Mar. 30 - The second part of the Volcker Interim Report (on the U.N. Oil-for-Food scandal) is available in .pdf here.

Note: I was unable to view ithe document until I updated my version of Adobe Acrobat. If you're having problems, try googling "Adobe Acrobat + [insert your OS]" to find a link that will upgrade properly.

Link via Roger L. Simon, who comments on the report here and on some pre-report information here and here (although I doubt I need tell anyone who has followed this scandal to read Roger!)

14:25 - The Montreal Gazette thinks that the Volcker Interim Report did not clear Kofi Annan of wrongdoing but left it up to the public to connect the dots themselves. Oh, those shredded documents ...

Posted by: Debbye at 05:54 AM | No Comments | Add Comment
Post contains 136 words, total size 1 kb.

Mar. 23 - Just when you'd think the leadership of the U.N. might be worried about their image they prove once again that they are better at looking after the interests of their fellow bureaucrats than they are at helping the oppressed peoples of the world: U.N. to Reimburse Sevan for Legal Fees:

Payment for Sevan's legal fees was to come out of the account containing the 2.2 percent of Iraqi oil revenues from the $64 billion program earmarked for its administration, U.N. spokesman Fred Eckhard said.

Sevan's fees are to be reimbursed with Iraqi oil funds set aside to help administer the program. That means Iraq oil money would essentially pay for Sevan to defend himself against charges that he bilked the program.

I'd sooner invest in Enron.

By the way, Belmont Club has a new home and a post on the reforms Kofi Annan has proposed for the U.N. One sentence sums up everything that's wrong with the U.N.:

It is a maxim of the United Nations that progress is achieved by doing everything that never worked all over again.

04:17 From Roger L. Simon, this post links to an article in the Financial Times, Annan son received $300,000 in payments from Cotecna , not the $175,00 that had previously been reported. It would seem some creative bookkeeping may have been at work as "... payments were arranged in ways that obscured where the money came from or whom it went to."

Posted by: Debbye at 02:21 AM | Comments (4) | Add Comment
Post contains 301 words, total size 2 kb.

1 Sort of like robbing a bank and making the bank pay your legal defense fees.

Posted by: Jay at March 23, 2005 01:26 PM (PuNh2)

2 Actually sounds like the Liberals social and aboriginal programs agenda ....

Posted by: big al at March 24, 2005 12:58 AM (tAeDA)

3 Apparently Terri is NOT brain dead but severely disabled. Her parents have offered to take over control in regards her care, but her husband has rejected this... while he cohabitates with annother woman and awaits an insurance pay out... Some claim that Terri fell into this condition due to a botched murder attempt on her by her gracious husband (sans criminal record etc). The fact that courts at all levels have rejected a common sense' decision on this case indicates that this is a battle for control over the human body by the 'state' in my eyes. If that is true then we need to fight to keep this woman alive lest we all fall into that position. Some have argued that this would not have happened if certain provisions had been made before, but that only enriches lawyers and should not absolve the state from doing what is morally right for a citizen.

Posted by: Brian Walsh at March 24, 2005 01:52 PM (vAI+5)

4 I had forgotten that Iraq also has to pay for the Volcker Inquiry. That means they are paying for both the prosecution and the defense. Big Al, that is one ouchworthy observation. Bureaucracies! Brian, you are absolutly right - the implications of this case can affect all of us and our families. But in this case, it seems the courts are defying the wills of the legislative and executive branches of government, and we may be in the midst of a Constitutional crisis. And yes, it's one more instance where we have to enrich lawyers to secure our rights.

Posted by: Debbye at March 24, 2005 05:35 PM (tkiwS)

Hide Comments | Add Comment

Mar. 18 - Whistle-blower: 'Gaping holes' in oil-for-food:

Rehan Mullick testified that by his estimate more than 20 percent of the shipments to Iraq, worth $1 billion a year, were not distributed properly, with many goods pilfered by the Iraqi military.

"A fourth or fifth of the supplies were not distributed," he said.

Mullick, 39, an American sociologist of Pakistani origin, appeared before the House International Relations Subcommittee on Permanent Investigations in Washington.

"Soon after I started my job, it became amply evident that there were gaping holes in U.N.'s efforts to meet [its] objectives," Mullick told the committee in his written statement, though he read aloud only parts of it.

Mullick said in his statement that a database to track the humanitarian shipments was "muddled beyond repair," that survey techniques "were at best amateurish," and that statistics quoted by the United Nations were "misleading."

[...]

Mullick told the subcommittee that he repeatedly alerted U.N. officials of problems he observed but was rebuffed.

"Each suggestion resulted in my supervisors reducing my job responsibilities," Mullick said. "This continued to occur until my only job was to run the slide projector at staff meetings."

Mullick said he eventually submitted a 10-page report to U.N. headquarters in 2002 reporting that 22 percent of supplies imported under the program never reached Iraq's 27 million people.

"I heard nothing," Mullick said. "Finally I was contacted and told my contract was not being renewed."

[...]

... the United Nations found the program to be a success, saying, for example, that food delivered reduced the malnutrition rate among Iraqi children by 50 percent.

Mullick described the United Nations as having "old mafia-style management."

He added in his statement, "Had the U.N. chosen to listen to and offer protection to those who blow the whistle on bureaucratic injustice and corruption, a program like oil for food would have worked more in the interest of the impoverished Iraqi people rather than their detractors." (Bolding added.)

There is no whistle-blower protection for U.N. employees, and the human cost of unreported crimes has spread from Iraqis who were supposed to benefit from the Oil-for-Food to shocking revelations about sex-crimes committed by blue-helmeted troops and U.N. workers.

The U.N. is said to represent "international law." Those who would chose to live under the rule of an unaccountable, cynical bureaucracy don't know the meaning of the word "law" much less understand the power of freely electing one's own lawmakers with the attendant power to replace them in regular election cycles.

From one of my favourite 60's-era songs:

Oh, Freedom!
Oh, Freedom!
Oh, Freedom over me!
And before I'll be a slave,
I'll be bured in my grave,
And go home to my Lord and be free.

Posted by: Debbye at 06:11 PM | Comments (2) | Add Comment
Post contains 480 words, total size 3 kb.

Kevin Steel, Western Standard

Mar. 15 - Have I been complaining about the lack of investigative reporting up here? This graph and accompanying Western Standard news story The scandal spills north prove me wrong:

Just a month before the Canada Free Press revealed that Volcker, a former Federal Reserve chairman, is a member of Power Corp.’s international advisory board--and a close friend and personal adviser to Power’s owner, Paul Desmarais Sr.--a U.S. congressional investigation into the UN scandal discovered that Power Corp. had extensive connections to BNP Paribas, a French bank that had been handpicked by the UN in 1996 to broker the Oil-for-Food program. In fact, Power actually once owned a stake in Paribas through its subsidiary, Pargesa Holding SA. The bank also purchased a stake in Power Corp. in the mid-seventies and, as recently as 2003, BNP Paribas had a 14.7 per cent equity and 21.3 per cent voting stake in Pargesa, company records show. John Rae, a director and former executive at Power (brother of former Ontario premier Bob Rae), was president and a director of the Paribas Bank of Canada until 2000. And Power Corp. director Michel François-Poncet, who was, in 2001, the vice-chairman of Pargesa, also sat on Paribas’s board, though he died Feb. 10, at the age of 70. A former chair of Paribas’s management board, André Levy-Lang, is currently a member of Power’s international advisory council. And Amaury-Daniel de Seze, a member of BNP Paribas’s executive council, also sat on Pargesa’s administrative council in 2002.

[...]

The reason investigators [from several Congressional committees] are interested in Power’s possible links to the bank that acted as a clearing house for Oil-for-Food is because the firm also appears to have had a stake in an oil firm that had been working out lucrative contracts with Iraqi dictator Saddam Hussein. Subsidiary Pargesa owns the largest single stake in Total Group Inc. (a Belgian-French petroleum multi-national corporation formed from the merger of Total, Petrofina and Elf Aquitaine), which reportedly had been negotiating, prior to the U.S. invasion in March 2003, rich contracts with former Iraqi dictator Saddam Hussein to develop and exploit the Majnoon and Nahr Umar oil fields in southern Iraq. Those regions are estimated to contain roughly a quarter of Iraq’s reserves. The contracts were on the verge of being signed in 1997, one year after the beginning of the UN’s Oil-for-Food program replaced U.S. sanctions on Iraq, when the French government intervened and stopped the deal. Paul Desmarais Jr., now chairman of Power Corp. (Paul Sr. retired in 1996, but is said to be active in the firm), sits on the board of Total, and Power director, François-Poncet, also sat on the board of Total’s predecessor firm, Totalfina Elf. Paribas also owned shares in Total as recently as 2000, records show.

Add up the facts that Power Corp. appears to be connected to an oil company that would benefit extensively if Saddam remained in power, with the bank appointed by the UN to help broker an Oil-for-Food program that appears to have been directly enriching Saddam, and which is being investigated for irregularities that may have abetted the wholesale corruption that eventually engulfed Oil-for-Food, and that PowerÂ’s owners have a professional and personal relationship with the man hired by the UN to investigate the corruption, and itÂ’s no wonder that more and more questions are being asked about the firm.

The United Nations has refused to co-operate with the U.S. Congress investigations into the US$67-billion Oil-for-Food program and Security Council members Russia and France have refused to give Volcker the right to subpoena witnesses in the internal UN probe.

Posted by: Debbye at 07:35 AM | No Comments | Add Comment
Post contains 626 words, total size 4 kb.

Mar. 13 - More on the U.N. Oil-For-Food scandal and the Volcker interim report: Volcker Panel to Correct Frechette Omission which is to say they will correct the report to include her name instead of referring to her only by title as they had when the report was first released.

So why was her name left out?

It's well known that the Volcker commission's executive director, Reid Morden, and Louise Frechette have had a "longstanding professional relationship" for 30 years, according to the Independent Inquiry Committee — dubbed the "Volcker commission" after its chief, former Federal Reserve Chairman Paul Volcker.

Morden was Canada's deputy minister of foreign affairs in the 1990s. Frechette is U.N. Secretary-General Kofi Annan's No. 2 at the international organization. But Frechette also was Canada's ambassador to the United Nations at the same time Morden was her boss.

The Volcker commission, however, says Frechette did not directly report to Morden in the Canadian Foreign Ministry. The commission offered its take on the Frechette-Morden association following a FOX News story last week.

Committee officials admit that Morden discussed working on the U.N.-commissioned investigation with Frechette before he took the job with Volcker but they insist the friendship has not influenced Volcker's work at all and that the investigation is being conducted in a thorough and impartial manner.

Congressional critics like Rep. Tim Murphy, who also is a member of the House Energy and Commerce Committee that is investigating Oil-for-Food, has accused the investigation of having an unreported conflict of interest.

"One of the things that occurs when one is part of an investigation is, you disclose in the first page what your relationships are so it's very clear — it's very clear — if there's any potential conflict of interest," said the Pennsylvania Republican.

"The fact that in this report, they didn't even refer to her by name or by title, and it seems to be that there is some attempt here to hide that there is any link or relationship there, I think only heightens or magnifies the concerns here that there's a potential for a conflict of interest."

(Link via Kate, who does a search of Canadian media on Volcker-Frechette. Guess what she finds? As one of the commenters points out, odd that Canadians would be part of the investigating team as well as a subject of the investigation yet it not rank a mention up here. Maybe it will become a "Heritage Moment" some day. Or not.)

18:03 Canada Free Press is covering the Frechette connection, and is connecting dots:

Louise Fréchette joins the illustrious Canadian connection in the UN Oil-for-Food Program, where there is her former boss, Prime Minister Martin who replaced Prime Minister Jean Chretien. Jean Chretien’s daughter, France is married to Andre Desmarais, the son of Paul Desmarais. Desmarais is the chairman and Co-Chief Executive Officer of Canada's Power Corporation, and the largest shareholder and director of France's TotalFinalElf. TotalFinalElf was one of the largest benefactors of Oil-for-Food contracts. According to the Financial Post, "In 1974, Desmarais, Sr., made Martin president of Canada Steamship Lines and then in 1981, he made him spectacularly rich by selling the company to him and a partner for $180 million." As CFP previously reported, Canada, the seventh largest contributor to the United Nations, will not investigate the Oil-for-Food Program.

Posted by: Debbye at 08:38 AM | Comments (16) | Add Comment
Post contains 722 words, total size 5 kb.

Mar. 1 - Investigations into UNSCAM have revealed a systematic attempt by the Deputy Secretary-General, Canadian Louise Frechette, to block results of audits into the Oil-for-Food program from the Security Council:

UNITED NATIONS — With U.N. Secretary-General Kofi Annan next up for review by Paul Volcker’s inquiry into the Oil-for-Food scandal, a crucial question is whether Volcker will expand upon information tying the scandal directly to the U.N. chief’s office — by way of Annan’s second-in command, Louise Frechette.

Four years into the seven-year Oil-for-Food program, with graft and mismanagement by then rampant, Frechette intervened directly by telephone to stop United Nations auditors from forwarding their investigations to the U.N. Security Council. This detail was buried on page 186 of the 219-page interim report VolckerÂ’s Independent Inquiry Committee released Feb. 3.

This decision from within AnnanÂ’s office left only the Secretariat privy to the specifics of the waste, bungling and contractual breaches detailed by U.N. internal auditors in dozens of damning reports. The extent of what AnnanÂ’s office knew was not available either to the Security Council or the public until Congress finally forced the issue and the United Nations produced the reports in conjunction with a Volcker "briefing paper" in January.

[...]

Frechette’s actions stand in sharp contrast to the assertions of Annan and his public relations staff that the Security Council – and not the Secretariat – supervised the more than $110 billion Oil-for-Food program. Her decision, as documented by Volcker, also places responsibility squarely in the secretary-general’s office for obscuring mismanagement of the program from the Security Council.

The cover-up did not stop with Benon Sevan, the now-disgraced Oil-for-Food executive director, who reportedly blocked audits that originated lower in the chain of command. The obstruction went all the way up to AnnanÂ’s office on the 38th floor.

Frechette's intervention was disclosed by the Volcker committee as the result of an interview with Dileep Nair, head of the U.N.'s Office of Internal Oversight Services (OIOS), the organizationÂ’s internal watchdog. In the year 2000, NairÂ’s audit department repeatedly urged that audits of Oil-for-Food be sent to the Security Council.

On Nov. 30, 2000, NairÂ’s top auditor sent a memo to Sevan informing him that despite his objections, the auditors planned to start sending reports on Oil-for-Food to the Security Council. By NairÂ’s account, what settled the issue was a telephone call from Frechette, who came down on the side of Sevan. After that, reports Volcker, Nair "abandoned the effort to report directly to the Security Council on [Oil-for-Food] matters."

When questioned about the telephone call at a recent press conference, Frechette said she had no recollection of it. “But I’m quite prepared to accept Mr. Nair’s recalling the conversation,” she told reporters. (Bolding added.)

That explains something else to me: why the name of former Canadian PM Jean Chretien and his ties to Paul Desmarais as well as Paribas and Total haven't been made more public.

So what did Frechette know and when did she know it?

Frechette had connections to a number of Oil-for-Food figures. She had direct oversight of both U.N. watchdog Nair and Oil-for-Food director Sevan, although both reported to the Secretary-General. .. Asked why Frechette was mentioned only by title, not by name, Morden refused to comment.

I've already quoted too much from the news report, but Canadians who have followed the Adscam inquiries will probably recognize that some aspects of the failure to audit the Oil-for-Food program parallel those which allowed millions of dollars to be stolen in the name of national unity.

As with Adscam, the U.N. Oil-for-Food Program was introduced for a worthy goal, in the latter case to assist the people of Iraq who were harshly affected by the oil sanctions imposed when Saddam didn't meet his obligations under the cease-fire that ended Gulf War I.

As with Adscam, those administering the program reported directly to the top, i.e., the Secretary-General's office, not the U.N. Security Council.

And, as with Adscam, the U.N. Oil-for-Food Program was cynically manipulated to enrich individuals, too many of whom are connected with Jean Chretien.

Also, please keep in mind that there are no provisions to protect "whistleblowers" in the U.N.

The closing paragraph is particularly amusing:

Among other things, that audit found that Sevan had failed to hold any management meetings of his Oil-for-Food team for the previous two years. It remains to be explained how that fact had escaped the attention of SevanÂ’s direct supervisor, Deputy Secretary-General Louise Frechette, or that of Kofi Annan himself.

[Note: I've edited out the (search) markers in the Fox Report.]

Mar. 2 - Kate has kindly linked to this post, and has done some research which ties Volcker, Frechette, Morden, Desmarais and Maurice Strong. Sheesh, is anyone of influence in Canada not connected to Desmarais?

Naturally, I expect a major story on the CBC about these revelations, as well as outraged editorials in the Star and Globe and Mail. It shouldn't be too hard, as bloggers have done the digging.

Just imagine this was about Halliburton - I'm certain it would be plastered all over the front pages, but something with true Cancon can't summon a particle of interest. The words smug hypocrisy barely covers it. (And you folks in the USA think you have a problem with the myopia of MSM? Trust me, we've got you beat.)

Posted by: Debbye at 04:27 PM | Comments (33) | Add Comment
Post contains 1016 words, total size 7 kb.