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
an increase of 2 million barrels of oil under contract M/09/39); E.O.T.C. (Isabel Lignereux) fax to Marc
Rich + Co. (Ann Bickerstaffe) (Apr. 19, 2001) (attaching Oil Overseers approval of the amendment to
contract M/09/39); Marc Rich + Co. Investment AG fax to E.O.T.C. (Jan. 26, 2001) (marked to the
attention of “Mr. Claude Kaspereit – General Manager”) (confirming transaction dated January 25, 2001
for a purchase of 2 million barrels of oil from E.O.T.C. with lifts scheduled for February 2001) (“Payment
to be effected from the letter of credit opened by the buyer on behalf of ‘E.O.T.C.’ in favour [sic] of the
United Nations in BNP, New York. ‘E.O.T.C.’ will provide buyer, in a format acceptable to buyer and
buyer’s bankers, with their authorization to open the letter of credit on behalf of ‘E.O.T.C.’”); Marc Rich +
Co. Investment AG telex to E.O.T.C. (undated) (marked to the attention of “Mr. Claude Kaspereit –
General Manager”) (refers to “new transaction with your company” for the purchase of 2 million barrels of
oil from E.O.T.C. with lifts scheduled for April and May 2001) (using the same language); Scott Shepherd
e-mail to BNP Paris (Patrice Alberti) (Mar. 20, 2001) (forwarding a letter of credit and instructions to
“Please issue the following letter of credit under the full and entire responsibility of Marc Rich Investment
AG, whose name must not be mentioned” by order of E.O.T.C. in favor of the United Nations); Marc Rich
+ Co. Investment AG (Tony Monckton) e-mail to BNP Paris (Patrice Alberti) (Mar. 20, 2001) (forwarding
the letter of credit application by order of E.O.T.C. in favor of the United Nations under “full and entire
responsibility of Marc Rich + Co. Investment AG” and specifying that “name of Marc Rich is not to appear
on any transmission to BNP New . . . [Yor]k); Scott Shepherd e-mail to BNP (Mar. 23, 2001) (regarding an
amendment to “our L/C…issued by your Paris office by order of: E.O.T.C. in favour [sic] of: The United
Nations for a maximum amount of Euro 17,686,000.00); Marc Rich + Co. Investment AG (Scott Shepherd)
telex to BNP Paris (Patrice Alberti) (Apr. 4, 20, 2001) (requesting that BNP Paris issue a “letter of credit
under . . . and entire responsibility of Marc Rich + Co. investment ag. . . the name of marc rich is not to
appear on any transmission to bnp new york.”); Marc Rich + Co. Investment AG e-mail to BNP Paris (Apr.
20, 2001) (forwarding the letter of credit application by order of E.O.T.C. in favor of the United Nations
under “full and entire responsibility of Marc Rich + Co. Investment AG” and also specifying that the name
of “Marc Rich + Co. Investment AG” “must not . . . [be me]ntioned”) (this document was only partially
legible). In each instance, Marc Rich + Co. requested the issuance of the letter of credit and regularly
directed that its name not be mentioned in transmissions to BNP New York. BNP invoiced and debited all
costs and fees for these oil purchases to Marc Rich + Co. BNP Paris record, Marc Rich + Co. Investment
AG, debit advice (Apr. 25, 2001) (informing Marc Rich + Co. Investment AG that its account was debited
€21,889,389.78, including €17,677.37 for “BNP Paribas NY fees”); BNP Paris (Yannick Poirrier) telex to
Marc Rich + Co. Investment AG (Scott Shepherd) (Apr. 25, 2001) (referencing €21,871,712.41 as the total
drawing amount for the United Nations as the beneficiary covering 1,001,819 barrels of Kirkuk crude oil);
BNP Paris telex to Marc Rich + Co. Investment AG (Scott Shepherd) (June 5, 2001) (advising that
€27,814,065.84 would be debited from Marc Rich + Co. Investment AG for the benefit of the United
Nations); Marc Rich Investment Ltd. telex to BNP Paris (May 18, 2001) (requesting an amendment to the
letter of credit to adjust the price per barrel for and on behalf of Marc Rich and Co, Investment AG in
reference to an order of E.O.T.C. in favor of the United Nations in the amount of €27,077,026.57); SOMO
commercial invoice, C/74/2001 (May 23, 2001) (stating that the total value for the lift is €30,208,047.07);
BNP Paris telex to Marc Rich + Co. Investment AG (June 19, 2001) (providing a documentary credit
message noting that the Marc Rich + Co. Investment AG account would be debited for a payment of
€30,232,513.51 to the United Nations with €30,208,047.47 for “documents value” and €24,466.44 for BNP
New York’s fees); BNP Paris record, Marc Rich + Co. Investment AG, debit advice (June 21, 2001)
(informing Marc Rich + Co. Investment AG that its account was debited €30,232,513.51).
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