Iraq’s oil-for-food scheme in limbo

However, he added that the difficulties make it unlikely the funds needed by the Iraqis can be disbursed, even within the extra time period.

"As I said yesterday," he told the daily, "my hands are tied and my legs are tied and I’m being asked to serve a seven-course dinner. That’s the problem."

Introduced after the 1991 Gulf War to prevent Iraq from spending its oil revenues on weapons of mass destruction, the oil-for-food programme’s existence was challenged last week when US President George W. Bush called for an end to UN sanctions against Iraq.

In seven years since it began, an unnamed UN official told the daily, contracting for the program has benefitted Russia ($7
.3
billion) Egypt ($4.3 billion), France ($3.7 billion), and Jordan, United Arab Emirates and China ($3 billion each).

By effectively calling for its end, the Bush admnistration is believed to be seeking to cut off the contracts with Russia and France, both of whom opposed the US-led war to topple Saddam Hussein.

Sevan, who refused to comment on any country because it would be "playing politics", said procedural haggling among Security Council representatives on the program’s oversight committee has bogged down the programme, adding that it could take months to unravel the web of contracts it consists of.

The oil-for-food program’s escrow account, according to The New York Times, currently contains $10.3 billion earmarked for goods like basic equipment – health, electrical, water and sanitation – and spare parts for oil production.

An additional $6 billion in contracts have been approved but can only be paid once Iraqi oil is pumping again. – Sapa-AFP