Annan takes action over oil-for-food report

UN Secretary-General Kofi Annan has initiated disciplinary proceedings against officials involved in the Iraq Oil for Food programme.

Mr Annan's decision followed the release of an interim report by an independent panel, which had investigated allegations of mismanagement and misconduct in the multi-billion dollar programme.

The former head of the programme, Benon Sevan, will face disciplinary action, after the report found "extremely troubling evidence of wrongdoing". The report also stated that Mr Sevan's actions "presented a grave and continuing conflict of interest" and found that his conduct was "ethically improper and seriously undermined the integrity of the United Nations".

Another official, Joseph Stephanides, will also face disciplinary proceedings after he was also named in the panel's report.

Following the publication of the report, the UN Secretary-General issued a statement which said: "I made clear from the outset that no-one found to have broken any laws would be shielded from prosecution. I stand by that pledge. Should any findings of the inquiry give rise to criminal charges, the United Nations will cooperate with national law enforcement authorities pursuing those charges and in the interests of justice I will waive the diplomatic immunity of the staff member concerned."

Mr Annan also said that he would await the publication of another interim report dealing with a contractor whom his son, Kojo, worked for with "a clear conscience".

The Oil for Food programme enabled Iraq to sell oil in order to purchase humanitarian assistance and supplies, while still under sanctions following the 1990 invasion of Kuwait. The programme ran from 1996 until May 2003, when the sanctions were lifted following the US-led invasion of the country.

The Independent Inquiry Committee, chaired by former United States Federal Reserve Chairman, Paul Volcker, was set up last year to investigate allegations of mismanagement and misconduct in the programme.

While the committee's investigation is ongoing, Mr Volcker told a press conference that "there was certainly violation of sanctions". He added: "I say 'what is called smuggling' because much of it went under protocols, trade protocols between Iraq and Jordan, and Iraq and Turkey, that were known to the Security Council, that were at least in one instance noted by the Security Council."

He also said that the report showed that the UN's procurement system "was overridden by political considerations".

The UN Chief of Staff, Mark Malloch Brown, said he hoped the investigation would provide context on the issue and pointed out that oil smuggling was the major source of illegal revenue for the former Iraq regime.

He said: "Oil smuggling outside the control of the UN but very much in the open sight of members of the Security Council."

(KMcA/SP)