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February 24, 2007 12:31 PM

Prison for Iraqi Oil

(AP)
A Korean businessman who once acted as a secret backchannel between Saddam Hussein and the United Nations has been tagged with a maximum prison sentence. Tongsun Park, the first person convicted by a jury in the United Nations Oil for Food scandal was sentenced to five years behind bars by U.S. District Denny Chin on Thursday.

Park, 71 and ailing, has been incarcerated since his arrest one year ago.

Last July, he was found guilty of acting as an unregistered agent of Iraq in the 1990's, while Saddam's regime was floundering under international economic sanctions stemming from the dictator's 1990 invasion of Kuwait.

The UN launched Oil for Food in 1996 to provide humanitarian aid to Iraq. The UN managed sales of some Iraqi oil, applying the cash – $64 billion over seven years – to purchase food, and medicine, and supplies.

The problem was the UN let Saddam choose his buyers and vendors, allowing him to impose illicit surcharges on the oil sold and kickbacks on the goods purchased. This cost of doing business subverted the UN program and led Saddam to pocket an estimated $1.8 billion. Park got paid at least $2 million by Saddam to orchestrate a lobbying campaign to lift the punitive sanctions, serving as a liaison to former UN Secretary General Boutros Boutros-Ghali and other officials in a campaign that led to the Oil for Food relief.

Trial testimony established that Park was expected to use some Iraqi cash to "take care" of Boutros Ghali – though evidence of an actual bribe never materialized – and gave $1 million to the man who became UN special envoy to the Korean peninsula under Boutros-Ghali's successor, Kofi Annan. It is illegal to act as a lobbyist for a foreign government in the U.S. without registering with the Attorney General, something Park neglected to do.
Tags:
Tongsun Park ,
oil for food ,
iraq ,
united nations
Topics:
Oil-For-Food
January 16, 2007 4:46 PM

Oil-For-Food Indictment

(CBS)
Federal prosecutors in New York have obtained a long-expected indictment against the former head of the defunct UN oil for food program, Benon Sevan, of Cyprus. Sevan is not in custody. He is in Cyprus, but there is an Interpol warrant for his arrest. Sevan, 69, lead the 64-billion dollar UN program from its inception in 1996 to its demise in 2003, with the US invasion of Iraq. The program allowed Iraq, while under economic sanctions from the first Gulf War, to export a limited amount of its vast oil reserves. The UN brokered the trade, but Saddam Hussein picked the buyers of his oil and the sellers of food, medicine, and supplies to him. The program, multiple investigations have found, was riddled with bribes and kickbacks arranged by Saddam's regime and the complicity of government officials and businessman worldwide.

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Tags:
United Nations; Benon Sevan; Oil-For-Food
Topics:
Oil-For-Food

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