Online edition of India's National Newspaper
Saturday, Oct 29, 2005
Google


Clasic Farm

Front Page
News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Classifieds | Employment | Obituary |

Front Page Printer Friendly Page   Send this Article to a Friend

Volcker Report names Natwar Singh and Congress Party as "beneficiaries"

Special Correspondent


  • Iraqi oil sales under U.N. Oil-for-Food Programme
  • Masefield AG was contracting company
  • Contracts exceeded $63 million in value
  • Many Indian companies named

    New Delhi: K. Natwar Singh, India's External Affairs Minister, as well as the Congress Party are listed in the recently released report of the Volcker Committee as "non-contractual beneficiaries" of Iraqi oil sales in 2001 under the United Nations Oil-for-Food Programme. The contracting company in both cases is named as Masefield AG.

    The fifth and final report of the Independent Inquiry Committee, appointed by U.N. Secretary General Kofi Annan in April 2004 to investigate the administration and management of the Oil-for-Food Programme, is available at www.iic-offp.org.

    Mr. Singh is shown in Table 3 of the Report as the non-contractual "beneficiary" in connection with 4 million barrels of oil allotted to Masefield AG, the contracting company, which actually lifted 1.936 million barrels out of this. The phase in which the oil was allocated is shown as 9.

    In addition, the Congress Party is listed in the same table as the non-contractual "beneficiary" in connection with 4 million barrels allotted in phases 10, 11, 12 and 13. Out of this allocation, 1.001 million barrels were lifted. In this case, Masefield AG is shown as the contracting company in phase 10 (during which the 1.001 million barrels were lifted), but no name of the contracting company is mentioned for the subsequent phases.

    The table also lists Reliance Petroleum Limited as a "beneficiary" from an allocation of 19 million barrels of oil to Alcon Petroleum Limited, the contracting company, which lifted 15.780 million barrels in phases 9, 10 and 11.

    A yet to be identified Bhim Singh from India is also listed in the table as a "beneficiary," with no contracting company mentioned by name. In Bhim Singh's case, 7.300 million barrels were allocated but nothing of this was lifted, according to the table.

    "Under the Programme," the Volcker Committee report says, "the Government of Iraq sold $64.2 billion of oil to 248 companies. In turn, 3614 companies sold $34.5 billion of humanitarian goods to Iraq... The Report illustrates the manner in which Iraq manipulated the Programme to dispense contracts on the basis of political preference and to derive illicit payments from companies that obtained oil and humanitarian goods contracts."

    "Several of the tables," the report explains, "identify specific illicit payments made in connection with oil and humanitarian contracts under the Programme. Oil surcharges were paid in connection with the contracts of 139 companies, and humanitarian kickbacks were paid in connection with the contracts of 2,253 companies." The principal data sources are Ministries in the Government of Iraq and banks; in some cases information was provided by the company contractors. The Committee estimates the total "illicit income received by Iraq under the Programme" at $1.8 billion.

    The Volcker Committee report is at pains to clarify that the identification of a company's contract as "the subject of an illicit payment" does not necessarily mean that the company made, authorised, or knew about the payment.

    Table 5, which shows surcharge payments associated with a contracting company, shows the value of Contract M/09/54 involving Masefield AG as being $46.225 million; and the value of Contract M/10/57 involving the same company as being $16.808 million. Surcharge payments amounting to $748,540 were shown as having been paid in 2001 in connection with these two contracts.

    A large number of Indian companies are listed in Table 7 dealing with illicit payments on contracts for humanitarian goods.

    Printer friendly page  
    Send this article to Friends by E-Mail



    Front Page

    News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
    Advts:
    Classifieds | Employment | Obituary | Updates: Breaking News |

  • Newyork Life Tata Safari Dicor Chennai Bazaar Rubber Board Sankaranethralaya Golu Galata Lufthansa XS Real Plaza Realties


    News Update


    The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
    Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

    Copyright 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu