Britain implicated in oil-for-food scandal, damning report says
By David Usborne in New York
04 February 2005
The Independent
The British Government became directly involved in subverting the process for choosing companies to assist in the management of the United Nations' oil-for-food programme, intervening in 1996 on behalf of a London-based company that was ultimately granted the work, a report claimed yesterday.
The episode is an embarrassing revelation for the Foreign Office and is prominently described in an interim report released yesterday by former Paul Volcker, the US Federal Reserve Chairman, into allegations of widespread corruption in the running of the 6-year oil-for-food scheme.
Mr Volcker asserts there is "convincing and uncontested evidence that the selection process" for three main contractors at the time the programme was beginning "did not conform to established financial and competitive bidding rules".
The winning contractors were Banque National de Paris, Saybolt Eastern Hemisphere and the British company, Lloyd's Register Inspection Limited.
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