Energy/Oil & Gas News
February 11, 2004

Algeria is investigating alleged corruption linked to Iraq’s oil-for-food programme, state radio said, adding weight to Iraqi efforts to get to the bottom of crude dealing during Saddam Hussein’s rule.

Iraqi Oil Minister Ibrahim Bahr Al Uloum, in Algiers for meeting of Opec, said his ministry was pursuing those it says paid kickbacks on oil deals, and hoped to furnish the country’s US-backed governing council with a list of offenders within a month.

Towards the end of the UN-administered oil-for-food scheme many reputable companies refused to buy Iraqi oil because Baghdad demanded a surcharge. A number of lesser-known trading companies continued to purchase the crude.

And in late January Iraq’s Governing Council ordered an investigation into allegations Saddam had bought the support of foreign politicians and organisations with millions of barrels of oil.

“As a consequence of information . . . concerning personalities, including Algerians, implicated in illegal practices linked to the implementation of the oil-for-food programme in Iraq, the Algiers court prosecutors office has decided to open a judicial investigation against unnamed persons,” official Algerian radio said, citing a government communique.

Algerian state oil company Sonatrach, which had a contract with Iraq, was not available for comment.

The independent Baghdad newspaper Al Mada published a list in January, which it said was based on oil ministry documents, showing individuals, companies and organisations inside and outside Iraq who were given millions of barrels of oil.

France’s former interior minister, Charles Pasqua, one of those named by the paper, denied receiving any payments in cash or kind from Saddam.

The UN has also denied that officials administering the oil-for-food programme received oil, and has said it is fully satisfied with the integrity of Benon Sevan, who headed the operation.

Shipping inspectors Saybolt, who monitored crude exports under the oil-for-food programme, also denied that they received any oil.