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
2. Oil Allocations and Contracts
Following Mr. Kaspereit’s publicized flight to Baghdad, the Government of Iraq began
granting him oil allocations. From Phases IX through XIII, Mr. Kaspereit received
allocations totaling 9.5 million barrels. Mr. Kaspereit used E.O.T.C., a shell company
with no means to finance the crude oil purchases, to enter into SOMO contracts. Mr.
Kaspereit used E.O.T.C. to sell 8.5 million barrels of oil allocated to him. Marc Rich +
Co. financed E.O.T.C.’s oil transactions in Phase IX. 107
Busting Flights to Iraq,” Agence France Presse, Sept. 8, 2000; Elizabeth Bryant, “Unofficially, Anti-War
Emotion Runs High Throughout France,” Houston Chronicle, Oct. 10, 2002; “French plane lands in
Baghdad in defiance of UN air embargo,” Agence France Presse, Nov. 7, 2000; “Second embargobreaking
flight leaves Paris for Baghdad,” Agence France Presse, Nov. 7, 2000; Claude Kaspereit letters to
Abdul Razaq Al-Hashimi (Nov. 14, 2000), Saddam Z. Hassan (Nov. 14, 2000), Amer Rashid (Nov. 14,
2000), Tariq Aziz (Nov. 14, 2000) (each translated from French) (signed by Mr. Kaspereit as the President
of Association pour l’Entraide Pour les Enfants d’Irak (the Society for Cooperation to Benefit Iraqi
Children) and “Organisateur du vol Paris—Baghdad—Paris” (Organizer of the Paris-Baghdad-Paris
flight)); France official #5 interview (Mar. 22, 2005).
107 Confidential source; “French plane lands in Baghdad in defiance of UN air embargo,” Agence France
Presse, Nov. 7, 2000; “Second embargo-breaking flight leaves Paris for Baghdad,” Agence France Presse,
Nov. 7, 2000; SOMO letters to Amer Rashid (Feb. 1, 2001) (approving contract M/09/39 for 2 million
barrels of oil for “E.O.T.C.”), (Feb. 11, 2001) (stating that it has been agreed that “E.O.T.C.” would receive
an increase of 2 million barrels of oil under contract M/09/39), (Apr. 7, 2001) (approving an increase of 2
million barrels of oil for contract M/09/39 for “European Oil Trading Co.”), (July 17, 2001) (approving
contract M/10/02 for 2 million barrels of oil for “E.O.T.C.”), (Dec. 20, 2001) (approving contract M/11/26
for 1.5 million barrels of oil for “E.O.T.C. (Mr. Claude Kaspereit)”), (June 24, 2002) (approving contract
M/12/62 for 1 million barrels of oil for “E.O.T.C. (Mr. Claude Kaspereit/President of the Association for
the Children of Iraq)”) (each translated from Arabic) (hereinafter “Approval letters for Kaspereit
contracts”); SOMO oil allocation tables for Phase X (Aug. 4, 2001) (indicating an allocation of 2 million
barrels of oil for E.O.T.C.), Phase XI (Dec. 1, 2001) (indicating an allocation of 1.5 million barrels of oil
for E.O.T.C.), Phase XII (May 19, 2002) (indicating an allocation of 1 million barrels of oil for
“E.O.T.C./Mr. Claude Kaspereit” “Chair of the Society for Support of Iraqi Children”), Phase XIII (Nov.
17, 2002) (indicating an allocation of 1 million barrels of oil for “E.O.T.C./Mr. Claude Kaspereit” for “the
new phase”) (each translated from Arabic) (hereinafter “SOMO oil allocation tables for Kaspereit”).
SOMO sales contract, no. M/10/02 (July 11, 2001); SOMO bill of lading, ck/5064 (Sept. 20, 2001)
(relating to M/10/02) (showing a net lift of 2,005,575 barrels of oil); Vitol record, Table Vitol Iraqi Crude
Purchases during Phases 8 to 12 Details (Aug. 11, 2005) (demonstrating that Vitol S.A. purchased oil from
a Marc Rich entity); Committee oil financier table, contract no. M/10/02.
SOMO letters to Amer Rashid (Dec. 20, 2001) (approving contract M/11/26 for 1.5 million barrels of oil
for “E.O.T.C. (Mr. Claude Kaspereit)”), (June 24, 2002) (approving contract M/12/62 for 1 million barrels
of oil for “E.O.T.C. (Mr. Claude Kaspereit/President of the Association for the Children of Iraq)”) (each
translated from Arabic); SOMO oil allocation tables for Phase XI (Dec. 1, 2001) (indicating an allocation
of 1.5 million barrels of oil for E.O.T.C.), Phase XII (May 19, 2002) (indicating an allocation of 1 million
barrels of oil for “E.O.T.C./Mr. Claude Kaspereit” “Chair of the Society for Support of Iraqi Children”)
(each translated from Arabic); SOMO sales contract, no. M/11/26 (Dec. 19, 2001); SOMO bill of lading,
ck/5166 (May 18, 2002) (translated from Arabic) (relating to M/11/26); SOMO bill of lading, ck/5180
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