Oil for Food

The program was introduced by the administration of President of the United States Bill Clinton in 1995 to support ordinary Iraqi citizens affected by international economic sanctions aimed at demilitarizing the regime of Saddam Hussein in Iraq and introduced after the Gulf War . These sanctions were lifted on November 21, 2003 after the American invasion of Iraq .

UN resolution 706 of August 15, 1991 ^[2] authorized the sale of Iraqi oil in exchange for food.

UN resolution 712 of September 19, 1991 ^[3] confirmed that Iraq could sell oil worth up to $ 1.6 billion to finance the program.

Despite initial disagreement, in May 1996, Iraq signed a memorandum of understanding, starting preparations for the implementation of the resolution.

The program was launched in December 1996, and the first food supplies began in March 1997. Sixty percent of Iraq’s 26 million people directly depended on the food provided under this plan.

The program worked according to the following system: funds for oil exported from Iraq were not transferred by the buyer to the government of Iraq, but to a deposit account, which was managed by BNP Paribas until 2001. These funds were then used to pay military reparations to Kuwait and to the work of the United Nations in Iraq. The rest, most of the proceeds, was used by the Iraqi government to buy certain goods.

The Iraqi government was only allowed to buy goods that were not embargoed. For example, food was delivered immediately, and the order of folic acid came under special consideration, which lasted up to six months. Goods potentially suitable for use as chemical , biological or nuclear weapons were not delivered regardless of the declared objectives.

Iraqi oil worth more than $ 65 billion was sold on the world market. About 46 billion was spent on humanitarian assistance to Iraqis, food and medicine. Significant amounts were spent on reparation to the participants in the Persian Gulf War (25 percent since December 2000); UN administrative and operational expenses (2.2 percent), as well as an arms inspection program. Domestic expenses were not disclosed ^[4] .

This program was originally conceived as one way of mitigating the effects of sanctions on Iraq for ordinary Iraqis. The main argument of the critics of the program was that this temporary solution allowed Saddam Hussein to strengthen his position and maintain the government.

On the other hand, if the sanctions were so difficult for the Iraqis, then they should have been abolished (with the exception of purely military aspects). Critics argued that the Oil-for-Food program, blocking supplies of dual-use equipment, did not allow Iraq to repair damaged water treatment and medical systems. Former program managers, such as Hans von Schponek , doubted that sanctions should have been imposed at all. Von Shponek, speaking at the University of California at Berkeley , at the end of 2001, stated that the program “is in fact a protracted rope around the neck of an ordinary Iraqi citizen”; claimed that 150 Iraqi children die every day due to sanctions, accused the United States and Britain of arrogant attitude to Iraq and block Iraq’s attempts to start negotiations.

Supporters, on the other hand, believed that the program was able to contain Saddam Hussein’s military intentions.

Shortly before the invasion of US and British forces in Iraq , UN Secretary General Kofi Annan suspended the program and evacuated over 300 workers responsible for distributing supplies.

On March 28, 2003, Secretary-General Kofi Annan, US and UK representatives asked the Security Council to secure nearly $ 10 billion worth of goods ordered by Iraq. During the discussion of this resolution, it became clear that the main responsibility for resolving the humanitarian consequences of the military operation would fall on the United States and Great Britain. This is explained by the Fourth Geneva Convention of 1949, which defines the responsibilities of the occupation forces.

On May 22, 2003, UN Security Council Resolution No. 1483 gave the Provisional Coalition Government the power to control Iraqi oil revenues. The $ 10 billion left from the program was transferred to the Iraq Development Fund, which is controlled by the Provisional Coalition Government ^[5] .

The program was officially discontinued on November 21, 2003, and its main functions were transferred to the Provisional Coalition Government.

In addition to criticizing the general principles of the program, it is accused of corruption and abuse. Throughout the duration of the program, it was suspected that part of the proceeds of the program was illegally used by the Iraqi government and United Nations officials. Similar statements have occurred in many countries, including the United States and Norway.

Benon Sevan from Cyprus, who headed the program, defended it, claiming that administrative needs accounted for only 2.2% of the costs and that it had undergone more than 100 inspections (internal and external), accusing the Security Council of introducing restrictions that complicated the situation. He also claimed that a monthly food basket of 90% of the Iraqi population is program dependent. Benon Sevan, heading the program, blocked all efforts to study the program ^[6] . In 2000, Dilip Nair , Under-Secretary-General for Internal Oversight Services, wanted to determine the vulnerability of the program. Sevan, along with Under-Secretary-General Louis Frishet, rejected any such research, claiming it was too expensive. Sevan ordered the destruction of all valuable documents relating to this program ^[7] .

According to an interim report published on February 3, 2005 by the Commission of the former Chairman of the Federal Reserve, Paul Walker , most of the food supplied by the program was “unfit for human consumption.” The report said that Sevan received about $ 150,000 in bribes during the implementation of the program, and in 2005 he was removed from his post at the United Nations in connection with the start of a fraud investigation. ^[8]

Peter van Walsum , a former representative of the Netherlands to the United Nations and Chairman of the Board of the Iraq Sanctions Committee from 1999 to 2000, in his recently published book suggested that Iraq deliberately put the Security Council into disagreement by signing contracts with France , Russia and China , but not with the United Kingdom and the USA. He also stated that he had encountered a number of cases where a lack of cooperation from Iraq exacerbated the suffering of the Iraqis themselves. He also claimed that, in his view, sanctions were not an effective measure.

Until 2001, oil-for-food money was in transit through BNP Paribas, whose main shareholder was Iraqi-born Nadmi Auchi , who owns $ 1 billion in fortune according to Forbes and ranks 13th on the UK’s richest list, according to The Guardian . Auchi received 15 months of probation for participating in a scandal at Elf Aquitain , which, according to British newspapers, was "the largest case of fraud in Europe since World War II" ^[9] .

Al Mada List

One of the earliest allegations of violations of the program was made on January 25, 2004, when al Mada , the daily newspaper in Iraq, published a list of individuals and organizations that received UN oil-for-food contracts for oil sales.

Beneficiaries included British parliamentarian George Galloway and his charitable foundation Mariam, former French Interior Minister Charles Pasqua, and Iraqi-American businessman Shakir al-Hafaji . The Indian Foreign Minister has been removed from office because of his involvement in the scandal. Many well-known Russian companies and individuals were also included in the al Mada list. Even the Russian Orthodox Church allegedly engaged in the illegal trade in oil. George Galloway subsequently won two defamation cases against The Christian Science Monitor and The Daily Telegraph , which reported violations ^[10] .

Arthur Millholland , president of Oilexco Ltd , whose name is also on the al Mada list, denies any unlawful actions, but acknowledges the fact of contract bribes to the Iraqi government. Few deny that in Iraq, like in many third world countries , management is regularly given bribes to receive contracts, but this, as a rule, did not happen in relation to UN programs.

Sample workflow

The scheme allegedly worked as follows: oil contracts under the Oil for Food program were awarded to individuals and organizations that sympathized with the Iraqi regime or who simply bribed. These contracts were then sold on the open global market, and the seller held between $ 0.15 and $ 0.50 for each barrel of oil sold. Later, a certain percentage returned to the Iraqi government.

Contracts for the sale of humanitarian goods to Iraq also went to companies and individuals willing to pay a certain percentage of profits to the Iraqi regime. The money was transferred to the private bank accounts of Saddam Hussein and other officials of the Iraqi regime.

The UN involvement in the scandal came to light in February 2004 after the name of Benon Sevan, executive director of the Oil for Food program, appeared in documents from the Iraqi oil ministry. Sevan allegedly got vouchers for at least 11 million barrels of oil. Sevan denies the allegations.

BNP

The only bank involved in the money transfer program was the New York branch of BNP Paribas. He was the sole manager of the $ 64 billion United Nations program. The investigation found that BNP Paribas made payments without confirmation of delivery of goods, and authorized payments to third parties who were not authorized recipients. Investigators believe that the bank illegally received more than $ 700 million under this program.

Dülfer's Investigation

Dülfer's report, published on September 30, 2004, described how the program influenced Saddam Hussein’s regime:

The Oil-for-Food (NOP) program at the end of 1996 was a turning point for the Regime. NOP saved the economy of Baghdad from the crisis caused by sanctions. The regime quickly realized that through NOPs, it was possible to obtain currency to circumvent sanctions, develop infrastructure and weapons capabilities.

The final official version of the report calls only France, Russia and China (countries that strongly opposed the war) the violators. Dülfer’s report broke down all recipients of oil contracts by nationality: 30 percent were Russians, 15 percent were French, 10 percent were Chinese, 6 percent were citizens of Switzerland, Malaysia and Syria, 4 percent were Jordanians and Egyptians. Americans and Germans were in the 20 percent share of "representatives of other countries."

On June 5, 2007, the German branch of the international anti-corruption movement, Transparency International, filed a complaint with the Federal Ministry of Economics and Technology against 57 German companies accused of bribing $ 11.9 million in oil for food.

Oil Coupon Bribes

On January 6, 2005, the American satellite network Alhurra announced in its broadcast that the Hussein regime bribed reporters with oil coupons. Two types of coupons were used: silver, equivalent to nine million barrels of oil, and gold, which cost even more.

Kurdish complaints

From the very beginning of the program, the Kurds complained that they were not paid their share of oil revenues, although in accordance with the fundamental principles of the Oil-for-Food program, revenues had to be distributed in such a way as to protect mainly the Kurdish areas of Iraq. The Cairo office of the World Health Organization is also charged with the fact that it slowed down the construction of a new hospital in the Kurdish city of Suleimaniya , although funds for the project were already available in 1998.

Kofi Annan's potential involvement

On June 14, 2005, two notes of 1998 surfaced that allegedly showed the connection between Kofi Annan and the audit company Cotecna Inspection SA . The first refers to the meeting between Annan and Cotecna, after which the company received a contract. In the second, the company notes that they were confident in getting the contract because of the "effective but hidden lobby" in New York. The source of the documents was one of the leaders of the company.

Subsequent investigation revealed that Cotecna received the contract on a fair and deserved basis, and that there was no connection between Kofi Annan and the contract.

GKU Investigation

After the Iraq invasion of 2003 and the coalition’s subsequent victory over the Iraqi armed forces, the U.S. General Enforcement Administration ( en: GAO ) was instructed to close all oil-for-food supply contracts and examine the personal benefits of former regime officials ^[11] . During the investigation, the GKU found weaknesses in the program that allowed Saddam Hussein to receive bribes and enrich themselves.

The GKU believes that Saddam Hussein’s regime illegally earned $ 10.1 billion. This includes $ 5.7 billion from oil smuggling and $ 4.4 billion from illegal margins. The extent of fraud was much wider than previously thought. The US Department of Defense examined 759 oil-for-food contracts and found that almost half of them were overpriced by an average of 21 percent.

Members of the Security Council had sufficient authority to investigate contracts and terminate any contract. The British and Americans rejected hundreds of contracts for the program, but they were all blocked in the first place because of the import of dual-use goods.

Summing up the GKU report:

The Secretary-General of the United Nations and the Security Council are responsible for overseeing the Oil-for-Food Program. At the same time, the Iraqi government concluded contracts directly with Iraqi oil buyers and suppliers of goods, which may have become one of the main factors that allowed Iraq to illegally establish allowances and commissions.

Джозеф Кристофф , руководитель отдела по международным делам и торговле ГКУ, сообщил, что аудиторы ООН отказались опубликовать внутренние отчёты программы. Бенон Севан, при поддержке Кофи Аннана, попросил всех бывших подрядчиков программы консультироваться с ним перед выдачей каких-либо документов ГКУ или Конгрессу США ^[12] . На протяжении всей этой истории поступали жалобы как о том, что программа должна быть более открытой, так и о том, что раскрывается коммерческая информация компаний.

При написании статьи для « Нью-Йорк таймс » журналистка Клаудия Розетт установила, что ООН засекретила такие данные, как личности подрядчиков программы, цены, количество и качество поставляемых товаров, объёмы покупок нефти и имена покупателей. Банковские данные, уплаченные проценты и осуществлённые операции также хранились в секрете. Журналистка подверглась жёсткой критике со стороны Дениса Холлидея и Бенона Севана ^[13] , которые утверждали, что многие из заявлений Клаудии неверны.

Комитет Палаты представителей США по международным отношениям также изучал программу и обнаружил, что деньги направлялись семьям палестинских террористов-смертников, суммами от $15,000 до $25,000. С сентября 2000 года до вторжения в Ирак семьи палестинцев, погибших или раненых в ходе конфликта с Израилем, получили свыше 35 млн долларов США. Утверждается, что эти деньги поступили от программы ООН «Нефть в обмен на продовольствие».

Независимая следственная комиссия

Несмотря на первоначальное неприятие, 19 марта 2004 года генеральный секретарь ООН Кофи Аннан заявил, что будет начато полное независимое расследование. В официальном интервью Аннан сказал: «[…] Весьма возможно, что было очень много нарушений, но мы должны изучить […] и узнать, кто несёт ответственность» ^[14] . Тем не менее, Аннан считал, что большинство претензий «возмутительны и преувеличены», и что большая часть критики относилась к вещам, не связанным с программой.

В руководство Независимой следственной комиссии в апреле 2004 года были выбраны следующие люди ^[15] :

• Пол Волкер, бывший Председатель Федеральной резервной системы США;
• Марк Пит из Швейцарии , специалист ОЭСР по вопросам отмывания денег;
• Ричард Голдстоун из ЮАР , бывший обвинитель Международного трибунала по бывшей Югославии (МТБЮ) и Международного трибунала по Руанде (МТР) .

22 апреля 2004 года Совет Безопасности ООН единогласно принял резолюцию, одобрявшую расследование Волкером коррупционной составляющей программы «Нефть в обмен на продовольствие», призвав все государства-члены к сотрудничеству.

Окончательный доклад ^[16] был представлен Полом Волкером Совету Безопасности 7 сентября 2005 года ^[17] .

Благодаря утечке результатов внутреннего расследования стало известно о массовых расхождениях в отчётности Cotecna и ООН, касающейся стоимости поставок в северные районы Ирака. Однако в последующем докладе, опубликованном Независимой следственной комиссией 27 октября 2005 года было заключено, что «нет никаких серьёзных претензий к деятельности Cotecna со стороны Организации Объединенных Наций или её стран-участниц» ^[18] , и что ревизия не обнаружила каких-либо недочётов в работе Cotecna. Бенон Севан был проинформирован о результатах расследования.

Резюмируя доклад о расследовании ^[19] , можно сказать, что управление программой не было адекватным, а некоторые её положения не соблюдались. Для избежания дополнительных затрат необходимо прикладывать больше усилий по управлению контрактами и обосновывать расходы.

После ознакомления с результатами расследования конгрессмен Генри Хайд обратился к Кофи Аннану, интересуясь, почему «Конгресс США, который обеспечивает 22 процента бюджета ООН и который публично запросил копии результатов внутренних расследований, вынужден зависеть от утечки информации в СМИ».

Промежуточные результаты

В 219-страничном первоначальном докладе комиссия Волкера раскрыла, как Бенон Севан использовал своё положение для распределения поставок иракской нефти. Внутренние отчеты Иракской государственной организации по сбыту нефти, а также интервью с бывшими иракскими должностными лицами, участвовавшими в незаконных нефтяных сделках, свидетельствуют о том, что Севан получил право поставки 7,3 млн баррелей нефти для зарегистрированной в Панаме компании.

Несмотря на то, что доклад не предъявляет никаких конкретных обвинений в преступной деятельности Севану, Волкер не исключает возможности того, что обвинения могут быть предъявлены властями стран с соответствующим законодательством. Доклад назвал поведение Севана «этически неправильным», отметив, что Севан получал крупные денежные выплаты в $ 160,000 долларов за каждый год, когда он руководил программой. Севан заявлял, что деньги ему присылает тетя с Кипра, но этому не было найдено никаких подтверждений.

В январе Волкер также сообщил, что чиновники ООН игнорировали первые признаки того, что поставки гуманитарных грузов в Ирак до вторжения 2003 года либо подвергались малому числу либо вообще не подвергались проверкам Cotecna. Вместе с тем в октябре 2005 года Волкер заключил, что «ревизия не обнаружила каких-либо недостатков в аудиторской деятельности Cotecna». Cotecna до ноября 2003 года платила Коджо Аннану , сыну Кофи Аннана, за консалтинговые услуги. Волкер заявил, что последующее расследование будет касаться и Коджо Аннана ^[20] .

Обвинения

6 января 2006 года в Хьюстоне ФБР арестовало южнокорейского бизнесмена Тон Сун Пака по обвинению в получении нескольких миллионов долларов от администрации Саддама Хусейна во времена программы «Нефть в обмен на продовольствие» ^[21] . Обвинения с него позже были сняты Окружным судом США в Манхэттене .

16 января 2007 года Бенон Севан был обвинен прокурором Манхэттена в получении взяток. Позднее был выдан ордер Интерполу на арест Севана в его доме на Кипре , а также ордер на арест Эфраима Надлера, нью-йоркского бизнесмена, подозреваемого в незаконных платежах Севану ^[22] . О местонахождении Надлера ничего не известно.

Александр Яковлев, бывший директор проводимой ООН программы «нефть в обмен на продовольствие» в Ираке ^[23] , был обвинен в получении так называемых «откатов» на общую сумму почти миллион долларов от подрядчиков ООН ^{[24] [25]} . Яковлев был приговорен к тюремному сроку, который он отбыл в 2010 году.

• Экономика Ирака
• Война в Персидском заливе
• Иракская война

• UN Office of the Iraq Programme Oil-for-Food
• Oil-for-Food Facts