Oil-for-food head resigns before explosive report
By Evelyn Leopold
Reuters, UK
Aug 7 2005
UNITED NATIONS (Reuters) – The former head of the scandal-tainted
oil-for-food program resigned from the United Nations on Sunday,
hours before he is expected to be accused of getting kickbacks from
the $67 billion (37 billion pounds) operation.
A U.N.-established Independent Inquiry Committee, led by former U.S.
Federal Reserve Chairman Paul Volcker, plans to release on Monday its
third interim report on allegations of corruption in the humanitarian
program for Iraq, which began in 1996 and ended in 2003.
Benon Sevan, the former executive director of the program, is to
be accused of getting cash for steering Iraqi oil contracts to an
Egyptian trader and of refusing to cooperate with the Volcker panel,
his attorney Eric Lewis said. Sevan has denied the allegations.
On Sunday, Lewis distributed a letter from Sevan, 67, to U.N.
Secretary-General Kofi Annan resigning from his current job, which
he was given after he retired.
The $1-a-year post carries immunity and was meant to ensure he would
cooperate with the probe. But Sevan may have preempted a dismissal
from this arrangement as the United Nations in the past has taken
action against staff fingered in the Volcker report.
Sevan blamed the secretary-general and his staff for not defending
the program and making him a scapegoat.
“I fully understand the pressure that you are under, and that there
are those who are trying to destroy your reputation as well as my own,
but sacrificing me for political expediency will never appease our
critics or help you or the Organization,” Sevan wrote.
He said that the program, which supplied food and other goods to 27
million Iraqis, was often caught between conflicting mandates given by
the U.N. Security Council, which supervised it, and national interests
of those trying to do business with Iraq.
The Volcker panel was commissioned by Annan to examine charges of
corruption in the program, which was designed to ease the impact
on ordinary Iraqis of U.N. sanctions imposed in August 1990 after
Baghdad’s troops invaded Kuwait.
PAYMENTS QUESTIONED
The panel, in a February 3 interim report, expressed suspicion about
four payments, amounting to $160,000, that Sevan had declared to the
United Nations as funds from his now-deceased aunt.
But Sevan noted on Sunday it was not credible he that would have
compromised his career for $160,000 after handling billions of dollars
in the program.
“The charges are false and you, who have known me all these years,
should know that they are,” Sevan wrote to Annan, recalling the 40
years he had worked at the world body.
Lewis on Thursday began releasing Sevan’s side of the story after
receiving a letter from the Volcker panel outlining “adverse findings”
that the report would contain.
Sevan, a Cypriot, is alleged to have taken bribes “in concert with”
the brother-in-law of former Secretary-General Boutros Boutros-Ghali,
Lewis said.
“The IIC claims that Mr. Sevan received money from African Middle East
Petroleum in concert with Fred Nadler, a friend, and a relative by
marriage of Mr. (Fakhry) Abdelnour, the principal of AMEP,” Lewis said.
Nadler is the brother of Leia Boutros-Ghali, wife of the former
secretary-general. Abdelnour, the owner of AMEP, is a cousin of
Boutros-Ghali, U.N. chief from 1992 to 1996. Boutros-Ghali himself
has been questioned by the panel but is not linked to the bribe
allegations.
AMEP earned some $1.5 million from oil allocations that the panel
says Sevan steered to the Egyptian trading firm.