Written by: Beck

One of the next big chapters in the United Nations oil-for-food scandal will involve the family of the secretary-general, Kofi Annan, whose son turns out to have been receiving payments as recently as early this year from a key contractor in the oil-for-food program.

The secretary-general's son, Kojo Annan, was previously reported to have worked for a Swiss-based company called Cotecna Inspection Services SA, which from 1998-2003 held a lucrative contract with the U.N. to monitor goods arriving in Saddam Hussein's Iraq under the oil-for-food program. But investigators are now looking into new information suggesting that the younger Annan received far more money over a much longer period, even after his compensation from Cotecna had reportedly ended.

The importance of this story involves not only undisclosed conflicts of interest, but the question of the role of the secretary-general himself, at a time when talk is starting to be heard around the U.N. that it is time for him to resign, and the staff labor union is in open rebellion against "senior management."

[...] The younger Annan stopped working for Cotecna in late 1998, but it now turns out that he continued to receive money from Cotecna not only through 1999, as recently reported, but right up until February of this year. The timing coincides with the entire duration of Cotecna's work for the U.N. oil-for-food program. It now appears the payments to the younger Annan ended three months after the U.N., in November, 2003, closed out its role in oil-for-food and handed over the remains of the program to the Coalition Provisional Authority in Baghdad.

This latest bombshell involving the secretary-general's son was confirmed Wednesday by Kofi Annan's spokesman, Fred Eckhard, in response to this reporter's query, based on information obtained elsewhere. In an email, Mr. Eckhard wrote: "I was able to reach Kojo's lawyer this morning. He confirms that Kojo Annan received payments from Cotecna as recently as February 2004. The lawyer said that these payments were part of a standard non-competition agreement, under which the decision as to whether to continue the payments or not was up to Cotecna."

[...] Labeled as compensation for Kojo Annan's agreeing not to compete with Cotecna's business in West Africa, the post-employment payments were in the amount of $2,500 per month, according to another source with access to the documents. If the payments were continuous over the slightly more than five-year period involved, that would have totaled more than $150,000.

[...] At every turn, the saga of the secretary-general's family ties to Cotecna raises questions about Kofi Annan's handling of potential conflicts of interest. Even if Mr. Annan cannot be held responsible for the decisions of his son, his job does entail responsibility for the actions of the U.N. Secretariat. As the oil-for-food scandal has unfolded, it has become clear that U.N. secrecy and lack of accountability evolved, in effect, into complicity with Saddam's scams and influence-buying. By now, between congressional and other investigations, there are allegations that Saddam, on Mr. Annan's watch, under U.N. sanctions and oil-for-food supervision, scammed and smuggled some $17.3 billion in oil money meant for relief, using some of that money to fund terrorism, import weapons, and buy influence with Security Council members France, Russia, and China.

On top of that, only now is it learned that for fully more than eight years, from 1995-2004, the secretary-general's son was in one way or another on the payroll of Cotecna, which for almost five of those years held a crucial oil-for-food inspection contract with the U.N. Secretariat. All this, said the investigator for Mr. Hyde's congressional committee, is good reason why "the U.N. Secretariat should move swiftly to lift the gag order on U.N. employees and contractors and publicly release its oil-for-food program files."