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
Figure: Extract from Peakville Limited wire transfer through HSBC Hong Kong correspondent
account at HSBC New York (July 23, 2003).
In Phase X, Peakville Limited was used to pay a surcharge on another oil contract financed by
Vitol, but unrelated to Mr. Boidevaix. Vitol financed and lifted approximately two million
barrels of oil under SOMO contract M/10/07 signed by Rosneftegazexport, a Russian company.
A payment of $556,828.80 was wire transferred from a Peakville Limited bank account to a
SOMO account at Jordan National Bank. The transfer was used to make a surcharge payment on
contract M/10/07 with Rosneftegazexport. 319
Two undated handwritten documents from Mr. Boidevaix also connect Peakville Limited to
Vitol. One handwritten piece reads “250217.25 Peakwilli Hong Kong” while the other piece,
handwritten but crossed out, states “250217.25 Peakwilli Hong Kong 31 May Eliki.” The notes
appear to reference the Eliki vessel that lifted oil on May 31, 2001 under a contract for Vitol and
Mr. Boidevaix. The reference to “250217.25” appears to be a reference to the amount of the first
surcharge payment made to SOMO on this contract. Mr. Boidevaix denied paying a surcharge on
this contract. He has acknowledged that he was instructed to write down this information by a
female employee of Vitol—not Ms. D’Alessandro—during a telephone conversation. 320
Surcharges were also assessed on the Phase X contract executed by Vitol and Mr. Boidevaix for
one million barrels of oil. Vitol lifted the oil in December 2001 and a surcharge of $241,610 was
assessed on the lift. The surcharge amount remained outstanding, and Vitol did not enter into any
contracts with SOMO in the two subsequent phases. The payment of the outstanding surcharge
coincided with Vitol entering once again into a contract directly with SOMO in Phase XIII.
Ministry of Oil and bank records show that the surcharge on the Phase X contract was finally paid
opening documentation (Sept. 28, 2000); Vitol S.A. record, Vitol S.A. and S.B. Consultant consultancy
agreement (Apr. 27, 1998); Robin D’Alessandro interview (Oct. 10, 2005).
319 Committee oil financier and company tables, contract no. M/10/07 (showing that Vitol financed and
lifted 2,000,146 barrels of oil under Rosneftegazexport contract M/10/07 in Phase X); Jordan National
Bank record, SOMO account, credit advice (Aug. 8, 2001) (translated from Arabic) (indicating that
Peakville Limited paid $556,828.80 into SOMO’s account; handwritten note on the advice indicates that
payment relates to contract M/10/07 with Rosneftegazexport).
320 Serge Boidevaix record, handwritten notes (undated) (showing notes related to “Peakwilli Hong Kong”);
Committee oil surcharge table, contract no. M/10/07; SOMO bill of lading, bbl/3123 (May 31, 2001)
(relating to M/09/97); Serge Boidevaix interview (Oct. 4, 2005); Confidential document.
REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 160 OF 623