The UN Oil-for-Food Programme was one of the largest humanitarian programmes ever conducted and accounted for $100 billion in transactions. While deemed a success in terms of alleviating the Iraqi population’s suffering, the Programme was characterized by widespread, systematic abuse by many UN officials, the Iraqi Government, nearly half of the 4,500 corporations involved in Programme contracts, and an eclectic assortment of individuals.

The UN appointed an Independent Inquiry Committee (IIC) to investigate the abuses. The IIC’s Final Report, or the Volcker Report, was published in October 2005. It found that the Iraqi Government collected illicit surcharges on every barrel of oil sold under the UN programme between 2000 and 2002. Nearly 2,400 companies were involved in making illicit surcharge oil price payments or ‘kickbacks’ on humanitarian goods deliveries; 139 companies were linked to surcharge oil price payment contracts (in the form of ‘inland transportation fees’ and ‘after-sales-service fees’) and 2,253 companies were alleged to have been involved with ‘humanitarian kickbacks’ (illicit payments made to the Iraqi Government by suppliers of humanitarian goods). Perhaps, the most stunning allegations were made against the Programme’s escrow bank.

The Independent Inquiry Committee (IIC) conducted an extensive administrative inquiry. While the IIC did not have judicial powers, it had anticipated that national authorities (law enforcement and regulatory authorities) would take action on its findings, and it has maintained a small staff to facilitate investigations. Only 25 out of the 66 countries whose individuals or companies have been named in the IIC report have launched investigations or requested evidence from the IIC as of March 2007.