[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2389 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2389

To require the withholding of United States contributions to the United 
   Nations until the President certifies that the United Nations is 
  cooperating in the investigation of the United Nations Oil-for-Food 
                                Program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 5, 2004

  Mr. Ensign (for himself, Mr. Miller, Mr. Smith, Mr. Graham of South 
Carolina, Mr. Sessions, Mr. Kyl, Mr. Brownback, Mr. Thomas, Mr. Burns, 
  Mr. Lott, Mr. Coleman, Mr. Santorum, Mr. Cornyn, Mr. Craig, and Mr. 
    Allard) introduced the following bill; which was read twice and 
             referred to the Committee on Foriegn Relations

_______________________________________________________________________

                                 A BILL


 
To require the withholding of United States contributions to the United 
   Nations until the President certifies that the United Nations is 
  cooperating in the investigation of the United Nations Oil-for-Food 
                                Program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United Nations Oil-for-Food 
Accountability Act of 2004''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) There have been allegations of substantial fraud and 
        corruption in the administration and management of the oil-for-
        food program.
            (2) The United Nations received 2.2 percent of the proceeds 
        of the sale of the oil exported from Iraq under the oil-for-
        food program, approximately $1,400,000,000, to fund the 
        programs administrative and operational costs.
            (3) The United States General Accounting Office estimates 
        that during the period from 1997 through 2002, the former Iraqi 
        regime received $10,100,000,000 in illegal revenues from the 
        oil-for-food program, including $5,700,000,000 received from 
        oil smuggled out of Iraq and $4,400,000,000 received from 
        surcharges on oil sales and illicit commissions from suppliers 
        exporting goods to Iraq.
            (4) Any illicit activity by United Nations officials, 
        personnel, agents, or contractors, including entities that have 
        entered into contracts under the oil-for-food program, is 
        unacceptable and must be thoroughly investigated.
            (5) Documents in the files of the former Iraqi Oil Ministry 
        indicate that Benon Sevan, the Executive Director of the oil-
        for-food program, and other senior United Nations officials may 
        be connected to a kickback scheme in which some 270 prominent 
        foreign officials, business people, and political entities 
        received the right to trade in Iraqi oil at below market 
        prices.
            (6) On April 21, 2004, the United Nations Security Council 
        adopted Resolution 1538 that established a high-level inquiry 
        into allegations regarding the administration of the oil-for-
        food program. The inquiry will be led by Mr. Paul Volcker and 
        the investigators will not have subpoena powers.
            (7) The ability and credibility of the United Nations 
        Security Council to act in matters of war and peace is 
        threatened due to the alleged influence of permanent member 
        states' politically connected individuals, companies, and 
        institutions who received Iraqi oil contracts.
            (8) The ability of the United Nations to convey legitimacy 
        to the new Government of Iraq and assist in postwar Iraq is 
        hampered by the allegations of United Nations corruption and 
        mismanagement of the oil-for-food program.

SEC. 3. OIL-FOR-FOOD PROGRAM DEFINED.

    In this Act, the term ``oil-for-food program'' means the program to 
permit the sale of petroleum products exported from Iraq and to use the 
revenue generated from such sale for humanitarian assistance 
established and administered pursuant to United Nations Security 
Council Resolution 986 (April 14, 1995) and subsequent United Nations 
resolutions.

SEC. 4. PAYMENT OF CERTAIN CONTRIBUTIONS CONTINGENT UPON UNITED NATIONS 
              COOPERATION.

    (a) Withholding of Portion of Assessed Contributions.--Until the 
President submits the certification under subsection (b), amounts shall 
be withheld from amounts appropriated for contributions to 
international organizations as follows:
            (1) Fiscal year 2005 assessed contributions for united 
        nations regular budget.--Of the funds appropriated for 
        contributions to international organizations in an Act making 
        appropriations for fiscal year 2005, 10 percent of the amount 
        available for United States assessed contributions to the 
        regular budget of the United Nations for such fiscal year.
            (2) Fiscal year 2006 assessed contributions for united 
        nations regular budget.--Of the funds appropriated for 
        contributions to international organizations in an Act making 
        appropriations for fiscal year 2006, 20 percent of the amount 
        available for United States assessed contributions to the 
        regular budget of the United Nations for such fiscal year.
    (b) Certification.--The certification referred to in subsection (a) 
is a certification made by the President to Congress that--
            (1) the United Nations has in effect procedures that 
        provide the General Accounting Office access to all documents 
        relating to the oil-for-food program so that the Comptroller 
        General of the United States may perform nationally mandated 
        reviews of United Nations operations;
            (2) the United Nations Secretary General has formally 
        confirmed that the United Nations will not assert the 
        inviolability of United Nations papers and internal records 
        that concern the oil-for-food program or a sanction imposed on 
        Iraq related to the oil-for-food program;
            (3) the United Nations has authorized the release, upon 
        request, to the law enforcement authorities of any member state 
        of the United Nations authentic copies of any document, 
        including any document in the custody of a person that was 
        engaged on a contract basis to provide goods or services to the 
        United Nations, that in the judgment of the requesting 
        authority directly or indirectly concerns the oil-for-food 
        program or a sanction imposed on Iraq related to the oil-for-
        food program;
            (4) the United Nations has waived any immunity enjoyed by 
        any United Nations official from the judicial process in the 
        United States for any civil or criminal acts or omissions under 
        United States Federal or State law in connection with the oil-
        for-food program; and
            (5) any United Nations official who received improper 
        financial benefits from the oil-for-food program has reimbursed 
        the Government of Iraq for the full amount, including interest 
        on such amount, that such official improperly received.
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