Suzanne Goldenberg
Integrity at risk
The head of the U.N.'s oil-for-food program faces disciplinary action for allegedly accepting bribes from Saddam Hussein's regime.
The United Nations suffered grave damage to its international reputation Thursday after it emerged that the official who headed the oil-for-food program for Iraq sought and obtained bribes from Saddam Hussein’s regime. In a highly critical report, Benon Sevan was rebuked for actions that were “ethically improper and seriously undermined the integrity of the U.N.”
“This is a painful episode for everyone in the U.N.,” said the head of the investigation, former U.S. Federal Reserve chief Paul Volcker. He went on to accuse Sevan of offering to use his influence at the U.N. in return for the granting of vouchers to purchase Iraqi oil at favorable prices on behalf of a small Panamanian-registered firm. “Mr. Sevan created a grave and continuing conflict of interest,” he said.
Sevan, a Cypriot who has spent 40 years as a career diplomat at the U.N., has denied wrongdoing. However, U.N. Secretary General Kofi Annan issued a statement later Thursday saying the U.N. would take disciplinary action against Sevan and Joseph Stephanides, the former chief of the U.N. sanctions branch, who was also criticized in the report. “Should any findings of the inquiry give rise to criminal charges, the U.N. 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,” Annan said.
The oil-for-food scam allegedly saw Saddam exploit loopholes in the system, offering lucrative oil allocations or vouchers that could be sold on for profit in an attempt to bribe leaders around the world. According to the investigative report, between 1998 and 2001 Sevan sought vouchers for several million barrels of Iraqi oil on behalf of a small company called African Middle East Petroleum. In return, he was expected to make a case for Iraq receiving cash to upgrade its crumbling oil facilities, which he and several U.N. Security Council members did. The Panamanian-registered firm was believed to have made a $1.5 million profit on the vouchers.
“The most distinct finding is the accumulation of evidence that [Sevan] did in fact solicit oil allocations for a small trading company,” Volcker said. “The Iraqis … certainly thought they were buying influence.” In addition, Volcker cited financial records which show that Sevan received $160,000 in cash payments from 1999 to 2003.
Although the allegations against Sevan were the focal point of the report, Volcker said the inquiry did not find systematic misuse of funds. However, it also found that three U.N. contractors for the program were selected without going through a competitive bidding process.
The White House and Republican congressmen are exploiting the oil-for-food row to undermine Annan, who opposed the U.S.-led war in Iraq. Earlier Thursday, a U.N. official described Sevan as “a good man being made a scapegoat.”
Volcker is planning to produce another interim report before the summer looking into Cotecna, a company that benefited from the oil-for-food program and employed Annan’s son, Kojo. He said work on that was well along. The final report is due in June.
Annan stressed Thursday that the U.N. is already taking action to improve the organization’s procedures. At the height of the oil-for-food program, set up in 1996 to alleviate the impact of sanctions on ordinary Iraqis, the roads to Jordan and other neighbors of Iraq were full of tankers carrying illicit oil. Although Annan’s secretariat ran the program, ultimate responsibility rested with the Security Council, which included the United States.
Brazil won’t be bullied
The nation declines $40 million in AIDS funds from the Bush administration, refusing to condemn prostitution as required.
Brazil Tuesday became the first country to take a public stand against the Bush administration’s massive AIDS program, which is seen by many as seeking increasingly to press its anti-abortion, pro-abstinence sexual agenda on poorer countries.
Campaigners applauded Brazil’s rejection of $40 million for its AIDS programs because it refuses to agree to a declaration condemning prostitution. The government and many AIDS organizations believe such a declaration would be a serious barrier to helping sex workers protect themselves and their clients from infection.
Continue Reading Close“20th man” ruled competent
An embarrassing case in the war on terror may be wrapping up as Zacarias Moussaoui prepares to plead guilty in the 9/11 attacks.
Zacarias Moussaoui, the only person charged in the United States for the Sept. 11, 2001, terror attacks, is set to appear in court this week to register a guilty plea.
In a notice issued by the U.S. District Court in Alexandria, Va., court officials Wednesday said that the hearing was convened with the express purpose of entering a guilty plea from Moussaoui, and to move forward on a case that has become an embarrassment to the Bush administration. More than three years after the attacks, the administration has failed to bring any captured al-Qaida figures to trial.
Continue Reading CloseTalking tough
In her first official visit to Moscow, Condi Rice crusades for democracy and defends the freedom of the press.
The Kremlin’s alleged backsliding on democracy is “very worrying,” the U.S. secretary of state said Tuesday on the eve of her meeting with the Russian president in Moscow. Condoleezza Rice expressed increasing concern at the consolidation of power inside the Kremlin, and warned Vladimir Putin not to cling to power beyond his present term.
The comments, made to reporters traveling with her on her first official visit to Moscow, carried even greater resonance because of her status within the Bush administration, where she is one of President Bush’s most trusted confidantes. In addition, she was an expert on the former Soviet Union before becoming involved in Republican politics and joining the government.
Continue Reading CloseThe life of a female spy
In her book "Denial and Deception," former CIA agent Melissa Mahle talks about giving birth in the morning and, with no maternity leave, returning to work the same evening.
There are books full of prohibitions for the pregnant woman: Don’t drink alcohol, don’t eat sushi, don’t take saunas, don’t embark on lengthy air journeys without getting up every hour to revive circulation. But not many bother with the warning: Do not try to dismantle volatile explosives during the second trimester.
It might have proved helpful to former CIA operative Melissa Mahle. In 1998, Mahle was the CIA station chief in Jerusalem when a call came in that Palestinian police had seized two bags of explosives at the Church of the Nativity in Bethlehem. She was five months’ pregnant — a fact that she overlooked after arriving at the scene. “At the time I was focused on mission accomplished; I didn’t even think about my baby,” she says. Over dinner that evening, she learned that the friction of opening a a bag — or wayward cigarette ash — could have detonated an explosion that would have flattened the police station as well as Christendom’s holiest shrine.
Continue Reading Close“The darkest hour in the history of our tribe”
Police look for clues on neo-Nazi Web sites visited by the teenage shooter at a school on the Red Lake Chippewa reservation.
On the neo-Nazi Web sites where the teenage loner aired his admiration for Adolf Hitler’s notions of ethnic purity, he was known as Todesengel — German for Angel of Death. Late on Monday, at a secluded Indian reservation in northern Minnesota, he played out those dark fantasies. Jeff Weise, 16, shot dead his grandfather, five teenagers, a teacher and two other adults before turning the gun on himself. A dozen others were wounded, with two in a critical condition.
It was the deadliest school shooting since April 20, 1999, when two students at Colorado’s Columbine High School killed 12 students and a teacher before killing themselves. The scale of the violence overwhelmed the emergency services in the remote community, forcing the evacuation of some of the more seriously wounded. “We’ve never dealt with anything like this before,” Sherri Binkeland, spokeswoman for North County Regional Hospital, told reporters.
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