Arrest over oil-for-food 'bribes' June 14, 2007 BBC Original Source: http://news.bbc.co.uk/2/hi/uk_news/6753459.stm A British man has been arrested over allegations that kickbacks worth millions of dollars were paid to Saddam Hussein's regime during oil deals. John Irving, 52, faces trial in the US over claims he flouted UN sanctions. American prosecutors say the trader manipulated the oil-for-food programme, designed to allow Iraq to export crude oil in return for humanitarian imports. When the investigation was revealed in 2005, Mr Irving insisted the claims were entirely without foundation. 'UN defrauded' He was arrested by officers from the Metropolitan Police's extradition unit in central London after a warrant was issued in the US. It states that Mr Irving, of Sherborne St John, Hampshire, stands accused of conspiring to evade sanctions preventing Iraqi oil from being sold. Prosecutors claim that Mr Irving defrauded the United Nations (UN) through his employer, Bayoil. David Chalmers, owner of the Houston-based company, and another man have already been charged. If found guilty they face a jail term of up to 62 years and a fine of $1m (£530,000). According to the prosecution, the trio fixed an artificially low selling price for oil between January 2000 and the start of the Iraq war in March 2003. It is also claimed that they paid secret commissions and surcharges illegally to Iraqi officials. Mr Irving is also accused of lying when he claimed that no illegal payments were made. Speaking in 2005, Mr Irving said he was horrified by the allegations. I deny any involvement in any of the matters set out in the indictment and I am currently working with my solicitors to mount a robust defence, he said. American officials have investigated a number of allegations of corruption relating to the oil-for-food programme. The former UN secretary general Kofi Annan was heavily criticised over the scandal and faced calls for his resignation as a result. It was claimed he had not carried out an appropriate inquiry into the employment of his son Kojo by a Swiss firm that was awarded a contract under the scheme. But no evidence was found that the secretary general made personal gain or influenced the contract. Mr Irving is due to appear at City of Westminster Magistrates' Court.