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
used to satisfy the surcharges on Aredio contract M/08/35. 278 Taurus also covered the funds for
the payment of surcharges on Aredio contract M/09/23, which was allocated to Mr. Zureikat.
Funds from the Petrocorp bank account were used to make two deposits of $149,860 and
$154,460 in a SOMO account, and these payments satisfied surcharge obligations on Aredio
contract M/09/23. 279
In the case of Mr. Munier, discussed in Section IV.F of this Chapter, Taurus financed a series of
oil contracts through Aredio beginning in Phase V. When interviewed, Mr. Munier stated that he
had agreed with Mr. Michel, President of Aredio, to assist in presenting the company to Iraqi
officials in connection with the Programme in exchange for financial support of the Amitiés
Franco-Irakiennes (the French-Iraqi Friendship Association). Bank records show that Mr.
Munier was described to BNP as receiving “adviser’s fees” of $0.07 per barrel. Through this
relationship, Aredio entered into contracts to purchase almost 12 million barrels of oil allocated to
Mr. Munier. Surcharges were paid on two of those contracts, namely M/10/86, in the amount of
$604,306, and M/11/80, in the amount of $43,313. Mr. Munier stated that he was not involved in
the payment of surcharges. When told that Aredio paid surcharges, Mr. Munier stated, “that’s
possible.” Ministry of Oil and bank records show that the surcharges imposed on M/11/80 were
paid out of Petrocorp’s First National Bank account under the name “Petro Ahmad Salim.” These
records additionally show that at least $388,860 of the surcharges levied on contract M/10/86
were paid out of Mr. Ladki’s account at Cairo Amman Bank under the name “Murice Rizli.” The
remaining surcharges levied on contract M/10/86 were paid under the names “Muris Rizly” and
“Mohammad Jamal.” 280
278 Committee oil financier table, M/05/66, M/06/69, M/07/40, M/08/35, M/08/56, M/08/65, M/09/23,
M/10/71, M/10/82, M/10/84, M/10/86, M/11/64, M/1166, M/11/80, M/11/82, M/12/120, M12/122,
M13/75; Committee oil surcharge, company, and beneficiary tables, contract no. M/08/35; Confidential
document.
279 SOMO letter to Amer Rashid (Jan. 14, 2001) (approving contract no. M/09/23 for three million barrels
of oil for Aredio Petroleum); Committee oil beneficiary, company, and surcharge tables, contract no.
M/09/23; First National Bank, Petrocorp account, bank statement (Jan 1. 2001 to Dec. 31, 2001) (reflecting
outgoing payments to Jordan National Bank on March 13 and 14, 2001); Committee oil surcharge table,
contract nos. M/09/04, M/10/09, M/10/96, M/11/65, M/11/67, M/12/39, M/09/01, M/09/35, M/10/03,
M/10/17, M/10/59, M/11/25, M/11/43, M/12/35.
280 Confidential document; Gilles Munier interview (Sept. 23, 2005); Committee oil surcharge table,
contract nos. M/10/86, M/11/80; Jordan National Bank record, SOMO account, credit advice (Dec. 12,
2002) (translated from Arabic) (reflecting a payment of $200,995 from “Petro Ahmad Salim,” of which
$43,313.10 corresponded to contract M/11/80 for Aredio); First National Bank record, Petrocorp account,
debit advice and wire request (Dec. 9, 2002) (reflecting a payment of $201,000 to SOMO under the name
“Petro Ahmad Salim” with a handwritten notation indicating that $43,313.10 corresponds to Aredio
contract M/11/80); Records of SOMO surcharge invoices (July 30, 2002) (showing $43,313 levied on
288,754 barrels under contract M/11/80); Jordan National Bank record, SOMO account, credit advice (Feb.
20, 2002) (translated from Arabic) (including payments by “Murice Rizly” of $183,930 and $204,930 for
contract M/10/86); Cairo Amman Bank (Beirut) records, Musbah Ladki account, debit advices and wire
requests (Feb. 14 and 15, 2002) (reflecting the transfer of $205,000 and $184,000 to a SOMO account
under the name of “Murice Rizly”).
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