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
on three oil contracts held by three Russian companies, Zangas, Zarubezhneft, and
Machinoimport, by directly wiring money to SOMO bank accounts.
1. Ben Pollner and Martin Schenker
During the Programme, Taurus financed oil purchases through the Swiss bank accounts of two
Taurus entities: Taurus Petroleum Nassau (“Taurus Nassau”) and Taurus Petroleum Nevis
(“Taurus Nevis”). Both companies were founded by Ben Pollner, a United States national and
director of Taurus. At the time Taurus was participating in the Programme, Mr. Pollner was the
beneficial owner of Taurus Nassau and shared ownership of Taurus Nevis with his children
through a Delaware-based holding company. He held power of attorney over both companies and
was one of only two signatories to company accounts in Swiss banks. 242 Prior to founding Taurus
in 1993, Mr. Pollner worked at Bayoil where he developed a close relationship with Mr.
Chalmers, which he maintained after leaving. In the early years of the Programme, Mr. Chalmers
242 BNP record, Credit proposal for Taurus Petroleum (Oct. 15, 2001) (noting the ownership structure of the
Taurus Group); UEB Geneva record, Taurus Nevis account, Taurus Petroleum (USA) LLC fax to UEB
(Dec. 12, 2000) (noting the shareholders of Taurus Petroleum); ING Bank Geneva record, Taurus Nevis
account, “Background of the Company” (June 23, 2004) (noting Ben Pollner as the “founder and the main
driving force of the Taurus Group” and noting Ben Pollner’s transfer of ownership of Taurus Petroleum
(USA) LLC to his children, Amy Pollner and Edward Pollner); UEB Geneva record, Taurus Nevis account,
Taurus Petroleum resolutions (Dec. 16, 2002) (noting that Taurus Petroleum “owns all of the issued and
outstanding stock” in Taurus Nevis); Martin Schenker letter to Switzerland Observer Mission (May 6,
1998) (noting Ben Pollner as “responsible for all commercial activities of the Taurus Group”); UEB
Geneva record, Taurus Nassau account, incorporation documents (Aug. 6, 1998); Banque Bruxelles
Lambert Geneva record, Taurus Nevis account, incorporation documents (June 13, 1996); UEB Geneva
record, Taurus Nassau account, account documents (Oct. 1998); Banque Bruxelles Lambert Geneva record,
Taurus Nassau account, account documents (June 2001); Banque Paribas (Suisse) record, Taurus Nassau
account, account documents (Jan. to July, 1999); Credit Suisse Geneva record, Taurus Nassau account,
account documents (Sept. to June, 2000); UEB Geneva record, Taurus Nevis account, account documents
(Mar to Oct. 2001); Banque Bruxelles Lambert Geneva record, Taurus Nevis account, account documents
(June 2001); Credit Suisse Geneva record, Taurus Nevis account, account documents (June to July, 2001);
BNP Geneva record, Taurus Nassau account, account documents (Jan. to July 1999); Credit Suisse Geneva
record, Taurus Nassau account, power of attorney (Aug. 14, 1998) (appointing Ben Pollner and Martin
Schenker “to purchase, transfer, sell, lease pledge, mortgage, encumber or dispose of in any way or manner
. . . the property of the company”); UEB Geneva record, Taurus Nevis account, power of attorney (June 13,
1996) (appointing Ben Pollner to “execute, sign, enter into, acknowledge, perfect and do all such deeds,
agreements, instruments, acts and things as shall be requisite for or in relation to all or any of the purposes
the company deems necessary or required including but not limited to open, operate, manage and close
bank accounts”). In January 2003, Taurus Nevis changed domicile to Switzerland. UEB Geneva record,
Taurus Nevis account, Taurus Petroleum (USA) LLC resolutions (Dec. 16, 2002) (resolving that the
corporate domicile of Taurus Nevis would be transferred to Switzerland); UEB Geneva record, Taurus
Nevis account, endorsement certificate (Jan. 3, 2003) (certifying that, on January 3, 2003, the domicile of
Taurus Nevis was transferred to a foreign jurisdiction).
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