THE Volcker inquiry into the Oil-for-Food scandal called for a significant overhaul of the UN yesterday as it prepared to reveal details of âserious instances of illicit, unethical and corrupt behaviourâ at the world body. The three-member committee, led by Paul Volcker, the former chairman of the US Federal Reserve, released the preface to a 1,000-page report that is to be presented today to the UN Security Council. âThe main conclusions are unambiguous,â the panel declared. âThe organisation requires stronger executive leadership, thoroughgoing administrative reform and more reliable controls and auditing.â The five-page preface contained no details of the investigation into Kofi Annan, the UN Secretary-General, and his predecessor, Boutros Boutros Ghali, or other UN officials. But its conclusion that stronger executive leadership is required will add to pressure on Mr Annan to stand down. âThe reality is that the Secretary-General has come to be viewed as chief diplomatic and political agent of the UN,â the panel said. âThe present Secretary-General is widely respected for precisely those qualities. In these turbulent times, those responsibilities tend to be all-consuming. The record amply reflects consequent administrative failings.â Mr Annan, who was in London yesterday for a meeting of the Global Fund on HIV/Aids, planned to fly to New York last night and has asked to address the Security Council after Mr Volcker presents his report today.
The preface confirmed that there were âinstances of corruption among senior staff as well as in the fieldâ. The panel noted that the Oil-for-Food programme, set up in 1996 to allow Iraq to sell oil and buy humanitarian supplies while under UN sanctions, did succeed in staving off a potential crisis. But it said that the programmeâs âreal accomplishmentsâ were marred by âwholesale corruptionâ by private companies, manipulated by Saddam Husseinâs Iraq.
It criticised UN member states that it said had âaided and abetted grievous weaknesses in administrative practices within the (UN) secretariat.â The âpoliticisation of decision-makingâ, âmanagerial weaknessâ and âethical lapsesâ were all symptomatic of systemic problems at the UN, it said. âWhen troublesome conflicts arose between political objectives and administrative effectiveness, decisions were delayed, bungled, or simply shunned.â
The Volcker committee, which spent more than $30 million (£16 million) of Iraqâs oil money on its investigation, proposed that the UN appoint a chief operating officer, nominated by the 15-nation Security Council and approved by the 191-state General Assembly.