Annan cleared in oil-for-food inquiry

NEW YORK -- Investigators of the U.N. oil-for-food program in Iraq said Tuesday there was not enough evidence to show that Secretary-General Kofi Annan knew of a contract bid by his son's Swiss employer. However, they criticized the U.N. chief for not properly investigating possible conflicts of interest in the matter.\nAsked if he was planning to step down in a response to the program, Annan replied, "Hell, no."\nThe report released Tuesday also accused the company, Cotecna Inspection S.A., and Annan's son, Kojo, of trying to conceal their relationship after the contract was awarded. It also faulted Kofi Annan for conducting a one-day investigation into the matter, saying it should have been a more rigorous, independent probe.\nThe report's conclusion was not the clear vindication that the secretary-general had wanted, but the investigation led by former U.S. Federal Reserve Chairman Paul Volcker did not accuse the U.N. chief of corruption or any other wrongdoing.\nAlthough Kofi Annan said he accepted that criticism, he was happy with the report's finding that he committed no wrongdoing.\n"After so many distressing and untrue allegations have been made against me, this exoneration by the independent inquiry obviously comes as a great relief," he said.\nAt a press conference after the report was released, Volcker said the investigation found no evidence that Kofi Annan improperly influenced the process by which Cotecna was selected for an inspection contract under the oil-for-food program.\n"Our investigation has disclosed several instances in which he might, or could have become aware, of Cotecna's participation in the bidding process," Volcker said. "However, there is neither convincing testimony to that effect nor any documentary evidence."\n"Taking all of this into account, the committee has not found the evidence reasonably sufficient to show that the secretary-general knew that Cotecna had participated in the bidding process in 1998," Volcker said.\nKojo Annan worked for Cotecna in West Africa from 1995 to December 1997 and was a consultant for the firm until the end of 1998, when it won the oil-for-food contract. He remained on the Cotecna payroll until 2004 on a contract to prevent him from working for a competitor in West Africa.\nAlthough Tuesday's report found no wrongdoing by Kofi Annan, it clearly faulted the secretary-general's management of the world body and his oversight of the oil-for-food program.\nThe $64 billion oil-for-food program was the largest U.N. humanitarian aid operation, running in 1996-2003. Saddam Hussein's government was allowed to sell oil in exchange for humanitarian goods as an exemption from U.N. sanctions imposed after Iraq's 1990 invasion of Kuwait.\nIn a bid to curry favor and end sanctions, Saddam allegedly gave former government officials, activists, journalists and U.N. officials vouchers for Iraqi oil that could then be resold at a profit. U.S. congressional investigators say Saddam's regime may have illegally made more than $21 billion by cheating the program and other sanctions-busting schemes.\nThe report is the second issued by Volcker's team. It coincides with allegations of sex abuse by U.N. peacekeepers and of sexual harassment and mismanagement by senior U.N. staff, and it comes a week after Kofi Annan called for the biggest overhaul of the United Nations in its 60-year history.