report on programme manipulation - Independent Inquiry Committee

More documents

Recommendations

Info

INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS Table 4 – Glencore’s Transfer of Funds and Mr. Abu-Reyaleh’s Surcharge Payments on M/10/26 Glencore Payments to Incomed Trading Incomed Trading Payments to Lakhani Lakhani Payments to Abu-Reyaleh Abu-Reyaleh Surcharge Payments July 19, 2001 – – – $90,000.00 Nov. 29, 2001 € 450,106.96 – – – Nov. 30, 2001 € 451,467.90 – – – Dec. 8, 2001 – € 185,000.00 – – Dec. 10, 2001 – € 180,833.00 – – Dec. 12, 2001 € 519,593.72 – – – Dec. 12, 2001 – € 183,000.00 – – Dec. 14, 2001 – € 183,598.00 – – Dec. 17, 2001 – € 140,000.00 – – Dec. 19, 2001 – € 145,000.00 – – Dec. 21, 2001 – € 150,048.00 – – Dec. 31, 2001 – – € 300,000.00 – Jan. 2, 2002 – – € 500,000.00 – Jan. 3, 2002 – – € 100,000.00 – Jan. 3, 2002 – – € 115,000.00 – Mar. 8, 2002 – – – $220,907.00 Mar. 9, 2002 – – – $218,392.00 Mar. 9, 2002 – – – $271,523.00 Total € 1,421,168.58 € 1,167,479.00 € 1,015,000.00 $800,822.00 Mr. Lakani handled the payment of surcharges on Incomed Trading contracts in Phase XI. According to Mr. Lakhani, he was Glencore’s “man in Baghdad.” As part of a written agency agreement, Glencore agreed to pay Mr. Lakhani a monthly fee of $5,000 for acting as a consultant for Glencore’s “proprietary activities in Iraq for the acquisition of Iraqi Crude Oil.” Mr. Lakhani paid approximately $1 million in surcharges on Incomed Trading’s two contracts in Phase XI (M/11/22 and M/11/112). 307 307 Committee oil surcharge table, contracts no. M/11/22, M/11/112; Murtaza Lakhani interview (Aug. 7, 2005); Iraq official interview (stating that Mr. Lakhani represented Glencore at SOMO); Committee note- REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 154 OF 623
INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS Ministry of Oil records show that surcharges on these two contracts were paid in part by cash payments of $710,000 made by Mr. Lakhani at the Permanent Mission of Iraq to the United Nations in Geneva from May 2002 to January 2003. According to Mr. Lakhani, he made the payments at the Permanent Mission of Iraq to the United Nations in Geneva with cash that he received from Glencore in Switzerland. He stated that he periodically received the cash from Glencore for payment of the surcharges through various individuals he could not identify. Copies of petty cash receipts obtained from Mr. Lakhani—some of which are produced below—show that, from January 24, 2002 through March 3, 2003, a series of cash payments totaling approximately $1.36 million were made from Glencore’s offices in Switzerland to Mr. Lakhani. In particular, the petty cash receipts obtained from Mr. Lakhani reflect a cash payment from Glencore on May 15, 2002 in the amount of $415,000. Documents obtained from the Iraqi Mission to the United Nations in Geneva indicate that Mr. Lakhani made a surcharge payment of $400,000 two days later. 308 When asked about cash payments to Mr. Lakhani, Mr. Alvarez stated that he orally recommended, in 2001 or 2002, that Glencore pay Mr. Lakhani a “success fee” in the amount of $300,000 or $400,000. Mr. Alvarez stated that his recommendation was approved by his superior at Glencore. Glencore’s petty cash payments to Mr. Lakhani exceeded the amount of the “success fee.” Additionally, Andy Gibson, head of Glencore’s Crude Oil Operations in London, stated that he was unaware of Glencore awarding cash bonuses in the range of $300,000 to $400,000. 309 to-file (Aug. 30-31, 2005) (detailing the review the Glencore and Murtaza Lakhani agency agreement (Jan. 23, 2001)); Luis Alvarez interview (Sept. 13, 2005). SOMO records reflect that one of the surcharge payments on contract M/11/22 was made by an entity named Imranco. Mr. Lakhani has indicated that Imranco was the trade name used by his company, Continental Oil, in Jordan. Murtaza Lakhani interviews (Dec. 6-13, 2004). 308 Iraq Permanent Mission to the United Nations in Geneva record, Payment receipts (May 17, 2002) (reflecting payment by Mr. Lakhani of $400,000), (June 12, 2002) (reflecting payment by Mr. Lakhani of $250,000), (Jan. 10, 2003) (reflecting payment of $60,000); Murtaza Lakhani interviews (Dec. 6-13, 1994; Aug. 7, 2005); Murtaza Lakhani record, Glencore cash vouchers (Jan. 24, 2002) (for €170,850), (Apr. 24, 2002) (for €230,000), (May 15, 2002) (for $415,000), (June 10, 2002) (for $190,000), (July 4, 2002) (for $80,000), (Oct. 7, 2002) (for CHF205,000), (Nov. 4, 2002) (for €110,000), (Nov. 20, 2002) (for €45,000), (Mar. 3, 2003) (for €35,000). 309 Luis Alvarez interview (Sept. 13, 2005); Andy Gibson interview (Sept. 14, 2005). REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 155 OF 623
Page 1 and 2:
INDEPENDENT INQUIRY COMMITTEE INTO
Page 3 and 4:
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97: INDEPENDENT INQUIRY COMMITTEE INTO
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Page 208 and 209:
Page 210 and 211:
Page 212 and 213:
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 236 and 237:
Page 238 and 239:
Page 240:
show all

report on programme manipulation - Independent Inquiry Committee

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?