Editing Oil-for-Food Programme (section)

===Independent Inquiry Committee===
After initial opposition to an investigation, UN Secretary-General [[Kofi Annan]] stated on 19 March 2004 that a full independent investigation would be launched. In an official press interview, Annan said "[...] it is highly possible that there has been quite a lot of wrongdoing, but we need to investigate [...] and see who was responsible." [https://web.archive.org/web/20120204084900/http://webcast.un.org/ramgen/pressconference/so040319.rm?start= "00:00:03"]. (<small>''audio clip, @5:56''</small>) However, Annan was emphatic that most of the claims were "outrageous and exaggerated",<ref>[http://edition.cnn.com/2004/WORLD/meast/04/28/iraq.un.oil.reut/]{{dead link|date=May 2025|bot=medic}}{{cbignore|bot=medic}} </ref> and that most of the criticisms had to do with things over which the programme had no authority.

The following individuals were chosen in April 2004 to head the United Nations' ''[[Paul Volcker Committee|Independent Inquiry Committee]]'':<ref>{{cite web |url=http://www.iic-offp.org/index.html |title=Independent Inquiry Committee into The United Nations Oil-for-Food Programme |publisher=Iic-offp.org |access-date=7 December 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111112080317/http://www.iic-offp.org/index.html |archive-date=12 November 2011 }}</ref>
*[[Paul Volcker]], former United States [[Federal Reserve System]] chairman and director of the [[United Nations Association of the United States of America]];
*[[Mark Pieth]] of Switzerland, an expert on money-laundering in the [[Organisation for Economic Co-operation and Development]] (OECD); and
*[[Richard Goldstone]] of South Africa, former Prosecutor of the [[International Criminal Tribunal for the former Yugoslavia]] (ICTY) and the [[International Criminal Tribunal for Rwanda]] (ICTR).

On 22 April 2004, the [[United Nations Security Council]] passed a unanimous resolution endorsing the Volcker inquiry into [[political corruption|corruption]] in the United Nations Oil-for-Food Programme for Iraq, calling upon all 191 member states to cooperate.<ref>{{cite news| url=https://www.nytimes.com/2004/04/22/international/middleeast/22CND-NATI.html | work=The New York Times | title=Corruption Allegations at U.N. Put Annan on the Defensive | first=Warren | last=Hoge | date=22 April 2004}}</ref>

The definitive<ref>{{cite press release|url=http://www.iic-offp.org/story07Sept05.htm|date=7 September 2005|title=Independent Inquiry Committee finds mismanagement and failure of oversight|publisher=United Nations|url-status=dead|archive-url=https://web.archive.org/web/20070612181108/http://www.iic-offp.org/story07Sept05.htm|archive-date=12 June 2007}}</ref> report was presented by Paul Volcker to the Security Council on 7 September 2005.<ref>{{cite web|url=http://www.undemocracy.com/securitycouncil/meeting_5256/#pg002-bk08|title=Security Council Meeting 5256|date=7 September 2005|url-status=dead|archive-url=https://web.archive.org/web/20081211015115/http://www.undemocracy.com/securitycouncil/meeting_5256/#pg002-bk08|archive-date=11 December 2008}}</ref>

A leaked internal UN audit, which surfaced on mineweb.com, shows massive discrepancies between Cotecna reports and UN agency reports for the value of the shipments into northern Iraq. The audit found that Cotecna did no "value" inspections on nearly US$1 billion worth of aid shipments for the Inter-Agency Humanitarian Programme into northern Iraq. However, in a subsequent report published by the Independent Inquiry Committee (IIC) (27 October 2005) it was concluded that "there were no major complaints by the United Nations or its member states about Cotecna's performance"<ref>Independent Inquiry Committee into the United Nations Oil-for-Food Programme – [http://www.iic-offp.org/documents/IIC%20Final%20Report%2027Oct2005.pdf (27 October 2005)] {{webarchive|url=https://web.archive.org/web/20130823070841/http://www.iic-offp.org/documents/IIC%20Final%20Report%2027Oct2005.pdf |date=23 August 2013 }} p. 474</ref> and that "the audit did not report any deficiencies in Cotecna's inspections".<ref name="27 October 2005">Independent Inquiry Committee into the United Nations Oil-for-Food Programme – [http://www.iic-offp.org/documents/IIC%20Final%20Report%2027Oct2005.pdf (27 October 2005)] {{webarchive|url=https://web.archive.org/web/20130823070841/http://www.iic-offp.org/documents/IIC%20Final%20Report%2027Oct2005.pdf |date=23 August 2013 }} p. 475</ref> [[Benon Sevan]] was briefed in December 2002 on the findings of the audit.<ref>{{cite web|url=http://washingtontimes.com/world/20040520-121412-9548r.htm |title=U.N. auditors fault oil-for-food monitor |work=The Washington Times|date=20 May 2004 |access-date=7 December 2011}}</ref>

The audit is available here.<ref>{{cite news |url=http://www.foxnews.com/projects/pdf/un_oilforfood_audit.pdf |archive-url=https://web.archive.org/web/20050416114022/http://www.foxnews.com/projects/pdf/un_oilforfood_audit.pdf |archive-date=16 Apr 2005 |access-date=2023-09-14 |title=Audit |publisher=Fox News}}</ref> Its summary states:

:OIOS' overall conclusion is that the management of the Contract has not been adequate and certain provisions of the Contract had not been adhered to. In addition, the incorporation of additional costs, such as rehabilitation of camps in the man-day-rate was an unacceptable arrangement. Also, the contract had been amended prior to its commencement, which was inappropriate. OIP needs to strengthen its management of contracts and the Procurement Division (PD) should ensure that the basis of payment is appropriate in order to avoid additional costs to the Organization

After reading the leaked audit, congressman [[Henry Hyde]] wrote to Kofi Annan wondering why "The U.S. Congress – which provides 22 percent of the U.N.'s budget and which has publicly requested copies of the 55 internal audits – should be required to depend on media leaks for source documents."

====Interim report results====
In a 219-page initial report, the Volcker Commission documented how OIF chairman [[Benon Sevan]] used his position to solicit and receive allocations of oil from Iraq during the years he oversaw the humanitarian relief programme. Internal records from SOMO (Iraq's State Oil Marketing Organization), as well as interviews with former Iraqi officials involved in illicit oil deals, show that Sevan had requested and received allocations of {{convert|7.3|Moilbbl|m3}} of oil on behalf of a Panama-registered trading company called African Middle East Petroleum Co.

Although the report makes no specific allegations of criminal activity by Sevan, Volcker does not rule out the possibility that charges might be filed by authorities in countries with relevant jurisdiction. The report called Sevan's conduct "ethically improper", noting that Sevan had received large cash payments totalling $160,000 each year he had headed the programme. Sevan claims the money came from an aunt in Cyprus who has since died, but the panel found no evidence to back this claim.

Volcker also reported in January that a review of 58 confidential UN internal OIF audits showed UN officials ignored early signs that humanitarian goods shipped to Iraq before the 2003 Invasion war were given little if any inspections by the Swiss company Cotecna. However, Volker concluded on 27 October 2005 IIC report that "the audit did not report any deficiencies in Cotecna's inspections".<ref name="27 October 2005"/> Cotecna paid [[Kojo Annan]], Kofi Annan's son, consulting fees until November 2003. Volcker said that future reports would deal with questions regarding Kojo Annan.<ref>{{cite web |url=http://www.iic-offp.org/documents/InterimReportFeb2005.pdf |title=Archived copy |access-date=2006-06-07 |url-status=dead |archive-url=https://web.archive.org/web/20050204002604/http://www.iic-offp.org/documents/InterimReportFeb2005.pdf |archive-date=4 February 2005 }}</ref>