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
financial support to AFI and remunerate Mr. Munier for his campaign to have sanctions against
Iraq lifted. 137
To obtain allocations and Aredio’s contracts, Mr. Munier first met with Mr. Aziz late in 1998 and
then, through Mr. Aziz’s office, he met with SOMO officials. Mr. Munier also submitted a letter
recommending that SOMO contract with Aredio for his allocations. Starting in Phase V, and at
the outset of every phase thereafter, Mr. Munier faxed SOMO a nomination letter recommending
that Aredio “lift and market the barrels of my usual allocation.” When shown a copy of this letter
from January 2002, Mr. Munier stated that this was a typical example of what he would submit to
SOMO in each phase of the Programme. 138
Mr. Munier claimed that he has neither drawn a salary for his work at AFI nor has he received a
commission from Aredio. He has, however, acknowledged that Aredio and Taurus remunerated
him for his efforts as an intermediary by covering his expenses for his work at AFI. According to
Mr. Munier, his arrangement with Aredio was such that Mr. Munier would submit AFI’s “global
invoices” to Mr. Michel every two to six months and Aredio would reimburse AFI by check. Mr.
Munier also submitted AFI invoices to and was reimbursed by Taurus. To coordinate these
payments, Mr. Munier stated that he met with Martin Schenker “of Aredio” and Ben Pollner, the
Director of Taurus. Mr. Munier explained that had he not been compensated, he would “not have
been happy.” 139
137 Gilles Munier interview (Sept. 23, 2005). According to Mr. Munier, “smaller companies needed my
contacts—that’s why I worked with Michel.” Gilles Munier interview (Sept. 23, 2005). Mr. Munier’s
allocations were classified under “Special Requests for France” in SOMO’s allocations records. SOMO oil
allocation tables for Munier.
138 Gilles Munier interview (Sept. 23, 2005) (recalling that this meeting occurred in either November or
December 1998); Iraq official interviews (describing that during his regular trips to Iraq, Mr. Munier would
personally visit SOMO and would meet with Mr. Aziz, among others); SOMO sales contract, no. M/05/66
(Mar. 2, 1999); Gilles Munier letter to Saddam Z. Hassan (Jan. 10, 2002).
139 Gilles Munier interview (Sept. 23, 2005); Brit Hume, et al., “Special Report with Brit Hume,” Fox News
Network, Feb. 16, 2004 (<strong>report</strong>ing that Mr. Munier has stated that during the Programme, he had “served as
an intermediary and in exchange for that, got some benefits”); Philip Delves Broughton and Jack
Fairweather, “Saddam’s Web of Bribery ‘went round the world,’” The Daily Telegraph, Jan. 28, 2004, p.
13 (admitting that he and AFI had received commissions for introducing businesses to contacts in Iraq, and
stated that all of these interactions were legal and within the rules of the Programme); see also Lara
Marlowe, “Gaullist MP and Ex-minister Linked to Saddam Oil Scandal,” Irish Times, Jan. 29, 2004; Rory
McCarthy and Owen Bowcott, “Iraqi Council List of Alleged Bribes,” The Guardian, Jan. 30, 2004; Gilles
Munier interview (Sept. 23, 2005) (stating that he met with Mr. Schenker “of Aredio” once or twice and
with Mr. Pollner two or three times); see also Martin Schenker fax to Gilles Munier (Apr. 9, 2003)
(promising to send “the results” and “the details” to Mr. Munier the following day). AFI’s activities and
expenses included funding anti-sanctions advertisements in newspapers, publishing an Iraq history and
guidebook, and, although the plan was never realized, chartering a Boeing flight to Baghdad. Gilles
Munier interview (Sept. 23, 2005) (clarifying that occasionally Aredio would make payments for AFI
directly to a service provider and estimating that he sent six invoices to Aredio). Martin Schenker was the
signatory on seven of Aredio’s 14 oil sales contracts with SOMO. SOMO oil allocation tables for Munier.
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