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
According to Mr. Galloway, the Mariam Appeal records were sent to Amman and Baghdad in
2001 and could not be located. Bank and other records show that following its establishment in
1998, the Mariam Appeal received three large donations totaling over £1 million, including
£500,000 from the United Arab Emirates, over £100,000 from Saudi Arabia, and at least
£434,000 from Mr. Zureikat. The Mariam Appeal also received a donation of £6,750 from Neste
Oil, which later became Fortum Oil and Gas Oy (“Fortum”). Neste Oil’s donation was made
following the purchase of oil in a transaction facilitated by Mr. Al-Chalabi, an Iraqi businessman
based in the United Kingdom and an early supporter of the Mariam Appeal. The only other
donations received by the Mariam Appeal were small amounts from various individuals. 143
2. Oil Allocations and Contracts
Ministry of Oil records show that from Phases VIII through XIII, a total of 18 million barrels of
oil were allocated to Mr. Galloway, either directly or indirectly through Mr. Zureikat, and nearly
two-thirds of the oil was lifted. According to Iraqi officials, oil allocations were granted to fund
Mr. Galloway’s anti-sanctions activities. Iraqi officials identified Mr. Zureikat as acting on Mr.
Galloway’s behalf to conduct the oil transactions in Baghdad. 144
argued that sanctions against Iraq were responsible for chronic malnutrition, disease, and lack of adequate
healthcare, as well as the deaths of 6,000 children monthly. United Kingdom Parliament record, Hansard,
Columns 874 and 875 (Mar. 27, 1998), Columns 250 and 253 (June 29, 1999), Column 708 (Nov. 3, 1998).
In other parliamentary speeches, Mr. Galloway argued that the lifting of sanctions would lead to business
opportunities in Iraq; he claimed that the United Nations Special Commission (“UNSCOM”) was an
American tool working with Israeli intelligence; he called Richard Butler, the head of UNSCOM, a
“congenital liar and a provocateur”; he referred to problems with missing Iraqi paperwork for UNSCOM
inspectors as a “ridiculous squall”; he described Iraqi opposition parties as terrorists and British support for
them illegal; and he attacked the legitimacy and purpose of the no-fly zones, designed to protect the
southern Shi’ite and northern Kurdish areas from Iraqi government attacks. United Kingdom Parliament
record, Hansard, Column 725 (Dec. 13, 1993), Column 940 (Feb. 17, 1998), Column 707 (Nov. 3, 1998),
Columns 152 to 157 (Nov. 25, 1998), pt. 9 (Dec. 17, 1998), Column 82WH (Mar. 6, 2002), Column 253
(June 29, 1999), Column 280WH (Jan. 10, 2001), Column 540 (July 9, 2001). Davenport Lyons are Mr.
Galloway’s legal representatives. Davenport Lyons letter to the Charity Commission for England and
Wales (Apr. 13, 2004).
143 National Bank of Abu Dhabi record, Mariam Appeal account, credit advices (Apr. 13, 1999, Apr. 19,
and Nov. 30, 2000) and bank statement (May 4, 1999); Lloyds TSB record, Mariam Appeal account, bank
statements (undated) (transaction dates Aug. 4, 2000; Mar. 13 and July 11, 2001), bank statements (Nov. 1
and 29, 2001; June 13, July 25, Aug. 8, Sept. 5, and Dec. 12, 2002); George Galloway interview (May 16,
2005); Neste Oil letter to the Committee (June 30, 2005); Rod Gavshon interview (May 23, 2005); David
Leigh and David Pallister, “Iraq Oil cash funded MP’s campaigns,” The Guardian, Feb. 17, 2004; Dominic
Kennedy, “Globetrotter's 14 trips paid for by appeal,” The Times, Apr. 23, 2003; Charity Commission of
England and Wales record, “Income Abu Dhabi account” (undated); Charity Commission for England and
Wales, “The Mariam Appeal (2004),” sec. 12 (June 28, 2004).
144 Committee oil beneficiary table, contract nos. M/08/35, M/09/23; M/10/38, M/11/04, M/12/14,
M/13/48; Iraq official interviews; Ghalib Al-Douri interview (Nov. 5, 2004); Saddam Z. Hassan interviews
(Mar. 9 and July 28, 2005); Tariq Aziz interview (Mar. 1, 2005). When interviewed a second time, Mr.
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