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
Chart F – Flow of Funds from Taurus to SOMO (August 1, 2001 to December 31, 2002)
Sonatrach
[Same address as Taurus London]
(Credit Agricole Indosuez)
$644,769
$2.2m + €3.7m
Taurus Nevis
(UEB/BNP,
Banque Bruxelles Lambert,
Credit Suisse)
$8.0m
$6.3m
Alcon
(UEB/BNP)
Fenar
(UEB/BNP)
$8.5m
$6.0m
Jabal
(First National Bank)
Petrocorp
(First National Bank)
$4.5m
$2.3m
Musbah Ladki
(Cairo Amman Bank)
$4.9m
SOMO
(Jordan National Bank)
$2.0m + €1.5m
When the Government of Iraq stopped imposing surcharges in Phase XII, Taurus Nevis continued
to finance and purchase oil contracts executed by Alcon and Fenar. However, Alcon and Fenar
stopped receiving invoices from Taurus to transfer money to Jabal and Petrocorp, and they
actually stopped transferring money to the accounts. In addition, Taurus Nevis’s payments to
Alcon and Fenar for oil purchased during Phase XIII decreased to as little as $0.03 per barrel.
None of these funds were transferred to the bank accounts for Jabal, Petrocorp, or Mr. Ladki. 277
7. Aredio and the Payment of Surcharges
During Phases V through XIII, Taurus also used Aredio as a front company to purchase Iraqi
crude oil that had been allocated primarily in the names of political beneficiaries. For example,
Taurus financed Aredio contracts for oil allocated in the names of Mr. Galloway and Mr.
Zureikat, discussed above in Section V.A. In connection with Aredio contract M/08/35, Taurus
funded ASI Middle East’s payment of an outstanding surcharge. On December 17, 2001, Taurus
issued a $264,505 payment to Mr. Zureikat and ASI Middle East. According to Ministry of Oil
records, two weeks later, ASI Middle East deposited $264,000 into a SOMO account that was
277 Committee oil financier table, contract nos. M/13/07, M/13/19; BNP Geneva record, Fenar account,
bank statements (Nov. 30, 2002 to May 31, 2004) (recording the last transfer to Petrocorp as occurring on
November 29, 2002); BNP Geneva record, Alcon account, bank statements (Nov. 30, 2002 to Dec. 31,
2003) (recording the last transfer to Jabal as occurring on November 26, 2002); ReviTrust record, Taurus
Services SA letter to Alcon (Feb. 28, 2003) (indicating that Taurus would pay $0.03 per barrel of oil to
Alcon in connection with SOMO sales contract M/13/10); BNP Geneva record, Alcon account, credit
advice (Oct. 27, 2003) (reflecting that Taurus Nevis paid Alcon between $0.03 and $0.04 per barrel in
connection with contracts M/13/10 and M/13/19); ReviTrust record, Taurus Services SA letter to Fenar
(Jan. 22, 2003) (indicating that Taurus would pay $0.03 per barrel to Fenar in connection with SOMO sales
contract M/13/07); BNP Geneva record, Fenar account, credit advice (Oct. 27, 2003) (reflecting that Taurus
Nevis paid Fenar between $0.01 and $0.03 per barrel in connection with contract M/12/39 and M/13/17);
BNP Geneva record, Alcon account, debit advice (Dec. 16, 2003); BNP Geneva record, Fenar account,
debit advice (May 4, 2004).
REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 141 OF 623