US Oil for Food Kickbacks

Wow-

The United States administration turned a blind eye to extensive sanctions-busting in the prewar sale of Iraqi oil, according to a new Senate investigation.

A report released last night by Democratic staff on a Senate investigations committee presents documentary evidence that the Bush administration was made aware of illegal oil sales and kickbacks paid to the Saddam Hussein regime but did nothing to stop them.

The scale of the shipments involved dwarfs those previously alleged by the Senate committee against UN staff and European politicians like the British MP, George Galloway, and the former French minister, Charles Pasqua.

In fact, the Senate report found that US oil purchases accounted for 52% of the kickbacks paid to the regime in return for sales of cheap oil - more than the rest of the world put together.

"The United States was not only aware of Iraqi oil sales which violated UN sanctions and provided the bulk of the illicit money Saddam Hussein obtained from circumventing UN sanctions," the report said. "On occasion, the United States actually facilitated the illicit oil sales.

The report is likely to ease pressure from conservative Republicans on Kofi Annan to resign from his post as UN secretary general.

"It was full of holes, full of falsehoods and full of value judgments that are apparently only shared here in Washington," [Galloway] said at Washington Dulles airport.

He told Reuters: "I have no expectation of justice ... I come not as the accused but as the accuser. I am [going] to show just how absurd this report is."

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An executive at Odin Maritime confirmed the senate account of the oil shipments as "correct" but declined to comment further.

It was not clear last night whether the Democratic report would be accepted by Republicans on the Senate investigations committee.

The Pentagon declined to comment. The US representative's office at the UN referred inquiries to the state department, which fail to return calls.