[Congressional Record Volume 150, Number 65 (Tuesday, May 11, 2004)]
[House]
[Pages H2785-H2786]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       IRAQ OIL FOR FOOD PROGRAM

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Oklahoma (Mr. Cole) is recognized for 5 minutes.
  Mr. COLE. Mr. Speaker, I rise today to address what I believe to be 
important facts about the United Nations Oil for Food Program with Iraq 
and how it ultimately was corrupted by Saddam Hussein with the aid and 
willing cooperation of allies from the international community.

                              {time}  2030

  In addressing this issue, Mr. Speaker, a few simple facts should be 
reiterated.

[[Page H2786]]

  In February of 2000, President Clinton's administration registered 
their dissatisfaction with Saddam Hussein's government when he 
complained that approximately $2 billion was spent to build nine lavish 
palaces and import liquor and cigarettes under the Oil for Food 
program.
  During the postwar occupation, some very serious allegations have 
been made regarding people and corporations who circumvented the Oil 
for Food program by receiving illicit payments from oil surcharges. 
Among those implicated were U.N. officials administering the Oil for 
Food program. This was first reported by Al Mada, an independent Iraqi 
newspaper. Some people and organizations who have been accused have 
been confirmed in this account to have violated the program. Others 
have so far denied it.
  Mr. Speaker, it is clear that a tremendous number of companies signed 
oil exploration contracts with Iraq that would ultimately have served 
to undermine any remaining viability of the Oil for Food program. Not 
surprisingly, the companies predominantly seemed to have come from 
countries which opposed the liberation of Iraq.
  Just this March, the General Accounting Office testified before our 
own Committee on Financial Services that it believed that Saddam 
Hussein's regime increased its revenues through illicit activities in 
the Oil for Food program by approximately $10.1 billion between 1997 
and 2002. These funds were spent to oppress the Iraqi people and 
provide a lavish lifestyle for the regime's rulers.
  Mr. Speaker, the facts are clear. Saddam Hussein engaged in an 
ongoing circumvention of the Oil for Food program, flouted the U.N. 
resolutions, persecuted his own people, and was engaged in widespread 
corruption. He was assisted in these activities by a number of 
companies and perhaps countries, as well as people within the U.N. 
bureaucracy itself. This is just one more example that gives 
credibility to our campaign to remove the regime of terror and replace 
it with one that truly represents the Iraqi people.
  Mr. Speaker, thanks to the Oil for Food program, Iraq was able to 
successfully advance its foreign policy by offering future contracts to 
companies for oil exploration, thus receiving a buy-in from other 
countries, bolstering Saddam Hussein's legitimacy.
  The Oil for Food program was suspended just before Operation Iraqi 
Freedom began on March 19, 2003. The U.N. staff in Iraq departed on 
March 28, 2003. As U.N. forces moved north towards Baghdad, the U.N. 
Security Council adopted Resolution 1472, restarting the program's 
operations, empowering the United Nations to take direct control of all 
aspects of the program, and directing the United Nations to set 
priorities on the delivery of already contracted supplies. This 
actually enhanced U.N. authority and then was later extended on June 3, 
2003, a remarkable usurpation of power given the record of the U.N. up 
to that time administering the program.
  On May 22, 2003, Resolution 1483 was adopted, lifting sanctions on 
Iraq and providing for the phasing out of the Oil for Food program's 
ongoing operations within 6 months. In accordance with the resolution, 
the program was terminated on November 21, 2003, and was taken over by 
the U.S. occupation authority, the Coalition Provisional Authority.
  Mr. Speaker, my colleagues can be assured that the CPA is now more 
effectively delivering food and resources to the people of Iraq than 
Saddam Hussein ever did. Today, Iraqi resources are being used for the 
Iraqi people for the first time in decades. Our achievements are 
impressive in this area and should demonstrate our commitment to the 
people of Iraq.
  Mr. Speaker, before I close, I would once again call for a full and 
thorough investigation of the expenditures of all funds involved in the 
Oil for Food program. The corruption was so deep in the Saddam Hussein 
administration and in those countries, companies and international 
institutions that propped up the regime, I am convinced that we will 
not like what we discover.

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