report on programme manipulation - Independent Inquiry Committee

More documents

Recommendations

Info

INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS When Mr. Majali requested oil in Baghdad, there was $464,000 due in outstanding surcharges that had not been paid on the Montega Trading oil contract in Phase IX. In letters to the Ministry of Oil, Mr. Majali promised to settle this debt in two installments with the proceeds from the sale of the crude oil that he hoped to get from Iraq. In early March 2002, SOMO confirmed that Imvume had been allocated two million barrels of oil. The Iraqi Ambassador to South Africa’s March 7, 2002 cover letter to Mr. Aziz states that it included a letter to Mr. Aziz from Mr. Motlanthe. The Committee was unable to obtain a copy of the letter to Mr. Aziz, but the cover letter also contains the following handwritten note to the Director of SOMO: “obtained the permission of the Vice President of the Republic and Deputy Prime Minister Mr. Aziz for allocation of 2 million barrels” and “the amount requested by Mr. Sani Majali [sic]).” 211 Because of the problems with outstanding surcharge debts, SOMO required Mr. Majali to provide a written undertaking of his surcharge obligation: agreement (Mar. 6, 2002); Glencore letter to SFF (Jan. 23, 2002); Dr. Mokate letter to Imvume (Jan. 23, 2002); Goodfellow letter to Dr. Mokate (Mar. 8, 2002). 211 Sandi Majali letter to Ali Hassan Rajab (Feb. 26, 2002); Sandi Majali letter to Amer Rashid (undated) (bearing stamp, “Ministry of Oil, Minister’s Office June 19, 2002”) (translated from Arabic); South Africa Ambassador letter to Tariq Aziz (Mar. 7, 2002) (translated from Arabic) (referencing an attached letter from Kgalema Motlanthe, which the Committee was unable to obtain); SOMO sales contract, no. M/11/72 (Mar. 27, 2002) (contracting with Imvume Management). The letter from Ambassador Al-Omar to Mr. Aziz accompanied a sealed envelope to be delivered to Mr. Aziz. Iraq official interview. REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 110 OF 623
INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS Figure: Sandi Majali letter to SOMO (undated). In the letter, Mr. Majali explicitly represented that he would “undertake to perform my obligation accordingly [sic] to SOMO’s requirements regarding the return money (i.e., US $0.30/BBL) for US destination or ($0.25/BBL) for Far East destination for the quantity of 2.0 million barrels.” Although the letter is undated, the surcharge rates are those imposed during the majority of the surcharge phases. 212 Ultimately, Imvume did not sell the oil under its SOMO contract (M/11/72) to fulfill its obligation to supply oil to SFF. Imvume had Glencore purchase four million barrels from two Russian companies for shipping to South Africa. 213 212 Sandi Majali letter to SOMO (undated) (agreeing to pay surcharges). 213 Sandi Majali interview (June 30, 2005). Only two shipments of Iraqi oil were shipped to South Africa during this phase. SOMO sales contract, no. M/11/103 (Feb. 5, 2002) (contracting with Joint Stock Company (“JSC”) Slavneft); Roman A. Ivanov letter to oil overseers (Mar. 14. 2002); Oil overseers letter to JSC Slavneft, S/AC.25/2002/OIL/1382/OC.93/add.1 (Mar. 18, 2002); SOMO sales contract, no. M/11/79 (Jan. 16, 2002) (contracting with Machinoimport). REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 111 OF 623
Page 1 and 2:
INDEPENDENT INQUIRY COMMITTEE INTO
Page 3 and 4:
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52: INDEPENDENT INQUIRY COMMITTEE INTO
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Page 208 and 209:
Page 210 and 211:
Page 212 and 213:
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 236 and 237:
Page 238 and 239:
Page 240:
show all

report on programme manipulation - Independent Inquiry Committee

Create successful ePaper yourself

Delete template?

Save as template?