ashington
— Thanks to Claudia Rosett, an enterprising
reporter writing in The New York Sun, the world
now knows that some information put out by
Secretary General Kofi Annan about his son's
involvement with a Swiss inspection company at the
heart of the U.N. oil-for-food scandal is untrue.
At a luncheon at "21" in New York
this summer, Annan came over to me to complain
politely that my series suggesting U.N.
maladministration was unfair. When I asked about
the consultant fee paid to his son Kojo that may
have influenced the award of a U.N. contract to
Cotecna Inspection, the secretary general said
that the allegation (originally reported in The
Sunday Telegraph in London) had been
"thoroughly investigated" by the U.N.
and there was "nothing to it."
He later insisted that ours was a "private
conversation" (though no off-the-record
restriction was requested or given), but this
denial was consistent with Kofi's public statement
in April about the contract award: "Neither
he nor I had anything to do with the contracts for
Cotecna." Note the plural
"contracts" - after a low-ball bid, a
later contract was much more lucrative - and his
clear indication that his son joined him in
denial.
The story put out by the U.N. Secretariat at
the time was that the son, Kojo, had resigned from
Cotecna just weeks before the U.N. switched its
fast-growing inspection business to the Swiss
firm. Though such a timely termination looked
fishy on its face, the absence of post-contract
payments to Kofi's son was the basis for the
U.N.'s claim that there had been no conflict of
interest or nepotism.
Last week the truth was outed. The U.S.
attorney's office in New York is in competition
with the U.N.'s "independent"
investigation, whose Paul Volcker - while
stonewalling angry Congressional investigators -
has grand jury help from the Manhattan district
attorney's office. I suspect a subpoena forced
Kojo to hire a lawyer, whom reporter Rosett
tracked down and The Sun had its first world beat.
The lawyer confirmed that Kojo received
payments of $2,500 per month for four years after
he supposedly severed his relationship with
Cotecna - up to February of this year, when Iraqis
blew the lid off the U.N.-Saddam-French-Russian
conspiracy.
When confronted with the falsity of previous
U.N. denials, the secretary general's spokesman,
Fred Eckhard, pleaded: "There is nothing
illegal in this." You see, um, the payments
to Annan's son were part of an "open-ended
no-compete contract." After all, what could
be illegal about getting paid for not joining a
competing inspection company, which Cotecna
probably took as assurance that nobody else would
get the inside track?
"We previously thought they had
ceased," Annan's embarrassed aide said of the
payments. He stuck grimly to the line that U.N.
officials "who gave Cotecna the contract had
no idea that Kojo Annan worked for Cotecna,"
but carefully left himself an out: "and that
continues to be our belief."
In the same way, there are still officials of
the oil-stained U.N. Secretariat who profess to
believe the repeated denials of Benon Sevan, the
longtime right-hand man of Kofi Annan put in
charge of what became history's largest swindle.
Of course, in a $20 billion ripoff, $125,000 to
the boss's son for doing nothing is chump change.
But it should lead to questions for the son: what
are his associations with families in the oil
industry? (Yamani or ya life!) Did he lie to his
father about four years of fees from Cotecna, or
did Kofi fail to ask him? Did Kojo inform Sevan
about the fees, or know about any lucrative oil
vouchers given by Saddam to Sevan?
For the father: Will he now share with
Congress, which supplies 22 percent of the U.N.
budget, his "thorough investigation" of
his son's Cotecna connection? Did he learn of the
"nothing illegal" fees only last
Tuesday, as his aides say? Has he since asked his
Absalomic son if the secretary general can stand
by his April "nothing to do with"
statement about Cotecna?
This marks the end of the beginning of the
scandal. Its end will not begin until Kofi Annan,
even if personally innocent, resigns - having,
through initial ineptitude and final
obstructionism, brought dishonor on the
Secretariat of the United Nations.