Probe Opens on Iraq Oil-For-Food Program [Archive]

seruriermarshal

04-22-2004, 12:52 AM

Probe Opens on Iraq Oil-For-Food Program

By DAFNA LINZER, Associated Press Writer

UNITED NATIONS - With the full weight of the Security Council behind him, former Federal Reserve (news - web sites) chairman Paul Volcker opened an independent investigation Wednesday into allegations of corruption and kickbacks stemming from the U.N.'s humanitarian program in Iraq (news - web sites).

His three-member panel will hire and oversee a team of investigators, accountants and legal advisers expected to pore through hundreds of pages of U.N. contracts awarded over the years to international companies that did business with Saddam Hussein (news - web sites)'s regime.

But Volcker's panel will have no subpoena authority and will need to rely on voluntary cooperation from foreign governments, U.N. staff, members of Saddam's former government and current Iraqi leaders who claim they have evidence that dozens of people, including top U.N. officials took kickbacks from the oil-for-food program.

The Security Council on Wednesday unanimously approved the independent investigation of the program that U.S. lawmakers have said allowed billions of dollars in illegal oil revenue to flow to Saddam Hussein.

In Washington, a panel of Bush administration officials involved in the U.N. program told the House Government Reform subcommittee that there was a widespread system of kickbacks in the U.N. program that benefited officials within Iraq, including Saddam. But they said there is no corroborated evidence so far that U.N. officials were part of the scam.

Secretary-General Kofi Annan (news - web sites) said Wednesday that he took seriously allegations that U.N. officials had taken money and he expected the investigation to uncover the truth. He wouldn't comment directly on new reports that several unnamed U.N. officials could be implicated for taking kickbacks from the program.

Annan launched an internal inquiry in February but canceled it in March to allow a broader, independent examination.

"I want to get to the truth and I want to get to the bottom of this so I am happy they are taking on this assignment," Annan said.

Volcker, who will lead the three-man investigative panel, insisted on the resolution setting out the inquiry's aims before he would agree to head the probe.

"A full, fair investigation, as conclusive as we can make it, is in the long-term interest of the U.N. — that's the only reason I'm here," Volcker said at a news conference. "Whatever it shows, if it shows something bad in the U.N., (then they'll) clean it up."

Yugoslav war crimes prosecutor Richard Goldstone of South Africa and Swiss criminal law professor Mark Pieth will work with Volcker.

The U.S. General Accounting Office (news - web sites), Congress' investigative arm, estimated in March that the Iraqi government pocketed $5.7 billion by smuggling oil to its neighbors and $4.4 billion by extracting illicit surcharges and kickbacks on otherwise legitimate contracts.

The allegations of possible U.N. corruption first surfaced last January in the Iraqi newspaper Al-Mada. The newspaper had a list of about 270 former government officials, activists and journalists from more than 46 countries suspected of profiting from Iraqi oil sales that were part of the U.N. program.

The resolution supporting Volcker's investigation calls on the U.S.-led coalition now running Iraq, the Iraqis themselves, and all 191 U.N. member states and their regulatory authorities "to cooperate fully by all appropriate means with the inquiry."

Russia had initially opposed Volcker's request for a Security Council resolution on grounds that a council statement was enough. Asked whether he was satisfied with the resolution adopted Wednesday, Volcker said it included "the vital sentence" calling on all states to cooperate. "That's the guts of it," he said.

"Important accusations have been made about the U.N., accusations about the administration of the program, accusations about activities outside the U.N. that need to be resolved," Volcker said. "The U.N. is an important institution and these questions, once raised, I think have to have a deliberate and full investigation and an answer."

Annan said he hoped the outcome of the investigation, expected to get underway immediately, wouldn't taint the U.N.'s reputation in Iraq.

However, there was no indication Annan would send U.N. humanitarian workers back into the volatile country any time soon.

"We are monitoring the security situation. We hope attempts to reduce the violence will succeed (but) until that is done, security is a constraint for us," he said.

Under the oil-for-food program, which began in December 1996 and ended in November, the former Iraqi regime could sell unlimited quantities of oil provided the money went primarily to buy humanitarian goods and pay reparations to victims of the 1991 Gulf War (news - web sites).

Saddam's government decided on the goods it wanted, who should provide them, and who could buy Iraqi oil — but a U.N. committee monitored the contracts.

U.N. like oil ......

:roll:

Marmot1

04-22-2004, 03:29 AM

LIST

The Saddam Oil Bribes: the complete al-Mada list
fbis translated text of the al-Mada Jan. 25, 2004 report | 25 Jan 04 p 4 | unattributed

Posted on 01/31/2004 4:01:48 AM PST by ganeshpuri89

Baghdad: Al-Mada in Arabic 25 Jan 04 p 4

[Corrected version: Unattributed report: "Presidents, Journalists, and Parties Received Millions of Oil Barrels From Saddam"; all names as transliterated; correcting numbers, dates throughout text]

[FBIS translated text]

Al-Mada has obtained a set of tables that provide he names of individuals and firms for whom quantities of crude oil have been allocated during the various stages of the Memorandum of Understanding, as outlined in the documents of the Oil Marketing Company, a public firm affiliated to the Ministry of Oil. The lists include the names of individuals, companies, parties, groups, and organizations for which the former regime allocated quantities of crude oil. The quantities are specified in details in the various stages of the Memorandum of Understanding. The allocation, as the documents indicate, started with the third stage of the Memorandum of Understanding. This is because in the first and second stages the allocation was made to companies that owned refineries (end users) [preceding words published in English]. This means that the information that we are publishing here concern entities that do not own refineries (non-end users) or middle companies.

Under this interesting title appear many names that have nothing to do with oil, its distribution, storage, or sale and that are not known to be interested in oil or to have any affiliation to oil companies. They include the Russian Orthodox Church and the Russian Communist Party.

In the case of individuals, the matter becomes even more curious. If we understand that journalist Hamidah Na'na, who defended the former regime, is interested in prolonging his independent journalistic project through an oil deal, it is strange to find on the list the name of Khalid, son of late President Jamal Abd-al-Nasir; former Jordanian Parliament member Tujan al-Faysal, the current President of Indonesia, the son of the Syrian Defense Minister, and the son of the Lebanese President.

Since its acceptance of the Memorandum of Understanding, or what is known as the Food for Oil Program, the defunct regime has turned this memorandum into a dirty business and a political game to fund his secret purchases of weapons, expensive construction materials for the presidential palaces and mosques, and luxurious items for extravagance. It also turned the contract for selling oil into the biggest operation in modern history for buying loyalty and influence and squandering the homeland's wealth.

Since that time, rumors have been rife about the coupons that Saddam signed for Arab and foreign figures to provide them with crude oil in exchange for helping the regime break free of its international isolation, finance the campaign to lift the economic embargo on it, and brighten its image.

But the regime has corrupted the human and ethical values of the world campaign to lift the unjust sanctions. The embargo did not ultimately target the regime. It targeted our poor and middle class people. We have seen that whenever the international campaign to lift the embargo came close to achieving its goals, the regime, through its conduct and recklessness, pushed the issue back into the dark tunnel. In the meantime, the regime turned the country into an open and rich table that only needed a good show, people with a hearty appetite, and obedient servants.

One of the qualities of the fascist regime that existed in our country is that it had no courtesy and it always needed others to feel superior. In an attempt to lift the embargo on it, the regime spoiled even those who had goodwill and noble goals in defending the Iraqi people. The regime knew only one policy; that is, the policy of opening its purse. This explains why the regime gathered around it people whom the regime wanted to beg from it so that it would feel morally superior to them.

If one has a chance to listen to some Ba'th officials, who thanks to their village ethics do not fear to be insolent, one will hear a lot about Iraqi visitors in recent years. These visitors came to defend us but also to cash the price. We can confirm this information. The Ba'thists themselves leaked this information about the Arab and foreign visitors. They mentioned some of the names that appeared on the lists, including the name of Labor Party member George Galloway.

The case of George Galloway is truly tragic. This man defended the Arab just causes but as soon as he got closer to the Iraqi regime he was corrupted. Galloway was dismissed from the Labor Party for this reason. He defended himself strongly and criticized the British policy, Tony Balir, and Bush, but I don't think that he can dismiss the Iraqi documents that incriminate him fully.

Apart from the abovementioned lists, Al-Mada also obtained six applications submitted by the Executive Director and the Acting Executive Director of the Oil Marketing Company to the Oil Minister to endorse the crude oil deals. The name of Galloway appeared in these documents not as a contract owner but as someone to whom these quantities belong. Galloway hides behind a company that does not belong to him personally or that has a nationality that is different form his nationality.

The method by which these contracts were concluded sheds light on the mechanism through which the coupons and the presidential sublime will were dispensed. This is why we would like to explain it here, particularly since some names appeared on the lists as single names, such as Samir. It is not known if it is the name of a person or a company.

1. A contract dated 29 December 1999. The name of the purchasing Finnish company is Fortum Oil and Gas-oy [name in English as published], but there is a reference to the name (Burhan al-Chalabi) and another reference that goes as follows: For Mr George Galloway. The quantity is 6 million barrels.

2. A contract dated 10 July 2001. The name of the purchasing company is Aredio Petroleum and (Fawwaz Zurayqat), who is Jordanian. The following written remark appears: For Mr George Galloway. The quantity is 4 million barrels.

3. A contract dated 6 August 2001. The name of the purchasing company is Middle East Advanced Semiconductor Inc, which is Jordanian (Fawwaz Zurayqat). There is a reference that the deal is for Mr George Galloway. The quantity is 3 million tons [as published].

4. A contract dated 3 May 2001. The purchasing company is the same as above and it is Jordanian (Fawwaz Zurayqat). The same reference appears that the contract is for Mr Galloway. The quantity is 2 million barrels.

5. A contract dated 12 December 2002. It includes the same details mentioned above. The quantity is 3 million barrels.

6. A contract dated 3 June 2002. It includes the same details mentioned above. The quantity is 3 million barrels.

The words (for Mr George Galloway) appeared six times, but they are not all the same. Two times they appeared in connection with the names of French and Finnish companies and the rest are Jordanian in the name of Fawwaz Zurayqat. All these deals have been approved and signed by the Oil Minister, who added the word "approved" along with the date.

The interesting thing is that Galloway's name appears in the tables throughout the stages of the Memorandum of Understanding along with the quantities received and the name of Zurayqat. What is going on? It is clear that Galloway is the one who obtained the famous coupon through his political ties and the services that he rendered to the regime. His name was mentioned in the contract perhaps to remind the minister since the company does not belong to him. Maybe this is the mechanism that applies to everybody who obtains a coupon, whether individuals, parties, or political organizations which have nothing to do with oil. The coupon carried the signature of the head of the regime and the quantity that he wants to dispense. The rest is taken care of by the phony, or real, companies. Maybe people like Galloway get only a generous percentage of the deal by way of commission or sell the coupon in return for money.

The table lists vertically the names of countries and the names of the beneficiaries, be they individuals or companies. Horizontally, it lists the stage of the Memorandum of Understanding and the allocations given to beneficiaries in millions of barrels. It is noticeable that some names were incomplete and some others arouse suspicion. For instance, how can we understand the following name: President Sukarno's daughter? After several names from Indonesia the name Megawati shows up. At any rate, many interesting names appear in these tables, and we hope that they will suffer the misery and the scandal that they deserve.

For brevity purposes, we decided to provide the names along with their allocated quantities without mentioning their distribution in the stages of the Memorandum of Understanding, as outlined in the original tables.

The total quantities of crude oil allocated for (middle companies!) in the Memorandum of Understanding:

Syria:

1. Awad Ammurah/more than 18 million barrels.

2. Bashar Nuri/more than 12 million barrels.

3. Ghassan shallah/11 million barrels.

4. Muhammad Ammar Nufal/3.5 million barrels.

5. Tamam Shihab/1 million barrels.

6. Hamidah Na'na/more than 9 million barrels.

7. Firas Mustafa Talas/6 million barrels.

8. Salim al-Tun/3.5 million barrels.

9. Lutfi Fawzi/2.5 million barrels.

10. Lead Contracting /3.5 million barrels.

11. Ghassan Zakariya/6 million barrels.

12. Muhammad Ma'mun al-Sab'i/4 million barrels.

13. Hasan al-Kayyal/2 million barrels.

14. Anwar al-Aqqad/2 million barrels.

Amman:

1. Al-Shanfari Group/5 million barrels.

Cyprus:

1. Muhammad al-Huni/more than 17 million barrels.

2. Nafta Petroleum/13.2 million barrels.

3. Continental/a million barrels.

Turkey:

1. Zayn-al-Abidiin Irdim/more than 27 million barrels.

2. Lutfi Dughan/more than 11 million barrels.

3. Muhammad Aslan/13 million barrels.

4. Takfun/15.5 million barrels.

5. KCK Company/1 million [not further specified].

6. Delta Petroleum/1 million.

7. Cita/1 million.

8. Ozia/1 million.

9. Samir/1 million.

10. Muhtashim/1 million.

11. Muqdir Sarjin/1 million.

Vietnam:

1. Vienapco/1.2 million.

2. Drilling Med/1 million.

3. Vinafood/1 million.

4. OSC/one ton.

Sudan:

1. Sumaso/1 million.

2. Petroleum Products Company/one ton.

3. Oil Plus/two tons.

Yemen:

1. Abd-al-Karim al-Iryani/1 million.

2. Tawfiq Abd-al-Rahim/1.5 million.

3. Shahir Abd-al-Haqq/more than 1 million.

India:

1. Biham Sing/1 million.

2. The Indian Congress Party/1 million.

Pakistan:

1. Oil and Gas Grop/one ton.

2. Abu-Abd-al-Rahman/one ton.

3. Al-Sayyid Azzaz/one ton.

Malaysia:

1. Fayiq Ahmad Sharif/1 million.

2. Bitmal Company/1 million.

3. Tridebeer/1 million.

4. Mastik/Fayiq Ahmad Sharif/1 million.

5. Hawala/1 million.

Indonesia:

1. President Sukarno's daughter/1 million.

2. Jawa Atlantic/1 million.

3. Makram Hakim/1 million.

4. Megawati/1 million.

5. Muhammad Amin Rayyis/1 million.

6. Natuna Oil/2 millions.

United Arab Emirates:

1. Fal Petroleum/1 million.

2. Ahmad Mani Sa'id al-Utaybah/1 million.

3. G One Oil/1 million.

4. Sultan Bin-Zayid Al Nuhayyan/1 million.

5. Al-Huday/1 million.

6. Millennium/one ton.

7. Pony Fuel/one ton.

Morocco:

1. Abdallah al-Salawi/1 million.

2. Nadil al-Hashimi/5.7 million.

3. Muhammad al-Basri/4.5 million.

Algeria:

1. Abd-al-Majid al-Attar/1 million.

2. Abd-al-Qadir Bin-Musa/1 million.

Tunisia:

1. Midex Petroleum/1 million.

2. Firnaco/1 million.

3. Maydur/1 million.

Italy:

1. Roberto Frimigoni/1 million.

2. Salvatore Nicotra/1 million.

3. Filluni/1 million.

4. Father Benjamin/1 million.

5. West Petrol/one ton.

6. Hatarlak/one ton.

7. ABC/one ton.

8. Italian Oil Society/1 million.

Spain:

1. Basim Qaqish/1 million.

2. Javier Robert/1 million.

3. Ali Ballut/1 million.

Yugoslavia:

1. The Socialist Party/1 million.

2. The Leftist Party/9.5 million.

3. The Italian Party/1 million.

4. Kostonica's party/1 million.

Belarus:

1. The Liberal Party/1 million.

2. The Belarus Communist Party/one ton.

3. Pilminal Company/1.2 million.

4. Bellfarm Company/1 million.

5. The Chief of the Presidential Office/1 million.

6. Lada Company/1 million.

Romania:

1. Yelf Adirlink/1 million.

2. The Romanian Labor Party/5.5 million.

Britain:

1. George Galloway/Fawwaz Zurayqat/1 million.

2. Mojahedi-e Khalq/1 million.

Canada:

1. Arther Millholland/1 million.

United States:

1. Shakir al-Khafaji/1 million.

2. Samir Vincent/10.5 million.

Chad:

1. Chad's Foreign Minister/1 million.

Thailand:

1. Thai rice merchant Jayborn/1 million.

Panama:

1. Mr Sifan.1 million.

Hungary:

1. Hungarian Interest Party/4.7 million.

South Africa:

1. Infiom Management (Sandy Majali)/9 million.

2. Tokyo Saxwell/4 million.

3. Montica/4 million.

4. Omni Adell/4 million.

Philippines:

1. Philippines Producers' Group/3 million.

Netherlands:

1. Sai Bolt/3 million.

France:

1. Adax/3.8 million.

2. Travocora/Patrick Mugan/25 million.

3. Michel Grima/17.1 million.

4. The Arab-French Friendship Society/15.1 million.

5. Ayks/47.2 million.

6. Charles Pascua/12 million.

7. Elias al-Grizli/14.6 million.

8. I Lutici (Claude Kaspert)/4 million.

9. Bernard Mirami/3 million.

10. Bernard Mirami/8 million.

11. Di Suza/11 million.

China:

1. Mr Wan/39.1 million.

2. Noresco/17.5 million.

3. Zink Ronk/13 million.

4. Byorg/13.5 million.

5. South Holken/1 million.

Jordan:

1. Layth Shubaylat/15.5 million.

2. Fakhri Qa'war/6 million.

3. Grand Resources/2 million.

4. Al-Rashid International (Ahmad al-Bashir)/9 million.

5. Fawwaz Zurayqat/6 million.

6. Salim al-Nu'as/3 million.

7. Ziyad al-Raghib/7 million.

8. Mashhur Hudaythah/4 million.

9. Shakir Bin-Zayd/6.5 million.

10. Muhammad Salih al-Hurani/4 million.

11. Tujan Faysal/3 million.

12. Jordanian Ministry of Energy/5 million.

13. Ziyad Yaghmur/2 million.

14. Wamid Husayn/1 million.

Palestine:

1. Abu-al-Abbas/1 million.

2. Abdallah al-Hurani/8 million.

3. Wafa Tawfiq Sayigh/3.5 million.

4. The PLO/4 million.

5. The Popular Front for the Liberation of Palestine/5 million.

6. The PLO (Political Department)/5 million.

Egypt:

1. Incom Company (Muhammad ****at)/14 million.

2. Abd-al-Azim Manaf/6 million.

3. Khalid Jamal Abd-al-Nasir/18.5 million.

4. Imad al-Jildah/14 million.

5. Muhammad Salah/7 million.

6. Muhammad Hilmi/4.5 million.

7. The United Arab Company/6 million.

8. The Nile and the Euphrates Company/3 million.

9. Mahmud Majdi al-Ma'sarawi/7 million.

10. Ilhami Bashandi Corporation/2 million.

11. Al-Multaqa International Corporation/2 million.

Lebanon:

1. B. B. Energy/2 million.

2. Fadi International/2 million.

3. Haytham Saydani/2 million.

4. Planet Petroleum/1 million.

5. George Trakhainan/7 million.

6. Son of President Lahhud/4.5 million.

7. Ali Tu'mah/1 million.

8. Al-Hilal Company (Adnan al-Janabi)/1 million.

9. The International Company for Trade and Investment/3 million.

10. Faysal Darniqah/3 million.

11. Vim Oil Company/1 million.

12. Najah Wakim/3 million.

13. Usamah Ma'ruf/3 million.

14. Zuhayr al-Khatib/3.5 million.

Bahrain:

1. Kazim al-Darazi Corporation/2 million.

2. Ali al-Musallam Corporation/3 million.

3. Concrete Contracting Corporation/2 million.

Saudi Arabia:

1. Naja Company/3 million.

2. Asis Company/2 million.

Qatar:

1. Hamad Bin-Ali Al Thani/14 million.

2. Al-Dulaymi Group/4 million.

3. Gulf Petroleum/2 million.

4. Petrolina Oil/2 million.

5. Oil Wells Maintenance/2 million.

Libya:

1. Shukri Ghanim/1 million.

Brazil:

1. Fu'ad Sarhan/10 million.

2. The 8 October Movement (Shavez) 4.5 million.

Ireland:

1. Riyadh al-Tahir/11 million.

2. Afro Eastern/2 million.

Nigeria:

1. Haison/7.2 million.

2. Zaz Company/1 million.

3. A. A. G. Company (Nigerian Ambassador)/1 million.

4. Ccampac/1 million.

Kenya:

1. Muhammad Uthman Sa'id/1 million.

Bulgaria:

1. The Bulgarian Socialist Company/12 million.

2. Arak Paul/2 million.

Austria:

1. Hans Kogler/1 million.

2. The Arab-Austrian Society/1 million.

Switzerland:

1. Media/1 million.

2. Delta Service/2 million.

3. Iblom/1 million.

4. Sibol/1 million.

5. Klinco/12 million.

6. Lakia/2 million.

7. Alkon/1 million.

8. Taurus/1 million.

9. Petrogas/1 million.

10. Finar/1 million.

11. Napex Company/1 million.

Myanmar:

1. Myanmar Forests Minister/1 million.

Slovakia:

1. The Slovak Communist Party/1 million.

Ukraine:

1. The Social Democratic Party/1 million.

2. The Ukraine Communist Party6 million.

3. Energy resources/1 million.

4. Vazmash Impex/1 million.

5. Naftu Gas/8 million.

6. Hio (Sokolov) Compnay/1 million.

7. Orchatski/1 million.

8. Federalte Torkofi/1 million.

9. Trans Isako/1 million.

10. The Ukrainian House/1 million.

11. F. T. D./1 million.

12. The Ukrainian Socialist Party/1 million.

Russia: The documents indicate that Russia has been granted 1.36 billion barrels, which is a hint that this "grant" was given to the Russian State. The paragraph about Russia is the biggest of all. They included the names of companies, parties, and government and non-government personalities as follows:

1. Zarabish Oil Company/174.5 million.

2. Rose Oil Impex-Azakov (The Russian Presidential Office)/66.9 million (including 1 million barrels for Mr Tatzinko, Russia's Ambassador to Baghdad).

3. The Russian Communist Party companies/1 million.

4. Amircom (Unity Party/Emergency Ministry)/1 million.

5. Mashino Import/1 million.

6. Alpha Ico (Russian Foreign Ministry)/1 million.

7. Yatomin (Russian Foreign Ministry)/30.1 million.

8. Slav Oil (Gotzariv)1 million.

9. Zan Gas Company/49.1 million.

10. Rose Oil/35.5 million.

11. Gasbin Invest-Kalmayka/1 million.

12. Ka Gas and Oil Company-Kalmayka/1 million.

13. Gas Brum Company/26 million.

14. Tat Oil-Tatersan/1 million.

15. Bash Oil Company/1 million.

16. Look Oil Company/63 million.

17. Sirgot Oil Gas Company/1 million.

18. Siberia Oil and Gas Company/1 million.

19. Nafta Moscow Company/25.1 million.

20. Unaco Company/22.2 million.

21. Sidanco Company/21.2 million.

22. Sap Oil Company/8.1 million.

23. Tans Oil Company/9 million.

24. Yukos Company/2 million.

25. The Liberal Democratic Party (Jirinovski)/79.8 million.

26. Peace and Unity Party's companies (Mrs Saji)/34 millions.

27. The Russian Committee for Solidarity with Iraq (Mr Rudasiev)/6.5 million.

28. The Russian Society for Solidarity with Iraq (Goravilion)/12.5 million.

29. Rose Oil and Gas Export Company (Mr Akababon)/12.5 million.

30. Oral Invest Company (Mr Stroyev)/8.5 million.

31. Zidag Moscow-Science Academy/3.5 million.

32. Rawmin (son of the former Ambassador to Baghdad)/19.7 million.

33. Zarabish Oil (Gopkin University)/3.5 million.

34. Nordwest Group/2 million.

35. Zarabish Oil and Gas Brum (Mr Hassan)/3 million, but only 1 million barrels have been delivered.

36. Soyuz Oil and Gaz (Mr Shavranik)/25.5 million.

37. Mr Nikolai Rizkof/13 million.

38. Stroi Oil and Gas Company/6 million.

39. Akht Oil Company/4.5 million.

40. The Chechen Administration/2 million.

41. Adil al-Hilawi (A. N. M. Aviation)/5 million.

42. Khruzlet/5 million.

43. Transnafta/3 million.

44. Chief of the Russian Presidential Office/5 million.

45. The Russian Orthodox Church/5 million.

46. The Russian National Democratic Party/2 million.