Volcker Panel Is Auditing Transactions Of Company That Employed Kojo Annan
BY EDITH M. LEDERER - Associated Press
March 25, 2005

UNITED NATIONS - Investigators probing corruption in the U.N. oil-for-food program in Iraq are auditing transactions between five companies and the Swiss firm that employed U.N. Secretary-General Annan's son, a spokesman for the Swiss firm said yesterday.
A former U.S. Federal Reserve chairman, Paul Volcker, who is conducting an independent investigation of alleged corruption in the $64 billion program, asked Cotecna Inspection S.A. about a month and a half ago for records from the five companies for the years 1996 to 2004, a spokesman, Seth Goldschlager, said.
Kojo Annan, the son of the U.N. chief, worked for Cotecna in West Africa from 1995 to December 1997 and then as a consultant until the end of 1998, when the company was awarded a contract to certify the import of goods under the oil-for-food program.
Both Annans and Cotecna deny any link between Kojo Annan's employment and the awarding of the U.N. contract to the company.
Cotecna said we can't do this quickly, so why don't we get an auditor to do this, and we'll pay for it and you choose the auditor, Mr. Goldschlager said.
But there was a delay in selecting an auditor, and the Swiss accounting firm BDO Visura, which was ultimately chosen by Volcker's Independent Inquiry Committee, only began work about a week ago and won't be finished with the audit until the end of April, he said.
He also said the company won agreement from Swiss banks to drop secrecy provisions regarding Cotecna transactions with the five companies.
They're looking for anything in the accounts of these five companies that could have had anything to do with the U.N. oil-for-food program, he said.
A spokesman for the Volcker inquiry said he had no comment on specifics of the investigation raised by Goldschlager and refused to allow the use of his name. Sole 24 reported in Wednesday's editions that Kojo Annan received at least $300,000 from Cotecna, almost double the amount previously disclosed. Cotecna said Kojo Annan earned about $200,000 as a full-time employee and then as a consultant during the period 1996 through1998, Mr. Goldschlager said. From 1999 until February 2004, he was paid $2,500 a month by Cotecna not to work for a competing company in Nigeria or Ghana. With expenses for a transition period, the total estimated by Cotecna during this so-called noncompete contract is estimated now at somewhat above $165,000, Mr. Goldschlager said.
Mr. Volcker is scheduled to release an interim report on Tuesday detailing his findings about whether or not the secretary-general or his son committed any wrongdoing in connection with the oil-for-food program.