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
E. EXPLANATIONS OF SAYBOLT, ARMANDO CARLOS OLIVEIRA,
AND TRAFIGURA
On October 15, 2005, Saybolt was notified of the Committee’s proposed findings regarding the
conduct of Mr. Oliveira, and invited to provide the Committee with any additional information
prior to the issuance of its Report. In response, Saybolt pointed out its role in conducting an
internal investigation of the incident, which found no evidence that Saybolt employees knew of
the Essex top-off. According to Saybolt, when new information came to light in February 2005,
the company suspended Mr. Oliveira, who then abruptly resigned. 384
By letter dated October 14, 2005, Mr. Oliveira was also provided notice of the Committee’s
proposed findings regarding his conduct. Mr. Oliveira responded by stating that he was not
involved in the top loading incidents and did not facilitate the production of any documents
outside of the Programme. 385
Trafigura has refused to make any of its personnel available for interview with Committee
investigators. Trafigura maintains that it is the victim of a top-off scheme between Jean-Paul
Cayre and the Government of Iraq–and that the company was not involved with any of Ibex
Energy’s dealings with the Government of Iraq. Trafigura further claims that it relied upon a
Saybolt inspector apparently bribed by Ibex Energy. According to Trafigura, Roundhead is a
legitimate business vehicle that was used in order to avoid the problem of “offset” where the
buyer and seller use the same bank. The company denies that its invoice of June 27, 2001 to Ibex
Energy for $379,650 for the rebilling of demurrage for the Argo Hebe was improper and
maintains that this invoice had nothing to do with the first top-off, of which the company had no
knowledge. 386
384 Committee letter to Saybolt (Oct. 15, 2005); Saybolt letter to the Committee (Oct. 20, 2005).
385 Committee letter to Armando Carlos Oliveira (Oct. 14, 2005); Armando Carlos Oliveira letter to the
Committee (Oct. 15, 2005).
386 Committee meeting with Trafigura (Oct. 21, 2005). Despite repeated requests for interviews, it was
only on October 22, 2005, following a meeting with the Committee, that the company offered for the first
time to make Eric de Turckheim, Trafigura’s Finance Director, available for interview. Trafigura e-mail to
the Committee (Oct. 22, 2005). Given the unwillingness of the company to make its staff available during
the course of the investigation, at this late date the Committee declined. By letters dated October 17, 2005,
Trafigura and Jean-Paul Cayre (Ibex Energy) were each similarly provided with notices of the Committee’s
proposed findings and were invited to provide any additional information. Trafigura provided written
responses. Committee letter to Trafigura (Oct. 17, 2005); Committee letter to Jean-Paul Cayre (Oct. 17,
2005); Trafigura letter to the Committee (Oct. 20, 2005); Trafigura e-mail to the Committee (Oct. 22,
2005).
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