Author: Maghakian Mike

The Georgian Messenger
30 April 2004
Solid Economic Policy Must Be A Priority
By M. Alkhazashvili
According to a study conducted by the World Bank, Georgia is one of the 64
countries with the lowest per-capita incomes in the world. Also on the list
are the post-Soviet countries of Azerbaijan, Moldova, Kyrgyzstan, Tajikistan
and Uzbekistan. According to the calculations of World
Bank analysts, the main reason behind the poverty in these countries is the
lack of adequate financing for social programs, health care and education.
The Georgian government intends to fight poverty with a special program
adopted last year during the Shevardnadze administration. This program
foresees economic growth in the country by the year 2015. The new government
has talked about making certain changes in the program and some analysts
point out that if this document does not undergo some alterations, reducing
poverty in the country will be an exceedingly difficult task.
Many foreign experts are of the same opinion. They predict a rather grim
future for Georgia and its neighboring countries. Due to the complicated
social and political situation, Georgia’s population is projected to
decrease by 1.5 million by the year 2015, rendering it less than 3 million.
The population of Armenia, meanwhile, will fall slightly to 3 million and
that of Azerbaijan will increase to 9 million. But population
growth in Azerbaijan will not be caused by good living conditions. On the
contrary, it will further inflame the problem of poverty.
As analysts say, in order to overcome the current dire situation, it is
necessary to develop a wholly new economic vision. So far, the government is
continuing to follow the priorities of the old administration – that is,
focusing on the budget, pensions and salaries. If we closely examine these
notions, Solid economic policy must be a priority however, we see that there
is nothing behind them. The amount of the country’s budget is insignificant
and salaries and pensions are miniscule. In other words, we need to put
these old priorities aside, though not
as unimportant issues, but rather we should view a strong budget and
sufficient salaries and pensions as a consequence of a well-thought-out
economic policy.
Nothing yet can be said about the new government’s vision for the nation’s
economy, as no such document has been adopted that expresses a coherent
vision. A new economic vision must first of all mean the creation of a new
tax code. Work on a new code is underway, but the hurried pace of this work
creates the danger that many mistakes will be made. One specialist who has
seen the draft code warns that it looks no better than its predecessor and
little change is visible. These mistakes will be difficult to correct in the
future. Without a consistent and liber-al economic policy, the nation’s
economic and consequently political and social development will be stalled
for several years.

Dying for a Cigarette: Anti-smoking campaign must change minds as well as
habits
30 April 2004
By Marianna Grigoryan
ArmeniaNow.com reporter
An appealing cigarette advertisement placed in newspapers comes with two
cigarettes attached, carefully wrapped in transparent cellophane. That ad
was available to everyone and offered real temptation especially for
teenagers, for whom such material offers an incentive to take up the
smoking habit.
A year ago health care specialists hoped that the adoption of a law project
on cigarettes would introduce restrictions in this area. However, in March
2004 the National Assembly rejected the law On Cigarettes for the second
time. Cigarette commercials and propaganda got back on track after that and,
according to sales statistics, the number of smokers started growing.
According to statistics today around 70% of men in Armenia are smokers.
There’s no precise information regarding women since many hide their
addictive habit. However, experts believe that smoking is increasing rapidly
among women, partly out of a popular view that a woman who smokes is
stylish, modern and sexy.
Health care specialists are particularly concerned by the situation among
teenagers, which they say indicates a lack of attention in Armenia to the
seriousness of smoking.
“They smoke everywhere, in cafes, even in buses,” says the chairman of Human
Health charitable organization David Petrosyan. “If you try to reprimand
someone you’ll either be considered a bad person or you’ll get an ironical
smile, since the law defining this field does not exist and anti-smoking
control in Armenia is very weak. And doctors are not ready to explain to
people the real threat of this habit.”
Petrosyan says that the law On Cigarettes could change the situation to some
degree by beginning to curtail the epidemic of smoking. It proposed serious
restrictions on cigarette advertisement, smoking in public places and in
many aspects of this sphere.
Color advertisements in newspapers and magazines and on TV would have been
prohibited. Smoking would have been banned in schools and at other
institutions for children, while cigarette companies would have been barred
from sponsoring TV and radio programs for youngsters . (A current law on
advertisement places certain restrictions on cigarette advertisement, but
the law has been mostly ignored since the new law was rejected.)
“Diseases, disablement and mortality from smoking have reached unbelievable
levels among us today. The indexes on lung cancer are causing concern,” says
Petrosyan. “Unfortunately, MPs don’t take the situation seriously. The draft
law was rejected in a similarly unserious atmosphere, since no one thought
that by rejecting law they would not be elected tomorrow. The public has to
change its opinion on this issue.”
Public opinion in Armenia may appear indifferent now, but Alexander
Bazarchyan, the anti-smoking project coordinator at Armenia’s Health
Ministry, says individuals and organizations that are interested in this
issue will do everything to change the situation.
“The law has already been rejected twice but, a year on, the anti-smoking
fight is now pretty active,” says Bazarchyan. “Non-government organizations,
media have become more active, new events are being organized.”
Petrosyan says there will be a fresh attempt soon to pass the law in the
National Assembly. He says: “We’re working and doing some clarifications in
that direction. The anti-smoking struggle is not something of one or two
days. At the end of the day, the rights of non-smokers have to be protected
as well.”
Bazarchyan says an anti-smoking campaign under the slogan “Cigarettes and
Poverty” is planned in Yerevan on May 31, which is World Anti-Smoking Day. A
website is being opened () with information and
statistics on smoking in Armenia, and there are plans to publish a book
setting out the real dangers of cigarettes.

Baku Today, Azerbaijan
April 27 2004

UK diplomat for South Caucasus visits Azerbaijan
Baku Today 27/04/2004 11:54
British envoy for South Caucasus Bryan Foll said, at a meeting with
Azerbaijani defense minister Safar Abiyev yesterday, the resumption
of military operations in Karabakh is unfavorable for both sides of
the conflict.
Foll, who said he is concerned that the conflict has not been settled
yet, stressed the importance for strengthening international efforts
for peaceful solution of Karabakh conflict.
Karabak issue has also figured during Foll’s meeting with Azerbaijani
president Ilham Aliyev.
Fall said, the conflict has been mostly affecting people who have
become refugees and internally displaced persons as a result of the
conflict.
Fall has also touched energy cooperation issues between Azerbaijan
and British oil companies during his meeting with ALiyev. He said,
British companies have been actively investing into both oil and
other sectors of Azerbaijani economy.
This material may not be copied, reproduced, republished, posted, in
any way except for your own personal non-commercial home use. Any
other use requires the prior written permission of Baku Today.

Senator advocates acknowledgement of Armenian Genocide
By Elizabeth Leffall
The Collegian
[email protected]
April 24, 2004, Vol.128, No.36
In an emotionally charged ceremony, Sen. Chuck Poochigian called for
acknowledgment of the Armenian Genocide of 1915 in the Free Speech Area,
Friday.
“April 24 represents a massacre of our people,”
Poochigian said.
Today represents 89 years of remembering an act by a young Turkish
government, a sadistic people, who arrested and murdered our people in
Constantinople,” Poochigian said.
Poochigian choked back emotion as he described the effects the genocide had
on his culture and family. “1.5 million people died between 1915 and 1916 as
a result of rule under the Ottoman Empire,” he said. “My grandparents’ lives
were directly affected by this atrocity. They had to see family members
split and many never saw each other again. My family and my people live with
that knowledge every day.”
During the ceremony various speakers encouraged the community to continue
to recognize the Turkish government’s part in the Armenian Genocide.
Professor of Armenian Studies Barlow Der Mugrdechian said the event,
organized by the Armenian Students Organization (ASO), was designed to bring
about awareness and recognition.
“I think it is important that this commemoration takes place on campus to
educate both students and non-students that such an atrocity took place,”
Der Mugrdechian said.
ASO club members dressed in black, wearing red armbands as they
participated in the ceremony.
Sevag Tateosian, a criminology senior, read a poem to music entitled, “You
will Fall” by author Vahan Tekeyan.
A replica of the martyr’s monument in Armenia called “Dzidzernagapert” was
recreated for the event. Translated the monument means the citadel of
swallows. Dikran Chekian, a business senior and the current ASO president,
said the swallow is used because it is a bird that always returns to the
nest. The 12 gray slabs that make up the citadel represent the 12 regions of
people east of Turkey and west of Armenia lost in the genocide.
Poochigian said progress is being made to have the event recognized
internationally.
Most recently, on April 22, the Canadian Parliament recognized the genocide
of Armenians as a crime to humanity.
“We must put confidence before expedience.” Poochigian said. “We encourage
Turkey to admit that the genocide took place and commit to their history and
restoration. Commitment to justice should never stop at the grave,” he said.

Armenian army chief, US general sign rear support accord
Mediamax news agency
26 Apr 04
YEREVAN
The Armenian Armed Forces and the US European Command have signed the
Acquisition and Cross-Servicing Agreement (ACSA) envisaging
cooperation in the sphere of rear provision.
The head of the General Staff of the Armenian Armed Forces, Gen-Col
Mikael Arutyunyan, and the deputy commander of the US European
Command, Gen Charles Wald, said this at a briefing in Yerevan today.
According to Mikael Arutyunyan, under the agreement, the sides are to
render rear support to each other while carrying out different actions
and exercises with the further compensation on mutual basis.
According to Charles Wald, the signing of this agreement will help
“cement our military cooperation with Armenia”.
[Passage omitted: details of ACSA programme]

Armenian government amends bill on procedures for holdings demos
Mediamax news agency
26 Apr 04
YEREVAN
Armenian Minister of Justice David Arutyunyan today presented
amendments and changes to the bill “On procedures for holding
meetings, rallies, marches and demonstrations” adopted by the
parliament in the first reading.
David Arutyunyan said that the government had taken into account most
of the proposals received from international organizations. In
particular, the minister said, about 90 per cent of the notes made by
the OSCE office in Yerevan were taken into consideration while
preparing the bill for the second reading.
It is expected that the voting for the bill “On procedures for holding
meetings, rallies, marches and demonstrations” in the second reading
will take place in the Armenian National Assembly on 27 April.
On 22 April, the special representative of the secretary-general of
the Council of Europe, Natalya Vutova, said that the bill “On
procedures for holding meetings, rallies, marches and demonstrations”
adopted by the Armenian National Assembly in the first reading did not
correspond to Article 11 of the European convention on freedom of
assembly. Vutova said this referring to the preliminary conclusion by
the Council of Europe Venice Commission.

ETHNIC AZERIS, ARMENIANS CLASH IN IRANIAN CAPITAL, 40 ARRESTED – AZERI TV
ANS TV, Baku
25 Apr 04
Ethnic Armenians in Tehran have staged a march dedicated to their
false genocide claims from the Armenian church located at the
Karimkhan cemetery to the Turkish embassy on Ferdowsi Street and the
UN office. In the process, they clashed with Azeris. Forty Azeris were
arrested and 20 were seriously injured.
The head of the Baku office of the National Revival Movement of
Southern Azerbaijan, Huseyn Turkel, said that the names of those
arrested and injured are known. Some of the injured are in hospital
and some in prison. He said that three of the injured were in a
critical condition. One of them was stabbed six times.
To recap, the Armenians were chanting “Death to Turks!” and “Damn the
Turks!”. The Armenians and Azeris clashed when the latter tried to
prevent the Armenians from setting fire to a Turkish flag outside the
Turkish embassy.

Armenian Prelacy of Canada Press Office
3401 Olivar Asselin, Montreal, Quebec H4J 1L5
Tel: (514) 856-1200
Fax (514) 856-1805
E-mail: [email protected]
The Holy Sea of Cilicia Bestows the “Sourp Mesrob Mashdots” Medal to Soprano
Isabel Bayrakdarian
His Holiness Aram I, Catholicos of the Holy Sea of Cilicia, acting upon the
request of His Eminence, Archbishop Khajag Hagopian, Prelate of the Armenian
Prelacy of Canada, bestows the prestigious “Sourp Mesrob Mashdots” medal to
Canadian Armenian soprano, Isabel Bayrakdarian.
The official awarding ceremony of the “Sourp Mesrob Mashdots” medal is
scheduled for May 23, 2004, during Armenian Prelacy of Canada’s National
Representative Assembly Meeting.
Born in Beirut, Ms. Bayrakdarian began singing Armenian liturgical music in
the church choir at the age of three, and even continues to do so today. Her
debut album, Joyous Light, was a collection of medieval Armenian sacred
music dating from the 5th century onwards. It reached no.1 in the classical
charts across Canada within days of its release.
Ms. Bayrakdarian has received numerous awards throughout her career, most
recently taking home a Juno for her second album, Azulão. She can also be
heard on the Grammy award-winning soundtrack, Lord of the Rings, The Two
Towers, as well as Atom Egoyan’s Ararat.
Ms. Bayrakdarian’s upcoming engagements include Suzanna in a new production
of Le nozze di Figaro with Los Angeles Opera, a debut with the San Francisco
Symphony (Mahler’s 2nd Symphony) and a recording project this summer. During
the 2004/2005 she returns to the Metropolitan Opera, to the Lyric Opera of
Chicago twice, and she makes her debut with the Pittsburgh Opera. In
concerts and recitals she appears in Montreal, Washington, Toronto,
Victoria, Edmonton and Vancouver, Yerevan, Armenian among other cities.
Management: Ronald A. Wilford and Elizabeth Crittenden; Columbia Artists
Management Inc.; Tel: (212) 841-9501; Fax: (212) 841-9687.
Armenian Prelacy of Canada Press Office
3401 Olivar Asselin, Montreal, Quebec H4J 1L5 Tel: (514) 856-1200; Fax (514)
856-1805; E-mail: [email protected]
Isabel Bayrakdarian’s publicist: Barbora Krsek; Tel: (416) 534-3337;
Fax: (416) 534-5661; E-mail: [email protected]

ASBAREZ ONLINE
TOP STORIES
04/23/2004
TO ACCESS PREVIOUS ASBAREZ ONLINE EDITIONS PLEASE VISIT OUR
WEBSITE AT <;HTTP:// 1) California Governor Schwarzenegger Proclaims April 24 Day Of Remembrance For The Armenian Genocide 2) Statement of US Senator Barbara Boxer Commemoration of the Armenian Genocide 3) Horizon TV to Provide Continuous Coverage of April 24 Events 4) Idaho Governor Issues Proclamation Commemorating the Armenian Genocide 1) California Governor Schwarzenegger Proclaims April 24 Day Of Remembrance For The Armenian Genocide SACRAMENTO--The Armenian National Committee of AmericaWestern Region (ANCA-WR) reported today that newly elected California Governor Arnold Schwarzenegger issued an Executive Proclamation designating Saturday, April 24, as a "Day of Remembrance for the Armenian Genocide."The language of the proclamation addressed the historical facts of the Genocide and commended Armenian Americans for retaining their “…distinct heritage, language, and religion, and bringing rich cultural diversity to the Golden State.” “We are very pleased to have Governor Schwarzenegger proclaim April 24 as a California Day of Remembrance for the Armenian Genocide,” commented ANCA-WR Government Relations Director, Armen Carapetian. “Designating April 24th as a special day means a great deal to the children and grandchildren of survivors of the Armenian Genocide and even the survivors who were able to make it to California and called this great state their home.” On Saturday, April 24, California State Senator Charles Poochigian, the legislature’s highest ranking Armenian, will present the proclamation to the ANCA-WR and the Armenian community at a special ceremony to be held at the Armenian Martyrs Monument in Montebello, California.The event will include special messages from Senator John Kerry, Governor Schwarzenegger, in addition to speeches from various other California State and federal public officials. The complete text of Gov. Schwarzenegger's statement follows: On April 24, 1915, in Constantinople, the Ottoman Turkish government arrested and murdered several hundred Armenian religious, political, and intellectual leaders, beginning a campaign of terror known as the Armenian Genocide. From 1915 to 1923, the Ottoman Empire executed a systematic destruction of Armenian culture through the forced exile, imprisonment and annihilation of men, women and children of Armenian descent. More than 1.5 million Armenians perished, and 500,000 survivors were forced to leave their ancestral homeland in Turkey. Whole villages were massacred and many people died of exposure and starvation during forced death marches in the desert. Despite this great tragedy, the Armenian people have persevered and today are striving to build a free and proud nation, based on the principles of democracy and a free-market economy. California is home to 700,000 Armenians--the largest Armenian community outside the Republic of Armenia. Throughout the decades, the Armenian-American community has contributed to California's agriculture, business, education, public service, and the arts. They have retained their distinct heritage, language, and religion, bringing rich cultural diversity to the Golden State. On this 89th anniversary of the Armenian Genocide, we join with Armenians around the world to mourn the loss of so many innocent lives. In remembering this great human tragedy, we rededicate ourselves to combat injustice, and we honor the triumphant spirit of the Armenian people. NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, do hereby proclaim Saturday, April 24, 2004, as a "Day of Remembrance for the Armenian Genocide." 2) Statement of US Senator Barbara Boxer Commemoration of the Armenian Genocide Between the years of 1915 and 1923, a million and a half Armenians were brutally murdered as a result of a calculated plan to eliminate Armenians from the Ottoman Empire. Men taken from their homes and separated from their families were killed. Women, children, and elderly were sent on forced death marches across the Syrian Desert. These actions constituted the first genocide of the 20th century and one of the most vicious and tragic events in world history. One and one-half million Armenian lives were lost, countless more were persecuted, and the entire Armenian community suffered. As we reflect on these horrible years, Armenian Americans know this story and its relevance in history. Tragically, some question its historical accuracy.To prevent future genocide is to face the reality that it exists. Knowledge of past genocides in different parts of our world assists in arming us to prevent such acts from occurring again. At the outset of the Jewish Holocaust, Adolph Hitler said that no one remembered what happened to the Armenian people during the genocide. He then proceeded to implement his Final Solution. Today, Armenians are continuing to work to rebuild and strengthen their great nation. After facing years of injustice and persecution, the Armenian people’s spirit remains strong. I join you in commemorating the 89th anniversary of the Armenian genocide. As we remember these sad years, we must never forget that an act of genocide is not only an act of hatred toward one particular group, but toward all humankind. May we learn from the tragedy of the Armenian genocide and recommit ourselves to full equality, respect, and acceptance for all people.An important first step is the recognition of the Armenian Genocide by the United States Government and the world as a whole. 3) Horizon TV to Provide Continuous Coverage of April 24 Events Horizon 24 Hour Armenian Television will preempt its regularly scheduled programming to provide complete and comprehensive coverage of April 24 events, as well as documentaries, cultural performances and the arts in commemorating the Armenian Genocide. The program line-up will also include special interviews with scholars, worldwide coverage of Genocide commemorative events, and live interviews with representatives of Armenian communities in the Diaspora. The live broadcast will start at 6 am PST and will run until 2 am. The program will be available to anyone with the T5-Telestar Globecast World TV receiver, on channel 411, or on the following frequency: D/L Frequency: 11,867 MHz D/L Polarity: Vertical Symbol Rate: 22.000 Msym FEC: ¾ For information call (818) 246-1989. "We believe that April 24 is a day for Armenians worldwide to renew their vow to continue the struggle against denial until the day Turkey recognizes the Genocide, returns our lands, and makes reparations. Our programming is not about mourning our losses, rather about showing the world that Armenians will not give in until every last inch of our homeland is returned to us. It is about proving to everyone that we can put aside our personal differences and unite in the struggle for Hai Tahd." --Horizon's Executive Producer Bianca Manoukian. 4) Idaho Governor Issues Proclamation Commemorating the Armenian Genocide BOISE--Idaho became the 33rd US state to recognize the Armenian Genocide this week, as Republican Governor Dirk Kempthorne issued a proclamation citing April 24 "Idaho Day of Remembrance of the Armenian Genocide of 1915-1923," reported the Armenian National Committee of Idaho (ANC-Idaho). The proclamation begins by noting that "one and a half million Christian Armenian men, women, and children were the victims of a brutal genocide perpetrated by the Ottoman Turkish Government from 1915-1923." It goes on to cite the importance of commemorating this crime against humanity as a way of "guarding against the repetition of future genocides and educating people about the atrocities connected to these horrific crimes." The complete text of the Governor's proclamation is provided below. The gubernatorial proclamation closely follows a resolution unanimously adopted by the Senate of the Associated Students of Boise State University (ASBSU) recognizing the Armenian Genocide and condemning efforts to rewrite history. Senate Resolution 13 states that the genocide "has resulted in the elimination of the Armenian people from their historic homeland of over 3000 years through the criminal loss of property and life." The resolution "commemorates the Armenian Genocide and condemns those attempts made by governments as well as other entities, both public and private, to distort the historical reality and legal relevance of the Armenian Genocide to the descendants of its survivors and humanity as a whole." On hearing the news of the Governor's proclamation, David Morris, President of the ASBSU, commented: "I think it's fantastic that the Governor not only recognizes the importance of bringing this information to light, but also stands behind efforts to educate the public about the Armenian Genocide". Chairman of ANC-Idaho, Rafael Saakyan, commended Governor Kempthorne on his "commitment to advancing human rights issues in the state of Idaho and for joining the Armenian community across this great state in sustaining the flame of remembrance for the victims of the Armenian Genocide." Saakyan then urged the Idaho Congressional delegation to "ensure that their state's views are well represented through their support for the adoption of the Genocide resolution in the House and Senate." Rebecca Kun, communications director of ANC-Idaho, worked closely with the ANC-Idaho team to collect close to 600 signatures for the proclamation request. This was a marathon process--we collected 594 signatures in 2 weeks in order to get our proclamation request submitted in time to meet the April 24 deadline we set for ourselves. With this proclamation and the Boise State initiative it is clear that the Armenian community, working together, can make a real difference." Kun continued, "As a first generation holocaust survivor, I understand the importance of bringing these events to light. Having this proclamation signed by both the State of Idaho and Boise State University is the first step to correct the dissemination of lies that has been perpetuated for the last 89 years." Massachusetts State Republican Committee chairman Bob Semonian of Watertown, MA helped the ANC-Idaho bring their concerns to the attention of the Governor's office. Semonian discussed the importance of the recognition of the Armenian Genocide with Gov. Kempthorne directly at the recent National Governor's Association (NGA) meeting in Washington, DC. Gov. Kempthorne currently serves as chairman of the NGA. The Idaho proclamation follows an earlier letter of recognition issued by Montana's Republican Governor Judith Martz in late March. Jamestown (ND) Mayor Charles Kourajian issued a city proclamation last week honoring the victims of the Armenian Genocide. Text of the Idaho Proclamation Commemorating the Armenian Genocide: WHEREAS, one and one-half-million Christian Armenian men, women, and children were victims of a brutal genocide perpetrated by the Ottoman Turkish Government from 1915-1923; and WHEREAS, the Armenian genocide and massacres of Armenian people have been recognized as an attempt to eliminate all traces of a thriving and noble civilization over 3,000 years old; and WHEREAS, recognition of the eighty-ninth anniversary of this genocide is crucial to guarding against the repetition of future genocide and educating people about the atrocities connected to these horrific events; and WHEREAS, Armenian-Americans living in Idaho have greatly enriched our state through their leadership in business, agriculture, academia, government and the arts; NOW, THEREFORE I, DIRK KEMPTHORNE, Governor of the State of Idaho, do hereby proclaim April 24, 2004, to be IDAHO DAY OF REMEMBRANCE OF THE ARMENIAN GENOCIDE OF 1915-1923 All subscription inquiries and changes must be made through the proper carrier and not Asbarez Online. ASBAREZ ONLINE does not transmit address changes and subscription requests. (c) 2004 ASBAREZ ONLINE. All Rights Reserved. ASBAREZ provides this news service to ARMENIAN NEWS NETWORK members for academic research or personal use only and may not be reproduced in or through mass media outlets.

The Times (London)
April 23, 2004, Friday
Saddam, the politicians, the kickbacks and the $ 4.4bn UN
Oil-for-Food scandal
by James Bone in New York
Investigations are under way to expose how the Iraqi dictator bought
influence around the world and broke sanctions, writes James Bone in
New York
Simultaneous investigations of the now-defunct United Nations
Oil-for-Food programme aim to expose how Saddam Hussein used Iraq’s
vast oil wealth to buy political influence around the world.
The Iraqi Governing Council, the US Congress and an independent panel
established by the UN have started to investigate allegations that
Saddam’s regime used oil to bribe politicians, political parties,
journalists and a leading UN official.
The inquiries are also examining Saddam’s system of kickbacks, which
he used to break sanctions, fund his military and sustain his regime.
The scale of the alleged corruption is staggering. The investigative
arm of the US Congress estimates that Saddam earned $ 4.4 billion
(£2.59 billion) in illegal “surcharges” and “after sale service fees”
on contracts overseen by the UN. Individual bribes allegedly ran into
millions of dollars.
The scandal has created an atmosphere of dread at the UN, which ran
the Oil for- Food scheme, just as the world organisation prepares to
play a larger role in the political transition in Iraq. But the
allegations have also sent shockwaves around the world because
hundreds of prominent figures in two dozen countries stand accused.
The fall of Saddam has made available a treasure trove of documents
that contain some of Iraq’s most closely guarded secrets. Few have
been made public, but coalition officials have taken steps to secure
the evidence.
The UN Oil-for-Food scheme was the largest UN humanitarian programme
in the organisation’s history, handling a total of $ 64 billion worth
of Iraqi crude from December 1996 until it was wound up last year.
The programme was established after the first Gulf War to mitigate
the effects of the UN economic embargo imposed after the 1990
invasion of Kuwait.
Britain and the United States played a leading role in its creation
because governments did not want to be accused of starving the Iraqi
people. At times, both powers had to bend to pressure from other
countries to turn a blind eye to corruption and mismanagement so that
Iraq continued to co-operate with the scheme.
The UN exercised oversight through its control of Iraqi oil revenues.
Money generated from approved Iraqi oil sales was deposited in a UN
escrow account. The UN then released funds to pay for approved
imports of food, medicine and other humanitarian supplies.
The oil price was set by a panel of UN “oil overseers” and all
contracts approved by the UN Security Council’s 15-member sanctions
sub-committee, operating by consensus so that any single member could
block a decision. But Iraq found ways to circumvent the UN
monitoring, enabling it to demand billions of dollars in kickbacks.
The first weakness of the UN system was the mechanism to set the oil
price.
Although there were originally three oil overseers, retirements and
resignations reduced this number to one -a relatively young former
Russian insurance executive. For more than a year, Russia blocked the
appointment of new overseers to replace those who had left.
Until late 2000, the UN’s price for Iraqi oil was set at the start of
each month.
That allowed Iraq to time its sales to exploit the ups and downs of
the world oil market.
A higher world price meant a higher margin over the price set by the
UN, allowing it a greater profit, which Iraq could then demand be
kicked back to Baghdad.
Congressional investigators estimate that Iraq levied an illegal
“surcharge” of between 10 cents and 35 cents a barrel on crude
shipped under the Oil-for-Food programme.
Iraq also made money by demanding kickbacks on contracts to supply it
with humanitarian goods under the UN scheme. US officials say that
the customary kickback was 10 per cent. A vendor selling Iraq $ 100
(£56) of goods would notify the UN that the shipment was worth $ 110
and give the $ 10 to Iraq.
The money generated was deposited in front companies, bank accounts
or Iraqi embassies abroad and transported back to Iraq as cash. But
some was also used to rebuild Iraq’s military and buy prohibited
equipment abroad.
Charles Duelfer, the former UN inspector who is leading the CIA
search for weapons of mass destruction in Iraq, told Congress last
month that Iraq funnelled Oil-for-Food money to the Military
Industrialisation Commission (MIC), which worked with the Iraqi
intelligence service to set up front companies overseas to procure
arms. The MIC budget increased nearly a hundred-fold from 1996 to
2003, totalling $ 500 million last year alone.
Iraq’s demands for kickbacks were long known to British and US
officials, who tried to fix the UN system to counter them.
Eventually, Russia allowed the replacement of the departed “oil
overseers” and the sanctions subcommittee changed to “retroactive
pricing” to cut Iraq’s possible margin on oil sales.
But what has really ignited the scandal was the publication by the
Iraqi al Mada newspaper in January of a list of 270 politicians,
journalists, businessmen and even a UN official who were allegedly
given “vouchers” to buy Iraq oil.
There are some doubts about the veracity of the list, but it
nevertheless includes powerful figures in key UN powers, such as
Russia and France, as well as a range of Middle Eastern countries.
Among the alleged recipients are the Russian Peace and Unity Party of
President Putin, as well as the Russian Communist Party and companies
linked to the party of Vladimir Zhirinovsky, a Russian nationalist.
Charles Pasqua, the former French Interior Minister, and a former
French ambassador to the UN are also on the al-Mada list. Also named
was President Megawati of Indonesia, who is said to have received one
million barrels as “the daughter of President Sukarno”, and one
million barrels as Megawati.
Recipients of oil “vouchers” did not have to trade the oil
themselves. They could merely sell the vouchers to oil traders for 10
to 30 cents a barrel.
A good example of how the system was used to peddle influence is the
case of Shakir Khafaji, one of two Iraqi-American businessmen on the
list. Mr Khafaji admitted to the Financial Times last week that he
had been awarded oil allocations by the Saddam regime, and sold them
to an Italian firm on his family’s behalf. It was Mr Khafaji who
provided $ 400,000 to fund an anti-sanctions documentary by Scott
Ritter, the former UN weapons inspector.
The UN’s own investigation, led by Paul Volcker, the former Federal
Reserve chairman, is focusing initially on allegations against Benon
Sevan, the Cypriot Armenian UN official who ran the Oil-for-Food
programme.
A “Mr Sevan” who appeared on the al-Mada list was allegedly allocated
14.3 million barrels of crude, of which 7.291 million were actually
“lifted”.
But Mr Sevan, who has been asked to postpone his retirement while the
investigation is conducted, has denied the charge. “I should like to
state that there is absolutely no substance to the allegations made
in a local Iraqi newspaper…that I had received oil or oil moneys
from the former Iraqi regime,” he said.
The ABC television network reported this week, citing US and European
intelligence services, that three unnamed UN officials had taken
bribes from Saddam.
“The UN Oil-for-Food programme provided Saddam Hussein and his
corrupt and evil regime with a convenient vehicle through which he
bought support internationally by bribing political parties,
companies, journalists and other individuals of influence,” Claude
Hankes-Drielsma, a British consultant for the Iraqi Governing
Council, told Congress this week.
“This secured the co-operation and support of countries that included
members of the Security Council of the UN.”