Wed, Mar 30, 2005 - Page 7 News List

Second Volker report to fault Annan, son, firm

OIL-FOR-FOOD Officials who have already seen the report say the UN boss is criticized for not acting to stop a possible conflict of interest, while his son is accused of deception

AP , NEW YORK

Kofi Annan, his son, and Cotecna all deny any link between Kojo Annan's employment and the awarding of the UN contract to the company.

The officials said Volcker will state in the report that his investigation of Kojo Annan is continuing. So is his investigation of Benon Sevan, who headed the oil-for-food program.

Volcker has promised a final report in mid-summer.

In his first report in February, Volcker accused Sevan of a "grave conflict of interest," saying his conduct in soliciting oil deals from Iraq was "ethically improper and seriously undermined the integrity of the United Nations."

He also questioned where Sevan got US$160,000 in cash, calling it "unexplained wealth" despite Sevan's claim it came from his aunt.

Sevan's attorney has said he did nothing wrong.

Kojo Annan worked for Cotecna in West Africa from 1995 to December 1997 and then as a consultant until the end of 1998 -- just when it won the oil-for-food contract.

He remained on the Cotecna payroll until last year to prevent him from working for a competitor, but that was only disclosed last November.

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