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
Mr. de Petro was questioned about whether he provided any of the proceeds he received to any
government official or to Mr. Formigoni. Mr. de Petro stated that he made no payment from the
proceeds of the oil sales to Mr. Formigoni or anyone in the office of the President. 179
3. Surcharge Payments
According to Ministry of Oil records and bank and financial documents, between December 14,
2000 and May 16, 2002, a total of over $942,000 in surcharges levied on CO.GE.P. was paid
directly by CO.GE.P. and its officers, including Paolo Lucarno and Andrea Catanese, to SOMO
bank accounts. 180
CO.GE.P. officers learned of the surcharge requirement through Mr. Lucarno, who was informed
by SOMO officials and who then told other CO.GE.P. officials. After some discussion, and with
the understanding that CO.GE.P. would not be able to continue contracting with SOMO unless it
paid the surcharges, CO.GE.P. officials agreed to do so and initiated payments. As was often
Limited invoice (Jan. 12, 2000) (requesting payment of $60,450); UEB record, CO.GE.P. account, debit
advice (Jan. 17, 2000) (indicating payment of $60,450 to Candonly Limited); CO.GE.P. record, Candonly
Limited invoice (Mar. 14, 2000) (requesting payment of $3,352); UEB record, CO.GE.P. account, debit
advice (Mar. 17, 2000) (indicating payment of $3,352 to Candonly Limited); CO.GE.P. record, Candonly
Limited invoice (Dec. 4, 2000) (requesting payment of $60,000), (Dec. 4, 2000) (requesting payment of
$10,000); UEB record, CO.GE.P. account, debit advice (Jan. 17, 2001) (indicating payment of $70,000 to
Candonly Limited); CO.GE.P. record, Candonly Limited invoice (Sept. 12, 2000) (requesting payment of
$50,663); UEB record, CO.GE.P. account, debit advice (Oct. 23, 2000) (indicating payment of $59,546 to
Candonly Limited for Sept. 12, 2000 invoice and travel expenses); CO.GE.P. record, Candonly Limited
invoice (Mar. 14, 2000) (requesting payment of $3,552); UEB record, CO.GE.P. account, debit advice
(Mar. 17, 2000) (indicating payment of $3,552 to Candonly Limited); CO.GE.P. record, Candonly Limited
invoice (Feb. 14, 2002) (requesting payment of $161,204.52); UEB record, CO.GE.P. account, debit advice
(Apr. 18, 2002) (indicating payment of $161,204.52 to Candonly Limited); CO.GE.P. record, Candonly
Limited invoice (Dec. 23, 2002) (requesting payment of $15,000); UEB record, CO.GE.P. account, debit
advice (Jan. 8, 2003) (indicating payment of $15,000 to Candonly Limited); CO.GE.P. record, Candonly
Limited invoice (Mar. 27, 2003) (requesting payment of $17,500); Marco Mazarino de Petro interview
(Oct. 12, 2005).
179 Marco Mazarino de Petro interview (Sept. 28, 2005).
180 Committee oil surcharge table, contract no. M/08/51; UBS Lugano record, Starna account, payment
order (Dec. 11, 2000) (order signed by Igor Patscheider for the transfer of $60,000 to a SOMO account at
Fransabank) and debit advices (Dec. 12, 2000) (two payments of $30,000 each to be transferred to
Fransabank); Fransabank record, SOMO account, SWIFT message (Dec. 14, 2000) (translated from French
and Arabic) (showing payment of $30,000 from UBS Lugano to a SOMO account at Fransabank); Jordan
National Bank record, SOMO account, credit advices (May 31, 2001) (showing payment of $250,580 with
reference “Catanese” from UBS Lugano), (Apr. 4, 2002) (showing payment of $159,985 with “by order of
Andrea Catanese”), (Apr. 8, 2002) (showing payment of $319,287.45 with reference to “Andrea Catanese
& Paolo Lucarno”), (May 16, 2002) (showing payment of $152,985 “by order of Andrea Catanese”) (each
translated from Arabic).
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