un pRESS RELEASE
21 aPRIL 2004
security council
adopts resolution welcoming appointment
of inquiry into
iraq
‘oil-for-food’ programme
Concerned by allegations
regarding the administration and management of the United Nations “oil-for-food”
programme, the Security Council this afternoon welcomed the Secretary-General’s
appointment of an independent high-level inquiry to investigate the matter.
Unanimously adopting resolution
1538 (2004), the Council also called on the Coalition Provisional Authority,
Iraq and all other Member States, including their national regulatory
authorities, to cooperate fully by all appropriate means with the inquiry.
The members of the inquiry are
Paul Volcker, former Chairman of the United States Federal Reserve; Mark Pieth
of
Switzerland, an expert on
money-laundering in the Organization for Economic Cooperation and Development
(OECD); and Richard Goldstone of
South Africa, former Prosecutor of
the International Criminal Tribunals for the former
Yugoslavia and
Rwanda.
Begun in 1996, the United
Nations oil-for-food programme allowed
Iraq to use a portion of its
petroleum revenues to purchase humanitarian relief. The effort was monitored by
the Security Council’s “661” committee, which included representatives from all
15 Council members.
Until its termination in
November 2003, the programme oversaw the delivery of some $39 billion in
humanitarian assistance to about 22 million people, many of whom were largely
dependent on outside aid to survive since normal economic activity was severely
constrained by sanctions imposed after
Iraq’s 1990 invasion of
Kuwait.
The meeting began at
12:08 p.m. and ended at
12:10 p.m.
Council Resolution
Following is the full text of
Security Council resolution 1538 (2004):
“The
Security Council,
“Expressing
the desire to see a full and fair investigation of efforts by the former
Government of Iraq, including through bribery, kickbacks, surcharges on oil
sales, and illicit payments in regard to purchases of humanitarian goods, to
evade the provisions of resolution 661 (1990) of 6 August 1990 and subsequent
relevant resolutions;
“Concerned
by public news reports and commentaries that have called into question the
administration and management of the Oil-for-food Programme (hereinafter
the Programme) established pursuant to resolution 986 (1995) of 14
April 1995 and subsequent relevant resolutions, including allegations
of fraud and corruption;
“Affirming
that any illicit activity by United Nations officials, personnel and agents, as
well as contractors, including entities that have entered into contracts under
the Programme, is unacceptable;
“Emphasizing
the importance of full cooperation with the independent high-level inquiry by
all United Nations officials and personnel, the Coalition Provisional Authority,
Iraq, and all other
MemberStates;
“Affirming
the letter of its President of 31 March 2004 welcoming the Secretary-General’s
decision to create an independent high-level inquiry to investigate the
administration and management of the Programme and taking note of the
details relating to its organization and terms of reference;
“1.
Welcomes the appointment of the independent high-level inquiry;
“2.
Calls upon the Coalition Provisional Authority,
Iraq, and all other
Member
States, including their national
regulatory authorities, to cooperate fully by all appropriate means with the
inquiry;
“3.
Looks forward to receiving the inquiry’s final report;
“4.
Decides to remain actively seized of the matter.”
Terms of Reference
The independent inquiry
shall collect and examine information relating to the administration and
management of the Oil-for-Food Programme, including allegations of fraud and
corruption on the part of United Nations officials, personnel and agents, as
well as contractors, including entities that have entered into contracts with
the United Nations or with Iraq under the Programme:
(a) to
determine whether the procedures established by the Organization, including the
Security Council and the Security Council Committee Established by Resolution
661 (1990) Concerning the Situation between Iraq and Kuwait (hereinafter .
referred to as the "661 Committee") for the processing and approval of contracts
under the Programme, and the monitoring of the sale and delivery of petroleum
and petroleum products and the purchase and delivery of humanitarian goods, were
violated, bearing in mind the respective roles of United Nations officials,
personnel and agents, as well as entities that have entered into contracts with
the United Nations or with Iraq under the Programme;
(b) to
determine whether any United Nations officials, personnel, agents or contractors
engaged in any illicit or corrupt activities in the carrying out of their
respective roles in relation to the Programme, including, for example, bribery
in relation to oil sales, abuses in regard to surcharges on oil sales and
illicit payments in regard to purchases of humanitarian goods;
(c) to
determine whether the accounts of the Programme were in order and were
maintained in accordance with the relevant Financial Regulations and Rules of
the United Nations.
