 of thousands of UN documents--the entire UN Chef de Cabinet chronological files for the years 1997, 1998 and 1999, many of which related to the oil-for-food program.

Significantly, Kofi Annan announced the retirement of Riza on Jan. 15, 2005, exactly the same day that Riza notified the Volcker Committee that he had destroyed the documents.

Riza was chief of staff from 1997 to 2004, almost the entire period in which the oil-for- food program was in operation, and would undoubtedly possess an intricate knowledge of the UN's management of the program. He was a long-time colleague of Kofi Annan, and served as Annan's deputy in the Department of Peacekeeping Operations from 1993 to 1996.

Kofi Annan, a sad case.

Kofi's not up to it.

Stop the presses. As it turns out, the mismanagement of the multi-billion United Nations' Oil-for-Food scam -- run with all the oversight of a back-alley cock fight -- reaches to the office of Mr. United Nations himself -- His Excellency Kofi Annan. The world has expressed shock its beloved Mr. Annan -- the Nobel Peace Prize winner and would-be reformer -- is not a saint after all. Go figure.

The phrase "Oil-for-Food" is now synonymous with "corruption" and it is only the tip of the iceberg. Embezzlement has been reported at the World Meteorological Organization. Rape and pedophilia are rampant among U.N. peacekeepers. Last summer, the U.N. staff gave Mr. Annan a vote of no confidence and demanded his ouster.

The U.N. human rights record is a joke. Claims of sexual harassment have been leveled against a top manager. In August 2003, U.N. employees -- 22 of them -- were killed because of improper security measures by incompetent U.N. security personnel. In the face of terrorism and genocide, the U.N. sits on the sidelines quibbling over the proper definitions of terms.

Sevan threatens to go home if not treated right.

Pay the attorney fee's or else, says Sevan.

"I am shocked and dismayed that the U.N. Secretariat has agreed to pay Benon Sevan's legal fees from assets belonging to the Iraqi people," said Iraqi Ambassador Samir Sumaida'ie.

The money to reimburse Mr. Sevan, as well as the $30 million to fund the official inquiry, comes from a fund set up with Iraqi oil revenues to administer the $64 billion oil-for-food program.

However Mark Malloch Brown said that, "Mr. Sevan made it clear that if he was not reimbursed ... he was going home to Cyprus," he told reporters yesterday. "He didn't see the need to subject himself to leaks and attacks."

Mark Malloch Brown apparently hasn't heard about arresting someone who has misappropriated money under cover of "doing his job." Just think of what would have happened to the guys and girls from Enron if they would have tried this. Hey Brown, Benan Sevan had a Panamanian Corporation going along with Butros-Butros-Butros's cousin and they snagged a couple of million dollars. "...he was going home to Cyprus." Lift his immunity with out telling him and tip off Henry Hyde, Henry would sweat him like a cooked chicken. Ron

Sec. Rice says's John Bolton to lead U.N. shake up

Bolton is the man for a shake up!

Secretary of State Condoleezza Rice said yesterday she expects John R. Bolton, Washington's ambassador-designate to the United Nations, to lead an overdue shake-up of that organization. "John Bolton was my first choice," Miss Rice told editors and reporters in an interview at The Washington Times. "I think John is a straightforward, tough-talking, very good diplomat, and I think that's what you need at the United Nations."

What is needed in United Nations right now is an investigation that is transparent. Mr. Volcker is not the person to lead that investigation. " As Canada Free Press (CFP) revealed, Paul Volcker, who heads up the Independent Inquiry Commission into the oil-for-food scandal, held a seat on Power Corp’s international advisory board. [Read the two previous articles on Power Corporation and which companies it controls]" This should have been enough to disqualify him from leading an 'independent inquiry' of the United Nations but there is something else. "In addition to his connections to Power Corp., which he did not disclose upon being appointed head of the UN probe, Volcker has also been linked to a pro-UN lobby group, the United Nations Association of the United States (which happens to receive generous support from BNP Paribas). Critics are suggesting that the final report, expected in June, could end up being a whitewash."

There is a thread through this whole hidden non-disclosure by Mr. Volcker and its called "Power Corporation." If you have no idea who owns this entity and how Mr. Volcker is involved, read the previous two entries. Ron

Why Bolton will be good for the UN

The United Nations Association of the United States of America

Just how can someone who was/is associated with “The United Nations Association of the United State of America” have an impartial and independent investigation of the "Oil for Food" scam? Mr. Volcker thought it so important that we didn't know about his association he didn't put it on his curriculum vitae; why is this? Read the article in its entirety here by inputing Professor Gardiner's name or the name of the article in the search engine or by clicking below. Out of all the Investigators that could have been chosen why pick one that is on the UN cheer leading team. Just how much is going into the paper shredders or erased from hard drives, maybe nothing but there is a doubt now and there needn't have been one with a neutral investigator. Ron

"The United Nations Association of the United States of America is a pro-U.N. advocacy group that supports the work of the United Nations. In the grateful words of Kofi Annan, 'There are United Nations Associations in many other countries, but this one is unique—both in the challenges it faces and in the energy and resources it devotes to tackling them. From our perspective, it is hard to think of any work more valuable than what you do to improve the understanding of United Nations issues in our host country.' [6]"

"The Volcker Committee suffers from a huge credibility problem of its own. It is hard to see how a team of investigators hand-picked by the U.N. Secretary-General, whose own son is a subject of investigation, could be considered truly independent. There is also a major question mark over its Chairman’s neutrality. After Mr. Volcker’s several years as a director of the United Nations Association and Business Council for the United Nations, it is difficult to see how he could cast a critical, objective eye over the U.N.’s leadership." From "the Volcker Oil-for Food Investigation: Is there a Conflict of Interest by N. Gardiner, Ph.D.

If this is so smart and the right way to run an inquiry, we should have let Mr. Ken Lay run the investigation of Enron. How can you not have doubt when you find this kind of information out; why was it hidden from the public? Turn the investigation over to Henry Hyde or Senator Coleman, this is the greatest theft in hundreds of years and the American People deserve better than they are getting. They get to pay their taxes into this organization of malfeasance and thats all? US citizen's pay 22% to 40% of the operating costs of the United Nations and they get shuck and jive from Kofi and crew when $23.3 billion is missing and a lot of it is being shot back at our troops in Iraq. Time for a change, guys. Ron

Is there a conflict of interest?

UN inspector bribed with Saddam's money

A very comprehensive report indeed!

Nile Gardiner, Ph.D., lays out the scheme for Congress

The seriousness of the charges leveled against Benon Sevan by the IIC Interim Report clearly merit criminal prosecution, and the U.N.’s pledge to lift diplomatic immunity for Mr. Sevan is an important first step in the right direction.

 Mr. Sevan should also be interviewed by Congressional investigators to shed more light on his illicit activities, as well as any criminal activity by members of his staff. Besides facing justice, Sevan should additionally serve as a vitally important source of information regarding attempts by the Saddam Hussein regime to influence decision-making at the U.N. and the Security Council. Several key questions need to be answered:

-  How did Sevan manage to blatantly flout U.N. rules without any suspicions being raised?

-  Why was there no oversight of Sevan’s management of the Office of the Iraq Program?

-  To what extent was Kofi Annan aware of corrupt practices within the OIP?

-  Were other U.N. staff assisting Sevan with his illicit activities?

-  How extensive were the ties between Sevan and the Saddam Hussein regime?

-  How was Sevan picked to become Director of the OIP?

-  Were allegations of corruption leveled against Sevan when he served in previous U.N. positions?
• Boutros Boutros-Ghali, Banque Nationale de Paris and the UN Escrow Account

The UN’s decision to appoint the French company Banque Nationale de Paris (BNP) to administer the Oil-for-Food escrow account is the subject of intense scrutiny in the IIC Interim Report. Vast sums of money were handled through the escrow account. The Saddam Hussein regime sold more than $64.2 billion of oil under the Oil for Food Program between 1996 and 2003.[9] BNP was selected by then U.N. Secretary General Boutros Boutros-Ghali, even though the decision did not conform to the requirement under U.N. financial rules to accept the “lowest acceptable bidder”.[10]

The information contained in this report will be used in many newspaper stories. It is one of the most comprehensive reports to date on one of the greatest thefts in worlds history. Ron

What about Kojo Annan?

Let's not forget these guys

Fox News Update

Rape in Darfur

Network of pedophiles at the U.N. mission in Congo?

Mr. Sevan's aunt falls down elevator shaft

Borrowed the bucks from Auntie, he says.

Asked to account for the appearance in his bank account of a certain $160,000, Mr Sevan, executive director of the UN Oil-for-Food programme, said it was a gift from his aunt. Lucky Sevan, eh? None of my aunts ever had that much of the folding stuff on tap.

Paul Volcker's committee of investigation did plan to ask the old lady to confirm her nephew's version of events, but, before they could, she fell down an elevator shaft and died.

Biography of Mr. Sevan

Don't Let Volcker Report Whitewash U.N. Oil-For-Food Scandal

Volcker whitewash expected because of hidden affiliations.

U.S. policy-makers shouldn’t stand by while a committee compromised by conflicts of interest clears a secretary-general of faulty oversight and allows a group of U.N. officials to escape overall responsibility for the biggest financial fraud of modern times. [see preceding Dr. Gardiner article, Ron]

With Annan’s job and the image of the organization he heads hanging in the balance, this is no time for a whitewash, Gardiner says. To that end, Gardiner proposes:
• Bringing transparency to the IIC’s operations. Identify all 60 people working on or with the committee, complete with all of their prior affiliations.
• Publicly disclosing all interviews between the IIC and U.N. officials and all findings from the committee.
• Furnishing monthly updates on IIC activities and progress to Security Council members.
• Setting and honoring a date for publication of the final IIC report to remove the timing of its release from U.N. political manipulation.
• Forcing the U.N. to make all of its personnel who were involved in the Oil-For-Food program, as well as all relevant documents, available to the various committees of the U.S. Congress that have opened investigations.

Volcker conpromised?

Smoke Screen to start soon

The Volcker Investigation into the U.N. Oil-for-Food Scandal: Why It Lacks Credibility

Lots of problems say's Dr. Gardiner of Heritage

Annan is facing growing calls for his resignation from Capitol Hill, where Senator Norm Coleman (R– MN), chairman of the Senate Permanent Subcommit­tee on Investigations, and 60 Members of Congress have called for Annan to step down.2 Among them are nine members of the House Appropriations Com­mittee, which provides 22 percent of the U.N. oper­ating budget each year, and eight members of the House International Relations Committee.3 Several more Senators are expected to support Coleman’s call for Annan’s departure.[1][2][3]

In addition, the Bush Administration has begun to harden its stance toward Annan. Outgoing Sec­retary of State Colin Powell warned the embattled Secretary-General that he will be held accountable for management failures in the Oil-for-Food pro­gram.[4] President George W. Bush has so far refused to express his confidence in Annan, declining to meet with him in December when the Secretary-General visited Washington.

Outside the oil-for-food scandal, Annan’s prob­lems are also mounting. He has acknowledged and accepted organizational responsibility for a major scandal involving U.N. personnel and peacekeep­ers in the Congo. The U.N. stands accused of human rights violations against refugees on a scale that dwarfs the Abu Ghraib scandal. In addition, internal unrest within the U.N. continues to mount in the wake of a series of harassment scan­dals involving senior U.N. managers. The threat of a U.N. staff revolt looms large. If 2004 was Kofi Annan’s “annus horribilis,” 2005 threatens to be even worse.

UN's oil-for-food aid probe due

This is so funny now

Questions for Mr. Sevan

What is going on here?

Benon Sevan, the United Nations official in charge of the oil-for-food programme in Iraq, intervened in person to steer lucrative contracts to an oil trader, Iraqi officials have told the UN's independent inquiry.

Their testimony, consistent with documents that have emerged since the fall of Saddam Hussein, adds to questions facing Mr Sevan as investigations into alleged corruption progresses. The interim findings of the UN inquiry, led by Paul Volcker, are due to be published this week.

Documents from Iraq's state oil marketing organisation (Somo) in the possession of the Financial Times and Il Sole 24 Ore, the Italian business daily, appear to link Mr Sevan to the assigning of contracts to Africa Middle East Petroleum, a Swiss-based oil trading company. Oil contracts - which could be sold to international traders at a mark-up of up to 35 cents a barrel - were awarded by the regime at the start of every six-month phase. The Somo documents show that, unusually, AMEP was added to recipients in the middle of Phase Four (May 1998-November 1998) after a visit to Baghdad by Mr Sevan.

One letter, dated August 10 1998, was from Saddam Zayn Hassan, Somo's executive manager, to Iraq's oil minister. It mentions AMEP as "the company that Mr Sevan cited to you during his last trip to Baghdad".

African Middle East Petroleum Co.

Look at Panama

Who is Mr. Sevan?

The Volcker Oil-for-Food Investigation: Is There a Conflict of Interest?

Why wasn't this disclosed, why??

Paul Volcker and an Apparent Conflict of Interest

It should be an issue of concern that Mr. Volcker’s own outlook may be influenced by past associations. It is vitally important that any independent inquiry into the extremely serious allegations leveled against the United Nations—which could have far-reaching implications for the reputation of the world organization—be seen as completely independent of the U.N. It is just as important that the person charged with heading such an inquiry be seen as completely unbiased and objective in his approach toward the organization he is investigating. In the corporate world, for example, it would be inconceivable for an independent inquiry into fraud and corruption to be headed by someone with strong ties and loyalties to the corporation under investigation.

But in the case of Paul Volcker and the Independent Inquiry Committee, there is an apparent conflict of interest that brings into question whether the Committee can objectively investigate the United Nations. When Volcker was appointed to head the Oil-for-Food investigation in April 2004, it was not widely known to the general public, the world’s media, or the U.S. Congress that he was at the time a director of the United Nations Association of the United States of America (UNA-USA) and the Business Council for the United Nations. Mr. Volcker is listed as a director in the 2003-2004 UNA-USA annual report,[3] as well as the annual reports for 2001-2002 and 2000-2001.[4]The UNA-USA’s partner organization, the Business Council for the United Nations (BCUN), works to “advance the common interests of the U.N. and business in a more prosperous and peaceful world.” One of its chief underwriters was BNP Paribas, the French bank that held the escrow account for Oil-for-Food funds.[9] BNP donated more than $100,000 to UNA-USA and BCUN in 2002 to 2003.[10] BNP’s role in the Oil-for-Food scandal is currently being investigated by the House International Relations Committee,[11] as well as by the Volcker Committee.

More conflict of interest?

Smoke and mirrors?

More on BNP Paribas

UN not serious with investigations

Investigator Stymied by UN

A private intelligence firm hired by the United Nations to look into corruption in the oil-for-food program provided valuable leads to U.N. investigators, but they were ignored, the company's director says.
    "We found it extremely frustrating to be in a position where we could do something significant to dramatically assist the investigation into the oil-for-food fraud and not be allowed to proceed," said Derek Baldwin, director of operations for IBIS Risk Management Services Inc.

    "As an experienced investigator, it became clear to me that the U.N. is failing to act on the leads and intel streams developed by us in specific areas where we were asked to develop leads and intel streams," said Mr. Baldwin, a fraud investigator and former intelligence official. "That is inexplicable."

Another Leaked Document Points To U.N. Buyoff

The Sunday Times - Saddam ‘bought UN allies’ with oil

A LEAKED report has exposed the extent of alleged corruption in the United Nations’ oil-for-food scheme in Iraq, identifying up to 200 individuals and companies that made profits running into hundreds of millions of pounds from it.

The report largely implicates France and Russia, whom Saddam Hussein targeted as he sought support on the UN Security Council before the Iraq war. Both countries were influential voices against UN-backed action.

A senior UN official responsible for the scheme is identified as a major beneficiary. The report, marked “highly confidential”, also finds that the private office of Vladimir Putin, the Russian president, profited from the cheap oil. Saddam’s regime awarded this oil during the run-up to the war when military action was being discussed at the UN.

The report was drawn up on behalf of the interim Iraqi government in preparation for a possible legal action against those who may have illicitly profited under Saddam. The Iraqis hired the London-based accountants KPMG and lawyers Freshfields to advise on future action.

...

The other main allegations included in the report are that:

Benon Sevan, director of the UN oil-for-food programme, received 9.3m barrels of oil from the regime which he is estimated to have sold for a profit of £670,000. Sevan has always denied any improper conduct.

A former senior aide to Putin allegedly organised the sale of almost 4m barrels of oil at a profit of more than £330,000. At the time the oil was sold, Russia was blocking the UN from supporting America’s demands to attack Iraq. According to the report, the aide, who worked in the presidential office, received 3.9m barrels of oil between May and December 2002.

In the two months during the run-up to the war, the Iraqi regime illegally sold about £30m of oil to a Jordanian-based company with the money deposited in a Jordanian bank account established by the regime. This is suspected to have been an attempt to secure safe passage for Saddam’s family in the event of war.

A French oil company teamed up with the regime to bribe a UN-appointed inspector monitoring exports of Iraqi oil. The inspector, a Portuguese national working for Saybolt, a Dutch firm, was paid a total of £58,000 in cash to forge export documents.

The French firm is linked to a close associate of Jacques Chirac, the country’s president. A spokesman for Saybolt said it would be investigating the allegations.

Saddam imposed a surcharge of between 10 cents and 50 cents (5p to 27p) for every barrel of oil allocated by his regime between September 2000 and the end of 2002.

The money raised from this illegal surcharge was deposited in bank accounts in Jordan, Lebanon, Iraq and the United Arab Emirates. Iraqi embassies, including those in Moscow, Athens, Cairo, Rome, Vienna and Geneva, collected the money.

We'll be on the lookout for a copy of the official document.

(Full article at link. Thanks again to Ron Norman.)

Bremer Calls Allegations Of Blocking Iraqi Probe "Nonsense"

Washington Times: Bremer says charge of blocking oil-for-food probe 'nonsense'

Former U.S. administrator in Iraq L. Paul Bremer dismissed charges that he tried to block an investigation in the $10 billion U.N. oil-for-food scandal as "utter and complete nonsense."

Mr. Bremer, who relinquished his post as the supreme authority in Iraq on Monday, said in an interview Thursday that he moved quickly to secure all records in Baghdad relating to the scandal and acted to head off what he said was a politicized investigation of the probe by the now-disbanded Iraqi Governing Council.

"It became clear to me that the investigation should be conducted by a nonpolitical body and the Governing Council was clearly thinking in terms of a political investigation," Mr. Bremer told reporters and editors of The Washington Times during an interview conducted at the Old Executive Office Building.

Mr. Bremer added, "The idea that I somehow stood in the way of this is utter and complete nonsense."

(Full story at link. Thanks to reader Ron Norman for the tip.)

The idea that Bremer did NOT stand in the way of the investigation is "utter and complete nonsense." Anyone who read Hanke-Drielsma's testimony must wonder what the CPA was up to.

BREAKING: Head of Iraqi Oil For Food Audit Killed By Bomb

Reuters/Wired News: Iraq Official Heading Oil-For-Food Probe Killed

BAGHDAD (Reuters) - The Iraqi official heading the investigation into alleged corruption in the United Nations oil-for-food program was killed in a bomb attack earlier this week, officials familiar with the probe said on Saturday.

Ihsan Karim, head of the Board of Supreme Audit, died in hospital after a bomb placed under one of the cars in his convoy exploded on Thursday, the officials said.

...

Zaab Sethna, a spokesman for Chalabi, said the audit board was poorly equipped to handle the investigation.

"The assassination of Mr Karim is very worrying. Bremer appointed the audit board and left them on their own," Sethna told Reuters.

"The investigation was the highest profile probe the board was handling. It is impossible to speculate who killed Mr Karim, but the oil-for-food corruption involved very powerful people inside and outside Iraq," he added.

(Full article at link)

Accusations of U.S. Stall Flying in Iraq, Congress

Fox News: Iraqis: U.S. Officials Stalling 'Oil-for-Food' Probe

NEW YORK — U.S. officials charged with managing Iraq until June 30 are facing accusations that they are trying to hinder the investigation into what happened to millions of dollars from the United Nations oil-for-food program.

Some members of the now-dissolved Iraqi Governing Council claimed that coalition administrator L. Paul Bremer has been hindering the investigation to prevent any revelations that might embarrass the U.N. during the critical transition of power in Iraq.

But coalition officials strongly deny the claim.

"We believe it is critical that this investigation be done seriously, that people are held accountable," Bremer spokesman Dan Senor told Fox News.

"Iraqis want to hold people accountable. They want to get to the bottom of this and they want it to be done professionally. And the approach that Ambassador Bremer has taken, at the behest of Iraqis, fits that model."

But lawmakers on Capitol Hill probing the oil-for-food scandal have also questioned Bremer's decision to give control of the investigation to the Iraqi Board of Supreme Audit, a Saddam Hussein-era body.

Rep. Christopher Shays, R-Conn., sent a letter to Bremer on May 21 raising questions about entrusting the investigation to figures who may have allegiances to Saddam.

"Why are officials from the Saddam era more trustworthy stewards of an investigation of oil for food than the coalition-appointed Iraqi Governing Council or its successor?" Shays wrote.

(Full story at link)

Coalition: Chalabi Raid Was Not About OFF Scandal

Boston Globe/AP: Raid on Chalabi's Baghdad home had nothing to do with U.N. oil-for-food probe, coalition officials say

UNITED NATIONS (AP) Last week's raid on the Baghdad home of one-time American ally Ahmed Chalabi had nothing to do with his allegations of corruption in the U.N. oil-for-food program but if any relevant material was found it would be turned over to Iraqi investigators, senior officials in the U.S.-led coalition in Iraq said Thursday.

The officials denied Chalabi's claim that documents related to the oil-for-food program were seized in the raid, saying no documents were taken from any property searched. But information about the U.N. program could have been on computers and computer discs that were taken and if so it was now in the hands of Iraqi authorities who ordered the raid, they said.

The coalition officials insisted the raid was authorized by an investigative judge, and carried out by Iraqi authorities with warrants, with no coalition involvement except to provide ''external security.'' Chalabi's aide said the raiding team was searching for wanted officials in his party, the Iraqi National Congress.

So, it seems that, despite the ongoing document tussle, at least it is clear that what Chalabi started will be carried on by the IGC. We'll see how this turns out.

New Claudia Rosett Column Discusses U.N., White House Cover-Ups

NRO: Cover-Up Culture, When will the real Oil-for-Food investigations begin?

You have to admire the resilience of the United Nations. In theory, the U.N.'s Oil-for-Food relief program for Iraq, which ran from 1996-2003, is now the subject of at least five investigations into billions worth of alleged fraud and corruption. In practice, however, while U.N. Secretary-General Kofi Annan dismisses well-founded allegations as "outrageous," and President George W. Bush chalks out a big new role for the U.N. in Iraq, it is the investigators themselves who are now largely stalled, stymied, carefully contained, or even attacked. The attacks have not been limited to the U.S.-led armed raid last Thursday on the Baghdad home and office of Iraq Governing Council (IGC) member Ahmed Chalabi, in which — by Chalabi's account in a phone interview with me later that same day — U.S. forces seized documentation incriminating to U.N. officials "on every level." There has also been the harassment recently of a British adviser to the IGC, Claude Hankes-Drielsma. This past February, Hankes-Drielsma lined up KPMG International, an accounting firm, together with Freshfields Bruckhaus Deringer, a law firm, to carry out an audit of Oil-for-Food for the IGC. He testified before Congress last month that the KPMG investigation "is expected to demonstrate the clear link between those countries which were quite ready to support Saddam Hussein's regime for their own financial benefit, at the expense of the Iraqi people, and those that opposed the strict application of sanctions and the overthrow of Saddam." (Security Council members France, Russia and China come to mind.)

Last Thursday, the same day as the raid on Chalabi, an as-yet unidentified person hacked into Hankes-Drielsma's computer and deleted all the files, as Hankes-Drielsma recounted to me in a phone interview. The computer expert called in to cope with damage "said he'd never seen anything quite like it. They deleted even the backup files," says Hankes-Drielsma. Asked if he has been physically threatened as well, Hankes-Drielsma, says, "No comment."

Whatever the circumstances surrounding Chalabi, it ought to be obvious that he, the IGC, and Hankes-Drielsma deserve credit for being the first to call for an investigation into Oil-for-Food, something even Annan after much stonewalling finally conceded this past March was necessary...

(Full article at link.)

NPR on Document Tussle

NPR(!) has a an archived All Things Considered report from the 21st of May, concerning the document tussle between the current investigations into the Oil-for-Food program and the IGC's concerns of their own investigation. (Windows Media and Real Audio)

Billion-dollar timebomb puts Chalabi at risk

Telegraph: Billion-dollar timebomb puts Chalabi at risk

Ahmad Chalabi is in possession of "miles" of documents with the potential to expose politicians, corporations and the United Nations as having connived in a system of kickbacks and false pricing worth billions of pounds.

That may have been enough to provoke yesterday's American raid. So explosive are the contents of the files that their publication would cause serious problems for US allies and friendly states around the globe.

Late last year and several months before Paul Bremer's Coalition Provisional Authority became involved, Mr Chalabi had amassed enough information concerning corruption in the oil-for-food scandal to realise that he was sitting on explosive material.

After those explosive lead paragraphs, the Telegraph story does not seem to offer anything new.

... (More at link)

Chalabi Raid Complicates OFP Probe

Chalabi Raid Complicates Oil-For-Food Probe

WASHINGTON--While the Iraqi prisoner abuse scandal rages, yet another controversy is gathering steam, involving top U.S. accounting firms, powerful K Street lobbying firms and international oil companies widely held by institutional and individual investors.

Senior congressional staffers, policy analysts and lobbyists are all pointing to mounting evidence that "utter chaos is reigning" in Baghdad over investigations into the Iraq oil-for-food program scandal, especially in the wake of today's raid by Iraqi police and U.S. forces on the home of Iraqi Governing Council member Ahmad al-Chalabi.

The purpose of the raid was not disclosed, but Chalabi himself later told reporters that among the items seized were files related to the oil-for-food program, which he and the council have been probing.

Now, both Chalabi and the CPA have told the media that the raid was related to OFP. (See previous post.) Which implied he had "the goods" stored right there in his home. I don't know what to make of this incident.

... (more at link)

GIs, Iraq Police Raid Chalabi's Home

GIs, Iraq Police Raid Home of Former Ally

BAGHDAD, Iraq - U.S. soldiers and Iraqi police raided the home of America's one-time ally Ahmad Chalabi on Thursday, seizing documents and computers. In the search of Chalabi's home in Baghdad's Mansour district, U.S. soldiers surrounded the compound and armed Americans in civilian clothes and flak jackets were seen milling about.

U.S. officials declined to comment on the raid. Privately, however, American authorities have said Chalabi is interfering with a U.S. investigation into allegations that Saddam Hussein's regime skimmed billions of dollars in oil revenues during the U.N.-run oil-for-food program.

The "Chalabi Raid" must be the least readily explicable event of the war.

It may or may not be related to the competing OFP investigations. It it were, what would the soldiers have been looking for? The Coalition had already rounded up lots of stuff from Saddamite Ministries. Could he have had something damaging to US government or corporate interests? Possibly, but a daylight raid to recover something that may not be there and also may have been copied seems like a bad idea.

Stay tuned.

NYT: Oil-for-Food Probe Politics

U.S. and Iraq Spar Over Who Should Run Corruption Inquiry Into Oil-for-Food Program

The NY Times reports on Bremer's takeover of the Iraqi investigation into OFP. Since the Governing Council's post-June 30 role is unclear, and because Bremer holds the purse strings, this would seem to be a fait accompli, with whatever delays that entails, and whether or not the CPA will pursue this as tenaciously as possible.

Iraq's political leaders are sparring with the American occupation administration over who should investigate possible official and corporate corruption in the United Nations oil-for-food program. The dispute pits L. Paul Bremer III, the American administrator of Iraq, against the Iraqi Governing Council, whose members Mr. Bremer appointed last year. As the June 30 date for an American power transfer approaches, the two sides have increasingly been at odds over the future political setup. It is not clear whether the present Governing Council will retain any power in a transitional government. Governing Council members said they wanted to supervise any Iraqi inquiry into the oil-for-food program, and had asked the American accounting firm KPMG International in February to assemble possible evidence of alleged kickbacks and bribes paid under the now-defunct oil-for-food program. Mr. Bremer has refused to release money to pay KPMG and instead has now approved the hiring of a different company, Ernst & Young, to conduct a $20 million investigation on behalf of a different agency of Iraq's transitional government.

Bremer's Maneuvers

Yahoo! News - U.N. Oil Probe Has Seized 20,000 Files

Paul Bremer seems to have outmaneuvered Ahmed Chalabi, in their dueling investigations. While Chalabi's investigation, sponsored by the IGC, has been trying to get going for months, Bremer holds the purse strings, has refused to fund the IGC study.

Now the CPA's own probe has been launched and it has scooped up mountains of documents from the old regime.

WASHINGTON - The U.S.-backed investigation into alleged abuses of the United Nations' Oil for Food program in Iraq has already collected more than 20,000 files from Saddam Hussein's old regime and hired an American accounting firm to conduct the review.

Documents obtained by The Associated Press show the U.S.-backed, Iraqi-run Board of Supreme Audit selected the Ernst & Young firm this week to oversee the audit of the documents gathered from at least 16 former ministries of Saddam's government.

The U.S.-led Coalition Provisional Authority also is trying to head off a separate investigation launched by former Iraqi dissident Ahmad Chalabi, now an influential member of the Iraqi Governing Council, in hopes that a single, independent investigation will have more credibility.

Chalabi took an early lead in exposing alleged abuses by the U.N.-backed program and has been trying to force the coalition government to give him the $5 million in Iraqi funds set aside for the probe to pay for his effort. The move was strongly resisted by L. Paul Bremer III, who runs the governing Coalition Provisional Authority, or CPA.

The Chalabi-backed investigation started in mid-April, a month after Bremer announced the U.S.-backed one and made clear he would pay for only the probe. Chalabi's backers hired a different firm, KPMG, to do its audit, but they want Bremer's administration to pay the bill from the Iraqi funds it controls. The money comes from a fund of mostly seized Saddam assets and Iraqi oil sales.

"I must reiterate that CPA has approved only one investigation," Bremer wrote Chalabi this week. "The CPA will not authorize funding for other investigations into these allegations and any such investigation could undermine the process already under way."

Without money and without any documents to examine, the ICG consulantants would appear to be "out in the cold."

Bremer Delays OFP Investigation

Claude Hankes-Drielsma, British advisor overseeing the the Iraq Governing Council's investigation into the UN Oil-for Food scandal, today called on the Coalition Provisional Authority (CPA) immediately to release the necessary funds to allow the investigation to continue.

Speaking today from London, Mr Hankes-Drielsma said: "We are very disappointed to see the CPA stalling on this issue, despite having assured us at earlier meetings that the investigation would receive the necessary funding from the Iraq Development Fund. Time is critical and the delay is undermining the Iraq Governing Council's efforts to get to the truth via an independent and rigorous investigation carried out by two leading international professional firms."

It was the IGC that first brought this scandal to world attention and the UN was forced to hold its own investigation into the matter. Mr Hankes Drielsma added: "It is essential that the IGC be allowed to continue with its investigation and my concerns are shared by many in the US Government. I have just received a letter from Congressman Christopher Shays, who chaired the Congressional Committee looking into this scandal in which he states: "The role of the Iraq Governing Council and your efforts on their behalf are crucial to getting at what went wrong in the (UN Oil-for-food) program." "

KPMG and Freshfields were orginally appointed by the IGC with the remit to establish whether and to what extent people violated and profiteered from the UN Oil-for-food programme or flaunted UN sanctions as well as whether the UN administered the Oil-for-food programme effectively. The appointment was made by the Finance Committee of the Iraq Governing Council and members of the CPA were present at that meeting. The decision was unanimously endorsed by the Iraq Governing Council as a whole.

However, the investigation has now been on hold as Ambassador Bremer has not yet released funding from the Iraq Development Fund to cover the costs of completing the investigation. "As a result," says Mr Hankes-Drielsma, "phase one of the report which would have been ready in June will now be delayed by at least two months. I therefore call on Ambassador Bremer to release the funds immediately so that this crucial investigation is allowed to proceed without further delay."

(verbatim press release emailed to Friends of Saddam by Justin)

Bremer Cuts Funds for Investigation

KPMG forced to halt Iraq work

Iraq's Governing Council commissioned the accounting firm KPMG to investigate UNSCAM. Ambassador Bremer, so far, has refused to pay for the investigation from the DFI (Development Fund of Iraq), which is, at this time, Iraq's de facto Treasury.

What shall we call this? "Oil for Stonewall?" Note that the DFI is funded by Iraq's oil exports. So, rather than use that money "in the interests of the Iraqi people," the Coalition is using it for "other purposes?" That sounds familiar.

One would think that the CPA, especially after this week's prison-abuse shockwaves, would be sensitive to not act like Saddam in the use of Iraq's resources. And, this action can only fuel skepticism about the June 30 handover of sovereignty.

Confusion this week surrounds KPMG's efforts to retain a multimillion-pound contract to undertake forensic accounting work on the controversial Iraqi oil for food programme.

KPMG was commissioned by the Iraqi Governing Council to investigate the scandal-hit fund, but the work was halted after Paul Bremer, the head of the US-led Coalition Provisional Authority, said it could not be paid for out of CAP funds without a proper tender process.

A twin-track process emerged as a result. The governing council has confirmed KPMG as the investigator, but the provisional authority still has its tender procedure underway. The position leaves the firm unclear as to where it stands and the governing council deeply frustrated.

Bremer's office has come under intense pressure in recent days to clear the way for KPMG to restart its work.

"Intense pressure?" Not intense enough.

This has been going on since December.

U.N. BIGS 'SEAL' THE OIL DEALS

New York Post Online Edition: news

May 4, 2004 -- WASHINGTON - The United Nations yesterday threw up a stone wall in the oil-for-food scandal, insisting that contracts between the world body and private companies should not be turned over to investigators.
In a defiant move that has infuriated probers, Secretary-General Kofi Annan threw his support behind a letter from former oil-for-food head Benon Sevan to officials of a Dutch company that inspected Iraqi oil shipments. The letter directed the company not to hand over documents to congressional committees and other "governmental authorities."
Sevan's shocking April 14 letter sternly reminded the company, Saybolt International, that details of its contract with the United Nations are confidential "and we would not agree to their release."

... (more at link)

[Ed. - The "governmental authorities" must be Iraq's Governing Council. See previous entry.]

Hat tip, Nick at Patriot Paradox

UN to Iraq: Drop Dead

CNN.com - U.N. defends oil-for-food letter - May 3, 2004

UNITED NATIONS (CNN) -- The United Nations has defended a letter sent by the head of its Iraq oil-for-food program telling a contractor not to release any documents related to the program without first consulting it. The letter, sent April 14 by an aide on behalf of U.N. oil-for-food head Benon Sevan to the manager of the Dutch company Saybolt, asks the company "to maintain the confidentiality of documentation and information relating to its services in connection with the program." Saybolt was the independent inspection agency hired by the United Nations to monitor the loading of Iraq's crude oil at the two locations sanctioned by the program.

According to the letter, released Monday by the United Nations, a "governmental authority" had requested internal U.N. reports from Saybolt.

If the UN wants to play a key role in Iraq, impeding the IGC's investigation of the UN's complicity with Saddam seems like a poor way to build Iraq's confidence in that institution.

... (more at link)

Is the CPA Stonewalling?

Mr. Claude Hankes-Drielsma's testimony to the Shays Committee clearly implied that Ambassador Bremer and the CPA have impeded the progress of the Iraq Governing Council's (IGC) efforts to look into the OFP.

Acronym-laden organizations, memos, dates, and bureaucratic processes make for dry reading, but here are the highlights:

In December, Mr. Hankes-Drielsma (H-D) was retained by the IGC, specifically its Finance Committee, chaired by controversial Ahmed Chalabi. H-D saw the infamous list of 270 and promptly recommended that the UN investigate. The UN had little interest, at least until al-Mada publicized the list in late January.

Given the UN's lack of interest in investigating itself, H-D recommended that the Governing Council appoint its own investigators. KPMG and Freshfields were identified and the scope of their work agreed to by late February.

Then, in late March, this:

Unfortunately, Ambassador Bremer suddenly decided to intervene. He informed the Finance Committee of the IGC that he would not release funds from the Iraq Development Fund to meet the costs of the investigation unless the work was put out to tender [Request for Proposal]. He also, without discussion or consultation, put an arbitrary upper limit of $5 million which he generously agreed to allocate from the Iraq Development Fund to the IGC. He did so with the full knowledge that KPMG had already started the investigation and done a great deal of work.

In sum, Bremer made the ICG jump through the formal hoops of an RFP process. Perhaps an innocuous, or bureaucratically appropriate, step. KPMG duly submitted a formal tender/RFP.

And then, on April 4th, another surprise. The CPA was considering putting out their own request for a study. In his best bureaucrat-ese, H-D went ballistic:

It is deeply disturbing to have been informed that you may now be considering that the CPA / Board of Supreme Audit should usurp the initiative of the Governing Council and their invitation for tender as this will cause considerable delay and confusion and may well be perceived as politically motivated. ...

Ambassador Bremer, I am confused by CPA’s actions at the present time.

On April 5, the CPA apparently backed off, announcing that the IGC's contract with KPMG would stand.

But not really. On April 9, the CPA issued it own competing tender.

On 9th April, the CPA without consultation or informing the Governing Council or the Finance Committee of the Iraq Governing Council put out an invitation to tender with a closing date of 24th April 2004. Notwithstanding that they knew the IGC had already initiated an appropriate tender process. The CPA then sent out a further announcement that it wished to accelerate the process and changed the date to 20th April. This approach to handling something as important as this report for Iraq is inappropriate and unprofessional.

As of April 21, "there still is not a firm undertaking that Ambassador Bremer, contrary to the assurance given at earlier discussions, will grant the necessary funding from the Iraq development fund."

What does this mean?

What explains the somewhat surprising behavior? Without speculatively supporting any particular view, here are three possible explanations:

1) It is all just "bureaucracy as usual." Bremer has a whole country to run, an uprising (or something like it) to deal with, and a transition in less than 3 months. He's trying to follow procedures. He can only spend $5 million on it.

2) "Politics." This could be that the Bush administration, now looking for the UN's help with the transition, does not want to investigate and thereby alienate that body at this time. Thus, Bremer is slowing the process down to avoid embarrassing the UN. This Economist article headlines this view.

3) Another "political" view. All the information here comes from Mr. Hankes-Drielsma, who has been hired by Ahmed Chalabi. Perhaps this whole matter of competing investigations represents some part of a "power grab" by Chalabi. A minor turf war between Chalabi and Bremer, with few Bush-U.N. implications. Governments and bureaucracies are full of such battles.

I have no idea what is driving this CPA-IGC dispute, but let's resolve it and get digging into the real issue - the corruption of the Oil for Food program.

This story by Shaun Waterman is even more suspicious of the political ramifications.