report on programme manipulation - Independent Inquiry Committee

More documents

Recommendations

Info

INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS Table 1 – Allocations in the Names of George Galloway and Fawaz Zureikat Phase Beneficiary Name on SOMO Allocation Table Beneficiary Name on SOMO Request For Approval of Contract Country Designation Barrels of Oil Allocated VIII Fawaz Zureikat Fawaz Zureikat United Kingdom 4 million IX Fawaz Zureikat Fawaz Zureikat – Mariam Campaign – 3 million Fawaz Zureikat Fawaz Zureikat – 2 million X XI Mr. Galloway/ Fawaz Zureikat Mr. Galloway/ Fawaz Zureikat Fawaz Zureikat United Kingdom 3 million Mr. Galloway United Kingdom 3 million Fawaz Zureikat Fawaz Zureikat Jordan 1 million XII Mr. Galloway/ Fawaz Zureikat Mr. Galloway United Kingdom 3 million Fawaz Zureikat Fawaz Zureikat Jordan 1 million XIII Mr. Galloway/ Fawaz Zureikat Mr. Galloway United Kingdom 2 million Fawaz Zureikat Fawaz Zureikat Jordan 1 million Mr. Galloway denied requesting allocations of oil or receiving financial support from the Government of Iraq. Mr. Zureikat acknowledged that he received oil from the Government of Iraq for himself, but denied that he acted as a representative for Mr. Galloway in connection with any Iraqi oil transactions under the Programme. When asked about the Ministry of Oil records that reference his name and allocations with Mr. Galloway under the “United Kingdom” classification, Mr. Zureikat suggested that his name might have been linked with Mr. Galloway’s on SOMO documents because he often had been referred to in Iraq as a supporter and friend of Mr. Galloway. 146 Iraqi officials, however, stated that Mr. Zureikat negotiated both his own oil contracts at SOMO as well as those for the benefit of Mr. Galloway’s campaign. According to Iraqi officials, during some of his visits to SOMO to deal with oil contracts, Mr. Zureikat discussed the activities of the Mariam Appeal and repeated on more than one occasion that the oil allocated to Mr. Galloway 146 George Galloway interview (May 16, 2005); Dominic Kennedy, Philip Webster, and Melissa Kite, “Galloway faces new allegation over misuse of charity funds,” The Times, Apr. 23, 2003; Full Statement of George Galloway MP, The Guardian, Apr. 22, 2003; Fawaz Zureikat interview (July 28, 2005). REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 82 OF 623
INDEPENDENT INQUIRY COMMITTEE INTO THE UNITED NATIONS OIL-FOR-FOOD PROGRAMME REPORT ON PROGRAMME MANIPULATION CHAPTER TWO OIL TRANSACTIONS AND ILLICIT PAYMENTS was being used to support the activities of the Mariam Appeal or that the allocations were for “George.” 147 Augusto Giangrandi, a trader for Bayoil and Italtech, discussed below in Section VI.B, stated that he had conversations with Mr. Galloway in Baghdad about oil sales under the Programme. While Mr. Galloway did not state explicitly to Mr. Giangrandi that he had received any oil allocations, over the course of informal meetings Mr. Galloway asked him to explain how the oil allocation process worked financially and how commissions were negotiated. Mr. Giangrandi encouraged Mr. Galloway to seek an oil allocation and gave Mr. Galloway his business card. Mr. Giangrandi had hired an Iraqi agent to provide information on potential allocation holders through his contacts at SOMO. Mr. Giangrandi inquired about Mr. Galloway through this agent and heard that oil had been given to “Abu Mariam” (as Mr. Galloway was known) and that Fawaz Zureikat was acting as his representative. Mr. Giangrandi subsequently attempted to negotiate the purchase of oil with Mr. Zureikat. The deal fell through when Mr. Zureikat <strong>report</strong>ed that “his friend” had received a better offer from another company. Mr. Galloway has described this as a “cock and bull story.” 148 When asked about Mr. Giangrandi, Mr. Zureikat initially denied knowing him. Only when Mr. Zureikat was told that Mr. Giangrandi claimed to have met with him, did he acknowledge the meeting. Nevertheless, Mr. Zureikat stated that the meeting had lasted about five minutes, and he denied doing business with Mr. Giangrandi. 149 3. Surcharge Payments Between Phases VIII and XII, Aredio and ASI Middle East Advanced Semiconductor Inc. (“Middle East Advanced Semiconductor”), Mr. Zureikat’s company which specialized in supplying electronic parts and had extensive commercial interests in Iraq, purchased approximately 11 million barrels of oil related to the allocations for Mr. Galloway and Mr. Zureikat (designated as “United Kingdom” allocations). Some of the oil contracts were financed by Taurus, which also purchased and financed some of the oil (designated as “Jordan”) allocations granted to Mr. Zureikat. Surcharges totaling $2,103,034 were levied on four contracts corresponding to allocations for the benefit of Mr. Galloway and his campaign. 150 147 Tariq Aziz interview (Mar. 1, 2005); Iraq official interviews; Saddam Z. Hassan interview (July 28, 2005). 148 Augusto Giangrandi interviews (Apr. 25 and 27-28, and July 24-25, 2005); Confidential witness interview; George Galloway e-mail to the Committee (Oct. 17, 2005). 149 Fawaz Zureikat interview (July 28, 2005). 150 Committee oil beneficiary and financier tables, contract nos. M/08/35, M/09/23; M/09/118, M/10/38, M/11/04, M/11/10, M/12/14. In Phases VIII and IX, Aredio executed the contracts with SOMO to purchase over four million barrels of Mr. Galloway’s allocations. In Phases X through XII, Middle East Advanced Semiconductor executed the contracts with SOMO to purchase over 7.6 million barrels of Mr. Galloway’s allocations. Aredio is affiliated with Taurus, as discussed in Section VI.C below. Mr. Zureikat REPORT ON PROGRAMME MANIPULATION–OCTOBER 27, 2005 PAGE 83 OF 623
Page 1 and 2:
INDEPENDENT INQUIRY COMMITTEE INTO
Page 3 and 4:
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24: INDEPENDENT INQUIRY COMMITTEE INTO
Page 73: INDEPENDENT INQUIRY COMMITTEE INTO
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Page 208 and 209:
Page 210 and 211:
Page 212 and 213:
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 236 and 237:
Page 238 and 239:
Page 240:
show all

report on programme manipulation - Independent Inquiry Committee

Create successful ePaper yourself

Delete template?

Save as template?