report on programme manipulation - Independent Inquiry Committee
report on programme manipulation - Independent Inquiry Committee
report on programme manipulation - Independent Inquiry Committee
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INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME<br />
REPORT ON PROGRAMME MANIPULATION<br />
CHAPTER TWO<br />
OIL TRANSACTIONS AND ILLICIT PAYMENTS<br />
Surchages in the amount of $710,782.25 were levied <strong>on</strong> the two c<strong>on</strong>tracts associated with Ms.<br />
Na’ana’s allocati<strong>on</strong>s in Phases X and XI. Ms. Na’ana paid these surcharges in full in three<br />
payments that occurred between August 2001 and October 2002. Ms. Na’ana received the funds<br />
to make these surcharge payments from Vitol. SOMO bank records indicate that Ms. Na’ana<br />
made an advance surcharge payment of $60,000 <strong>on</strong> August 12, 2001 with respect to her Phase X<br />
allocati<strong>on</strong>. Ms. Na’ana had received an advance payment in a similar amount from Vitol. In an<br />
invoice dated October 10, 2001 sent to Mr. Chautard, Ms. Na’ana requested payment <strong>on</strong> her<br />
commissi<strong>on</strong> regarding the first lift executed by Vitol <strong>on</strong> her Phase X c<strong>on</strong>tract, and she<br />
acknowledged that Vitol had previously paid her $60,000. Subsequent to the $60,000 advance<br />
payment, Vitol paid Ms. Na’ana’s account at Arab Bank Geneva over $1 milli<strong>on</strong> between<br />
October 2001 and July 2002. Ms. Na’ana subsequently transferred $725,000 from her bank<br />
account at Arab Bank Geneva to her account at the Arab Bank Amman. Surcharges in the<br />
approximate amount of $650,000 were paid from Ms. Na’ana’s account at Arab Bank Amman in<br />
December 2001 and October 2002. Ministry of Oil records c<strong>on</strong>firm that these payments were<br />
made in c<strong>on</strong>necti<strong>on</strong> with Ms. Na’ana’s Phase X and XI allocati<strong>on</strong>s. 341<br />
A source familiar with these transacti<strong>on</strong>s stated to the <strong>Committee</strong> that Ms. Na’ana made the<br />
surcharge payments after two or three ph<strong>on</strong>e c<strong>on</strong>versati<strong>on</strong>s with Mr. Chautard from Vitol<br />
L<strong>on</strong>d<strong>on</strong>, who advised Ms. Na’ana that these payments had to be made as “taxes” due to the Iraqi<br />
regime. In resp<strong>on</strong>se to a notice letter from the <strong>Committee</strong>, Vitol stated that “Vitol had no<br />
knowledge that Ms. Na’ana paid surcharges to the regime of Saddam Hussein . . . . Neither Vitol,<br />
341 Jordan Nati<strong>on</strong>al Bank record, SOMO account, credit advices (Aug. 12, 2001) (showing transfer of<br />
$59,985 from Ms. Na’ana’s account at Arab Bank Amman; handwritten notati<strong>on</strong> <strong>on</strong> advice indicates that it<br />
is an advance payment relating to c<strong>on</strong>tract M/10/34), (Dec. 2, 2001) (showing transfer of $425,777 from<br />
Ms. Na’ana’s account at Arab Bank Amman; handwritten notati<strong>on</strong> <strong>on</strong> advice indicates that payment relates<br />
to c<strong>on</strong>tract M/10/34), (Oct. 29, 2002) (showing transfer of $225,000 from Ms. Na’ana’s account at Arab<br />
Bank Amman; handwritten notati<strong>on</strong> <strong>on</strong> advice indicates that payment relates to c<strong>on</strong>tract M/11/100) (each<br />
translated from Arabic); Hamida Na’ana invoice to Gilles Chautard (Vitol L<strong>on</strong>d<strong>on</strong>) (Oct. 10, 2001)<br />
(sending an invoice to Gilles Chautard for 981,608 barrels of oil shipped <strong>on</strong> September 7, 2001); Arab<br />
Bank Geneva record, Hamida Na’ana account, credit advices (Oct. 31, 2001) (wire transfer of $283,562.80<br />
by order of Vitol Geneva from Chase Manhattan Bank L<strong>on</strong>d<strong>on</strong>), (Nov. 11, 2001) (wire transfer of<br />
$358,506.05 by order of “Mansel Oil Ltd. c/o Vitol from Chase Manhattan Bank L<strong>on</strong>d<strong>on</strong>”), (July 11, 2002)<br />
(wire transfer of $375,000 by order of Vitol Bahrain from BNP Geneva); Arab Bank Geneva record,<br />
Hamida Na’ana account, account debit advices (Nov. 26, 2001) (wire transfer of $500,000 to Ms. Na’ana’s<br />
account at Arab Bank Amman), (Oct. 10, 2002) (wire transfer of $225,000 to Ms. Na’ana’s account at Arab<br />
Bank Amman); Jordan Nati<strong>on</strong>al Bank record, SOMO account, credit advices (Aug. 12, 2001) (showing<br />
transfer of $59,985 from Ms. Na’ana’s account at Arab Bank Amman; handwritten notati<strong>on</strong> <strong>on</strong> advice<br />
indicates that it is an advance payment relating to c<strong>on</strong>tract M/10/34), (Dec. 2, 2001) (showing transfer of<br />
$425,777 from Ms. Na’ana’s account at Arab Bank Amman; handwritten notati<strong>on</strong> <strong>on</strong> advice indicates that<br />
payment relates to c<strong>on</strong>tract M/10/34), (Oct. 29, 2002) (showing transfer of $225,000 from Hamida<br />
Na’ana’s account at Arab Bank Amman; handwritten notati<strong>on</strong> <strong>on</strong> advice indicates that payment relates to<br />
c<strong>on</strong>tract M/11/100) (each translated from Arabic).<br />
REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 169 OF 623