INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS F. GILLES MUNIER Figure: Serge Boidevaix letter to SOMO nominating Dev<strong>on</strong> (Mar. 6, 2002). Gilles Munier, Secretary-General of the French-Iraqi Friendship Associati<strong>on</strong> (“AFI”) and a l<strong>on</strong>gtime advocate for Iraq, has acknowledged that he received allocati<strong>on</strong>s—a total of 11.8 milli<strong>on</strong> barrels of oil—from the Government of Iraq. Aredio signed the c<strong>on</strong>tracts for Mr. Munier’s allocati<strong>on</strong>s. In return, Aredio funded AFI’s anti-sancti<strong>on</strong>s activities. Surcharges were levied and paid <strong>on</strong> the Aredio c<strong>on</strong>tracts for oil designated to Mr. Munier in Phases X and XI. Although Mr. Munier knew that surcharges were imposed <strong>on</strong> c<strong>on</strong>tracts generally, he stated that even if surcharges were paid <strong>on</strong> his allocati<strong>on</strong>s, “that wasn’t my problem.” 132 132 <strong>Committee</strong> oil surcharge table, c<strong>on</strong>tract nos. M/10/86, M/11/80; Gilles Munier interview (Sept. 23, 2005) (translated from French). REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 74 OF 623
INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS 1. Background Mr. Munier has been Secretary-General of AFI since 1986. The group opposed military acti<strong>on</strong> against Iraq prior to the Gulf War and later advocated for the lifting of sancti<strong>on</strong>s against Iraq. 133 As early as June 1996, <strong>on</strong>e m<strong>on</strong>th after the Memorandum of Understanding for the Oil-for-Food Programme was c<strong>on</strong>cluded, Mr. Munier led a delegati<strong>on</strong> of representatives from French businesses to Iraq where they met with various senior Iraqi officials, including Mr. Aziz. Mr. Munier’s work against the sancti<strong>on</strong>s regime c<strong>on</strong>tinued throughout the Programme. 134 2. Oil Allocati<strong>on</strong>s Between Phases V and XIII, Mr. Munier received eight allocati<strong>on</strong>s totaling 11.8 milli<strong>on</strong> barrels oil. 135 According to Iraqi officials, Mr. Munier received oil allocati<strong>on</strong>s because of his pro-Iraq 133 Gilles Munier interview (Sept. 23, 2005); “French Peace Activists to Keep Tabs <strong>on</strong> Iraq Arms Inspecti<strong>on</strong>s,” Agence France Presse, Jan. 11, 2003; Michel Zlotowski, “French Defense Minister Accused of Link with Iraq,” The Jerusalem Post, Aug. 26, 1990, p. 2; see also AFI, “Historique,” http://amiraq.free.fr/historique/story_01.html; AFI, “La Bataille pour la levée de l’embargo,” http://amiraq.free.fr/historique/bataille.html; R<strong>on</strong>e Tempest, “Europeans Have Much to Lose in the Gulf Puzzle,” Los Angeles Times, Sept. 4, 1990, p. 1. In 1990, he led a private French delegati<strong>on</strong> that was credited with securing the release of nine French hostages. Abdul Jalil Mustafa, “Nine Frenchmen Held Hostage in Iraq Arrive in Amman,” Associated Press, Oct. 3, 1990; William Drozdiak, “Iraq Orders 9 French Hostages Released,” San Francisco Chr<strong>on</strong>icle, Oct. 2, 1990, p. A15. Mr. Munier stayed in Baghdad for two weeks, working to c<strong>on</strong>vince the Iraqi government of the strength of pro-Arab support in France. Robert Cottrell, “French President Arrives in UAE Hoping to Secure Hostage Release,” The <strong>Independent</strong>, Oct. 4, 1990. Mr. Munier <str<strong>on</strong>g>report</str<strong>on</strong>g>edly described Saddam Hussein’s release of the pris<strong>on</strong>ers as a “message of peace from Iraq,” and urged France to relax its policy towards Iraq. “Nine Frenchmen Freed by Saddam Arrive in Jordan,” Reuters News, Oct. 3, 1990; Abdul Jalil Mustafa, “Nine Frenchmen Held Hostage in Iraq Arrive in Amman,” Associated Press, Oct. 3, 1990. In the mid-1990s, Mr. Munier began coordinating an anti-sancti<strong>on</strong>s c<strong>on</strong>ference in Baghdad. Mr. Munier c<strong>on</strong>tinued to lead these c<strong>on</strong>ferences in Iraq every six m<strong>on</strong>ths throughout the Programme. Gilles Munier interview (Sept. 23, 2005). 134 “French Businessmen Discuss Exports to Iraq,” Agence France Presse, June 8, 1996; “Iraqi oil minister holds talks in France,” Agence France Presse, June 9, 1996 (after their meetings, in an interview with Agence France Presse, Mr. Rashid stated, “Friendly countries which supported us, like France and Russia, will certainly take priority when it comes to signing c<strong>on</strong>tracts”); Gilles Munier interview (Sept. 23, 2005) (describing his work in Iraq since the mid-1970s and stating that very few people besides himself are coming to the defense of Iraq these days and that many of those people <strong>on</strong> the allocati<strong>on</strong> lists have “turned their backs <strong>on</strong> Baghdad”) (translated from French). Mr. Munier stated that he was not involved with companies engaged in importing humanitarian goods to Iraq during the Programme. After the Programme terminated, he advised an ambulance company <strong>on</strong> c<strong>on</strong>ducting business in Iraq and, in return, the company agreed to provide financial assistance to AFI, in particular, for the publicati<strong>on</strong> of an illustrated book of Iraqi history. Gilles Munier interview (Sept. 23, 2005). 135 Tariq Aziz interview (Mar. 1, 2005); Iraq official interview; SOMO letters to Amer Rashid (Mar. 2, 1999) (approving c<strong>on</strong>tract M/05/66 for 1.8 milli<strong>on</strong> barrels of oil for Aredio “(Iraqi-French Friendship Society)”), (June 12, 1999) (approving c<strong>on</strong>tract M/06/69 for 1.8 milli<strong>on</strong> barrels of oil for Aredio “(Iraqi- French Friendship Society)”), (Dec. 21, 1999) (approving c<strong>on</strong>tract M/07/40 for 1.2 milli<strong>on</strong> barrels of oil for REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 75 OF 623
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