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The only United Nations official to be fired over
the Iraqi oil-for-food scandal has hit back angrily saying he has been made a
"scapegoat.''
Joseph Stephanides, who worked for the UN for 25 years, was sacked last week by
Secretary-General Kofi Annan for "serious misconduct'' in rigging bids for an
oil-for-food contract.
In a withering condemnation of the UN, Stephanides said he was a soft target and
asked why other senior officials accused of more serious offenses, including
Benon Sevan, the head of the US$64 billion (HK$499.2 billion) scheme, have not
yet been disciplined.
``Have I been made the victim to protect others?'' he asked. ``It pains me, this
ploy masquerading as a case of procurement corruption. I bitterly resent the
attack on my good name.''
In 1996, Stephanides was put in charge of procurement for the sanctions
committee that set up the disgraced oil-for-food scheme. It aimed to ease the
suffering of Iraqi civilians but was manipulated to the tune of billions of
dollars by Saddam Hussein.
Stephanides, who was until last week the influential head of the Security
Council Affairs Division, described the role he had played in the scheme as a
``miserable'' one and said that the way companies had been selected for
contracts was politically motivated.
His decision to give a US$4.5 million contract to Lloyd's Register Inspection, a
British company, rather than a French underbidder was, he said, endorsed by
Madeleine Albright, the former United States secretary of state and US
ambassador to the UN, and the Security Council. Yet it prompted his dismissal
for breaching UN rules.
``The truth is that Madeleine Albright and the other permanent members of the
Security Council, including the British, had decided that the French should not
get this contract because we had already appointed French bank BNP and a French
oil inspector. Even the French agreed,'' he said Saturday.
``I was told the contract would go to Lloyd's but they must make a more
reasonable offer. I went to the British representatives and we saved the UN
US$900,000.''
He has been suspended since February, when the Lloyd's Register contract to
inspect humanitarian supplies came under scrutiny from the UN inquiry committee
headed by Paul Volcker, the former US Federal Reserve chairman.
``My role on the scheme was miserable,'' Stephanides said. ``I was a liaison
between the Iraq steering committee setting up the program and the Security
Council. Volcker failed to see that this was a political decision and had
nothing to do with procurement procedures. Now I am the scapegoat.''
Benon Sevan was accused in February's Volcker report of a ``grave conflict of
interest'' for requesting that Baghdad sell oil to a Swiss-based oil company.
The report said it was ``ethically improper and seriously undermined the
integrity of the UN.'' The report did not accuse him of taking bribes but
raised concerns about US$160,000 Sevan said had come from an aunt who died
after falling down a lift shaft. His lawyer, Eric Lewis, said recently: ``Sevan
never took a penny.''
Volcker's investigators did not suggest Stephanides, who was due to retire, aged
60, in September had profited from his actions. He will still receive all but 5
percent of his pension, deducted for ``early retirement,'' but has lost fringe
benefits, including repatriation grants should he return to his native Cyprus.
He plans to appeal against his dismissal. As the fallout from the oil-for-food
scandal continues, France has widened its investigation into claims that
Charles Pasqua, the former interior minister, and diplomats and French
businessmen accepted cash and oil vouchers worth US$10 billion from Saddam.
Philippe Courroye, an investigating magistrate, has been authorised to pursue
the allegations, contained in the Volcker report, against Pasqua and 10
diplomats and former employees of Total, the state oil company. Pasqua, who as
a senator enjoys judicial immunity, has denied any wrongdoing.
Meanwhile, relations between the UN and US remain strained. President George W
Bush and Condoleezza Rice, his secretary of state, have both turned down
invitations to the 60th anniversary of the founding of the UN June 28.
THE SUNDAY TELEGRAPH
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