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
oil transactions other than securing the allocations and signing the contracts. Regular
communication with SOMO was directly conducted by Vitol. Correspondence sent by Mr.
Boidevaix was prepared by Vitol. Though Mr. Boidevaix has insisted that only 22 million barrels
of oil were lifted under his allocations, Ministry of Oil records show that 29.5 million barrels of
oil were lifted. 126
Vitol paid Mr. Boidevaix a fee of $30,000 per phase, in addition to $0.01 per barrel, which was
later raised to $0.03 per barrel for all barrels after Vitol had lifted three million barrels of oil. Mr.
Boidevaix received a total of $367,808.77 in commissions from Vitol for the period between
Phases VIII and XII. 127
Mr. Boidevaix admitted that he was aware that the Iraqi regime had imposed surcharges on oil
contracts. According to Mr. Boidevaix, at an OPEC meeting in Vienna in 2001, during Phase IX,
SOMO officials informed him of the requirement to pay surcharges and warned him that without
paying the surcharges Vitol would not be able to sign further contracts. Mr. Boidevaix stated that
he informed Vitol of this conversation and advised the company not to pay the illegal surcharges.
126 Vitol record, Vitol consultancy agreement with S.B. Consultants (Apr. 27, 1998); Serge Boidevaix
interview (Oct. 4, 2005) (stating that his communication with SOMO was through Ms. D’Alessandro, in
London, and Roland Favre, in Geneva, and that he rarely called SOMO, and only when directed to do so by
Vitol); Serge Boidevaix business card (the address and telephone number on this Vitol business card for
“Serge Boidevaix, President—France,” had the address and telephone number for Mr. Boidevaix’s
residence from where he operated his consulting business); Robin D’Alessandro interview (Oct. 10, 2005)
(confirming that Vitol-France did not exist, and the name was created to give a “French angle” to Vitol
S.A., and that the business cards were provided by Vitol S.A.); SOMO sales contracts, nos. M/04/08 (June
4, 1998), M/05/36 (Dec. 22, 1998), M/06/40 (June 1, 1999), M/07/30 (Dec. 15, 1999), M/08/34 (June 26,
2000), M/09/97 (Apr. 3, 2001), M/10/78 (Sept. 4, 2001), M/13/74 (Jan. 9, 2003) (contracting with Vitol)
(signed “For Buyer Serge Boidevaix, President/Vitol-France on behalf of Vitol S.A. Geneva-Switzerland”
or “Serge Boidevaix, President/Vitol-France for and on behalf of Vitol S.A. Geneva-Switzerland”)
(hereinafter “Boidevaix sales contracts”); Jean-René Farthouat and Nathalie Roret letter to the Committee
(Oct. 17, 2005); Committee oil beneficiary table, contract nos. M/04/08, M/05/36, M/06/40, M/07/30,
M/08/34, M/09/97, M/10/78, M/13/74. Jean-René Farthouat and Nathalie Roret are counsel for Mr.
Boidevaix.
127 Robin D’Alessandro interview (Oct. 10, 2005) (stating that Mr. Boidevaix was paid $60,000 annually);
Vitol record, Vitol consultancy agreement with S.B. Consultants, art. 5 (Apr. 27, 1998); Attachment to
Vitol letter to State Secretariat for Economic Affairs (Switzerland) (Aug. 11, 2005) (list of payments from
Vitol to Mr. Boidevaix between Phases VIII and XII). This calculation does not include the commission
paid for the Phase XIII contract for 8.9 million barrels. Mr. Boidevaix confirmed the list of payments
provided by Vitol and acknowledged that Vitol honored this agreement. Serge Boidevaix interview (Oct. 4,
2005). Mr. Boidevaix only referred to the original agreement between him and Vitol, without referring to
the late increase in his commission to $0.03 per barrel. Ms. D’Alessandro, however, indicated that the
agreement was later amended without being documented, and remained in place until 2004. The payments
between Phases VIII and XII confirm the increase in the commission. Ibid.; Robin D’Alessandro interview
(Oct. 10, 2005).
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