29 Mar Oil-for-Food Update: Annan Exonerated Though Accountability Still an Issue
In its Second Interim Report, the Volcker Commission has exonerated Kofi Annan of any wrongdoing in relation to the award of a $10 million dollar contract to Cotecna, a Swiss company that employed his son, although he report does question Annan’s handling of the affair. The BBC report is here.
According to CNN:
“There is no evidence that the selection of Cotecna in 1998 was subject to any affirmative or improper influence of the secretary-general in the bidding or selection process,” a statement accompanying the report said.
“Based on the record and lack of evidence of impropriety, it is the finding of the committee that Cotecna was awarded the contract in 1998 on the ground that it was the lowest bidder.”
But the report found that Annan’s son, Kojo, deliberately tried to conceal his relationship with Cotecna.
“After the media disclosed in January 1999 his relationship with Cotecna, Kojo Annan actively participated in efforts by Cotecna to conceal the true nature of its continuing relationship with him,” the statement said. “He also intentionally deceived the secretary-general about this continuing financial relationship.”
It added, “Significant questions remain about Kojo Annan’s actions during the fall of 1998 as well as the integrity of his business and financial dealings with respect to the oil-for-food program.
The UN was criticized for being lax in not asking Cotecna to submit a bid that would have shown the financial strains on the company at the time. The Volcker Commission also found that there was improper shredding of documents by Secretary General Annan’s chief of staff, after Annan had ordered documents to be preserved.
Which goes to show that the UN is like any other large organization, such as a government or a corporation: it is susceptible to abuse by its insiders. What comfort we can take from this, though, is the sense that the UN is cleaning house and increasing the levels of accountability that should be expected from it.
On the topic of accountability, more generally, see this post from Suzanne Nossel at DemocracyArsenal on responding to the UN sex scandal.
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