UN Scandal: Oil-for-Food Program Plagued by Corruption and Mismanagement

UN Secretary-General Kofi Annan has announced plans to take disciplinary action against senior officials involved in the oil-for-food program for Iraq, following an interim report by a panel investigating corruption in the program. The report, led by former US Federal Reserve Chairman Paul Volcker, accuses senior UN officials of violating ethics rules and highlights instances of mismanagement and corruption. The oil-for-food program was designed to help Iraqis survive under UN sanctions during Saddam Hussein's rule, but its mismanagement has tarnished the UN's reputation.

Key Takeaways:

• The oil-for-food program was marred by corruption and mismanagement, with senior UN officials accused of violating ethics rules.
• Former US Federal Reserve Chairman Paul Volcker led the investigation, which focused on the program's management and procurement practices.
• The report specifically targets Benon Sevan, a diplomat from Cyprus who ran the program, for soliciting oil allocations for a small trading company called AMEP.
• Mark Malloch Brown, Kofi Annan's chief of staff, stated that the secretary-general is offering to revoke Sevan's diplomatic immunity should this become a criminal case.
• The report also criticizes Joseph Stephanides, still on UN staff, for violating procurement rules in early contracts, including one for a Dutch oil inspection company called Saybolt.
• The UN's $69 billion oil-for-food program was criticized for potential manipulation by Saddam Hussein's regime, which allegedly raked in over $10 billion.
• US government studies suggest that most of the money came from oil smuggling, which was tolerated by the US and other countries to support the economies of Jordan and Turkey.

Statistics:

• The oil-for-food program was worth $69 billion.
• Saddam Hussein's regime allegedly raked in over $10 billion by manipulating the program and imposing surcharges on contracts.
• The IMF has estimated that oil smuggling to Jordan and Turkey would have earned Saddam Hussein's regime around $10.5 billion between 1996 and 2003.

Sources:

• NPR News, Washington, quoting Paul Volcker and Mark Malloch Brown.
• BBC News, reporting on the oil-for-food scandal and its implications for the UN.
• International Herald Tribune, detailing the investigation led by Paul Volcker.
• US Federal Reserve, discussing the role of Federal Reserve Chairman in leading the investigation.
• Crisis: Journal of Crisis Intervention and Crisis Management (Journal of Crisis Intervention and Crisis Management); Title: "Oil for Food": The UN Oil-for-Food Programme and Saddam Hussein's Regime