UN Told of Weaknesses in U.S. Handling of Iraqi Oil

U.S. handling of Iraq's oil money after the defeat of Saddam Hussein was marked by weaknesses including problems tracking oil production and cash, a watchdog told the U.N. Security Council on Friday, diplomats said. The criticisms follow accusations by U.S. policymakers that the United Nations mismanaged a separate oil-for-food program for Iraq under Saddam. "These shortcomings (in the U.S. management) have to be kept in mind when we judge the management of other programs such as oil-for-food," said one council diplomat, speaking on condition of anonymity. U.N. Controller Jean-Pierre Halbwachs, who heads the International Advisory and Monitoring Board set up to oversee U.S. management of Iraqi oil, briefed the Security Council on the issue in a closed-door meeting. He discussed problems tracking how much oil was produced and how the proceeds were spent, and how noncompetitive contracts were awarded to Halliburton Co., formerly led by Vice President Dick Cheney, the envoys said. Several said he repeatedly used the term "weaknesses" to characterize problems with the U.S. management. Republican U.S. lawmakers have accused the United Nations of mismanaging the now-defunct oil-for-food program, which allowed Iraq under Saddam to sell oil and buy civilian goods to ease the impact on ordinary Iraqis of sanctions imposed after Iraq's 1990 invasion of Kuwait. [more]