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Investigators say none of the people involved would have actually taken possession of oil, but rather just the right to buy the oil at a discounted price, which could be resold to a legitimate broker or oil company, at an average profit of about 50 cents a barrel.
50 cents a barrel isn't that deep a discount although it could still add up to millions of dollars for some of the recipients of the vouchers.
With Iraq's acceptance in late 1996 of U.N. Resolution 986, which allowed limited Iraqi oil exports in exchange for food and other supplies ("oil-for-food"), the country's oil output began increasing more rapidly, to 1.2 million bbl/d in 1997, 2.2 million bbl/d in 1998, and around 2.5 million bbl/d during 1999-2001. Between December 1996 and March 20, 2003, some 3.4 billion barrels of Iraqi oil valued at about $65 billion were exported under the oil-for-food program.
Originally posted by Variable
50 cents a barrel isn't that deep a discount although it could still add up to millions of dollars for some of the recipients of the vouchers.
Millions? A whole lot of millions ;p You sound like you don't think the scandal is that big of deal.hmm
With Iraq's acceptance in late 1996 of U.N. Resolution 986, which allowed limited Iraqi oil exports in exchange for food and other supplies ("oil-for-food"), the country's oil output began increasing more rapidly, to 1.2 million bbl/d in 1997, 2.2 million bbl/d in 1998, and around 2.5 million bbl/d during 1999-2001. Between December 1996 and March 20, 2003, some 3.4 billion barrels of Iraqi oil valued at about $65 billion were exported under the oil-for-food program.
If kick backs were "only" .50 cents a barrel the profit from the scam is staggering. It is no wonder so many countries did NOT want the US invading.
Originally posted by Variable
Like I said, your minimizing the scandal : )
If the UN was in charge of the program, then the UN is the one to blame, not the US or anyone else who bought oil that was for sale. What does the US buying oil from Iraq have to do with the UN scandal? Seems to me your minimizing and throwing in information in the hopes that it will somehow take heat off of the UN.
as quoted by John bull 1
Is t any excuse to slam the UN or are you big enough to admit that your own compatriots are just as corrupt ?
Trade minister Ali Allawi says he discovered a month ago that a contract for wooden doors worth about $US80 million had been manipulated
Originally posted by AceOfBase
Perhaps this should be moved to 'Other current events' or politics and scandals.
[Edited on 25-4-2004 by AceOfBase]
He said that Iraqi investigators had discovered "memorandums of understanding" suggesting that Saddam could decide which UN officials operated within Iraq. "They were either at his beck and call, or they were sent home," he said. "It seems that we have still only uncovered the tip of the iceberg."