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United Nations: Observations on the Management and Oversight of the Oil for Food Program

GAO-04-730T Published: Apr 28, 2004. Publicly Released: Apr 28, 2004.
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Highlights

The Oil for Food program was established by the United Nations and Iraq in 1996 to address concerns about the humanitarian situation after international sanctions were imposed in 1990. The program allowed the Iraqi government to use the proceeds of its oil sales to pay for food, medicine, and infrastructure maintenance. The program appears to have helped the Iraqi people. From 1996 through 2001, the average daily food intake increased from 1,300 to 2,300 calories. From 1997 to 2002, Iraq sold more than $67 billion of oil through the program and issued $38 billion in letters of credit to purchase commodities. However, over the years numerous allegations have surfaced concerning potential fraud and program mismanagement. GAO (1) reports on its estimates of the illegal revenue acquired by the former Iraqi regime in violation of U.N. sanctions, (2) provides observations on program administration; (3) describes the challenges facing the CPA and the Iraqi government in administering remaining contracts, and (4) discusses potential issues for further investigation.

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Commodity salesContract administrationCrude oilExport regulationFood relief programsForeign governmentsFuel salesInternational cooperationInternational food programsInternational organizationsInternational tradeInternational trade restrictionProgram managementSanctionsSmuggling