Time to unshackle Iraqis from the tyranny of UN sanctions

FRANCE last week called for the suspension of sanctions against Iraq.

More important, the Franco-Russian price for suspension is leaving the United Nations in control of the current oil-for-food programme, under which the UN has supervised oil sales and purchases of civilian goods since 1996. The Russians want the entire programme put directly under the control of Kofi Annan, the UN secretary general. All of this would be good for France and Russia - but a disaster for the Iraqi people.

The UN’s handling of the oil-for-food programme has been an international scandal. A supposedly charitable effort meant to relieve the suffering of ordinary Iraqis, it has been shrouded in secrecy to disguise its descent into corruption and disgrace - a $100 billion effort that did plenty for Saddam, France, Russia and the UN but precious little for the people it was meant to help. The UN even skims a 2 per cent commission on every barrel of Iraqi oil sold, supposedly to cover its administrative costs; in reality, more than $1 billion has poured into UN coffers for the benefit of the bureaucracy, freeing it from seeking finance from UN members and allowing UN officials to remain largely unaccountable.

Mr Annan had the power personally to approve any shipments to Iraq that were not on the approved list. He had a strange idea of what starving and sick Iraqis required, agreeing to the import of boats and boat accessories from France (for the benefit of Saddam’s cronies) and sports supplies from Lebanon (for the benefit of Saddam’s elder son, Uday, who presided over Iraqi sports). Even on the brink of war, the UN general secretary signed off on a shipment of broadcasting equipment from Russia.

The UN’s secrecy is breathtaking. Over $12 billion in proceeds from the programme is held by the UN in a BNP Paribas account in Paris. Nobody is allowed access to the accounts or to see details of transactions, such as letters of credit. Even the Kurds in Northern Iraq, who are entitled to 13 per cent of the programme’s revenues, are not allowed to know how much interest is accruing on the $4 billion owed to them. They have been denied access to the figures.

This is the system that France and Russia wish to perpetuate - a system General Tommy Franks has accurately described as "oil-for-palaces" - because it keeps their snouts in the trough. The Russians have even had the gall to insist that the UN should not lift sanctions permanently until the Security Council is "certain whether Iraq has weapons of mass destruction or not". This is the same Russia that did everything possible to lift sanctions even after Saddam had forced the weapons inspectors to flee; indeed, in 1999 Moscow refused to support a resolution renewing weapons inspections.

Now that Saddam has gone, Russia is suddenly worried about the weapons, even to the extent of delaying Iraq’s economic recovery.

This is hypocrisy of a high order, and the United States and Britain must have nothing to do with it. They should immediately submit a short resolution to the Security Council abolishing sanctions. Last week’s Washington Post was clear what it should be: "Whereas the sanctions were imposed on the regime of Saddam Hussein; whereas that regime is no more; whereas sanctions are now needlessly preventing Iraq’s economic recovery; the sanctions are hereby abolished." France and Russia should be dared to veto that. If they do, then the UN will be finished.

With the sanctions gone the oil-for-palaces programme can be ended. The US and Britain should announce its replacement: all future oil revenues will be placed in an account held by the Iraq Central Bank but overseen by either the World Bank or the International Monetary Fund to be used for the benefit of the Iraqi people. This time the process should be transparent and honest.

It is time to let the oil flow and the rebuilding begin. The US and Britain have liberated Iraq from tyranny. It is time now to liberate Iraqis from unnecessary sanctions and a corrupt oil-for-food programme. France and Russia can play a part too: if they really want to help Iraq towards freedom and prosperity, they can start by writing off the loans they made to Saddam. They supped with the devil and there is no reason the new Iraq should be saddled with repaying the loans they willingly made.

This article first appeared in The Business on 27 April.