Volcker's U.N. Cleanup The Russians are blocking a proper Oil for Food probe. April 19, 2004 Wall Street Journal http://www.opinionjournal.com/editorial/feature.html?id=110004976 Meanwhile, back at the United Nations Oil for Food scandal, the news leaked Friday that Secretary-General Kofi Annan has picked Paul Volcker to lead a three-man panel to investigate what we now know was a Saddam Hussein skimming operation. What we'd also like to know is why it is taking so long for the Volcker appointment to be formally announced. Mr. Annan first offered the job to Mr. Volcker, the former Federal Reserve Chairman, some two weeks ago. It shouldn't take this long to close the deal--unless some members of the U.N. Security Council really don't want a probe. Word is that Mr. Volcker, who is nobody's toady, doesn't want to lend his reputation to this exercise unless the Security Council passes a new resolution calling on members to cooperate with his team. Under pressure from the U.S. and Britain, Mr. Annan has agreed. But, lo, the Russians are objecting to any resolution. We don't mind for the Secretary-General to appoint the commission but we don't see the need to support his decision in the form of a resolution, says Russia's U.N. Ambassador Gennady Gatilov. In other words, he wants Mr. Volcker to serve as eyewash for the U.N. but without the political clout to expose what really happened. We don't suppose it is a coincidence, comrade, that Russians were among Saddam's best business partners. No word yet on where the French stand on a resolution, but we can guess. The Oil for Food program was designed to let Iraq sell some oil to finance food and humanitarian aid for Iraqis hurt by sanctions against Saddam's regime. But we have learned that Saddam skimmed off as much as $10 billion to build his own palaces and pay off apologists for his regime around the world. Only last week, Detroit businessman Shakir al-Khafaji admitted to the Financial Times that he received Oil for Food allocations. Mr. al-Khafaji had earlier denied receiving such allocations in an interview with our Robert Pollock, who recently reported that Mr. al-Khafaji had helped to finance a pro-Saddam documentary by former weapons inspector Scott Ritter and had donated to antiwar Congressional Democrats. Another hearing in Congress is scheduled this week into what is already the worst corruption scandal in U.N. history. A new resolution would be especially helpful because Security Council nations and members of the U.N. Secretariat have been implicated in the scandal. If Mr. Volcker is going to conduct a credible probe, he'll need the political clout that a new resolution would provide. We trust he's also asking for an independent staff of his own choosing and ample funding. And while a public accounting is necessary, we hope Mr. Volcker will also conduct the probe with an eye to U.S. banking and other laws that may have been broken. http://www.opinionjournal.com/images/storyend_dingbat.gif \* MERGEFORMATINET All of this relates not merely to a look backwards, as Mr. Gatilov dismissively puts it, but directly to the U.N.'s current ambitions in Baghdad. Iraqis now know that the U.N. and some of its leading members conspired with their former dictator to fleece them of their national wealth. The very least Iraqis should expect is that the U.N. will come clean about its sins and punish those who profited at their expense. George Bush, John Kerry and others who now want to give the U.N. control in Baghdad should also settle for nothing less. Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved.