Annan: Not enough evidence
2005-03-29 21:13
New York - Investigators said on Tuesday there is insufficient evidence to show that UN Secretary-General Kofi Annan knew of a contract bid by his son's employer for the oil-for-food programme in Iraq.
However, they criticized the UN chief for failing to determine his son's relationship with the Swiss firm.
The report released on Tuesday also accused the company, Cotecna Inspection SA, and Annan's son, Kojo, of trying to conceal their relationship after the contract was awarded.
The report's conclusion was not the clear vindication that the secretary-general had wanted, though the investigation led by former US Federal Reserve Chair Paul Volcker did not accuse the UN chief of corruption or any other wrongdoing.
At a press conference after the report was released, Volcker said the investigation found no evidence that Annan improperly influenced the process by which Cotecna was selected for an inspection contract under the oil-for-food programme.
"Our investigation has disclosed several instances in which he might, or could have become aware, of Cotecna's participation in the bidding process," Volcker said. "However, there is neither convincing testimony to that effect nor any documentary evidence," he said.
No sufficient evidence
"Taking all of this into account, the committee has not found the evidence is reasonably sufficient to show that the secretary-general knew that Cotecna had participated in the bidding process in 1998," Volcker said.
Kojo Annan worked for Cotecna in West Africa from 1995 to December 1997 and then as a consultant until the end of 1998 - just when it won the oil-for-food contract. He remained on the Cotecna payroll until 2004 on a contract to prevent him from working for a competitor in West Africa.
Although Tuesday's report found no wrongdoing by Annan, it clearly faulted the secretary-general's management of the world body and his oversight of the oil-for-food programme.
The $64bn oil-for-food programme was the largest UN humanitarian aid operation, running from 1996-2003. Saddam Hussein's government was allowed to sell limited amounts - and eventually unlimited amounts - of oil in exchange for humanitarian goods as an exemption from UN sanctions imposed after Iraq's 1990 invasion of Kuwait.
In a bid to curry favour and end sanctions, Saddam allegedly gave former government officials, activists, journalists and UN officials vouchers for Iraqi oil that could then be resold at a profit.
Mismanagement
US congressional investigators say Saddam's regime may have illegally made more than $21bn by cheating the programme and other sanctions-busting schemes.
The report is the second issued by Volcker's team. It coincides with allegations of sex abuse by UN peacekeepers and of sexual harassment and mismanagement by senior UN staff. It also comes a week after Annan called for the biggest overhaul of the United Nations in its 60-year history.
- AP