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Senator Norm Coleman (R-MN)

Senator Norm Coleman (R-MN) is the chairman of the Subcommittee on Permanent Investigations, one of several committees conducting an investigation into the Oil-for-Food program. On November 16, 2004, Senator Coleman held hearings on OFFP and released evidence that indicated the problems with this program were much more extensive than previously thought. Subsequent to this hearing, he has appeared on many news programs and commented extensively on the Oil-for-Food program, and on December 1, 2004, he called on Secretary-General Kofi Annan to resign.

These are the problems with his claims:

1. On April 15, 2005, Senator Norm Coleman (R-MN) made the following comment on Fox’s “The Big Show with John Gibson:” “And one could argue whether we could have been more efficient in enforcing [sanctions] or whether there were reasons why [the U.S. permitted oil smuggling]. That was open. That was aboveboard. We knew about it. The U.S. Congress knew about it. But what it does, John, is it turns a total blind eye to the fact that Saddam got in his pockets about $7 billion from oil-for-food and that it was the oil-for-food program, which was a cash cow, that enabled Saddam really to rebuild his military capacity, to fund terrorism, to bribe those connected with member states.”

Senator Norm Coleman accuses the UN of shifting blame to the U.S. and the UK for not preventing graft under the Oil-for-Food Program. The UN is not shifting blame, it is merely pointing out what the IIC concluded in its February 3rd interim report:

"What does appear clear is that the major source of external financial resources to the Iraqi Regime resulted from sanctions violations outside the Programme's framework. These illicit sales, usually referred to as 'smuggling,' began years before the Program started. Exports of Iraqi oil to both Jordan and Turkey and imports form those countries generally took place within the terms of trade agreements ('protocols') negotiated with Iraq. The existence, but not necessarily the amounts, of sales and purchases under these protocols was brought to the attention of the 661 Committee and at least in the case of Jordan, it was 'noted.' United States law requires that assistance programs to countries in violation of United Nations sanctions be ended unless continuation is determined to be in the national interest. Such determinations were provided by successive United States administrations for both Jordan and Turkey. In the later stages of the Programme, substantial Iraqi sales of oil were made to Syria and small sales to Egypt under similar 'protocols.'"

At least two independent studies that have looked at the oil smuggling that took place over the UN sanctions period, agree that the largest source of illicit revenue garnered by Hussein comes from oil smuggling. The Iraq Survey Group, headed by Charles Duelfer, found that $9.2 billion in illegal revenue came from smuggling compared to $1.7 billion from the Oil-for-Food Program. The Government Accountability Office found that $5.7 billion of the illicit funds derived from oil smuggling and $4.4 billion from the UN program.

Senator Coleman makes a false assumption that the U.S. decision not to interdict oil smuggling to Turkey and Jordan had no bearing on graft within the Oil-for-Food Program. In fact, the tacit approval offered to Turkey and Jordan compromised the U.S.’ ability to achieve consensus on confronting other types of corruption. When incidences of kickbacks and oil surcharges began to come to light in late 2000, the United States and the United Kingdom received no support in the 661 Committee for their proposals to address the issue. According to Patrick Kennedy, the U.S. Ambassador to the UN for Management and Reform, “[Member States] claimed that absent receipt of evidence indicating that such kickbacks existed, no action could be taken.” An article by Maggie Farley in the LA Times (February 5, 2005) goes further to explain why some permanent Security Council members did not support the U.S. and Britain on the issue of stopping Iraq’s illicit oil trade with Syria: “When the U.S. and Britain asked the council in 2001 to confront Syria over its illicit oil trade, France and Russia argued that Syria should not be singled out for punishment while Turkey and Jordan were merely winked at.”

Senator Coleman fails to acknowledge that Member States, including the U.S., contributed to the problems of OFFP. He prefers to affix the whole burden of guilt on the UN Secretariat.


2. In a column in the Wall Street Journal on December 1, 2004, in which he called on Kofi Annan to resign, Senator Coleman wrote: "as long as Mr. Annan is in charge, the world will never be able to learn the full extent of the bribes, kickbacks…."

The facts show otherwise:

  • Kofi Annan has called for and has consistently cooperated with the Independent Inquiry Committee headed by Paul Volcker, someone Coleman complimented for his "integrity" and "abilities."
  • On November 24, 2004 on The Charlie Rose Show, Mr. Volcker spoke about the progress of his investigation and pointed to his "access to the U.N. material" as a primary source of power for his investigation.
  • He also promised to make his findings and the evidence public, and to share internal UN audits with congressional investigators at the appropriate time.
  • In addition, Mr. Volcker did not and has not expressed any concern about the Secretary-General or the UN holding back information from his investigators.

There is no factual basis to support the Senator's claim that Secretary-General Annan, the UN, or the Volcker investigation is in any way standing in the way of the full and complete investigation that Senator Coleman seeks.

3. In an appearance on the Today show on December 2, 2004 Senator Coleman stated: "Well, I don't think anyone disputes, Katie, that Saddam Hussein ripped off Oil for Food in terms of billions of dollars. And whether it's $21 billion or $20 billion, no one disputes that."

In fact, this figure has been disputed. Information produced by the Permanent Investigations Subcommittee, which Senator Coleman chairs, proves that:

  • The $21 billion covers the period from 1991 through 2003 according to a chart produced by the Senate Permanent Investigations Subcommittee entitled "Estimate of Total Illicit Iraqi Income During UN Sanctions" (1991-2003). The OFFP was not created until 1996.
  • Moreover, substantial portions of Hussein's illicit income came from sources outside of the Oil-for-Food program and outside the purview of the United Nations. For instance, the chart lists $13.6 billion in smuggling. OFFP had neither responsibility nor enforcement capacity for checking for unauthorized oil sales. That responsibility was provided to individual nations and, in the Gulf area, to the multinational Maritime Interception Force.
  • Similarly, subcommittee exhibit 32 is a chart taken from the recent Iraq Survey Group report under the leadership of Charles Duelfer. Of the nearly $11 billion in illicit revenue recorded by Duelfer from 1991-2003, over $8 billion came from trade with four Iraqi neighbors that were once again outside the purview of the Oil-for-Food program. Only $1.7 billion was attributed to OFFP.
  • An earlier GAO report found a similar pattern: $4.4 billion through OFFP pricing irregularities and $5.7 billion outside of the OFFP through illegal smuggling.
  • In his interview with Charlie Rose on November 24, 2004, Volcker said: "Most of that 21 billion, most of that 10 billion, most of whatever the final number is was the smuggling, no the oil-for-food program."

In sum, contrary to Senator Coleman's claim, there is no evidence that OFFP was the source of $21 billion in illicit revenue or anything close to $21 billion. Also, by attributing the entire $21 billion to OFFP, Senator Coleman also appears to suggest that the responsibility for all of Hussein's illicit revenue rests solely with the UN and the Secretary-General. This is clearly not the case. Indeed, in a December 2 CNN interview, Senator Carl Levin (D-MI) said the U.S. was aware of illicit oil sales to Jordan , Turkey and Syria and was required under U.S. law to stop foreign aid to these countries. "But both President Clinton and President Bush knowingly waived that problem by notifying Congress that those sales were taking place." Given these U.S. waivers and the fact that the UN did not have oversight of illegal oil trading, there is no basis on which to place responsibility with OFFP or the UN for Hussein's illicit revenue from improper oil trading and smuggling.