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 />
1. Background<br />
According to Iraqi officials, Mr. Wyatt was the excepti<strong>on</strong> to the general ban <strong>on</strong> selling oil to<br />
American companies after Phase III because of his “history with Iraq” and excellent relati<strong>on</strong>s<br />
with SOMO. Through his Houst<strong>on</strong>-based company, Coastal Petroleum, Mr. Wyatt had been a<br />
buyer of Iraqi oil since the industry was nati<strong>on</strong>alized in Iraq. He was the first to bring Iraqi oil to<br />
America in approximately 1972. In 1990, Mr. Wyatt used his c<strong>on</strong>necti<strong>on</strong>s to meet with Saddam<br />
Hussein and intervene <strong>on</strong> behalf of American hostages being held in Iraq. Together with former<br />
Texas governor, John B. C<strong>on</strong>nally, Mr. Wyatt was involved in arranging for 21 hostages to be<br />
flown out of Baghdad after their release. Mr. Wyatt also maintained a supportive relati<strong>on</strong>ship<br />
with the Iraqi missi<strong>on</strong>s in the United States, d<strong>on</strong>ating furniture to the Iraqi Missi<strong>on</strong> in New York<br />
and a car to the Iraqi Embassy in Washingt<strong>on</strong>. He also had a close relati<strong>on</strong>ship with Nizar<br />
Hamdo<strong>on</strong>, Iraq’s former Permanent Representative to the United Nati<strong>on</strong>s. When Mr. Hamdo<strong>on</strong><br />
developed cancer, Mr. Wyatt guaranteed and paid some of his medical bills during hospital<br />
treatments in New York. 345<br />
2. Oil Allocati<strong>on</strong>s, C<strong>on</strong>tracts, and Surcharges<br />
In Phase I, Mr. Wyatt was the first customer to c<strong>on</strong>tract for the purchase of Iraqi crude oil under<br />
the Programme. During the initial eight phases, Coastal Petroleum signed c<strong>on</strong>tracts to purchase<br />
almost 50 milli<strong>on</strong> barrels of Iraqi crude oil. According to Iraqi officials and Ministry of Oil<br />
records, the allocati<strong>on</strong>s were granted in the name of his company, Coastal Petroleum, and Mr.<br />
Wyatt handled the c<strong>on</strong>tractual arrangements in Baghdad. After the mandatory impositi<strong>on</strong> of<br />
surcharges in Phase IX, Mr. Wyatt stopped using Coastal Petroleum to purchase oil under the<br />
Programme. An Iraqi official stated that, when asked directly at the end of 2000 if he would be<br />
willing to pay surcharges, Mr. Wyatt initially resp<strong>on</strong>ded that he had to think about it. Several<br />
Iraqi officials stated that, so<strong>on</strong> after surcharges were imposed, Mr. Wyatt agreed that he would<br />
c<strong>on</strong>tinue to purchase Iraqi crude oil and pay the surcharges. 346<br />
345 Maurice Lorenz interview (Sept. 15, 2004); Amer Rashid interview (Oct. 29, 2004); Iraq officials<br />
interviews; The Handbook of Texas Online, “Coastal Corporati<strong>on</strong>,” http://www.tsha.utexas.edu/handbook/<br />
<strong>on</strong>line/articles/CC/doc5_print.html (recounting the development of Coastal Corporati<strong>on</strong>); Augusto<br />
Giangrandi interview (July 24, 2005); Oscar Wyatt letter to Thomas Fehey (Jan. 31, 2003); Memorial<br />
Sloan-Kettering Cancer Center record, credit card payment authorizati<strong>on</strong> form (Mar. 6, 2003) (signed by<br />
Mr. Wyatt), sales receipt and credit card slip (Mar. 13, 2003) (noting a payment of $44,705); American<br />
Express record, Oscar Wyatt account, credit card statement (Feb. 25 and Mar. 27, 2003); Memorial Sloan-<br />
Kettering Cancer Center record, Nizar Hamdo<strong>on</strong> account, receipts (Apr. 12 and May 5, 2000). Mr. Wyatt<br />
was still deemed resp<strong>on</strong>sible for Mr. Hamdo<strong>on</strong>’s bills by the hospital as late as April 2005. Memorial<br />
Sloan-Kettering Cancer Center record, Nizar Hamdo<strong>on</strong> account, invoice (May 4, 2005).<br />
346 <strong>Committee</strong> oil company table, c<strong>on</strong>tract nos. M/01/01, M/02/01, M/03/12, M/04/28, M/05/29, M/06/27,<br />
M/07/18, M/08/72; Iraq officials interviews; Amer Rashid interview (Oct. 29, 2004); Michel Tellings<br />
interview (Oct. 14, 2004). The last c<strong>on</strong>tract executed <strong>on</strong> behalf of Coastal Petroleum was SOMO sales<br />
c<strong>on</strong>tract M/08/72 (June 26, 2000). <strong>Committee</strong> oil company table, c<strong>on</strong>tract no. M/08/72.<br />
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