Oil for food: Govt 'not convinced' of violation

The government on Monday denied having had any sinister dealings with the regime of ousted Iraqi leader Saddam Hussein in terms of the corruption-riddled United Nations oil-for-food programme, South African Broadcasting Corporation radio news reported.

This follows a UN report suggesting that the former Iraqi government had tried to manipulate South Africa’s foreign policy by giving contracts to companies linked to the African National Congress.

The programme allowed Baghdad to sell oil to buy food and other basic imports.

While the UN committee monitoring sanctions had to approve the oil price, Saddam’s government decided who would get the contracts.

Deputy Minister of Foreign Affairs Aziz Pahad told the national broadcaster that dealings with Iraq had been aimed only at finding ways to end sanctions imposed on that country.

“I am not convinced that there was any violation ...

He added that he was convinced the Department of Foreign Affairs’ foreign-policy objectives had nothing to do with linking South African initiatives in Iraq with the oil programme.

The final UN report on the Iraq oil-for-food corruption scandal named South African businessman and head of the Imvume Management company Sandi Majali as having received kickbacks from that government.

It also pointed fingers at three other companies, including Tokyo Sexwale’s Mvelaphanda Holdings.

Mvelaphanda and Imvume have so far denied any wrongdoing, the SABC reported.

The Mail & Guardian reported last week that a UN independent inquiry had focused on Saddam’s efforts to bypass international sanctions by soliciting kickbacks for awarding oil contracts.

This process allegedly saw Imvume pay Iraq $60 000 of a promised $464 000 to obtain a contract to buy two million barrels of oil for South Africa’s Strategic Fuel Fund.

Imvume said it had initially been unaware that the kickbacks, described as “surcharges”, were illegal.

The M&G reported that Imvume and Majali denied making the $60 000 payment.

“Imvume and Majali deny having paid any amount in respect of any surcharge on this (or any other) allocation and deny that they made any advance payment of $60 000 or at all. It is also inconceivable that anyone else paid this amount on behalf of Imvume,” Imvume said.

Meanwhile, Mvelaphanda Holdings spokesperson Chris Vick told SABC radio news that it had pulled out of the process completely when its joint venture associate company said a “surcharge” would be required for future transactions.

“That was the end of the relationship with the oil-for-food programme,” he said.—Sapa