Oil-Food-And-Fraud

Human institutions are by nature flawed because they are composed of imperfect human beings. Although talented and honest people are necessary for the long-term success of any institution, internal checks and balances are also essential. Lately, it has become apparent that the United Nations is not populated with a sufficient number of people of character and integrity and the honest ones that remain are not buttressed by sufficient institutional mechanisms to protect them.

When called upon to administer the Oil-for-Food Program, the UN not only allowed former Iraqi dictator Saddam Hussein to skim money off the top - money intended to provide food and medical supplies to Iraqi children - but skimmed some of it off for themselves. Not managing to keep Hussein from surreptitiously stealing from his own people may be slightly mitigated as amazingly negligent incompetence. Participating in the theft represents corruption of the highest order.

It all started in the aftermath of the first Gulf War. Hussein was required to make a full accounting of the destruction of his weapons of mass destruction as well as forgo his aid to foreign terrorist organizations. The international community concluded that the Iraqi regime had not complied with the terms of the armistice. As a way to apply pressure to the regime, most trade with Iraq was prohibited. Although some humanitarian aid was permitted, the Iraqi regime and human rights organizations complained that though the sanctions were aimed at Hussein, the children of

To alleviate the problem, the United Nations started the Oil-for-Food Program. Iraq would be permitted to sell portions of its oil in exchange for food and other humanitarian supplies. Administering such a large program is admittedly difficult, but it is something for which the UN ought to exhibit particular competence. If it can not manage to do this, it is hard to understand what else they could be good at. Inexplicably, the UN permitted Iraq to pick both the companies it sold oil to and the companies from which it would purchase supplies. Hence, Hussein was able to skim money off both ends.

It worked this way. Iraq would sell oil at below market rates to companies it selected. After the re-sale of the oil, these companies would then kickback funds directly to the Iraqi government. Similarly, the Iraqi government would purchase food and supplies at above market rates from hand-picked companies and would later receive a kick back. As a consequence, the General Accounting Office reports that the Iraqi regime skimmed at least $10 billion intended for Iraqi children. All this was happening while the UN's Food and Agricultural Organization as well as the UN Children's Emergency Fund (UNICEF) reported that 200 children were dying everyday (more than 5000 per month) due to sanctions.

Go To Page: 1 2