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
D. SANDI MAJALI
One example in the Programme of exploitation of the symbiotic relationship between a country’s
closely aligned political and business figures and the Government of Iraq, is that of Montega
Trading (Pty) Limited (“Montega Trading”) and Imvume Management (Pty) Ltd. (“Imvume”).
As described below, the principals of these two companies used their relationships with South
African political leaders to obtain oil allocations under the Programme.
Throughout the Programme, South Africa and Iraq were actively developing business and
political ties. In late November 1999, South Africa’s Deputy Foreign Minister Aziz Pahad led a
delegation of 30 South African companies with interests in oil, electricity, and other sectors to
Iraq. One purpose of the visit was “to expose South African businesses with already established
interests in the so-called ‘oil-for-food’ programme with Iraq to the processes involved in winning
such UN-approved contracts.” 198
Deputy Prime Minister Tariq Aziz and other Iraqi officials were also interested in gaining the
political support of South Africa and its leaders. At the time, South Africa chaired several
influential political alliances. South African President Thabo Mbeki was Chair of the Non-
Aligned Movement (“NAM”) and had been the President of South Africa’s ruling party, the
African National Congress (“ANC”), since 1997. He was also Chairman of the African Union.
Within weeks after Mr. Pahad returned from his trip, Iraq established its Embassy in Pretoria,
and, by 2001, Iraq had accredited a full Ambassador to South Africa using Iraqi funds that had
been frozen until then. 199
South African officials also pushed to improve trade relations. In October 2002, the South
African Department of Foreign Affairs (“DFA”) sent a delegation of senior officials to Iraq. Both
sides <strong>report</strong>edly expressed satisfaction with the state of relations between their respective
countries, which had been boosted by Mr. Aziz’s then recent visit to South Africa. Later that
198 South African Government Information, “The Official Visit To South Africa By The Deputy Prime
Minister Of Iraq,” http://www.info.gov.za/speeches/2002/02070309461011.htm; Iraq official interview;
South Africa official #1 interview (July 5, 2005); South African Government Information, “Statement On
Visit By Deputy Foreign Minister Aziz Pahad To The Middle East,”
http://www.info.gov.za/speeches/1999/ 991122116p1005.htm.
199 South African Government Information, “The Official Visit To South Africa By The Deputy Prime
Minister Of Iraq,” http://www.info.gov.za/speeches/2002/02070309461011.htm; Iraq official interview;
South Africa #1 official interview (July 5, 2005); South African Government Information, “Statement On
Visit By Deputy Foreign Minister Aziz Pahad To The Middle East,” http://www.info.gov.za/speeches/
1999/991122116p1005.htm; Iraq official interview; African National Congress, “Address by the
Chairperson of the Non-Aligned Movement, President Thabo Mbeki of South Africa, to the NAM
Ministerial Meeting, September 23, 1999,” http://www.anc.org.za/ancdocs/history/mbeki/1999/
tm0923.html; Republic of South Africa Department of Foreign Affairs, “Iraq (Republic of),”
http://www.dfa.gov.za/foreign/bilateral/iraq.html; South African Government Information, “Statement By
Deputy Minister Of Foreign Affairs, Mr. Aziz Pahad, On The South African Humanitarian Flight To Iraq
On 22 To 25 February 2001,” http://www.info.gov.za/speeches/2001/0102121145a1001.htm.
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