April 15, 2005

American arrest in U.N. Oil-for-Food scandal

Apr. 15 - David Bay Chalmers Jr. of Bayoil U.S.A. was charged yesterday in Iraq Oil Sales by Hussein Aides.:

In an indictment, federal authorities in New York said David Bay Chalmers Jr., a Houston oil businessman, and his company, Bayoil U.S.A., made millions of dollars in illegal kickbacks to the Iraqi government while trading oil under the $65 billion aid program.

Separate charges were brought against Tongsun Park, a millionaire South Korean businessman, for acting as an unregistered lobbyist for Iraq in behind-the-scenes negotiations in the United States to set up and shape the United Nations program. The criminal complaint said Mr. Park received at least $2 million in secret payments from Mr. Hussein's government for serving as a liaison between Iraqi and United Nations officials.

Mr. Park was at the center of a lobbying scandal in the 1970's, when he was accused of paying bribes to lawmakers in Washington to secure support for loans to South Korea.

[...]

The authorities not only charged that Bayoil made illegal payments to secure Iraqi oil, but also that it conspired to artificially lower the price Iraq received, depriving the Iraqi people of money for sorely needed items. The charges also disclosed new information about an alleged plan to pay senior United Nations officials to influence the course of the program.

Catherine M. Recker, a lawyer for Mr. Chalmers, said the Bayoil defendants and the company would plead not guilty and "vigorously dispute" the criminal charges.

According to federal authorities and the complaint against Mr. Park, he was a partner in the lobbying effort with Samir Vincent, an Iraqi-American businessman who pleaded guilty in January to illegal lobbying for Iraq.

Mr. Vincent, who is cooperating with federal investigators, said Iraqi officials signed agreements in 1996 to pay him and Mr. Park $15 million for their lobbying, the complaint says.

One of their tasks was "to take care of" a high-ranking United Nations official, which Mr. Vincent understood to mean to pay bribes, the complaint says. The authorities did not identify or bring charges against the United Nations official. (Emphasis added)

[...]

David N. Kelley, the United States attorney for the Southern District of New York, in Manhattan, said the complaint alleges that Mr. Park intended to bribe the official, but does not show that the official received any bribe.

The complaint also charges that Mr. Park met with a second unnamed senior United Nations official, once in a restaurant in Manhattan. After that, Mr. Park said he invested $1 million he had been paid by Iraq in a Canadian company belonging to the son of the second United Nations official, the complaint says.

Mr. Kelley declined to say whether the officials were still actively serving at the world organization. He said, however, that the investigation was "broad and large" and that his office would "wring the towel dry" in pursuing United Nations officials. (Emphasis added.)

The story in the Washington Post says much the same:
A federal grand jury in Manhattan charged that David B. Chalmers Jr., founder of Houston-based Bayoil USA Inc. and Bayoil Supply & Trading Limited; Ludmil Dionissiev, a Bulgarian citizen who lives in Houston; and John Irving, a British oil trader, funneled millions of dollars in kickbacks through a foreign front company to an Iraqi-controlled bank account in the United Arab Emirates. If convicted, the three men could each be sentenced to as long as 62 years in prison, $1 million in fines, and the seizure of at least $100 million in personal and corporate assets.

The federal complaint against Park charges that he received a total of $2 million in cash from Iraq, including a fee to "take care" of an unnamed U.N. official. It also states that Park invested $1 million in Iraqi money in a Canadian company owned by the son of another unknown, "high-ranking" U.N. official. Park could face as long as five years in prison and a fine of as much as $250,000 or twice the value of profits he earned as a result of his alleged activities. (Emphasis added.)

The Telegraph (UK) has a fairly terse article on the arrests.

Thus far I've only found coverage of the arrests in The Globe and Mail which covers the arrest but as of 5:41 a.m. didn't report the allegations of a Canadian connection but does report that U.N. officials may be connected to these arrests:

The reference in the complaint against Mr. Park to two mystery high-ranking UN officials sparked widespread speculation in UN corridors of possible names.

Mr. Kelley, pressed repeatedly by reporters at a news conference to say whether U.N. officials had actually received money tied to Mr. Park, would say only that that issue was not part of the indictment.

Any Canadian who read the NY Times or Washington Post today is probably speculating too!

The U.N. is claiming that the Americans and British were perfectly aware of the violations of the sanctions but refused to order their ships in the Persian Gulf to stop oil tankers heading for Turkish and Jordanian ports with illicit Iraqi oil. I have read reports that trucks loaded with illegally purchased oil from Iraq went to Turkey and Jordan (that became common knowledge after Operation Iraqi Freedom and the public learned just how corrupt OFF - or Oil for Palaces - really was) but I don't understand why oil headed for Jordan or Turkey would use rather lengthy sea lanes when they border Iraq and could drive it in.

Maybe Annan was thinking of Syria, a member of the U.N. Security Council, but, again, the oil was not transported by sea but by pipeline, two of which were turned off when U.S. troops got to them. Maybe he just forgot.

11:30 - Glenn Reynolds has lots of links on the arrests.

Apr. 16 - 10:05: FoxNews has no additional information on U.N. Official No. 1 and Official No. 2.

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March 30, 2005

Volcker Interim Report Pt. 2 (updated)

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 ...

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March 23, 2005

Oil-for-Food to pay Sevan's legal fees

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.

This is all the more apalling coming as it does on the heels of Kofi Annan's suggestion that developed nations should be levied to support Millenium Development Goals -- the funds for which are to be administered by the U.N.

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.
I believe that is also a definition for insanity.

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."

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March 18, 2005

UN Whistleblower blasts Oil-for-Food

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.

Mullick was a data analyst for the U.N. program, and his duties included monitoring the humanitarian shipments into Iraq.
"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.)

So who did he alert? Was it Frechette?

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.

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March 15, 2005

Everything you ever wanted to know about Power Corp.

Power Corp chart.jpg
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.

Read the whole thing. Email the link to your friends.

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March 13, 2005

Volcker Commission rectifies "omission" - Updated

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.

FoxNews doesn't pull any punches:
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.
They are following the Canadian model for citing conflict of interest, which is to airily state "I'm not in any conflict of interest!" to which the bobble-heads - including far too many in the news media up here - obediently assent. The Vocker Commission is investigating fraud which was enabled by that ploy and they caught are using it themselves. How bad is it when you have to investigate the investigators?
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."

That is self-evident only to Americans because we have a fairly simple rule which we apply in situations which may constitute a conflict of interest: if it even remotely might be construed as a conflict then it must be cited if only as a "potential" conflict of interest. Simple, right?

(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.
(Link via a commenter at this post at The Shotgun, the blog of the Western Standard. (In case it isn't obvious, the Western Standard is also covering the U.N. Oil-for-Food scandal, aka UNSCAM. There are honest media up here.)

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March 01, 2005

Frechette blocked UNSCAM probe

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.
Louise Frechette went to the U.N. after out of a long career with the Canadian civil service including a term as Canadian Ambassador to the U.N. 1992-1995. She became the first Deputy Sec.-Gen. of the U.N. in 1998. Is that sufficient Cancon to put this story on the CBC Evening News?
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.)

The article mentions that although the Volcker Commission interviewed Frechette, the results as well as her name were not published. During her tenure as Canadian Ambassador to the U.N., current Volcker executive director Reid Morden was the Canadian Deputy Minister.

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.
Audits were blocked with the excuse that it would be a waste of money to audit a "program with an uncertain future" but evidently the temporary nature of the program was sufficient to spend $3 million to rent and renovate new officies for it.

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.
As with Adscam, ...

[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.)

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February 20, 2005

Mark Steyn speaks

Feb. 20 - Mark Steyn's regular column in The Western Standard was on Canada's least-known person, Paul Desmarais:

... there has indeed been a Canadian making a difference in the world-and if The National wanted to do a 133-part special report on him, for once they’d have enough material. Most of us know Paul Desmarais as the . . . [those ellipses in original] well, let’s hold it there: most Canadians don’t know Paul Desmarais at all. You could stop the first thousand people walking down Yonge Street and I’ll bet no one would know who he is. But the few who do know him know him as the kingmaker behind Trudeau, Mulroney, Chrétien and Martin. Jean Chrétien’s daughter is married to Paul Desmarais’s son. Paul Martin was an employee of M. Desmarais’s Power Corp., and his Canada Steamship Lines was originally a subsidiary of Power Corp. that M. Desmarais put Mr. Martin in charge of. In other words, Paul Martin’s public identity--successful self-made businessman, not just a career pol, knows how to meet payroll, etc.--is entirely derived from the patronage of M. Desmarais.

Imagine if Jenna Bush married the chairman of HalliburtonÂ’s son, and then George W. Bush was succeeded by a president whoÂ’d been an employee of Halliburton: Michael MooreÂ’s next documentary would be buried under wall-to-wall Oscars and Palmes dÂ’Or. But M. Desmarais has managed to turn Ottawa into a company town without anyone being aware of the company. .. Power Corp.Â’s other alumni range from Quebec premiers to CanadaÂ’s most prominent international diplomat, Maurice Strong. In fairness, you donÂ’t have to work for M. Desmarais to reach the top of the greasy pole-Kim Campbell managed it, for about a week and a half.

And down to the heart of it:
we’re in the middle of the UN Oil-for-Fraud investigation, the all-time biggest scam, bigger than Enron and Worldcom and all the rest added together. And whaddaya know? The bank that handled all the money from the program turns out to be BNP Paribas, which tends to get designated by Associated Press and co. as a “French bank” but is, as it happens, controlled by one of M. Desmarais’s holding companies. That alone should cause even the droopiest bloodhound to pick up a scent: the UN’s banker for its Iraqi “humanitarian” program turns out to be (to all intents) Saddam’s favourite oilman.
Read the whole thing.

On a (relatively) lighter note, as the President begins his European tour, Mark Steyn asks and answers the burning question of the day: What's US policy on Europe? No giggling.

What does all this mean? Nothing. In victory, magnanimity – and right now Bush can afford to be magnanimous, even if Europe isn't yet ready to acknowledge his victory. On Thursday, in a discussion of "the greater Middle East", the President remarked that Syria was "out of step". And, amazingly, he's right. Not so long ago, Syria was perfectly in step with the Middle East – it was the archetypal squalid stable Arab dictatorship. Two years on, Syria hasn't changed, but Iraq has, and, to varying degrees, the momentum in Jordan, Egypt, Saudi Arabia, the Palestinian Authority and Lebanon (where the Syrians have overplayed their hand) is also in the Bush direction. Boy Assad finds himself in the position of the unfortunate soldier in Irving Berlin's First World War marching song, "They Were All Out Of Step But Jim".

The EU isn't the Arab League, though for much of the past three years it's been hard to tell the difference. But it, too, is out of step. The question is whether the Europeans are smart enough, like the savvier Sunnis in Iraq, to realise it. The Washington Post's Fred Hiatt compared the President's inaugural speech with Gerhard Schröder's keynote address to the Munich Conference on Security Policy last week and observed that, while both men talked about the Middle East, terrorism and 21st-century security threats, Mr Bush used the word "freedom" 27 times while Herr Schröder uttered it not once; he preferred to emphasise, as if it were still March 2003 and he were Arab League Secretary-General, "stability" – the old realpolitik fetish the Administration has explicitly disavowed. It's not just that the two sides aren't speaking the same language, but that the key phrases of Mr Bush's vocabulary don't seem to exist in Chirac's or Schröder's.

By the Way, SteynOnline is off it's brief (?!) hiatus and open for your one-stop Steyn reading spot.

Feb. 23 - Austin Bay disagrees with Mark Steyn on the death of the West:

Steyn’s “bleakest last sentence” (to quote Roger Simon) is way too fin d’siecle. Steyn writes: “This week we’re toasting the end of an idea: the death of “the West".” Try and tell that to Ukraine and Poland– and for that matter, Denmark. Post- Theo van Gogh Holland may also object.
Valid point. I too have to remind myself to distinguish between "Old" and "New" Europes.

Feb. 28 - Mark Steyn responds to Austin Bay here (scroll down.) Very worthwhile read.

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February 03, 2005

Benon faces disciplinary action

Feb. 3 - Report Rips Management of Oil-for-Food and Kofi Annan has ordered disciplinary action (even though Sevan has already retired.) There is the possibility of legal action but in what court? The main victims are the Iraqi people but I doubt they'd be allowed to try him.

A partial transcript of Mr. Volcker's report to the Independent Inquiry Committee is here during which he explains what the report covers and what it does not.

The report (.pdf) is available here and here but I haven't been able to bring either site up up (it's probably deluged with visitors.)

Later.

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Volcker Report on U.N. Oil-for-Food Program

Feb. 3 - I hope last night's State of the Union Address doesn't distract too much attention from the release of the interim Volcker Report scheduled for 3 p.m. today. One preview is in Judith Miller's report in the New York Times, Inquiry Faults U.N.'s Oil-for-Aid Program. Unfortunately, the interim report is to be printed in the Wall Street Journal and thus is behind a paid subscription wall.

I don't know how accurate the Miller piece is and prefer to wait until the interim report itself is more widely available before accepting paraphrases over statements contained in the report itself, but the consensus from different sources seems to be that the U.N. is guilty of gross mismanagement, allowing conflicts of interest and failing to meet its own guidelines in awarding oil contracts.

(At one point Miller calls the report an "essay," which is a red flag for me and why I'm not too comfortable with her analysis.)

The best coverage will in all likelihood be by the vigilant people at Friends of Saddam who were (naturally) on top of the story early this morning.

Some links for those who want to brush up on fairly recent developments in UNSCAM including questions about Volcker's possible conflict-of-interest centering on his connections with PowerCorp, Paribas and Total and revelations about Kojo Annan's role in the investigation:

Volcker's Business Ties Raise Questions;

U.N didn't ask Volcker to disclose his financial ties and this opinion piece from the New York Post on that conflict;

Samir Vincent's testimony points to second UN official;

Paul Volcker search results from Telegraph for the very curious (why the Telegraph? because they were on top of this story from the beginning and are more accessible than the WSJ);

From the Sunday Times: Kojo Annan admits oil dealing. (Link from Norman's Spectator

From Fox: Oil-for-Food Probe Includes Annan's Son (Fox also has links to the Duelfer Report (in .pdf format) on that page);

Lastly, something that I think ties in with general questions about what constitutes a conflict of interest and full disclosure in the media as well as the public sphere, a transcript of a syposium on Bloggers, journalists and citing conflicts of interest which I feel by inference rebuts the argument that it was okay for Paul Volcker not to cite his conflict of interest because Annan didn't ask him to do so.

One caution: the investigation has reportedly not uncovered any evidence that U.N. officials actually accepted bribes, but getting requested documents remains difficult and whoever originally pointed out that this could far eclipse Enron has been proven prophetic.

I have the same question now as I had when this story first broke in 2003:

For what purpose, exactly, was the 2.2% administration fee levied by the U.N. on the Oil-for-Food Program?

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December 02, 2004

Americans implicated in UNSCAM

Dec. 2 - The revelation that Kojo Annan continued to receive payments from Cotecna finally brought the U.N. Oil-for-Food scandal under the scrutiny of the mainstream media, and now that they're digging, they are finding things that have been known in the blogosophere for a while but seem new to them, including the involvement of some well known and well-connected Americans and companies which were named in the Duelfer Report: Marc Rich, Ben Pollner of Taurus Oil, ChevronTexaco, and ExxonMobil.

From ABC News: Americans' Role Eyed in U.N. Oil Scandal:

Former American fugitive Marc Rich was a middleman for several of Iraq's suspect oil deals in February 2001, just one month after his pardon from President Clinton, according to oil industry shipping records obtained by ABC News.

And a U.S. criminal investigation is looking into whether Rich, as well as several other prominent oil traders, made illegal payments to Iraq in order to obtain the lucrative oil contracts.

[...]

Another broker was New York oil trader Ben Pollner, head of Taurus Oil, who investigators say handled several billion dollars worth of the transactions now under investigation.

Pollner told ABC News he paid no bribes or kickbacks to the Iraqi regime.

Rich is still living in Switzerland and unavailable for comment.

The roles of several American oil companies, including ChevronTexaco and ExxonMobil, are also under investigation. ChevronTexaco received subpoenas requesting information for two separate grand jury proceedings, and said they were cooperating fully with both investigations.

The U.N. oil-for-food corruption scandal only continues to grow in scope. Today, Sen. Norm Coleman, R-Minn., who is leading the congressional investigation into the program, said that U.N. Secretary-General Kofi Annan should resign because the scandal occurred on his watch.

The remainder of the item concerns the allegations about Kojo Annan.

An interesting column on these names by William Safire in his column in the Oct. 13 NY Times can be read online here at the Foundation for the Defense of Democracies website.

I always figured that American businessmen might have been part of the scandal, and am glad that those named are being investigated. The name Marc Rich, however, is likely to spark attempts to drag President Clinton into this to which I say: Don't.

Let's break some new ground and focus on just the facts without partisan bias and opportunist attempts to besmirch either Clinton. I witnessed the ugliness of the last four years of Bush-hating and the previous three years of Clinton-hating and I. Am. Sick. Of. It.

(ABC link via Instapundit.)

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November 26, 2004

Kojo Annan and Cotecna

Nov. 26 - Claudia Rosett, who has determinedly investigated the corrupt U.N. Oil-for-Food Program for years, has information that may put Kofi Annan personally in a direct conflict-of-interest. Although his son Kojo was said to have left Cotecna in late 1998, some weeks before the comapny won the U.N. contract to check imports into Iraq under the U.N. Oil-for-Food Program, Rosett's article in the New York Sun reveals that Annan's Son Took Payments Through 2004 from Cotecna:

The younger Annan stopped working for Cotecna in late 1998, but it now turns out that he continued to receive money from Cotecna not only through 1999, as recently reported, but right up until February of this year. The timing coincides with the entire duration of Cotecna's work for the U.N. oil-for-food program. It now appears the payments to the younger Annan ended three months after the U.N., in November, 2003, closed out its role in oil-for-food and handed over the remains of the program to the Coalition Provisional Authority in Baghdad.

This latest bombshell involving the secretary-general's son was confirmed Wednesday by Kofi Annan's spokesman, Fred Eckhard, in response to this reporter's query, based on information obtained elsewhere. In an email, Mr. Eckhard wrote: "I was able to reach Kojo's lawyer this morning. He confirms that Kojo Annan received payments from Cotecna as recently as February 2004. The lawyer said that these payments were part of a standard non-competition agreement, under which the decision as to whether to continue the payments or not was up to Cotecna."

Mr. Eckhard added that, according to Kojo Annan's lawyer, the information has "been reported" to the U.N.-authorized inquiry into oil-for-food, led by a former Federal Reserve chairman, Paul Volcker.

Labeled as compensation for Kojo Annan's agreeing not to compete with Cotecna's business in West Africa, the post-employment payments were in the amount of $2,500 per month, according to another source with access to the documents. If the payments were continuous over the slightly more than five-year period involved, that would have totaled more than $150,000.

Cotecna officials, who this past April received a gag letter from the U.N. Secretariat, did not respond to queries from The New York Sun about why the company continued its non-competition payments to Kojo Annan for more than five years, instead of the one year previously reported. Neither did the company answer a question about why the payments apparently stopped this past February - just after the oil-for-food scandal erupted into the headlines following allegations in a Baghdad newspaper that the program was massively corrupt. Cotecna earlier this year denied any wrongdoing, saying that Kojo Annan's portfolio involved West Africa, not the U.N. or Iraq. Kojo Annan's lawyer at the London-based firm Schillings said the younger Annan is cooperating with the Volcker inquiry, but would not comment to the press on his payments from Cotecna.

Conflict-of-interest guidelines are far from uniform as are those for full disclosure, but there is seemingly a conflict in the information that has been given out about Kojo Annan's financial relationship with Cotecna and the dates which have been mis-reported are quite significant.

There is more, so read the article in entirety.

(Via Daimnation.)

Nov. 30 - 15:35: Kofi Annan has said he was unaware that the payments had continued and expressed his disappointment.

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November 22, 2004

Salim Mansur

Nov. 22 - Salim Mansur has another column in which his gift of restoring order to the tumult of individual news stories and thus providing a focus proves invaluable. In A scandal even bigger than (lack of) WMD he pulls together the threads in Dr. Mahdi Obeidi's book The Bomb in My Garden, the Duelfer Report, the Oil-for-Food scandal, Rwanda, the pre-war bickering in the U.N. Security Council and "inverse proportion of rage":

From the killing fields of Rwanda to the killing fields of Iraq, the UN was not an innocent bystander, and Kofi Annan, the man who runs it, has much to answer for.

The great irony in all of this is the inverse proportion of rage against America's liberation of Iraq by non-Iraqi Arabs and Muslims and the Michael Moore crowd in the West, to the rage of Iraqis, as Obeidi narrates, against those who kissed and danced with the devil incarnate in Baghdad.

Reflexive reverence for the U.N. and automatic dismissal of anything said by U.S. officials may be responsible for more deaths than otherwise humane people can stomach.

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October 25, 2004

The sanctions worked, hmm?

Oct. 25 - More on UNSCAM: AP EXCLUSIVE: Iraqis reveal in secret interviews how Saddam manipulated oil-for-food program. In addition to the information already contained in the Duelfer Report about the use oil vouchers to enlist support for the lifting of sanctions, a Congressional committee has gathered evidence of further corruption:

One investigator described the exempt list as the equivalent of the list in Duelfer's report of oil voucher recipients, but in this case for goods imported under the U.N. program.

"Until now, it had been thought that only vouchers for oil were handed out, but due to disclosures by Iraqi officials from the Ministry of Trade, we now understand that the practice was spread even further," said the investigator, who spoke on condition of anonymity.

Companies on Saddam's special lists got vouchers giving them priority for deals in humanitarian goods under oil-for-food, or to act as middlemen for companies providing goods.

Some Iraqi officials confirmed the lists were crafted to reward companies from countries supporting Iraqi political goals, especially the lifting of U.N. sanctions, investigators said.

"These lists illustrate how Saddam Hussein cynically manipulated and corrupted the oil-for-food program," said Hyde [Chair of the House International Relations Committee Rep. Henry Hyde, R-Ill.] "The fact, disclosed in the Duelfer report, that some countries based their Iraq policies on these corrupt practices is shameful."

The exempt list came from an official at the Iraqi Ministry of Trade and was authenticated separately by over a dozen current and former Iraqi officials, investigators said.

There were also companies black-listed:
Over 250 companies appear on Saddam's blacklist, obtained from an Iraqi Health Ministry official, according to congressional investigators. The document also details reasons the companies lost favor with the Iraqi government. Dozens of the companies are blasted for "dealing with the Zionist entity," apparently referring to Israel.

One contract in English obtained by AP from investigators required companies given deals with the Iraqi government to sign a pledge that says, "We hereby confirm our commitment and pledge not to deal with Israel."

American companies Johnson & Johnson, Hewlett-Packard Co., and Eli Lilly and Co., make the list for this reason and Agilent Technologies Inc. -- which was spun off from Hewlett-Packard -- is accused by Vice President Ramadan of changing its name from Hewlett-Packard to "enter into Israel," according to the document.

The Russian oil company Lukoil seemingly scored a hat trick:
Lukoil, which reportedly clashed with Baghdad after refusing to break sanctions to begin development of an Iraqi oil field, is the only company to make the oil voucher list, the exempt list and the blacklist. Its entry onto the blacklist is dated October 2002. In December 2002, Iraq announced the cancelation of a $3.7 billion contract with Lukoil to develop the oil field.
(Link via Instapundit.)

The AP story is also up at the ABC News website.

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October 22, 2004

France urged to respond to accusations

Oct. 22 - Rep. Joe Barton (R-TX,) the Chairman of the House Energy and Commerce Committee, sent a letter to President Chirac urging him to share any information from investigations into allegations of corruption by French businesses and politicians in the U.N. Oil-for-Food program which was detailed in the Duelfer Report.

From the letter:

The Report cites compelling documentary and testimonial evidence suggesting that France's policies toward the Program, and Iraq in general, may have been motivated by economic self-interest. According to documents obtained by Mr. Duelfer's team from Iraq's State Oil Marketing Organization, several French politicians received allocations of Iraqi oil, including Charles Pasqua, France's former Interior Minister, and Jean-Bernard Mérimée, the former French ambassador to the United Nations. Moreover, Iraq's former Deputy Prime Minister Tariq Aziz claimed to have personally awarded several French individuals substantial oil allotments, adding that these individuals "understood that resale of the oil was to be reciprocated through efforts to lift UN sanctions, or through opposition to American initiatives within the Security Council." Finally, recovered Iraqi Intelligence Service ("IIS") documents reveal that Saddam's regime "targeted a number of French individuals that the Iraqi's [sic] thought had close relations to French President Chirac, including, according to the Iraqi assessment, the official spokesperson of President Chirac's re-election campaign, two reported 'counselors' of President Chirac, and two well-known French businessmen." These IIS documents also describe a May 2002 meeting between a representative of Iraq's Ministry of Foreign Affairs and a French parliamentarian, during which, "The French politician assured the Iraqi that France would use its veto in the UNSC against any American decision to attack Iraq, according to the IIS memo."

This Committee also has concerns that French companies may have been selling weapons to Iraq during the sanctions period, in direct violation of United Nations Security Council Resolution 661. According to the Report, Mr. Duelfer and his team found evidence that as early as 1998 French companies received "offers and contracts from Iraq for conventional weapons systems and [engaged in] negotiations for possible WMD-related mobile laboratories." For instance, recovered documents show that the French company Lura supplied a tank carrier to the Iraqi Ministry of Defense in late 1998 or 1999 and that a French expert "arrived in Iraq in September 1999 to provide training and offer technical expertise on the carrier." Moreover, by 1999, "French firms displayed a willingness to supply parts for Iraqi conventional military items, mainly related to aircraft." IIS documents reveal that the Deputy General Manager of SOFEMA, a French company, planned to visit Iraq in January 2000 on behalf of a number of French military companies to "seek possible trading between the two countries" concerning Iraqi air defense capabilities. These efforts continued right up until Operation Iraqi Freedom ("OIF"). The Report notes that in late December 2002 Iraq "initiated efforts to acquire replacement parts for the Roland II Surface to air missile system, valves for Iraq's air defense system, and various other high technology items with military and battlefield applications" from the French Thompson Company and that Mr. Duelfer's team "found evidence of coordination on this procurement up until 23 days before OIF."

As has been noted before, one has to wonder if the French were against the war or on the other side. (Okay, I don't really wonder, but I'm trying to appear objective.)

Speaking of being on the other side, the failure by much of the main stream media to report the facts contained in the Duelfer Report on UNSCAM couldn't be due to Kerry's pretense that the French and Germans are allies who would have joined us in Iraq had President Bush only been nicer, could it?

I'd love to link to what the Canadian mainstream media is saying about the ongoing revelations about Oil-for-Palaces, but I haven't seen any items.

Over at the Shotgun, Kate says of the failure of the media to cover the bigger issues uncovered by the report that It's Not Apathy, It's Malpractice. She's being much too generous; I'd call it malfeasance, which my dictionary defines as misconduct or wrongdoing; especially wrongdoing that is illegal or contrary to official obligations. Of course, my definition won't apply once the MSM types abandon their posture of being non-partisan.

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October 19, 2004

Sevan to be indicted in US?

Oct. 19 - This should be interesting: UN oil for food chief faces inquiry into property deals:

American prosecutors are preparing charges against Benon Sevan, the former head of the United Nations oil for food programme, who has been accused of accepting millions of dollars in kickbacks from Saddam Hussein's regime.

Congressional investigators examining alleged corruption in the programme disclosed that Mr Sevan's diplomatic immunity would not prevent an indictment being issued. Mr Sevan has consistently denied any wrongdoing.

"We have tried to find out what part he had and we've been working to lift the lid on what he did," said one official on the US Congress International Relations committee. "My understanding is that we can indict him without lifting diplomatic immunity. That's what we did with Noriega."

Former officials in Iraq's state oil company, Somo, have alleged to investigators reporting to the International Relations committee that Mr Sevan was "sacked" on Saddam's orders in 2001 for failing to keep promises to campaign on ending sanctions.

"The basic understanding of these officials is that Saddam felt short-changed by this guy who took the money but did not deliver," said one committee staffer.

Playing both sides against the middle does have its drawbacks, it would seem.
A spokesman for the Southern district of Manhattan's federal prosecutor's office said it was "too early" to comment on its indictment efforts over Mr Sevan. Officials are, however, examining the diplomat's extensive property portfolio in the United States.

According to records, properties registered in his name include a flat in Manhattan, a house in the Hamptons on Long Island, a house in the nearby district of Rye, and a house on New Jersey's "Gold Coast". The Congressional official said: "It's an issue that he has property in the Hamptons and Manhattan."

I wonder how this will proceed.

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July 03, 2004

Iraqi Official investigating UNSCAM killed

July 3 - Followed a link from Instapundit to a Washington Times article in which Paul Bremer denies trying to block the investigation into the UN Oil-for-Food (Bremer says charge of blocking oil-for-food probe 'nonsense'):

In April, Mr. Bremer cut short a probe begun by Mr. Chalabi, who was chairman of the council's finance committee, and the international accounting firm KPMG. He said in the interview he wanted the investigation to be run by the Board of Supreme Audit, an independent body of auditors which had operated during Saddam's reign.

The audit board then held its own expedited bid process, awarding the bulk of the investigation work to Ernst & Young, another major international accounting firm, on May 13.

Then over over to Friends of Saddam to read their analysis but was hit broadside with this:
BAGHDAD (Reuters) - The Iraqi official heading the investigation into alleged corruption in the United Nations oil-for-food program was killed in a bomb attack earlier this week, officials familiar with the probe said on Saturday.

Ihsan Karim, head of the Board of Supreme Audit, died in hospital after a bomb placed under one of the cars in his convoy exploded on Thursday, the officials said.

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June 23, 2004

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 ...

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June 15, 2004

Working at the U.N.

June 15 - U.N. Staff Outrage:

Many U.N. employees fear reprisals from their bosses if they step forward with information on the Iraq oil-for-food scandal or report other allegations of corruption, according to a shocking internal survey released yesterday.
A recent poll of 6,086 employees and managers released on the U.N. Web site revealed that the staff has little faith in the world body leadership's commitment to ethics and integrity and that most believe that when allegations of wrongdoing surface, they are not properly handled.
The U.N. does not have provisions to protect whistle blowers. Tell me again how this organization rates respect or credibility?

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June 12, 2004

The feckless UN in Iraq, Serbia and Iran

June 12 - From the Daily Telegraph (UK) comes a report on Danish UN aid worker Michael Soussan who, in his testimony before a US Congressional probe into UNSCAM, blasted the UN's 'shameful silence' over the evils of Saddam:

To Mr Soussan's dismay, the most vocal critics worked alongside him at the UN. The genocide charge was levelled by an assistant secretary general in charge of humanitarian work in Iraq.

His colleagues blamed the Security Council - especially the United States and Britain - for the suffering of Iraqis, ignoring evidence that Saddam was stealing food from his own people's mouths.

They could hardly ignore the wickedness of Saddam's regime. Foreign UN staff could sense the terror in Iraqis they met, and saw for themselves the gilded excesses of the Ba'athist elite.

But somehow that wickedness was taken as a given, then promptly smothered in a warm soup of moral relativism.

"We have a notion of sovereignty at the UN that doesn't distinguish between governments that deserve sovereignty and those that do not. And that really skews our moral compass," Mr Soussan told The Telegraph.

"[My colleagues] devoted most of their moral outrage towards the United States and the UK," he said. (Emphasis added)

Can we say "easy targets?" Of course we can. And anyone who defends the USA will be accused of being brainwashed, bought-off, racist, or, worst of all, defying the international community. Small wonder these bureaucrats took the easy road even if they knew it was a lie. But that's not moral equivalence, that's just plain immoral.
Mr Soussan does not deny the pain caused by sanctions from the first Gulf war in 1991 to 1996, before oil-for-food sales began. A quarter of a million children died, by conservative estimates.

But during those five years, it was Saddam who refused offers to sell his oil and import humanitarian goods under UN supervision. "[He was] banking that images of dying babies would eventually force the international community to lift the sanctions altogether," Mr Soussan told Congress.

By 2000, there was no limit on the amount of oil Saddam was allowed to sell, and few limits on the civilian goods he was allowed to buy.

Iraq was under sanctions only "to the extent that they couldn't import military goods", he said.

Yet still Saddam claimed sanctions were killing 5,000 infants a month, parading tiny coffins in the streets to ram the point home. "The UN did not stand up to this propaganda. It cowered in the face of this notion that the sanctions were killing Iraqi babies," Mr Soussan said. (Emphasis added)

One of Osama bin Laden's justifications for declaring jihad on the USA was that we were responsible for the murder of Iraqi babies, something that has yet to be properly refuted in the international, and, more importantly, the Arab press.

The failure of the U.N. to take responsiblilty and tell the truth is responsible for much of the hatred of the world towards the USA, but we are supposed to "take it" for the good of an international community which has no values, no morals, but does have some dandy committees.

Iraqi babies no longer die due to malnutrition, watered-down drugs, expired pharmaceuticals and lack of equipment in medical facilities, but that fact has nothing to do with the U.N. and everything to do with action that was condemned by the U.N.

UN staff did not speak out when Saddam refused to buy high protein foods recommended by UN experts, or spent oil-for-food millions on sports stadiums, or broadcasting equipment for his propaganda machine.

The UN turned a blind eye to signs that Saddam was bribing cronies at home and abroad with black market oil vouchers, and was skimming billions from funds meant for food and medicine, demanding secret, 10 per cent "kickbacks" on humanitarian contracts.

The UN recently claimed it "learned of the 10 per cent kickback scheme only after the end of major combat operations" in 2003.

A lie, said Mr Soussan, recalling the hapless Swedish company that called in 2000, seeking UN help after being asked to pay kickbacks. The Swedes' plea was quickly lost in red tape and inter-office turf wars. After a "Kafka-esque" flurry of internal memos, the Swedes were told to complain to their own government.

So much for that which some call international law which is used as a club to beat upon democratic countries like the USA but not Ghana, Sudan or Congo.
Now top UN officials are under investigation. Mr Soussan hopes the shock will force a major debate on how to deal with rogue regimes.

"The oil-for-food programme was a deal with the devil. The problem is, that we didn't act as if this was the devil, we acted as if this was a legitimate regime," he said.

Again, that's not moral equivalence, that's outright immorality. At long last, the USA, Great Britain and other members of the coalition didn't deal with the devil, we removed him from power. Isn't that what moral people do when they confront evil?
If such major questions have to wait, a little more transparency would help, for starters.

"If the UN had just stood up once, held a high-level press conference, and said, 'We think the Iraqi government is cheating its people', then the UN would not be in the mess it is now," he said. "It would then be an accuser, rather than the accused." (Emphasis added)

The U.N. just can't catch a break this week, as it's failure in Serbia has been pushed back to the fore with the admission by Serbian officials that the Srebrenica massacre was carried out by Serbian security officials which in turn stimulated the memory of the failure of Dutch U.N. peacekeepers to protect those who appealed to them for help at the U.N. compound, a failure for which the Dutch government at the time apologized and then resigned.

Iran is piling on: they have rejected any further restrictions on their weapon programs and demands to be recognized as a nuclear power:

Foreign Minister Kamal Kharrazi accused France, Britain and Germany -- who have drawn up a tough new document that accuses Iran of not cooperating with the International Atomic Energy Agency -- of bowing to pressure from the United States.
See what I mean? Iran, which is known for its violation of human rights and a known sponsor of terror, need only pull the anti-US card and millions of progressive, peaceloving people will line up to defend Iran's right to terrorize the world - and Israel - with a nuclear holocaust.

Some of those nuts live in the United States. One of those nuts in running for president: Senator John Kerry, who actually believes that we can pursue detente with North Korea and Iran as we attempted with the Soviet Union.

President Reagan's final gift to the USA may have been the timing of his death which not only coincided with D-Day, a major military offensive in the fight against fascism, but also led to the recollection that he defeated communism by his firm resolve to stand up to the Soviet Union and match them missile for missile rather than meekly pretending they were anything less than evil.

Detente failed. Unyielding principles won, and we were dealing with comparatively sane people in the Soviet Union. Would anyone dare to make the same claims about the North Korean or Iranian governments?

Canadians who are pretending to be terrified of social conservatives coming to power in Canada would, if they were honest, be lying prostrate on the floor in a cold faint at the mere thought of Iranian social conservatives but they aren't because it's all about the propaganda, not the reality.

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