A Call to Freeze Iraqi Assets

A request for the the UN to freeze the assets of 191 Iraqi "parastatal entities" was made by the US and UK yesterday. The proposal comes amid growing pressure for an investigation into alleged corruption surrounding the multi-billion dollar oil-for-food programme.

"Every day the hunt for Iraqi assets unveils more and more of Hussein's thievery from the Iraqi people," said Juan Zarate, the US Treasury department's deputy assistant secretary for terrorist financing.

"Taking international action to identify and freeze funds pilfered by the fallen regime is crucial to the reconstruction efforts in Iraq."

The entities included Iraq's State Oil Marketing Organisation (Somo), Central Petroleum Enterprise, Oil Tankers Company, state import and export organisations, the State Company For Oil Projects (Scop), and the State Organisation For Oil Products and Gas Distribution. UN states are being asked to transfer assets "located outside of Iraq on or before May 22, 2003" to the US-controlled Development Fund for Iraq.

Meanwhile pressure grew for a clear accounting of the oil-for-food programme. US Congressional investigators said yesterday that Saddam Hussein's government reaped Dollars 10.1bn (Euros 8.2bn, Pounds 5.5bn) in illegal revenue despite sanctions - much more than previously estimated. The General Accounting Office concluded Mr Hussein received Dollars 5.7bn from oil smuggled out of Iraq and Dollars 4.4bn in illicit surcharges on oil sales and purchases of commodities.

The UN said its investigation arm was probing possible internal corruption but suggested a wider investigation would need Security Council backing.