Outside View: What ‘Oil-for-Food’ scandal?

Washington Times, DC
Feb 9 2005

Outside View: What ‘Oil-for-Food’ scandal?

By Youssef M. Ibrahim
Outside View Commentator

Dubai, United Arab Emirates, Feb. 9 (UPI) — The oil-for-food scandal
is proving to be less of an embarrassment to the United Nations than
to those who built it up as the mother of all fiscal scandals and
reason enough to brand the U.N.

Following the first pronouncement last Tuesday on an ongoing
investigation into the program that was designed by the U.N. Security
Council to feed Iraqis in the years of sanctions, U.N. bashers now
find themselves holding a pretty thin sheet of evidence.

A so-called interim report by Paul Volcker — former head of
America’s central bank, known as the Federal Reserve, or “Fed” — was
notable for its failure in finding a smoking gun anywhere near U.N.
Secretary-General Kofi Annan. It merely concluded that the principal
of the case, former director of the oil-for-food program, the
Armenian Cypriot Benon Sevan, behaved in an “improper” way!

Following a year of investigation by 60 investigators at a cost, so
far, of $35 million, and hints of embezzlements in the billions of
dollars by scores of people, may we be permitted to ask: That’s it?

The nature and scope of this much-ballyhooed scandal were phenomenal.
Money was siphoned away from the mouths of Iraqi children and Iraqi
oil revenues. Sevan was supposed to have connived with former Iraqi
president Saddam Hussein, select groups of oil dealers and
well-placed politicians in world governments to create billions in
slush funds and receive Saddam’s gifts of discounted oil contracts.

So far what Volcker came up with is pretty limp, not even rising to
the level of wide currency among an American press corps being
content to exist on leaks from a U.S. administration known for its
animus toward all things multinational.

Where are the supposed billions supposedly re-routed via private
banks and corrupt politicians worldwide? Which banks? The numbers
only began at $2 billion going up by multiples according to printed
accounts on the leak-of-the-day.

As it turned out, Volcker’s 60 snoops found little beyond their
suspicions that Sevan used his influence with Iraq “improperly.”

As for the larger conspiracy, they can only point at one rather small
oil trading company in Geneva as having gained access to only two
modest-size contracts of Iraqi crude oil shipments.

Sevan was said to have prompted the United Nations to provide greater
help in rebuilding Iraq’s oil equipment. That’s an odd charge, for it
was the man’s job to revive Iraq’s revenues from oil so as to import
more food — Saddam or no Saddam.

When it came to corruption, the Volcker vultures ”hinted” Sevan’s
aunt could have been a conduit for bribes. Why? She left him an
inheritance of $160,000! Not exactly a king’s ransom. Altogether,
what was supposed to be a major heist is not a Thomas Crown Affair.

Never fans of the United Nations, George W. Bush and his
neoconservative minions who have fanned the fires of the oil-for-food
scandal, appear to be using this deflated balloon to blackmail,
paralyze and marginalize a multinational organization that has been a
thorn in their side.

To be sure, Annan, should have accepted blame for improprieties that
happened under his watch, spared the United Nations a witch-hunt and
quit.

He did not. But that is certainly not a reason to brand the United
Nations a broken institution and hint that its present leader, as
well as his predecessor — Boutros Boutros Ghali, whose name was
dropped into the interim report without a valid reason — are
corrupt. It is typical of neoconservatives: murder by innuendo.

Graver than exaggerations are omissions. As the New York Times’
editorial pointed out, Volcker’s incomplete mid-term report has yet
to tackle how members of the U.N. Security Council looked the other
way.

The lone oil-trader, who supposedly was the linchpin in the huge
scandal, it turns out, only picked up two small contracts of Iraqi
oil sales, according to the interim report, before dropping out as
the deal looked unprofitable. But better than 99 percent of Iraq’s
oil smuggling moved outside the purview of U.N. supervision, going
through international borders.

Buyers included world-class oil companies with American, British,
Chinese, Russian and French pedigree. This daily illegal oil export
estimated at a half-million barrels of oil went out via two of
America’s major allies, Turkey and Jordan, as well as through Iran
and Syria, all of which have had commercial ties with Iraq and
pipelines over the ground or under.

The U.N. Security Council, including the United States, looked the
other way. Instead the Volcker interim report stopped at picking on a
U.N. official and a lone oil trader in Geneva

There is more. Quantities of oil cited in the interim report as the
subject of the United Nation’s dubious dealings amount to 0.1825
percent of all Iraqi oil exports, estimated at 4 billion barrels over
the period of the accusation, a statistical irrelevance in the world
of oil.

Could it be that the animus that has developed toward Annan by the
Bush administration is behind the spin?

After all, the secretary general had the nerve to declare the
invasion of Iraq an “illegal war” and denounce the scandalous torture
practices against Iraqis at Abu Ghraib prison.

The president of the United States is an oil businessman-millionaire
who knows that this is, oil-wise, a charade. So does the former head
of America’s central bank, Volcker. Gents, give us a break.

Youssef M. Ibrahim, a former Middle East correspondent for the New
York Times and Energy Editor of the Wall Street Journal, is Managing
Director of the Dubai-based Strategic Energy Investment Group. He can
be contacted at [email protected]

This essay first appeared in Gulf News.

Coming session period will be busy

Coming session period will be busy
By Karine Mangasarian

Yerkir/arm
February 04, 2005

Last week, at a press conference, ARF faction leader Levon Mkrtchian
and secretary Hrayr Karapetian presented the work plan of the faction
for the next session period.

Hrayr Karapetian said that law-making activities will mainly focus
on the social sphere, security and anti-corruption instances, as
well as adoption of local self-governance legislations. Work will
be proceeded over the “Law on lobbying,” which will enable to avoid
office abuse by the officials.

He also prioritized the social need for a law on bodyguards and
said that relevant work will be done. He pointed out the necessity
to legally stimulate birth rate by providing benefits to families
with more than 3 children. And the important role of the small and
medium-sized businesses already fixed in the economy can be even more
promoted in case of developing relevant legal paperwork.

Faction leader Levon Mkrtchian prioritized the discussions of
the Electoral Code and the Constitutional amendments. He said:
“The Electoral Code will have a strategic importance for promotion
of real democratic processes. It is an important step on the way to
elections by international standards.”

Calling oppositionâ~@~Ys participation in the discussions of the
Constitutional amendments necessary, Mkrtchian said that it is also
important in combination with the Venice commission support. â~@~It
is important to create a wide field of political-social accord in
this direction. We are against having the issue of the Constitution
serve for a different political purpose,â~@~] said Mkrtchian.

Among the events for this year, he prioritized the commemoration of
the 90th anniversary of the Genocide, noting that the advance of the
Armenian cause is a pledge for the security of Armenia.

–Boundary_(ID_pUNoBx7SLATmPVeUdi8gLg)–

US consular associate in Armenia indicted on bribery & visa fraud

ArmenPress
Feb 4 2005

US CONSULAR ASSOCIATE IN ARMENIA INDICTED ON BRIBERY AND VISA FRAUD
CHARGES
YEREVAN, FEBRUARY 4, ARMENPRESS: The U.S. Embassy in Armenia
forwarded to Armenpress a statement issued jointly by the Justice
Department and State Department of the United States of America in
Washington, DC, February 3, which says that the United States
Attorney Kenneth L. Wainstein and Ambassador Frank Taylor, Assistant
Secretary for the United States Department of State’s Bureau of
Diplomatic Security, announced that a federal Grand Jury in the
District of Columbia returned on February 2 a thirteen-count
indictment charging Piotr Zdzislaw Parlej, a 45-year-old United
States citizen formerly employed as a Consular Associate in the
United States Embassy in Yerevan, Armenia, with bribery and visa
fraud.
Parlej was arrested in the District of Columbia yesterday
afternoon and is scheduled to appear today before United States
Magistrate Judge Alan Kay. If convicted of the charges, Parlej faces
up to between 5 and 15 years in prison, and a fine of not more than
$250,000 on each of the counts.
The indictment charges that from in or before April 2004, through
on or about January 13, 2005, in Yerevan, Armenia, Parlej and various
co-conspirators engaged in a conspiracy to commit bribery and visa
fraud, and to obstruct and impede – “by craft, trickery, deceit, and
dishonest means” – the United States Department of State in “its
lawful function of reviewing and controlling the issuance to
qualified foreign nationals of visas authorizing their entry into the
United States.” The indictment Page -2- also alleges six specific
instances in which Parlej took cash bribes of up to $10,000 each, in
exchange for issuing visas irrespective of whether the applicants
were qualified to receive them.
“The people of the United States have a right to have immigration
rules applied fairly and properly,” noted United States Attorney
Wainstein. “A United States consular official who violates those
rules for personal financial gain undermines the integrity of our
visa application and review process, and erodes public trust in our
consular officials around the world.”
Speaking for the State Department’s Bureau of Diplomatic Security,
Ambassador Taylor added, “We are committed to investigating and
bringing to justice Department of State employees who use their
positions of trust to break the law.”
In announcing Parlej’s indictment and arrest, United States
Attorney Wainstein and Ambassador Taylor particularly commended the
work of Diplomatic Security Service Special Agents, U.S. Embassy
Yerevan staff, as well as Armenia law enforcement authorities who
assisted in the case. United States Attorney Wainstein and Ambassador
Taylor also commended Assistant United States Attorneys Laura A.
Ingersoll and Brenda J. Johnson, who are prosecuting the case.
An indictment is merely a formal charge that a defendant has
committed a violation of criminal laws. Every defendant is presumed
innocent until and unless found guilty.
The statement said the U.S. Embassy in Armenia and the U.S. State
Department as a whole, are dedicated to insuring the integrity of
visa process, and maintain zero tolerance of fraud. It also thanked
the Armenian authorities for their cooperation in this investigation
and in particular commended the National Security Service of Armenia
for their invaluable assistance.

Deceased Georgian PM to be buried on 6 February – Russian radio

Deceased Georgian PM to be buried on 6 February – Russian radio

Ekho Moskvy radio, Moscow
3 Feb 05

The funeral of Georgian Prime Minister Zurab Zhvania will take place
on 6 February at 1400 [local time, 1100 gmt], Ekho Moskvy has been
told by Georgian Minister of State for Settlement of Conflicts Giorgi
Khaindrava.

He said the funeral service will be held at the Cathedral of the Holy
Trinity, which has recently been consecrated in Tbilisi. [Passage
omitted: background to Zhvania death]

ANKARA: Turkish PM, French Speaker discuss EU, Cyprus, Armenia issue

Turkish premier, French Assembly Speaker discuss EU, Cyprus, Armenian issue

Anatolia news agency
3 Feb 05

ANKARA

President of the French National Assembly Jean Louis Debre met Turkish
Premier Recep Tayyip Erdogan on Thursday [3 February].

Debre asked Turkish Premier Recep Tayyip Erdogan about the
implementation of reforms which Turkey fulfilled in the EU process as
well as Cyprus and Armenian issues, said sources.

Erdogan told Debre that France and Turkey share common values like
democracy, freedom, human rights and supremacy of law. Noting that
Turkey tries to effectively implement the reforms it made in the EU
process, Erdogan said Turkey’s EU membership will further improve the
relations between Turkey and France. “It will also contribute to
economic relations,” he added. Erdogan said Armenian genocide claims
should be left to historians. “If their historians have claims, our
historians have claims too. They shall study Ottoman archives.”
Erdogan added Turkey does not have any problems with its Armenian
citizens. “Armenians should also open their archives,” he added.

Armenian paper blames OSCE factfinding mission for pro-Azeri stance

Armenian paper blames OSCE factfinding mission for pro-Azeri stance

Hayots Ashkharh, Yerevan
2 Feb 05

Text of unattributed report by Armenian newspaper Hayots Ashkharh on 2
February headlined “Double standards of the OSCE”

The OSCE monitoring mission’s visit to Nagornyy Karabakh and the
monitoring of the liberated territories give the impression at fight
sight that it is a technical measure. The members of the mission also
confirm that their task is to complete their monitoring and prepare a
relevant report. For this reason, they will not express any political
position or make any statement.

But it is more than strange that the purpose of the OSCE monitoring
mission is only to monitor the territories controlled by the Armenian
forces. In fact, the desire of the Armenian party to have the
territories of the Nagornyy Karabakh Republic [NKR] controlled by
Azerbaijan examined was ignored.

And the problem is not that this mission should undoubtedly pay
attention to the fact that Shaumyan District [Azerbaijan’s Goranboy
District] and the Armenian villages in the northeastern part of
Mardakert District [Agdara District] are inhabited by Azerbaijanis. It
is not the position of the monitors on Karabakh, but the political
position of the OSCE that causes bewilderment.

The “ideology” of this monitoring mission is not clear, as it
obviously goes against the principles of the OSCE.

The OSCE ignores the fact that the subject of the conflict, i.e. the
territories controlled by the Armenian forces, or according to the
Azerbaijani party, the occupied territories of Azerbaijan, have the
same status as Shaumyan District and Getashen [the village of Caykand
in Azerbaijan’s Xanlar District] or the northern part of Mardakert
District in terms of their possible settlement. They have the same
status, as according to all international norms, including the OSCE
standards, the recognition of the sovereign right of any state is not
the same as the right to the forcible settlement of a region.

That’s to say, irrespective of the legal status the OSCE gives to
Karvachar (Kalbacar) or Shaumyan, the Azerbaijanis expelled from
Kalbacar and the Armenians expelled from Shaumyan following the war
have the same right to return to their former places of
residence. Thus, the following double standards that contradict the
OSCE principles have been used:

a) Azerbaijan’s accusation that Armenians are settling in the
territories controlled by the Armenian forces is seen as a violation
of the sovereign right of the state to these territories;

b) The OSCE is not interested in the possible resettlement of the
Armenian villages and the NKR territories controlled by the
Azerbaijani forces, whereby they recognize the sovereign right of
Azerbaijan to expel the Armenians living there.

Refusing to monitor Getashen or Shaumyan, which are already populated
by Azerbaijanis, the OSCE de facto recognizes the sovereign right of
Azerbaijan to carry out ethnic cleansing, which is a gross violation
of all the norms of this organization. We think that by demonstrating
a selective approach towards the current Armenian-Azerbaijani dispute
about the possible settlement of the territories controlled as a
result of the war, the OSCE broke its own main principles. That’s to
say, the OSCE took as a basis not the right of the Azerbaijanis and
Armenians to return to their former places of residence, but the
principle under which Armenians who are citizens of Azerbaijan are not
allowed to settle in the territory of Azerbaijan.

So the report of the OSCE monitoring mission cannot be
impartial. Moreover, it cannot serve as a basis for any serious
political conclusion if the monitoring group does not visit the
northeastern villages of Shaumyan, Getashen and Mardakert Districts
before accomplishing its mission.

BAKU: Settlement depends on conflicting sides

AzerNews, Azerbaijan
Feb 3 2005

Settlement depends on conflicting sides

OSCE Minsk Group may only foster dialogue – French co-chair
The OSCE Minsk Group cannot settle the Upper Garabagh conflict
instead of Azerbaijan and Armenia, the new French co-chair of the
OSCE Minsk Group, Bernard Fassier, said. He stated that the co-chairs
may assist the sides only in fostering dialogue.

First of all, trust should be established between the two presidents
and afterwards, between the two peoples, Fassier told a news
conference during his two-day familiarization visit to Baku last
week.
The co-chair said the OSCE MG does not have considerable resources to
assist in resolving the problem. “The Minsk Group is a political
forum and it may put forth political ideas. However, it has no
financial resources to implement them”.

As for Armenia’s withdrawing its armed forces from the occupied Azeri
land, Fassier said that the “the co-chairs are unlikely to say
anything specific in this respect, as a relevant decision should be
made by the conflicting sides”.
President Ilham Aliyev, in a meeting with Fassier on Thursday, stated
that the OSCE-mediated talks on the Armenia-Azerbaijan conflict over
Upper Garabagh, carried out over the last ten years, had been
fruitless.
Aliyev said, however, that the active work carried out by the OSCE MG
of late and the ongoing talks between the two countries’ foreign
ministers “allow us to hope for certain progress in the settlement
process”.
The President emphasized that Upper Garabagh and the adjacent seven
regions, which are historically Azerbaijani territories, are occupied
by Armenian armed forces and that Azerbaijan entered the United
Nations with these areas included within its boundaries. Azerbaijan’s
position on the conflict resolution, based on the principles of the
country’s territorial integrity, remains unchanged, he said.
Fassier said that the unresolved status of the conflict is impeding
not only peace and stability in the South Caucasus, but also the
implementation of global economic projects in a wider area, including
Central Asia. He also voiced confidence that his meeting with
President Aliyev would provide him with broader information on this
‘sensitive’ conflict.
The new co-chair acted as the French ambassador to Georgia in
1993-1997 and to Belarus in 1997-2002. He succeeded the previous
co-chair Henry Jacolin late in 2004.

Nevada sisters facing possible deportation to be released from LA

Associated Press
Jan 28 2005

Nevada sisters facing possible deportation to be released from LA
center

LOS ANGELES – Immigration officials agreed late Thursday to release
into their father’s custody two Armenian teenage sisters facing
possible deportation, overriding a federal judge’s ruling that the
two must remain at a Los Angeles immigration facility.

Earlier Thursday, U.S. Magistrate Judge Robert Johnston in Las Vegas
said he could find no legal basis to return Emma Sarkisian, 18, and
her sister Mariam, 17, to their family while their deportation case
is pending.

“I have to have the law, have to have some authority” to issue such
an order, Johnston said. “As I read the law, I don’t have any
authority.”

Late Thursday, however, Immigration and Customs Enforcement
spokeswoman Virginia Kice confirmed that officials had agreed to
release the girls to their father, who is a legal resident. She said
they would be handed over on Friday.

“We’ve thoroughly reviewed the case and have decided based on
humanitarian reasons to release them,” Kice told The Associated
Press. “This doesn’t convey any legal immigration status on them.”

Kice said the girls would be allowed to return to Las Vegas but had
not been given permanent authorization to remain in the United
States.

“ICE will continue to review the case,” she said. It was unclear
whether the two would be able to work while they awaited a final
decision on their status.

Their father, who runs the Tropicana Pizza restaurant in Henderson,
Nev., said after the decision the process is keeping him on an
emotional roller-coaster.

“It’s like life – one time up, one time down,” Rouben Sarkisian told
the Las Vegas Sun.

Johnston said he’ll schedule a hearing to determine if the girls will
be deported after lawyers file additional arguments on Tuesday.

The federal government had threatened to deport the sisters to
Armenia, the country in which they were born but barely know. In
1991, the sisters moved to the United States with their parents, who
later divorced. Although their father became a legal resident, his
ex-wife did not. The girls were ordered deported in 1993 and attempts
to make their status legal were blocked when the order was
discovered.

They have since become involved in a lengthy appeals process.

If their father becomes a U.S. citizen he could petition for their
residency.

On Wednesday, Senate Minority Leader Harry Reid, D-Nev., called
Homeland Security Secretary Tom Ridge and asked for “personal
attention” in the Sarkisian case.

Tessa Hafen, spokeswoman for Reid, said the senator “is fairly
confident this will reach resolution,” with the girls being allowed
to stay in the country.

ANKARA: Germany takes out Armenian Genocide from history books

Hurriyet, Turkey
Jan 27 2005

GERMAN STATE TAKES OUT THE TERM ARMENIAN GENOCIDE FROM ITS HISTORY
BOOKS

Brandenburg, which was the first German state that included the term
`Armenian genocide’ into its history books used in the 9th and 10th
classes since 2002, decided to take out the term from the curriculum
of the schools. State’s Spokesman of the Education Ministry Thomas
Hainz said that they found improper to give the so-called Armenian
genocide as the only historic example in the massacres and genocides
section in their history books, and therefore decided to take the
term out. Turkey’s Chief Consul Aydin Durusoy had sent a letter to
the state of Brandenburg, giving a harsh reaction to the use of the
term. As a result of the diplomatic initiatives of the Turkish
Foreign Ministry, Durusoy, state’s Premier Matthias Platzeck and
Education Minister Holger Rupprecht two weeks ago had agreed to take
out the term from the schools’ syllabus. /Hurriyet/

Armenian troops deploy to Iraq

EurasiaNet Organization
Jan 21 2005

ARMENIAN TROOPS DEPLOY TO IRAQ
Samvel Martirosyan 1/21/05

Despite widespread popular opposition, Armenia has dispatched troops
to Iraq on a humanitarian mission apparently designed to strengthen
the South Caucasus state’s ties with the United States.

Forty-six troops including 30 truck drivers, 10 bomb detonation
experts, three doctors and three officers will serve under Polish
command in the Shiite city of Karbala and the nearby town of al-Hila.
The troops could serve in Iraq for up to a year and would only carry
out humanitarian operations.

“This day is very important for Armenian armed forces. We cannot stay
away from international processes geared toward promoting stability
and peace in our region, particularly in Iraq,” Defense Minister
Serge Sarkissian stated at a January 18 departure ceremony in
Yerevan.

The decision to send the platoon comes amidst rising concerns that
Armenia may lose out to Azerbaijan, and Georgia, in the competition
for US assistance. The Bush Administration’s proposed budget for 2005
would have originally granted $6 million more in military aid to
Azerbaijan than to Armenia. Congress, under pressure from the
influential US Armenian diaspora, later restored the traditional
parity in military assistance to the two countries with an allocation
of $5 million to each for 2005.

In a statement to reporters in December about the deployment of
Armenian troops, Sarkissian touched on that influence, stating that
“After the Armenian military specialists have been sent to Iraq,
international organizations and states that are involved in combating
terrorism will take a more objective attitude to all three South
Caucasus states . . . Armenia cannot have stayed aside from actions
by other states that are aimed at peace and stability, and at
combating terrorism,” Interfax reported.

Yerevan played a waiting game during the 2003 invasion of Iraq,
neither explicitly supporting nor opposing the operation. But now,
with other Commonwealth of Independent States members contributing to
the US-led reconstruction campaign, President Robert Kocharian’s
government has no wish to be left behind. Both of Armenia’s neighbors
in the Caucasus outrank it for troop deployments to Iraq. Azerbaijan
has committed 150 troops, and Georgia recently increased projected
troop numbers to 850, the highest number for the Caucasus. At the
same time, the country is benefiting from an extensive US military
training program.

Nonetheless, opposition to the deployment, even within the defense
ministry, appears to run strong.
“I am not delighted with the decision to send our troops there and
the war in general,” the English-language weekly ArmeniaNow quoted
Deputy Defense Minister Yuri Khachaturov as saying after the Armenian
National Assembly’s December 24 vote to dispatch troops. “Because of
that the Armenian community [in Iraq] and Armenians in general could
have problems in the future.”

Parliament’s decision to proceed with the troop deployment was
fiercely opposed by opposition parties and led to an alliance between
the Armenian Revolutionary Federation-Dashnakcutyun, a member of the
ruling coalition, and Armenia’s main opposition bloc, Adrarutyn
(Justice). Opposition parties, which have been boycotting the
National Assembly for nearly 11 months, came to parliament for an
eight-hour, closed-door debate on the question. In the end, 91
deputies voted in favor of the proposal with 23 against and one
abstention.

The consequences of Armenian troops in Iraq for the Armenian diaspora
there spurred much of the criticism. Fear of retaliatory actions by
Islamic terrorist groups prompted Iraq’s 20,000-member Armenian
community, in fact, to ask Yerevan not to send the troops. In August
2004, a Baghdad Armenian Apostolic church was attacked as part of a
wave of assaults on Iraqi Christians that left 11 people dead.

“The situation is very tense now,” Father Garegin, a leader of Iraq’s
Armenian religious community, told the news agency Yekir.am. “People
do not leave their houses because they are scared. They can’t even go
to church . . . Our children can’t go to school.”

Any sign that it has discounted the concerns of a diaspora group
could put the government in an awkward situation given emigres’
investment in and economic support for Armenia in recent years. To
show that it understands the Iraqi group’s concerns, the government
has described the deployment as a strictly humanitarian mission.
Commenting on parliament’s decision, Prime Minister Andranik
Margarian told the newspaper Haiastani Hanrapetutiun on December 25
that “Armenia’s presence is primarily symbolic and for political
purposes.”

Public opinion has reflected this unease. A recent poll conducted by
the Armenian Center for National and International Studies reported
that 70.5 percent of Armenians opposed the deployment of troops to
Iraq. Only 15.6 percent, the poll found, supported the move.

Editor’s Note: Samvel Martirosyan is a Yerevan-based journalist and
political analyst.