UN Oil-for-Food Program Investigation Finds Secretary General Kofi Annan's Son and Advisers at Fault

Strategic Insights -

UN Secretary General Kofi Annan's son, Kojo Annan, and two of his closest advisers were criticized in a report by the commission investigating the oil-for-food program in Iraq. The report, led by Paul A. Volcker, found that Kojo Annan conspired to conceal the duration of his business and professional relationship with the Geneva-based company, Cotecna Inspection Services, where he worked. The investigation revealed that Kojo Annan had received payments from Cotecna until February 2004, despite claims that he had ended his association with the company in 1998. The report also criticized two of Mr. Annan's closest advisers, Iqbal Riza and Dileep Nair, for their conduct.

Key Takeaways:

  • The commission faulted Secretary General Kofi Annan for not acting aggressively to investigate Cotecna's relationship with the United Nations once questions were raised.
  • Kojo Annan was accused of conspiring to conceal facts about his employment by Cotecna Inspection Services, and the company was found to have made false statements about the duration of his service.
  • The report criticized two of Mr. Annan's closest advisers, Iqbal Riza and Dileep Nair, for their conduct, including Riza's order to shred personal files from the startup period of the oil-for-food program and Nair's appointment of a person to a high-level post with oil-for-food responsibilities who did almost no work on the program.
  • The committee accepted that Mr. Annan had no knowledge of the awarding of the contract to Cotecna, but faulted him for not authorizing an independent investigation into the matter.
  • The report found that Cotecna and Mr. Annan attempted to disguise the duration of their business and financial relationship through third-party payments.
  • Secretary General Annan expressed pain about the findings on his son, saying he loved him and expected the highest standards of integrity.

Statistics:

  • The oil-for-food program was worth $65 billion.
  • The contract for aid inspections was awarded to Cotecna for $10 million a year.
  • Kojo Annan received payments from Cotecna until February 2004.
  • The commission invested $3 million in the investigation.
  • Benon V. Sevan, the former head of the program, was accused of a ''grave conflict of interest'' in the first report.
  • Joseph Stephanides, a second official, was accused of violating procurement regulations.
  • The Volcker panel reported that Secretary General Annan had not influenced the awarding of the contract to Cotecna.

Sources:

  • "Oil-for-Food Inquiry Faults Annan Aides and Son" by The New York Times, 2005
  • "UN Oil-for-Food Report Criticizes Annan" by BBC News, 2005
  • "Oil-for-Food Program: Panel's Report" by The Washington Post, 2005