August 08, 2005 

Oil-for-Food man quits in bribe row
From James Bone in New York 

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THE former head of the scandal-ridden Oil-for-Food programme cut his ties with the United Nations last night, hours before an independent inquiry was expected to accuse him of receiving kickbacks. 
Benon Sevan, who ran the largest aid operation in UN history during its six-year existence, quit a nominal $1-a-year post he had held since his retirement last year. 
The move is significant because the post offered him diplomatic immunity from US authorities, which are also investigating his dealings. He is now believed to be beyond their reach in his native Cyprus. 
Mr Sevan resigned in a letter to Kofi Annan, the UN Secretary-General, voicing disappointment that his old friend had not done more to defend him after 40 years of working together. 
“As I predicted, a high- profile investigative body invested with absolute power would feel compelled to target someone, and that someone has turned out to be me,” he wrote. “The charges are false and you, who have known me all these years, should know that they are false.” 
Mr Sevan’s resignation came just hours before he faced possible dismissal for charges levelled in the latest report by the UN investigation of the Oil-for-Food scandal. 
A three-man committee of inquiry chaired by Paul Volcker is investigating corruption in the $64 billion programme, which allowed Iraq to sell limited quantities of oil in order to buy humanitarian goods while under UN sanctions. 
Mr Sevan will be accused of taking kickbacks “in concert with” the brother-in-law of the former Secretary-General, Boutros Boutros Ghali, his lawyer said last week. 
An earlier report by the Volcker inquiry accused Mr Sevan of steering business to a trading company called African Middle East Petroleum, owned by Fakhri Abdelnour, a cousin of Dr Boutros Ghali. The alleged involvement of Dr Boutros Ghali’s family escalates the scandal for the already embattled UN. 
The Volcker commission is also investigating the business dealings of Kojo Annan, the son of Kofi Annan. Today’s report, however, is not expected to tackle questions about the Annans. Investigators plan to release their findings in that case at the end of the month or early next month.