http://news.yahoo.com/s/ap/20051027/ap_on_re_mi_ea/un_oil_for_food_7
The oil-for-food program was one of the world's largest humanitarian aid operations, running from 1996-2003.
Under the program, Iraq was allowed to sell limited and then unlimited quantities of oil provided most of the money went to buy humanitarian goods. It was launched to help ordinary Iraqis cope with U.N. sanctions imposed after Saddam's 1990 invasion of Kuwait and became a lifeline for 90 percent of the country's population of 26 million.
But Saddam, who could choose the buyers of Iraqi oil and the sellers of humanitarian goods, corrupted the program by awarding contracts to — and getting kickbacks from — favored buyers, mostly parties who supported his regime or opposed the sanctions. He allegedly gave former government officials, journalists and U.N. officials vouchers for Iraqi oil that could then be resold at a profit.
Tracing the politicization of oil contracts, the new report said Iraqi leaders in the late 1990s decided to deny American, British and Japanese companies allocations to purchase oil because of their countries' opposition to lifting sanctions on Iraq. At the same time, it said, Iraq gave preferential treatment to France, Russia and China which were perceived to be more favorable to lifting sanctions and were also permanent members of the Security Council.
Volcker's previous report, released in September, said lax U.N. oversight allowed Saddam's regime to pocket $1.8 billion in kickbacks and surcharges in the awarding of contracts during the program's operation from 1997-2003.