The oil-for-food scandal at the United Nations must be cleaned up if the world body is to effectively fulfill its mission.
The program, started in 1996, allowed former Iraqi President Saddam Hussein to sell small quantities of oil and use the revenue to buy humanitarian supplies for Iraqi citizens.
While the $64 billion program is thought to have helped thousands of Iraqis, Hussein, along with top U.N. officials and companies providing relief, allegedly manipulated the program to their own benefit. Estimates of the corruption range from $4 billion to $21 billion.
Last Monday, a special investigative panel led by former Federal Reserve Chairman Paul Volcker released a report naming two senior U.N. officials as possibly being involved in illicit dealings. Alexander Yakovlev, a former U.N. procurement officer, pleaded guilty in federal court to fraud and money laundering in connection with oil-for-food contracts. Benon Sevan, who directed the humanitarian relief program from 1997 to 2003, was accused by the panel of accepting kickbacks. He has denied the allegations but resigned his post.
The latest revelations may be just the beginning. The panel’s next report is scheduled for October. That’s when Volcker said the names of the companies involved in illegal surcharges and paying kickbacks will be disclosed.
The investigation is necessary to strengthen broader efforts underway to reform the world body and restore its credibility. U.N. Secretary-General Kofi Annan is among those pushing for reform. But he should be thoroughly investigated and cleared of any wrongdoing. Questions have been raised as to whether Annan had any involvement in the awarding of a contract to a firm that employed his son – or whether perhaps he simply looked the other way.
There is so much good that the U.N. can do to alleviate hunger and misery around the world. Annan has proposed that the U.N. create an emergency fund of $500 million to finance a program designed to provide a global rapid response to famines such as the one killing so many in Niger. But until the United Nations cleans up its act, neither Annan nor the world body will be trusted to manage such efforts.
It is critical that the Volcker panel press forward with its work and get to the bottom of the corruption so the United Nations can do the work it needs to do.
