The UNSCAM (UN oil-for-food) scandal is heating up

From The New York Times

William Safire has some new information on this huge UN scanda.

Another whistle-blower, often on the "graveyard shift" of round-the-clock operations at the U.N.'s New York Office of the Iraq Program, explains the workings of the historic rip-off:

Well-connected international traders — called "the usual suspects" by low-level U.N. staff, who knew they often fronted for sellers of luxury products — would make their deals, including kickbacks, in Baghdad. Letters of credit, as many as 150 a day, would be issued in New York by the U.N.'s favorite bank, BNP Paribas.

But before the sellers, called "beneficiaries," could be paid (at Saddam's request, in euros, harder to trace than dollars) the bank required a C.O.A., "Confirmation of Arrival," from the U.N.'s contracted inspector, Cotecna of Switzerland.

"The key was Cotecna," says my graveyard source. "Ships were lined up at the port of Umm Qasr, stacks of containers already onshore waiting for inspection. You won't believe the grease being paid. The usual suspects got preferential treatment when the U.N. bosses in New York called the BNP bank to get Cotecna to issue a C.O.A. to release the money."[...]

However, my call for a Congressional subpoena to overcome his attempt to limit investigation to his internal Volcker committee has flushed out a fact not hitherto disclosed. Annan's press aide complained to The Times that a subpoena had already been served secretly on BNP Paribas (the initials once stood for Banque Nationale de Paris) by the U.S. Senate Permanent Subcommittee on Investigations.

Although the U.N. had warned its bank, as well as Cotecna, the oil monitor Saybolt and all its other oil-for-food contractors, not to cooperate with anybody but Paul Volcker — and had blown off the House International Relations Committee's requests — Annan's advisers knew it would be unseemly and foolhardy to insist that its bank fight the Senate in court.
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