UN pledged Iraq oil money to defend official
March 23, 2005

By Newkerala:

In a disclosure that is likely to stir fresh controversy, United Nations' officials said it had agreed to reimburse legal expenses incurred by the head of the scandal-ridden Iraqi "oil-for-food" programme during investigation into allegations of corruption.

Chief UN spokesman Fred Eckhard, however, said the arrangement for reimbursement was discontinued after February three when a report by a panel, headed by US federal reserve banking chief Paul Volcker, accused Benon Sevan of seeking oil contracts from the Saddam Hussein regime for a Middle Eastern firm.

But no other official, including Secretary General Kofi Annan and his predecessor Boutros Boutros-Ghali, who too were examined by the inquiry panel, had been promised or given any reimbursement, UN officials said.

The disclosure comes about a week before the panel, appointed by Annan, is to publish its second report into the corruption allegations. It is also investigating Annan and his son, Kojo, for conflict of interest as Kojo was employed in West Africa by a firm which won multimillion dollar contract under the now defunct programme.

Eckhard said so far Sevan has not been paid any money as the UN is contesting some of the expenses which, it considers, are not related to his cooperation with investigation.

Replying to questions, Eckhard said Annan's decision to reimburse Sevan was "exceptional".

"When I said it's exceptional it's exactly that - it starts and stops with Benon Sevan," asserted an irritated Eckhard when he was repeatedly asked the same question.

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