Scandals engulf the U.N.

It is a scandal of major proportions and an historic breach of trust by an institution that purports to be the world’s best hope for advancing human rights.

Yet, the multibillion-dollar scandal involving the United Nations Oil-for-Food program has received only scant media attention. That must change now that investigations by the U.N., the Iraqi National Congress (INC) and House and Senate committees are commencing, because the corruption and mismanagement being uncovered offer only a portion of the evidence why the United Nations cannot be trusted with a larger role in governing Iraq, as some are suggesting.

After years of U.N. sanctions adversely affecting the people of Iraq instead of the intended target — Saddam Hussein’s regime — the Oil-for-Food program was instituted in 1995. Through it, the U.N. was entrusted to sell Iraqi oil and use the proceeds to buy food and medicine for Iraqis starved and neglected under Saddam’s rule.

Instead, humanitarian needs were ignored and the program — either through ineptness, corruption or both — became a magnet for terrorists, criminals and people of ill repute of all stripes.

Charges of corruption in the program lingered for years, but no one noticed until the Iraqi newspaper, al Mada, published a report two months ago exposing the scam and listing 270 persons, companies and former politicians allegedly in on it.

Benon Sevan, who ran the Oil-for-Food program, and reported to U.N. Secretary-General Kofi Annan, is among those believed to have profited from illegal oil sales. Mr. Sevan has denied any wrongdoing. There also have been questions about a possible conflict of interest involving Kojo Annan and Cotecna, a Swiss firm that employed the secretary-general’s son and was contracted by the U.N. to work on behalf of the Oil-for-Food program. Kojo Annan has denied any conflict.

The Oil-for-Food corruption is immense. The General Accounting Office reports that through combined smuggling and illegal surcharges on oil sales, Saddam’s regime stole more than $10 billion under U.N. managers’ watchful eyes. Last year, the Pentagon’s Defense Contract Audit Agency (DCAA) examined a small sample of the Oil-for-Food contracts, finding nearly half overpriced to the tune of $656 million.

Last week, DCAA Deputy Director Michael Thibault told a House subcommittee the oil contracts review found $16 million spent by Saddam’s regime for 300 Mercedes Benz luxury cars — hardly a humanitarian necessity for starving people.

The Iraqi Governing Council has put the program under its own review. Kofi Annan has agreed to an “independent” investigation led former U.S. Federal Reserve Chairman Paul Volcker, and hearings have begun in the House and Senate.

While the U.N. and the INC will confine their investigations to corruption involving the Oil-for-Food program, Henry Hyde’s International Relations Committee would do well to use the Oil-for-Food scandal as a start for investigating broader charges of corruption and mismanagement at the United Nations.

In recent weeks, while trying to downplay the fallout of the Oil-for-Food scandal, Kofi Annan was forced to address the lack of security that made possible the Aug. 19, 2003, car bombing at U.N. headquarters with the loss of 22 lives. A report found U.N. security “lacked due care and diligence,” was “seriously deficient” and managers on the scene “displayed profound lack of responsibility and ineptitude bordering on gross negligence.”

Sounds pretty bad — and it is. Yet, Mr. Annan saw fit to only fire one person — Tun Myat, head of global security. The security chief in Baghdad, Ramiro Lopes da Silva, was allowed to transfer to the World Food Program. Mr. Annan also refused to accept the resignation of Louise Frechette, his deputy secretary-general, and blamed much of the security deficiency on someone unable defend himself — Sergio Vieira de Mello, Mr. Annan’s personal representative in Iraq, who died in the blast.

Over the years, the United Nations and its various programs have been accused of mismanagement or corruption; in part because the U.N. maintains bloated staff levels with overpaid bureaucrats and refuses to submit to an independent audit. Though the United States provides nearly a quarter of the U.N. budget, only about 7 percent of the U.N. staff are American.

Much of the organization operates secretly, drags its feet before releasing information and has little accountability.

The U.N. press corps are like a flock of sheep, largely writing what Mr. Annan and his spokesmen fed them. They lack a healthy skepticism of government, bureaucracy and persons in positions of power, a skepticism essential to uncovering truth.

There is little or no oversight in the U.N. Mr. Annan will say he reports to the General Assembly but too many of the countries are led by dictators, terrorists, human-rights abusers or petty thugs — not the sort to demand government excellence.

Yes, House and Senate committees should ask how the Oil-for-Food program was corrupted and who is to blame. But it’s more important to ask: “How much more money must American taxpayers invest in this corrupt institution, and for how long?” It is to be hoped the answers are “none” and “not for long.”

Thomas P. Kilgannon is the president of Freedom Alliance, an educational and charitable foundation dedicated to preserving American freedom and sovereignty.