[Congressional Record (Bound Edition), Volume 150 (2004), Part 6]
[Extensions of Remarks]
[Page 7082]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        OIL-FOR-FOOD CREDIBILITY

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                           HON. DOUG BEREUTER

                              of nebraska

                    in the house of representatives

                        Tuesday, April 20, 2004

  Mr. BEREUTER. Mr. Speaker, this Member agrees with the sentiments 
expressed in an April 12, 2004, Lincoln Journal Star editorial entitled 
``Credibility at Stake in Probe of Oil-for-Food.'' This Member commends 
the article to his colleagues.

             [From the Lincoln Journal Star, Apr. 12, 2004]

             Credibility at Stake in Probe of Oil-for-Food

       If the United Nations is to retain credibility as an 
     effective force in international affairs, it cannot afford a 
     slipshod and superficial investigation into its handling of 
     the oil-for-food program.
       Rumors of corruption in the program have been floating 
     around for years, but more specific charges have been leveled 
     recently.
       The charges are especially troubling at a time when the 
     United Nations is being encouraged to take a larger role in 
     the stabilization of Iraq.
       The oil-for-food program, established and operated by the 
     United Nations, was begun in 1996 to ease hardship imposed on 
     ordinary Iraqi citizens by economic sanctions. Under its 
     guidelines, Iraq was allowed to sell oil to buy goods that 
     had humanitarian purposes, such as food and medicine.
       Iraq sold about $67 billion worth of oil before the program 
     ended, according to the U.S. General Accounting Office.
       The program was set up to pay for itself. The United 
     Nations earned a 3 percent commission. Most of the money went 
     to cover the United Nation's costs, and the remainder was to 
     go to the weapons inspection program.
       But GAO officials said recently that Saddam Hussein's 
     government pocketed more than $10 billion in proceeds from 
     oil sales. About $5.7 billion came from oil smuggled to its 
     neighbors. Another $4.4 billion came from illegal surcharges 
     and kickbacks on legitimate contracts.
       Several months ago, an Iraqi newspaper said it had 
     documented proof that oil revenue was diverted to more than 
     200 businesses, organizations and individuals, including 
     French and Russian politicians and Benon Sevan, the U.N. 
     official who ran the oil-for-food program.
       U.N. officials attempted and succeeded in blocking some of 
     the smuggling ventures, but the recent charges portray the 
     corruption as much more extensive than previously suspected. 
     One of the ticklish aspects of the corruption charges is that 
     U.N. General Secretary Kofi Annan's son, Kojo, worked for one 
     of the companies that are implicated in the scandal. 
     Suggestions that Kojo Annan was involved in the corruption 
     seem dubious, however, since he left the company before it 
     became involved with the program.
       Kofi Annan initially was slow to respond to the new 
     charges, but he won U.N. Security Council permission last 
     month to establish an independent investigation into the 
     charges. The approval was less than enthusiastic, however. 
     Russia agreed only to ``take note'' of the investigation.
       The United Nations has filled an invaluable role over the 
     years in addressing humanitarian problems and helping to 
     resolve conflicts.
       In order to retain the trust of the international 
     community, the United Nations must be willing to thoroughly 
     investigate these charges of corruption. If results warrant, 
     the international organization also must take decisive action 
     against any of its own officials who may have been involved.

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