report on programme manipulation - Independent Inquiry Committee

INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME
REPORT ON PROGRAMME MANIPULATION
CHAPTER TWO
OIL TRANSACTIONS AND ILLICIT PAYMENTS
Mr. Majali still had to deal with the unresolved contract (M/11/72). On May 10, 2002, Mr.
Majali had a meeting in Baghdad with Mr. Aziz and Mr. Rashid to address the contract. The
meeting was memorialized by Mr. Majali in a letter sent the following month to Mr. Rashid. In
the letter, Mr. Majali stated that Mr. Motlanthe was at the meeting at which Mr. Majali addressed
the oil contract with Mr. Aziz. In the letter, Mr. Majali also requested an extension to perform
contract M/11/72 and to pay the outstanding surcharges. In the same letter, in handwritten notes
in Arabic dated June 20, 2002, the Minister of Oil directed SOMO to grant Imvume six million
barrels over the next two phases, two in Phase XI, and four in Phase XII. When shown the June
19, 2002 letter, Mr. Majali stated that the letter “worried him” since the content appeared to be
correct and the signature was “very much like” his, but that Mr. Motlanthe was not present at the
May 10, 2002 meeting. Mr. Majali stated that Mr. Motlanthe was in Baghdad at that time. 214
Later that month, after this meeting with Mr. Aziz and Mr. Rashid, a surcharge payment was
made on Imvume contract M/11/72. Ministry of Oil records show that, on May 20, 2002, an
“advance” surcharge payment of $60,000 was deposited at the Central Bank of Iraq. The
payment was made on behalf of Imvume Management in connection with contract M/11/72. 215
214 Sandi Majali letter to Amer Rashid (undated) (stamped as received by “Ministry of Oil, Minister’s
Office, June 19, 2002, and including handwritten notes in Arabic and written on behalf of Imvume)
(translated from Arabic); Sandi Majali interview (June 30, 2005).
215 SOMO record, Surcharge payment receipt, contract no. M/11/72 (May 20, 2002). This payment is not
shown on the Committee oil surcharge or company tables as it was an advance payment for a contract that
never was executed.
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