UN Transfers Millions From Oil-For-Food
By Edith M. Lederer
February 5, 2008
The Associated Press
Original Source: http://ap.google.com/article/ALeqM5hW29ilQLmxjTWAf35k8erh7qqomgD8UJQC2G1
UNITED NATIONS (AP) — The United Nations has transferred $161 million from the defunct oil-for-food program to a development program for Iraq, Secretary-General Ban Ki-moon said Monday.
In a letter to the Security Council, Ban said the U.N. will continue to transfer unencumbered funds to the Development Fund for Iraq as it continues the process of terminating the oil-for-food program, found to be riddled with corruption.
The program, which ran from 1996 to 2003, was aimed at easing Iraqi suffering under U.N. sanctions imposed after Saddam's 1990 invasion of Kuwait. It allowed Iraq to sell oil provided the bulk of the proceeds were used to buy food, medicine and other humanitarian goods and pay war reparations.
But an 18-month investigation led by former Federal Reserve chairman Paul Volcker, found massive corruption in the program. Its final report in October 2005 accused more than 2,200 companies from some 40 countries of colluding with Saddam Hussein's regime to bilk the humanitarian program in Iraq of $1.8 billion.
Ban reported to the Security Council on a meeting in Jordan last month between U.N. officials and representatives of Iraq's Foreign Ministry and Central Bank, aimed at reducing the number of outstanding letters of credit from the oil-for-food program.
As of the end of 2007, he said there were 210 outstanding letters of credit valued at over $656 million. He urged Iraqi ministries to resolve outstanding claims before March 31 and said the working group would meet again in March.
Ban said a reserve of $187 million and a balance of$225 million would be retained in the oil-for-food account until all remaining issues have been resolved.