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
Rather than conducting an independent investigation of the matter, OIP simply adopted Saybolt’s
investigative findings which found no improper conduct by Mr. Oliveira. 381
In a letter dated October 24, 2001, Mr. Sevan formally referred Captain Chiladakis’s allegations
regarding the Essex to the 661 Committee Chairman. Distribution to the members of the Security
Council occurred that same day. This matter was discussed at the next three 661 Committee
meetings. At the November 6, 2001 meeting, Mr. Sevan invited Mr. Boks to present Saybolt’s
investigative findings to the 661 Committee. He also updated the 661 Committee on Trafigura’s
efforts to resolve this matter and acquire authorization from the Dutch authorities to sell the nowtainted
oil. 382
During a 661 Committee meeting two days later, Mr. Sevan noted that he would be working
constantly with Saybolt during the coming weeks and would <strong>report</strong> back to the Committee.
Further discussion focused on Trafigura’s payment to the escrow account for the top-offs and
referring the matter for investigation to each of the member states affected by the situation: the
Netherlands, France, the United States, the United Kingdom, the Bahamas, and Venezuela.
Although significant investigations were initiated in the Netherlands, the United Kingdom, the
United States, and France by Customs and financial prosecutorial authorities, no charges were
ever brought against any of the companies or individuals involved in the Essex top-offs.
Investigations in the Netherlands and the United States remain active while the United Kingdom
and France investigations have since been closed. 383
381 Morten Buur-Jensen e-mail to Benon Sevan (Oct. 9, 2001); Benon Sevan letter to 661 Committee
Chairman, S/AC.25/2001/COMM.474 (Oct. 24, 2001); Benon Sevan e-mail to Oil overseers (Oct. 24,
2001) (copied to Stephani Scheer); Benon Sevan letter to Mohammed Al-Douri (Oct. 19, 2001);
Mohammed Al-Douri letter to Benon Sevan (Oct. 22, 2001); Netherlands Mission letter to OIP (Oct. 23,
2001). By the time the 661 Committee was notified, Saybolt had investigated the matter and already
provided its results to OIP. Saybolt and Mr. Oliveira denied any knowledge of the top-offs. Saybolt Essex
Report. On October 30, 2001, Mr. Sevan informed Bruce Rashkow, Director of the General Legal Division
of the Office of Legal Affairs that he had requested that Saybolt investigate the matter, and to appear
before the 661 Committee on November 6, 2001. The following day, Mr. Rashkow warned Mr. Sevan:
“[A]s we previously indicated, it is incumbent on the Organization to investigate this matter, including the
actions of Saybolt.” Benon Sevan e-mail to Bruce Rashkow (Oct. 30, 2001); Bruce Rashkow note to Benon
Sevan (Oct. 31, 2001).
382 Benon Sevan letter to Mohammed Al-Douri (Oct. 19, 2001); Mohammed Al-Douri letter to Benon
Sevan (Oct. 22, 2001); Benon Sevan letter to 661 Committee Chairman, S/AC.25/2001/COMM.474 (Oct.
24, 2001); Benon Sevan note to Joseph Stephanides (Oct. 24, 2001); Provisional record of 661 Committee
meeting, S/AC.25/SR.225 (Nov. 6, 2001); Provisional record of 661 Committee meeting, S/AC.25/SR.226
(Nov. 8, 2001); Provisional record of 661 Committee meeting, S/AC.25/SR.227 (Dec. 3, 2001).
383 Provisional record of 661 Committee meeting, S/AC.25/SR.226 (Nov. 8, 2001); 661 Committee
Chairman letters to the permanent representatives of the Netherlands, France, the United States, the United
Kingdom, the Bahamas, and Venezuela (Nov. 20 and 23, 2001) (requesting official investigations into the
actions of those companies from their respective states who were involved in the oil lifted by the Essex).
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