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
was the director. 260 In addition, in December 2001, websites were created for both Fenar and
Alcon. These websites were both registered under the name of a Pollner family member. 261
4. Taurus Financed Oil Contracts Involving Alcon and Fenar
Between Phases VIII and XIII, Fenar entered into contracts directly with SOMO to purchase
approximately 54 million barrels of oil. During the same period, Alcon purchased about 64
million barrels of oil. Taurus Nassau and Taurus Nevis collectively financed at least 73 of the 94
liftings made in connection with all of the Alcon and Fenar contracts. The Committee has not
found any records indicating that either Alcon or Fenar financed any of their own letters of credit
for oil liftings. Nor do Alcon and Fenar appear to have any financial resources independent of
Taurus that would have made them eligible for bank financing on the oil contracts. 262
As a general practice, Taurus Nassau and Taurus Nevis drew upon their accounts at various Swiss
banks, including Credit Suisse, Banque Bruxelles Lambert SA, and BNP/UEB, to finance the oil
contracts. For each letter of credit, the banks obtained a power of attorney authorizing Taurus
Nassau or Taurus Nevis to act on behalf of Alcon or Fenar with regard to that particular
transaction. The banks were instructed by Taurus employees to open letters of credit. 263
260 SOMO sales contract, no. M/08/67 (Aug. 16, 2000) (contracting with Fenar); United Kingdom Mission
letter to 661 Committee Chairman (May 12, 1995) (noting 5 Prince’s Gate, London, as the address of
Taurus London); United Kingdom Companies House record, Taurus London annual return (Sept. 29, 2003)
(noting Mr. Pollner as Director of Taurus London).
261 Register.com, “WHOIS lookup,” http://premiere.register.com/whois_lookup.cgi (showing registration
information on http://www.fenarpetroleum.com and http://www.alconpetroleum.com).
262 Committee oil company and financier tables, contract nos. M/08/67, M/09/04, M/10/09, M/10/96,
M/11/65, M/11/67, M/12/39, M/13/07, M/09/01, M/09/35, M/10/03, M/10/17, M/10/59, M/11/25, M/11/43,
M/12/35, M/13/19; BNP Geneva record, Fenar account, bank statements (July 12, 2001 to May 31, 2004)
and credit advices (Sept. 17, 2001 to Oct. 27, 2003) (reflecting that all funds received into Fenar’s account
were from Taurus Nevis); BNP Geneva, Alcon account, bank statements (July 14, 2001 to Dec. 31, 2003)
and credit advices (Aug. 28, 2001 to Oct. 27, 2003) (reflecting that all but $644,769 of the funds received
into Alcon’s account were from Taurus Nevis).
263 Patrick Hilty interview (Apr. 13, 2005) (stating that Taurus provided financing for all of Fenar’s and
Alcon’s letters of credit and that letters conferring power of attorney on a Taurus entity were sent to BNP
Geneva in connection with each letter of credit issued in the name of Alcon and Fenar); BNP Geneva
record, Alcon account, bank statements (Aug. 2001 to Dec. 31, 2003) (reflecting that Alcon did not finance
any letters of credit); BNP Geneva record, Fenar account, bank statements (Sept. 2001 to May 2004)
(reflecting that Fenar did not finance any letters of credit); Committee oil financier table; Banque Bruxelles
Lambert Geneva record, Niels Troost letter to Banque Bruxelles Lambert Geneva (Nov. 14, 2000)
(referring to Mr. Troost as an office of Fenar and authorizing Banque Bruxelles to issue a letter of credit
“us[ing] our [Fenar’s] name in the issuance of this documentary credit as instructed by and under the full
responsibility of Taurus Petroleum Ltd.”).
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