Second UN official 'linked to Saddam pay-off'
By Charles Laurence in New York and Philip Sherwell in Washington
(Filed: 23/01/2005)

American prosecutors are investigating claims that a second senior United
Nations official involved in the oil-for-food scheme may have been paid

Saddam Hussein after an Iraqi-born American businessman struck a

deal last week.

The testimony of Samir Vincent, who pleaded guilty to acting as a covert

for Baghdad, indicates that Saddam's manipulation of the scheme began at

inception in 1996.

Attention has previously focused on how, from 1998, Iraq skimmed off

from the programme and issued vouchers for oil sales to its foreign

In his testimony, however, Vincent, 64, detailed links with the Iraqi

dating back to 1992.

He made the claim that a UN official, who has not yet been named publicly,
received cash payments from iraq in 1996 in his statement submitted as a
"co-operating witness" to the United States federal court in Manhattan. A

of the papers has been obtained by The Telegraph.

According to the indictment, Vincent was among a group of Iraqi officials

agents who agreed on the scheme to reward those who co-operated with

with the oil vouchers. For his part, Vincent was allegedly rewarded with

oil contracts which he sold for between $3 million and $5 million.

Federal prosecutors in New York and congressional investigators in

believe that the evidence of the former Iraqi Olympic athlete, who became

wealthy US oil trader with connections at the top of the Republican and
Democrat parties, represents a crucial breakthrough that will lead to

indictments.

Benon Sevan, the former head of the oil-for-food programme from which

skimmed at least $1.7 billion, is already under investigation by federal
prosecutors.

A CIA report published earlier this month claimed that Mr Sevan was

vouchers by Saddam to sell 7.3 million barrels of Iraqi oil through a
Panamanian-registered company.

According to the UN, Mr Sevan's name may have been used by a corrupt Iraqi
official in a scheme to line his own pockets. Mr Sevan has denied any
wrongdoing.

Mr Sevan took over the oil-for-food programme in October 1997. The secret

payment to a UN official, of which Vincent was told, occurred in the

year as the programme was introduced that allowed Baghdad to import food

medicine despite strict sanctions.

In February 1996, he said, he travelled to Baghdad for talks with Saddam

the programme. The negotiations were crucial for the Iraqi dictator, who
refused to sign the deal until the UN allowed him to select trading

under the scheme. That concession gave him enormous power over how the
programme operated and allowed him to reward allies with lucrative

"Several million dollars in cash were sent by the Iraqi government to

government officials in New York pursuant to those agreements," Vincent

"Several hundred thousand dollars of this money was given to me, in

and the rest was given to others, one of whom I understood was a United

official."

The oil-for-food scandal has prompted fierce criticism of Kofi Annan, the

secretary-general, who oversaw the initial negotiations with Iraq over the
programme and later appointed Mr Sevan. It has also emerged that Mr

son, Kojo, worked for the Swiss company, Cotecna, that was awarded the

in 1998 to inspect shipments to Iraq under the programme.

There has never been any suggestion of personal wrongdoing by Mr Annan,

supervision of the UN has been attacked.

Vincent is due to be sentenced to up to 28 years in jail on March 31.

Denny Chin told prosecutors that he would delay the sentencing if they

more time to use Vincent to prepare cases against the UN official and

implicated in his story.

His revelations are likely to overshadow the findings of the UN's inquiry

the scandal conducted by Paul Volcker, the former chairman of the Federal
Reserve.

He said recently that his commission was unlikely to have found a "smoking

by the time it issues its preliminary report due by the end of the month.

Mr Sevan has talked to the commission but refused to give testimony on the
advice of his lawyer, The Telegraph has learnt.

Vincent's testimony dovetails with the case outlined against him by David
Kelley, the chief prosecutor. He said that "in or about 1995 and 1996,

Vincent conveyed messages from a United Nations official to

the Iraqi government in Manhattan and elsewhere".

The indictment referred to Vincent's trip to Baghdad in February 1998,

``participated in the drafting of agreements with an Iraqi official

Vincent's and others' compensation regarding their efforts on behalf of

Iraqi government with respect to Resolution 986 [oil-for-food]".

It continued: "In or about May 1996, Vincent received a cash payment in
Manhattan from the government of Iraq in partial satisfaction of the
agreements. In or about May 1996, Vincent distributed to another

cash payment from the government of Iraq in partial satisfaction of the
agreements referenced above."

His testimony also outlined a relationship with a "former official of the
United States government". Jack Kemp, a former American football star,
Republican congressman and federal housing secretary, has since confirmed

he was questioned by the FBI about his dealings with Vincent.

Mr Kemp personally approached the vice-president, ***** Cheney, and Colin
Powell, the then secretary of state, in 2001 about a deal to allow UN

inspectors back into Iraq in return for the phasing out of sanctions. He

Vincent regularly but said that he never received any payments.

Mr Kemp, who maintains close links with Bush administration figures, said

Frank Carlucci, a defence secretary under Ronald Reagan, vouched to him

Vincent was a "good guy".