UNSCAM update

June 23 - Op-ed by William Safire in today's NY Times with some attention to the Congressional investigation into the U.N. Oil-for-Food program - UNSCAM to most, and The Great Cash Cow to others.

One whistleblower's account states that the U.N.'s contracted inspector, Cotecna of Switzerland, was the key to getting luxury items off-loaded at the port of Umm Qasr:

"Ships were lined up at the port of Umm Qasr, stacks of containers already onshore waiting for inspection. You won't believe the grease being paid. The usual suspects got preferential treatment when the U.N. bosses in New York called the BNP [Paribas] bank to get Cotecna to issue a C.O.A. [Confirmation of Arrival] to release the money."

The Congressional committee has been more aggressive than expected:

However, my call for a Congressional subpoena to overcome his [Annan's] attempt to limit investigation to his internal Volcker committee has flushed out a fact not hitherto disclosed. Annan's press aide complained to The Times that a subpoena had already been served secretly on BNP Paribas (the initials once stood for Banque Nationale de Paris) by the U.S. Senate Permanent Subcommittee on Investigations.

Although the U.N. had warned its bank, as well as Cotecna, the oil monitor Saybolt and all its other oil-for-food contractors, not to cooperate with anybody but Paul Volcker — and had blown off the House International Relations Committee's requests — Annan's advisers knew it would be unseemly and foolhardy to insist that its bank fight the Senate in court.

With his subpoena and investigation thus publicly revealed by the U.N., Chairman Norm Coleman of Minnesota, a Brooklyn-born Republican, felt free to take my call. "This is a major priority for us," he says. "There's a lot of stuff to cover, a big universe of documents, and we're being aggressive about it. Yes, Cotecna, Saybolt, all of them."

He sent out four "chairman's letters," countersigned by the ranking Democrat, Carl Levin, in early June. One was to the U.S. State Department for the minutes of the "661 committee" meetings at the U.N., which reviewed oil-for-food contracts (though not yet for copies of the contracts themselves). Another to the Government Accounting Office, which had first estimated the skimming at $10 billion. Another to Paul Bremer in Baghdad for copies of documents being turned over to the interim government — and the Senate still awaits a response; apparently the White House doesn't want to offend the U.N. Finally, a friendly letter to Annan about the subpoena that would require his bank to open its letter-of-credit files.

I think it somewhat difficult for people who live in countries run by Parliaments to understand what having separate legislative and executive branches really entails. (The reverse is true as well: people in the USA find it hard to comprehend the Parliament system in which the Prime Minister is both head of the legislature and the executive.) In this instance, the fact that the White House doesn't want to offend the U.N. doesn't necessarily mean that it will interfere to keep the Senate from offending the U.N. The President has far more to lose by offending Congress than the U.N.

But this is where it really gets interesting:

But since this involves possible fraud, bribery and larceny on a grand scale, where is law enforcement? Interesting: the U.S. attorney for the Southern District of New York, David Kelley, served subpoenas last week on Exxon Mobil, ChevronTexaco and Valero about Iraqi oil purchases. That deals with the income side of the scandal, the money for Iraq (less kickbacks) supposedly to buy food.

I suspect Kelley was moved to empanel a grand jury by probable competition from the Manhattan district attorney, Robert Morganthau, on the scandal's payoff side. These two offices compete, and Morganthau's office has expertise on global banking.

In conclusion, this somewhat pathetic countrstroke from the U.N. bureaucrats:

In a counterattack, our global servants hired an accountant to warn of "fraudulent acts" by the U.S. after it took over the U.N.'s mismanaged Iraqi oil account. Now, that will get media coverage.

I wish I could believe that this is a belated recognition of accountability, but I don't see any pigs flying up here today ...

Posted by: Debbye at 07:43 AM | No Comments | Add Comment
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