Swiss see no federal oil-for-food prosecutions

November 23, 2007
Reuters 
Source: http://www.reuters.com/article/middleeastCrisis/idUSL2381136

GENEVA, Nov 23 (Reuters) - The Swiss authorities do not expect investigations into kickbacks to Iraq or racketeering under the U.N. oil-for-food programme to lead to any federal prosecutions, the office of the attorney-general said on Friday.

This is partly because many of the cases have already lapsed under the statute of limitations, which is only five years under Switzerland's Embargo Act, and partly because of the sheer difficulty of investigating the cases, it said in a statement.

Out of 36 investigations opened by the federal prosecutor, 15 have been settled either through summary penalties imposed by prosecutors in the Swiss states, or cantons, or through decisions not to proceed with the case, it said.

One case is still pending with federal examining magistrates, it said.

The other 20 investigations with the federal prosecutor are also likely to result in summary penalties or will lapse, it said. Theoretically a full prosecution could be launched.

However, as a result of the time-bar problem, it is unlikely that this option will be taken, i.e. no prosecutions are planned at present, the office said. It added it did not expect to open any further investigations.

A spokeswoman for the office was unable to say how many of the 15 cases that have been settled had lapsed and how many had resulted in summary penalties, or to detail the penalties.

She also declined to name any individuals or companies investigated, whether punished or not, citing Swiss rules on secrecy in criminal investigations.

Last year a court in Geneva fined a local oil trader 50,000 Swiss francs ($45,370) for illegal activity under the programme.

The U.N. oil-for-food programme was established to help Saddam Hussein's Iraq sell oil to buy humanitarian supplies while it was under U.N. sanctions after the 1990 invasion of Kuwait. The programme ran from 1996 to 2003.

A U.N.-commissioned inquiry headed by former U.S. Federal Reserve Chairman Paul Volcker found in October 2005 that 2,200 companies in 66 countries had paid $1.8 billion in kickbacks to Iraqi officials to win supply deals.

Others supplied humanitarian goods at excessive prices.

U.S. authorities have been more successful in investigating the scandal, notching up several convictions.

On Tuesday Swiss firm Vitol, one of the world's largest independent physical oil traders, pleaded guilty in New York to grand larceny for paying kickbacks to Iraq under the programme.

Earlier this month Chevron Corp (CVX.N: Quote, Profile, Research), the second biggest U.S. oil company, agreed to pay $30 million to settle criminal and civil liabilities arising from its procurement of Iraqi oil under the programme. (Reporting by Jonathan Lynn, editing by Andrew Roche)