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U.N.: 2,000 Firm Gave Iraq Illicit Funds

Thursday, October 27, 2005 12:10:11 AM
By EDITH M. LEDERER

UNITED NATIONS (AP) - More than 2,000 companies paid about $1.8 billion in illicit kickbacks and surcharges to Saddam Hussein's government through extensive manipulation of the U.N. oil-for-food program in Iraq, according to key findings of a U.N.-backed investigation obtained by The Associated Press.

The report — to be released in full Thursday by the committee probing claims of wrongdoing in the $64 billion program — indicates that about half the 4,500 companies doing business with Iraq paid illegal surcharges on oil purchases or kickbacks on contracts to supply humanitarian goods.

The investigators reported that companies and individuals from 66 countries paid illegal kickbacks through a variety of devices while those paying illegal oil surcharges came from, or were registered in, 40 countries. The names will be included in Thursday's report but were not in the key findings obtained Wednesday by the AP.


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