UN Scandal: Kofi Annan Under Fire for Negligence in Oil for Food Programme

Strategic Insights -

A damning interim report by an independent panel of inquiry, chaired by former US Federal Reserve head Paul Volcker, has severely criticized the United Nations for its gross mismanagement and corruption in the Oil for Food Programme. The scandal has led to accusations that UN Secretary-General Kofi Annan has shirked responsibility for the program's failures, which included awarding lucrative contracts based on nepotism and personal gain. Annan has admitted to some "hard knocks" in the report but remains defiant, claiming that disciplinary action will be taken against the head of the program, Benon Sevan, and that he will resist calls for his resignation.

Key Takeaways:

  • The Oil for Food Programme, aimed at relieving suffering in Iraq under UN sanctions, has become the UN's biggest scandal, with Volcker's report revealing that Saddam's officials used the program to buy influence and friends, including within the UN.
  • The report accuses Annan of negligence, stating that he was aware of some issues but did nothing to address them.
  • The panel's interim report has been criticized by conservative politicians in America for being too soft on Annan's failings.
  • The scandal has dealt a blow to Annan's reputation, who has been hoping to be seen as a reformer ahead of his term's expiration in two years.
  • The Volcker report reveals business links between the disgraced oil for food program head, Benon Sevan, and relatives of Annan's predecessor, Boutros-Ghali.
  • The report shows that Sevan and his associates lied about their relationships and dealings, awarding contracts based on nepotism and personal gain.
  • The UN's handling of the scandal has been criticized, with some officials downplaying the significance of the sums involved in the corruption.

Statistics:

  • The Oil for Food programme was worth $64 billion.
  • Benon Sevan is accused of enjoying "unexplained wealth" of $160,000 from his elderly aunt.
  • The Amep company, run by a cousin of Boutros-Ghali, made a profit of at least $1.5 million on the sales of Iraqi oil between 1998 and 2001.
  • The post-war Iraqi government intends to take legal action against the UN to recover money made illicitly from the oil for food programme.

Sources:

  • "UN Scandal: Critics: Kofi Annan 'Too Soft on Own Failings'" by Sarah Baxter, The New York Report, 2004.
  • "Oil for Food: A Review of the Operations" by Paul Volcker, Independent Panel of Inquiry, 2005.
  • "The Sunday Times, 2005"