What is the oil-for-food programme?
To ease the impact of the sanctions on ordinary Iraqis, the Security Council agreed on a programme that allowed Iraq to sell oil to buy basic goods. The programme, first instituted in late 1996, eventually excluded only specific goods that could be used for military purposes. The multi-billion dollar oil revenues went into a UN escrow fund out of which the United Nations paid suppliers for the goods. Iraq chose suppliers for goods as well as buyers of oil. Did all the money go for civilian goods? Some 25 per cent of oil revenues go into a fund for Kuwaitis, individuals and foreign firms affected by Iraq’s 1990 invasion and occupation of the emirate. In addition, salaries of UN staff administering the programme are paid out of the oil revenues, including the arms inspectors. Up to $2 billion a year, according to US estimates, went to Saddam Hussein for oil smuggled to neighboring nations but the bulk of the revenues were deposited in the UN account by oil buyers. What happened to oil-fo
