INCOME FROM IRAQ ESCROW ACCOUNTS DROP BY OVER ONE THIRD, SAY UN AUDITORS

INCOME FROM IRAQ ESCROW ACCOUNTS DROP BY OVER ONE THIRD, SAY UN AUDITORS
New York, Oct 9 2008 5:10PM
United Nations auditors have reported that the total income generated by the escrow account for Iraq made up of funds related to the expired oil-for-food programme have dropped by over one third between 2005-2006.

The drop in income was attributed to more than $370 million being transferred to the Development Fund for Iraq, according to the most recent report by the UN Board of Auditors.

The oil-for-food programme, under which a sanctions-bound Iraq was allowed to use monitored oil sales revenue for humanitarian purchases, was phased out in 2003 under a Security Council resolution lifting sanctions on the country.

The Development Fund was set up that same year to administer proceeds from export sales of petroleum, petroleum products, and natural gas.

In their <"http://documents-dds-ny.un.org/doc/UNDOC/GEN/N08/449/36/pdf/N0844936.pdf?OpenElement">report, the auditors pointed out that "the slow issuance of authentication documents by the Government of Iraq and the protracted cancellation of letters of credit with no claims of delivery continued to hamper the complete liquidation and closure of the oil-for-food programme."

In August, Secretary-General Ban Ki-moon outlined options for resolving outstanding issues in winding down the scheme, noting that the processing of payment for 132 letters of credit under the programme, with a value of $273 million, remained outstanding.
Oct 9 2008 5:10PM
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