Congressional Record—House H5627

July 13, 2004 CONGRESSIONAL RECORD — HOUSE H5627 hear from their loved one in Iraq or Af- board. It was supposed to be open, but and I would underscore this, is that it ghanistan and praying for them every it was anything but. As the coverup seems that the firm which signed the day. and the lack of transparency crippled contracts with the U.N. to inspect the So, with that, Mr. Speaker, I say efforts that continue to this day, ef- humanitarian aid shipments, Cotecna, thank you to those who are in uniform forts to establish all of the facts and to appears to not have had enough inspec- today who are supporting this country hold the corrupt to account. tors at their posts to make sure that in the most difficult way and espe- New York Times columnist William the transactions were handled prop- cially to their families and all of the Safire noted in June of 2004 that there erly. great love and support that they have. are some 5,000 Oil-for-Food file folders According to internal U.N. audits, f stored at BNP-Paribas storage facili- Cotenca overcharged the U.N. while ties in New York and in my home State understaffing the inspection positions. OIL-FOR-FOOD PROGRAM of New Jersey with documentation on In other words, part-time work for full- The SPEAKER pro tempore. Under the letters of credit, the notice of ar- time pay. This particular allegation the Speaker’s announced policy of Jan- rival documents, descriptions of the was included in a report written by uary 7, 2003, the gentleman from Con- contracts; and yet the U.S. investiga- auditors from the Office of Internal necticut (Mr. SHAYS) is recognized for tors are not being allowed access to Oversight at the U.N. This report, we 60 minutes as the designee of the ma- these vital documents. are now told, is one of 55 that the U.N. jority leader. In theory, Mr. Speaker, the trust auditors did on the Oil-for-Food pro- Mr. SHAYS. Mr. Speaker, at this funds were supposed to be out of the gram. Amazingly and shamefully, all 55 time I would just introduce our re- Hussein regime’s control and were to audits were kept from the U.N. mem- marks by saying I do not think I have be used to purchase civilian consumer bership, including the United States done a special order this entire session, goods and basic infrastructure. The mission. This is just plain wrong; and but I am doing one tonight because I justified fear manifested in the 1990s by to the best of my knowledge, no one in feel very strongly about an issue, and the United States and the United King- the Congress has seen the other 54 re- that is the Oil-for-Food Program. And dom was that Hussein’s agents would ports. my subcommittee is working, as is the try to misuse oil funds to purchase At the very least, these reports Committee on International Relations, banned weaponry and luxury items for should be released immediately by the on the whole issue of oil for food and the regime. History has proven these United Nations to the U.S. and other the outrageous rip-off, probably the fears to be well founded. Unfortu- interested governments, and this biggest rip-off in the history of rip-offs, nately, the United Nations apparently stonewalling must end. I would point the $10 billion plus events over the presided over a system that was rife out to my colleagues that the distin- course of many years that Saddam was with loopholes and opportunities for guished chairman of the House Com- involved in. Hussein and his thugs to corrupt and mittee on International Relations, the At this time I would like to recognize bribe their way towards enrichment at gentleman from Illinois (Mr. HYDE), the gentleman from New Jersey (Mr. the expense of the very people he was wrote to Secretary General Annan: SMITH) for whatever time he would like to feed, clothe, and provide health care ‘‘The U.S. Congress, which provides 22 to consume. for. percent of the U.N.’s budget and which Mr. SMITH of New Jersey. Mr. For example, the Clinton administra- has publicly requested copies of the 55 Speaker, I thank my good friend for tion estimated in the year 2000 nearly internal audits, should not be required yielding and join him in this very $2 billion of the Oil-for-Food assistance to depend on media leaks for source strong concern about one of the biggest was diverted to build nine lavish pal- documents.’’ scandals known in history and thank aces for Saddam Hussein and his Baath The report on Cotecna, I would point him for his good work as chairman of Party supporters, all of this while chil- out, was leaked and was placed on the the subcommittee in trying to get to dren went hungry and without medi- Internet. If it were not for the bravery the truth as to what happened. cines. The Congressional Research of one unnamed official, we would not Service, Mr. Speaker, in April 2004 did even have this one report. b 2045 an analysis of the various estimates to Mr. Speaker, let me just conclude by Mr. Speaker, tonight, we are dis- try to get a handle on the scale of the noting that while the United Nations cussing the recent disclosures about Iraqi sanctions cheating and the U.N. looked the other way, or worse was problems with the U.N.’s Oil-for-Food failure to stop them. complicit and corrupt, Saddam Hussein program. As my colleagues know, in CRS notes said, ‘‘There are no au- was underselling his oil in return for 1995 the U.S. worked with the U.N. to thoritative figures for the value of il- kickbacks and providing commercial create a program to allow Saddam Hus- licit trade with Iraq. However, the favors to the companies from countries sein to sell his country’s oil in what most widely cited estimates come from which did his bidding in his ongoing was purported to be a controlled man- a study released in May 2002 by the propaganda war against the United ner in return for shipments of humani- GAO. According to the GAO study, Iraq States. The scheme was rotten to the tarian goods for the Iraqi people. Trag- earned $6.6 billion in illicit revenue core. In my mind, it also raises some ically, we now know that this noble ef- from oil smuggling and surcharges dur- very serious questions about two of our fort was grotesquely undermined by ing 1997 to the year 2001. Of that total, Security Council countries which most scandal. The GAO estimates that some GAO estimates that $4.3 billion was adamantly opposed the U.S. multi- $10 billion in oil revenue was stolen from illicit oil sales and $2.3 billion national coalition military commit- from the people of Iraq. from surcharges on oil and commis- ment, and they were France and Rus- The laudable purpose of the Oil-for- sions from its contracts to buy civilian sia. They were among those getting the Food program was to alleviate massive goods (kickbacks). The study esti- greatest sweetheart deals during the human suffering by innocent Iraqi ci- mated that during 2001, Iraq earned $1.5 Oil-for-Food situation. vilians whom Saddam Hussein was de- billion from illicit oil sales from Jor- For example, the Russia diplomatic liberately starving in order to generate dan, Syria, Turkey, and the Persian representatives, we are told, were in- international support and sympathy Gulf; and about $700 million from sur- structed to do everything they could to for lifting U.N. Security Council sanc- charges and contract kickbacks.’’ push for contracts with Russian com- tions against Iraq. The system to be Mr. Speaker, as we all know, Con- panies. There are hundreds of Russian implemented by the U.N. and by mem- gress and the Bush administration are companies dealing in Iraq. Some were ber states was supposed to carefully actively investigating allegations of even front companies for Iraqi officials monitor all sales of oil and make sure large-scale U.N. corruption in com- steering the proceeds into offshore that these petrol dollars were placed in plicity with Iraqi sanctions violations. bank accounts. Some companies took a trust fund at the French Bank, the But we have not been allowed the ac- open bribes. One Russian company, PNB-Paribas. cess to information that would make Lakia, paid bribes to Iraqi officials to The system was supposed to be trans- these efforts successful. One problem, get their contracts through; but when parent. It was supposed to be above Mr. Speaker, with the U.N. program, the contract fell apart, Lakia asked for VerDate jul 14 2003 06:06 Jul 14, 2004 Jkt 029060 PO 00000 Frm 00089 Fmt 4634 Sfmt 0634 E:\CR\FM\K13JY7.223 H13PT1 H5628 CONGRESSIONAL RECORD — HOUSE July 13, 2004 its bribe money to be paid back and friend, the gentleman from Con- So much of the debate that we have even complained to the U.N. about the necticut (Mr. SHAYS), for yielding to heard internally in this country cannot situation. me. have a resolution or even properly be What did Benon Sevan, director of Mr. SHAYS. Mr. Speaker, I thank the addressed until we determine the ex- the U.N. office overseeing the Oil-for- gentleman for a wonderful introduction tent of the corruption, the venality and Food program do about this? He noti- and outline of the problem.

Load more