AAP

Iraq set to sue over oil-for-food scam

Monday June 30, 01:43 AM

Iraq said it plans to file lawsuits against a group of companies and individuals in US courts over their alleged role in a United Nations oil-for-food scam under Saddam Hussein's regime.

Government spokesman Ali al-Dabbagh said Baghdad was taking this step to hold all those who benefited from the scam "accountable for their actions."

"The oil-for-food program was subject to huge financial scandals by companies and others (who) conspired with Saddam Hussein to embezzle large sums of money through kickbacks, inflated prices and the supply of shoddy goods," he said in a statement.

Dabbagh did not name any companies or individuals against whom the legal action was planned, however.

The oil-for-food program ran from 1996 until 2003, when US-led forces invaded Iraq.

It allowed Baghdad to sell oil in exchange for humanitarian goods which the country lacked because of tight UN sanctions imposed after Iraq's invasion of Kuwait in 1990.

Saddam's government allegedly embezzled millions of dollars from the scheme, sparking a scandal that caused major embarrassment to the United Nations.

Last October, the US magazine Vanity Fair reported that the Federal Reserve shipped to Baghdad a total of 12 billion dollars, including oil-for-food funds handed over by the United Nations, between April 2003 and June 2004.

"At least nine billion dollars has gone missing, unaccounted for, in a frenzy of mismanagement and greed," it said.

Australia sold wheat to Iraq during the period of the program.

Next Article: US newspapers to face cuts in bad slump
Previous article: Oil leaders get new chance to slow price

Top Headlines

Finance company rating agency closes
Thursday August 7, 03:39 PM - NZPA

The demise of many finance companies in the past two years has led to the demise of a company that rates them. Read More...

Tower ends relationship with ANZ National
Thursday August 7, 03:17 PM - NZPA

From March next year Tower branded general insurance will no longer be sold through ANZ National banks because the insurer said it has been making an underwriting loss on the business. Read More...