U.N. Council Backs Probe of 'Oil-for-Food'
Panel will look into accusations that officials and firms mishandled the Iraq humanitarian program for profit.
By Maggie Farley, Times Staff Writer
UNITED NATIONS — The Security Council unanimously endorsed an independent investigation Wednesday into charges that U.N. officials mishandled the Iraqi "oil-for-food" program, allowing Saddam Hussein to illegally pocket billions of dollars.
Former U.S. Federal Reserve Chairman Paul Volcker, named as chairman of the three-person investigative panel, insisted on securing the Security Council's formal support before launching his inquiry, saying it was important to "make sure that member states knew what they were getting into." The resolution requires all U.N. member states "to cooperate fully" with the inquiry.
The U.N. oil-for-food program was established in 1996 to allow Iraq — then under U.N. sanctions for its 1990 invasion of Kuwait — to sell oil and use the revenue to buy humanitarian goods. Oil sales outside the program were prohibited. The 15-member Security Council set the terms for the program.
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The allegations of fraud and mismanagement come at a sensitive time for the United Nations, tarnishing its image just as Washington is asking the world body to guide the selection of the transitional government in Iraq and help prepare elections there.
Even before the accusations of corruption in the oil-for-food program arose, many Iraqis had a negative view of the United Nations, blaming it for shortages of critical goods during the period of sanctions.
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