Straw announces support for Annan over oil-for-food programme

Foreign Secretary Jack Straw has announced his support for United Nations Secretary-General Kofi Annan, following the publication of a damning report into the Iraq oil-for-food programme.

The report, by the Independent Inquiry Committee, found instances of “illicit, unethical and corrupt behaviour” in the UN over the programme, which was set up in 1996 to help ease the impact of UN sanctions on Iraqi civilians.

The report concluded that Mr Annan was not involved in any unethical or corrupt behaviour, but accused him of mismanagement of the programme. His son, Kojo, was employed by Swiss-based firm Coctecna, which was awarded one of the oil-for-food contracts in 1998.

In a statement issued on Wednesday night, Mr Straw said that he had “high regard” for Mr Annan. He said: “The Committee’s report sets out recommendations to correct the shortcomings in the UN system. Kofi Annan has already been instrumental in pushing forward that debate in the United Nations. I firmly support his efforts.

“Even though this report highlights the shortcomings in the management of the oil-for-food programme, we must not lose sight of the real culprit here: Saddam Hussein. Throughout the entire OFF programme, Saddam consistently attempted to divert money which was intended for the people of Iraq.”

Mr Straw said that a UN summit, due to be held in New York next week, would give the international community “a real opportunity to secure the necessary change” and push through proposed UN management reforms in the wake of the report.

The $64 billion programme allowed the sanctions-bound regime of Saddam Hussein to sell oil in order to purchase food, medicines and other essential supplies. However, the system was abused by corrupt UN staff, private companies and Saddam Hussein, who made millions from illegal kickbacks.

The report stated that there was “no evidence” to suggest that Mr Annan had improperly influenced the procurement process in favour of Coctecna, the firm which employed his son. However, the Secretary-General accepted personal criticism, also expressed in preliminary reports, of his reaction upon being informed of Coctecna’s contract. He said: “I accepted then, and still accept, the conclusion that I was not diligent or effective enough in pursuing an investigation after the fact, when I learned that the company which employed my son had won the humanitarian inspection contract. I deeply regret that.”

The report concluded that the corruption within the programme took place among private companies, which, it said, were “manipulated” by Saddam Hussein’s government.

The IIC ruled that former Executive Director of the UN Office of the Iraq Programme, Benon Sevan, had corruptly benefited from his role in the programme. Former procurement officer Alexander Yakovlev was also accused of soliciting kickbacks.

Mr Annan said that, in spite of the shortcomings, the OFF programme had accomplished many “vital goals” in Iraq, including the prevention of widespread hunger and helping to reduce deaths from malnutrition.

However, Conservative Shadow Foreign Secretary Dr Liam Fox said that “comprehensive reform” of the UN was needed. He said: “The report proves that corruption and mismanagement occurred not just in the oil-for-food programme, but in the UN itself. British taxpayers contribute £623 million a year to the UN. They deserve value for money.”

(KMcA/SP)