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Investigator: U.N. scandal exposes corruption
(AP)
Updated: 2005-10-28 20:02

Switzerland said Thursday it has launched a criminal investigation focusing on four people connected to the oil-for-food program. They were not identified.

And Texas oilman Oscar S. Wyatt Jr, the former chairman of Coastal Corp. who was described in the report as a favorite customer of Iraq, pleaded not guilty Thursday in New York to charges that he conspired to pay several million dollars in illegal kickbacks to Saddam's regime to win oil-for-food contracts. Volcker said Wyatt, 81, was the lone exception to an Iraqi ban on selling oil to American companies.

The program achieved "an important measure of success" in providing food, medicine and other humanitarian items to Iraqis, and in keeping weapons of mass destruction out of Saddam's hands, Volcker said.

"But that success came with a high cost and in my judgment, a really intolerable cost by grievously wounding the confidence and the competence and even the integrity of the United Nations."

The United States said the investigation again showed the need for urgent reform of the United Nations.

"I do think it does highlight that there are certain management practices within the U.N. that need reform," State Department spokesman Sean McCormack said.

The 623-page report documented in minute detail Saddam's manipulation of the $64 billion oil-for-food operation. The program, which ran from 1996-2003, allowed Iraq to sell limited and then unlimited quantities of oil provided most of the money went to buy humanitarian goods such as food and medicine. It was meant to alleviate the suffering of ordinary Iraqis caused by U.N. sanctions imposed after Saddam's 1990 invasion of Kuwait.
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