http://news.excite.com/news/r/010425/01/iraq-un-contracts
US continues to block supplies for Iraq
By Evelyn Leopold, April 25, 2001
UNITED NATIONS (Reuters) - Blocked contracts of supplies to Iraq,
mainly by the United States, have climbed to $3.5 billion, despite
Washington's plans to consider expediting humanitarian goods for
ordinary Iraqis.
U.N. figures, released Monday, show an increase in contracts put "on
hold" in the Security Council's Iraqi sanctions committee from $2.9
billion at the end of 2000 to the current $3.5 billion.
American officials say the number of contract applications have
increased and that the percentage of blocked contracts of the total is
similar or less than last year, between 14 percent to 17 percent.
They fear some of the goods ordered by Iraq could be used for military
purposes. In other cases, the contracts are blocked because more
information is needed from suppliers to determine if they have dual
usage, the U.S. officials said.
U.S. Secretary of State Colin Powell is considering lifting
restrictions on civilian goods while tightening controls on any
military equipment as part of a wide review of the sanctions imposed
on Iraq after it invaded Kuwait in August 1990.
But in the meantime, supplies are still being blocked in substantial
numbers. Some 1,158 contracts worth more than $3.15 billion were for
humanitarian supplies and 545 contracts worth more than $437 million
were for oil industry spare parts and equipment, the United Nations
said.
Benon Sevan, director of the program, last month criticized the high
number of contracts "on hold" saying more non-military items should be
put on the expedited list to reach those people who need them.
At the same time he rebuked Iraq for neglecting basic items in the
program and not ordering health, education, water and sanitation
supplies. Iraq's spending, he said, was "unacceptably" below the level
of available funds.
The contracts fall under the oil-for-food humanitarian program. Iraq
is allowed to sell oil to purchase humanitarian goods and some
equipment to rebuild its infrastructure, an exception to sanctions.
Revenues from oil sales go into a U.N.-controlled escrow account and
many but not all contracts have to be approved one-by one by council
members.
Since March 2000, a total of 1,731 applications for more than 4.1
billion dollars worth of humanitarian supplies have been approved by
"fast-track" procedures which eliminate the need for vetting by the
sanctions committee.
Another 175 contracts for $121 million worth of oil industry spare
parts and equipment have also been expedited, the U.N. office in
charge of the program said.
