Weapons of Mass Destruction (WMD)

DATE=10/21/2004

TYPE=CORRESPONDENT REPORT

TITLE=UN/ANNAN/OIL FOR FOOD (L-O)

NUMBER=2-319820

BYLINE=PETER HEINLEIN

DATELINE=UNITED NATIONS

CONTENT=

VOICED AT:

HEADLINE: Annan Says Iraq Corruption Probe Hurting UN

INTRO: U.N. Secretary General Kofi Annan says he is worried about the damage being done to the world body by the Iraq Oil-for-Food scandal. From U.N. headquarters, VOA's Peter Heinlein has more on Mr. Annan's comments as he returned from a two-week overseas tour.

TEXT: With at least half a dozen probes under way into alleged corruption in the oil-for-food program for Iraq, Secretary General Annan said he hopes the charges can be resolved quickly to avoid further harm to the world body's reputation.

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"There's no doubt that the constant campaign and discussions have hurt the U.N. This is not something we would like and that's why we want to get to the bottom of it. It has done damage."

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A report this month by the chief U.S. weapons inspector outlined a scheme whereby Iraqi leader Saddam Hussein made 11-billion dollars in illegal income through the humanitarian program. He is alleged to have used oil-for-food profits to win favor with dozens of countries, foreign officials and major international figures. Among those mentioned as beneficiaries were veto-wielding Security Council members.

Speaking to reporters Thursday as he returned from visits to several foreign capitals, Mr. Annan reiterated his belief that the charges could not be true.

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"I find that very difficult to believe. If governments were to sell their votes because some of their companies, companies operating from their territory or their national companies, were to do business with Iraq or elsewhere, it would be a sad state for the Security Council and the world. I don't believe it."

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Mr. Annan said he sees nothing improper about his regular contact with Paul Volcker, whom he appointed to head an Independent Inquiry Committee into the Oil-for-Food corruption charges. The Volcker Committee is looking into the world body's monitoring of the humanitarian aid program, including the awarding of a lucrative contract to a company that employed Mr. Annan's son. (Signed)

NEB/PH/MAR/FC