STATEMENT FOR THE PRESS

May 20, 2004 – The Independent Inquiry Committee for the UN Oil for Food Program (IIC) has completed several days of discussion. The agenda included (1) determining priorities and development of the medium term strategies for approaching the extensive investigations, (2) staffing decisions, and (3) necessary administration arrangements. The Committee also received the findings of a three-man team of Special Representatives which spent last week in Baghdad.

As a matter of first priority, investigation has now begun into the allegations of misconduct by UN staff. A broader examination of the United Nations’ administration of the OFF Program will require analysis of all relevant UN records in New York, which are being sequestered, secured and placed under Committee control. Discussions are also underway with the Board
of the Supreme Audit Authority of Iraq, its designated accounting firm, and the Coalition Provisional Authority to enable the Committee to access the Iraqi records as needed. Those records are particularly important for identifying the conduct of outside contractors and the flow of funds.

The Committee anticipates providing the first interim report on its work within three months. Full investigation of all parts of the Terms of Reference of the Committee and preparation of a Final Report appears likely to require a year or more.

To that end, a staff is now being assembled under the leadership of Stephen Zimmermann. Mr. Zimmermann, an experienced international investigator and former Federal prosecutor, has been seconded to serve as acting Chief of Staff. A staff of 25 - 30 is anticipated over the next few months.

A multinational team of lawyers, accountants, and investigators are either at work, in the process of joining the staff or are considering employment offers. In view of the urgent need to establish contact at appropriate levels in the Iraqi government and the CPA, a highly experienced and knowledgeable team volunteered to visit Baghdad. John Hennessy, former chairman of Credit Suisse First Boston; Walter McCormack, investigator and former investment banker, and Ambassador Richard Murphy, former United States Assistant Secretary of State for Middle Eastern Affairs.

The Committee particularly appreciates their willingness to undertake a sensitive and important mission on short notice.

The UN has committed to provide reasonable financial resources to the IIC for its full investigation. Four million dollars has been provided for "start up" funds. Needed space appropriately convenient to, but apart from the UN, is being considered and administrative and control measures are being developed. The Committee has been provided full access to relevant UN records. All UN staff has been ordered to cooperate fully with the Committee as a condition of employment.

A web site is being developed at www.UNIIC.org

Those with information they believe relevant to the Committee investigation are invited to contact the staff by fax (212-963-0956) or e-mail (info@UNIIC.org).