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Re: shortfall



On Wed, 13 Oct 1999, Mark Parkinson wrote:

> Associated Press quote:
> Of $18.2 billion it had sold up to Oct. 5 since the program's start in December 1996, 
> $10 billion was used for food, medicines and humanitarian supplies, and more than $5 
> billion went toward compensation for victims of the Iraqi invasion. 
> 
> $10 billion is only 55%. Are these figures accurate? This is a much lower % than I 
> thought.

I have only seen figures up to 31 July, 1999.  These are taken from the 19
August "90 day" report of the Secretary-General on Phase VI of
oil-for-food.  The Annex I of this report (appended to this e-mail) 
contains the following figures (I have added % in square brackets): 

$14,230.9 million [100%] total oil sales
$7,169.4 million [50.4%] allocated for purchase of humanitarian supplies
by the Government of Iraq
$158.3 million of interest earned in this account used as above
$1,748.8 million [12.3%] allocated for purchase of humanitarian supplies
in Iraqi Kurdistan
$4,266.3 million [30.0%] to the United Nations Compensation Fund

There AP's numbers are not out of line with these.  The key point is that
their $10 billion (55%) likely refers to the so-called "ESB account". 
This is the account in the UN escrow account established for oil-for-food
that is drawn on by the government of Iraq in Baghdad.  It is also known
as the 53% account as that is its share of total oil sales.  In constrast,
the three governorates of Iraqi Kurdistan draw on the ESC (or 13%)
account.  It is claimed that roughly 15% of Iraq's population lives in
these three governorates. 

Colin Rowat
Coordinator, Campaign Against Sanctions on Iraq
             http://welcome.to/casi

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[http://www.un.org/Depts/oip/reports/phase6-90day.html]
S/1999/896: REPORT OF THE SECRETARY-GENERAL PURSUANT TO PARAGRAPH SIX OF
SECURITY COUNCIL RESOLUTION 1242 (1999)

Annex I
Status of the United Nations accounts pertaining to the Iraq Programme

1. As at 31 July 1999, of the $5.2 billion authorized under resolution
1242 (1999), $897.1 million had been deposited into the account for phase
VI, bringing the total oil sale since inception to $14,230.9 million.

2. The allocation of total oil proceeds received from inception to date
and the corresponding expenditures are as follows:

 (a) $7,169.4 million has been allocated for the purchase of humanitarian
supplies by the Government of Iraq, as specified in paragraph 8 (a) of
resolution 986 (1995). Also, $158.3 million of interest earned in this
account was utilized for the purchase of humanitarian supplies in the
central and southern governorates of Iraq. In addition, an amount of
$349.5 million was due for the reimbursement for bulk purchases made by
the Government of Iraq for northern Iraq and distributed by the United
Nations Inter-Agency Humanitarian Programme. Letters of credit issued by
the Banque nationale de Paris on behalf of the United Nations for the
payment of those supplies for the whole of Iraq amounted to $6,639.6
million under phases I to VI;

 (b) $1,748.8 million has been allocated for the purchase of humanitarian
goods to be distributed in the three northern governorates by the United
Nations Inter-Agency Humanitarian Programme, as specified in paragraph 8
(b) of Security Council resolution 986 (1995) and revised in paragraph 2
of Council resolution 1153 (1998). Expenditures recorded for humanitarian
goods approved by the Security Council Committee amounted to $1,023.1
million;

 (c) $4,266.3 million has been transferred directly into the United
Nations Compensation Fund, as specified in paragraph 8 (c) of resolution
986 (1995). As at 31 July a total of $125.4 million had been allotted to
cover the operating expenditures of the Compensation Commission and an
amount of $3,739.8 million had been allotted for payment of instalments of
"A" and "C" claims;

 (d) $298.0 million has been allocated for the operational and
administrative expenses of the United Nations associated with the
implementation of resolution 986 (1995), as specified in paragraph 8 (d)
of the resolution. Expenditures for administrative costs for all United
Nations entities involved in implementing the resolution amounted to
$195.9 million;

 (e) $101.0 million has been allocated to the United Nations Special
Commission for the disarmament of Iraq for its operating expenses, as
specified in paragraph 8 (e) of resolution 986 (1995). Expenditures for
the Commission amounted to $59.7 million;

 (f) $537.9 million has been set aside for the costs of transporting
petroleum and petroleum products originating in Iraq exported via the
Kirkuk-Yumurtalik pipeline through Turkey, in accordance with paragraph 8
(f) of resolution 986 (1995) and in line with procedures adopted by the
Security Council Committee. Of that amount, $470.4 million has been paid
to the Government of Turkey;

 (g) $109.5 million has been transferred directly to the escrow account
established pursuant to resolutions 706 (1991) of 15 August 1991 and 712
(1991) of 19 September 1991 for the repayments envisaged under paragraph 6
of resolution 778 (1992) of 2 October 1992, as specified in paragraph 8
(g) of resolution 986 (1995) and subsequently in paragraph 34 of my report
dated 25 November 1996 (S/1996/978). The total of repayments amounted to
$99.5 million.

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