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seruriermarshal
05-07-2004, 02:43 AM
U.N. to Keep Control of Iraq Oil-For-Food Papers

By Evelyn Leopold

UNITED NATIONS (*******) - The United Nations (news - web sites) will not release confidential documents on alleged corruption in the Iraq (news - web sites) oil-for-food program to Congress or anyone else at this time, the head of an independent inquiry said on Thursday.



Paul Volcker, a former U.S. Federal Reserve (news - web sites) chairman, responding to media reports, said the probe undertaken by his three-member panel was still at a preliminary stage.


Therefore, Volcker said, he would not release "confidential, contractual or proprietary documentation in response to requests of individuals or officials of member states."


Congress and some Iraqis have asked for U.N. documents, many of which the world body refused to release even before the Volcker inquiry.


Volcker, in a statement, however, said his policy might be modified in the future.


"As the investigation proceeds, and as the committee arrives at an understanding of the substance and scope of the relevant documentation, including that available in Baghdad, we will consider appropriate disclosure, consistent with our investigative requirements," he said.


Since the fall of Saddam Hussein (news - web sites)'s government last year, documents have been released that suggest bribes and kickbacks were paid to individuals and contracts were skimmed in the now-defunct $67 billion U.N.-run program.


The oil-for-food program began in December 1996 and was meant to alleviate the impact of 1991 Gulf War (news - web sites) sanctions on ordinary Iraqis. The program allowed Iraq to sell oil and buy humanitarian goods under U.N. supervision.


U.N. Secretary-General Kofi Annan (news - web sites) has appointed a three-member independent inquiry, headed by Volcker, to probe allegations surrounding the program.


Many of the misdeeds, particularly oil smuggling and surcharges from oil dealers, were reported over the years to a Security Council committee that supervised the program. But political divisions often prevented action.


New, however, is a list of government officials, individuals and firms who received vouchers for oil that could be cashed in for money. Included on the list is Benon Sevan, the head of the oil-for-food program, who has denied any wrongdoing.


Annan has said that any U.N. official found guilty of corruption would be dismissed and be held liable for legal action. But he also called some of the media charges "outrageous," saying information was culled selectively to undermine the United Nations.


U.N. spokesman Fred Eckhard said all U.N. documents relating to the burgeoning scandal had been sequestered. He said it was common for all firms and corporations not to release any internal audits to outside bodies.


Eckhard said the United Nations had been assured of cooperation from the U.S. administrator in Iraq, Paul Bremer. But it had never received any documentation it requested from the Iraqi Governing Council.


It's UN .