Washington, D.C.- Congressman Tom Cole made the following statement on the House floor:

     Mr. Speaker, I rise today to address what I believe to be important facts about the United Nations Oil for Food Program with Iraq and how it ultimately was corrupted by Saddam Hussein with the aid and willing cooperation of allies from the international community.

   In addressing this issue, Mr. Speaker, a few simple facts should be reiterated. In February of 2000, President Clinton's administration registered their dissatisfaction with Saddam Hussein's government when he complained that approximately $2 billion was spent to build nine lavish palaces and import liquor and cigarettes under the Oil for Food program.

   During the postwar occupation, some very serious allegations have been made regarding people and corporations who circumvented the Oil for Food program by receiving illicit payments from oil surcharges. Among those implicated were U.N. officials administering the Oil for Food program. This was first reported by Al Mada, an independent Iraqi newspaper. Some people and organizations who have been accused have been confirmed in this account to have violated the program. Others have so far denied it.

   Mr. Speaker, it is clear that a tremendous number of companies signed oil exploration contracts with Iraq that would ultimately have served to undermine any remaining viability of the Oil for Food program. Not surprisingly, the companies predominantly seemed to have come from countries which opposed the liberation of Iraq.

   Just this March, the General Accounting Office testified before our own Committee on Financial Services that it believed that Saddam Hussein's regime increased its revenues through illicit activities in the Oil for Food program by approximately $10.1 billion between 1997 and 2002. These funds were spent to oppress the Iraqi people and provide a lavish lifestyle for the regime's rulers.

   Mr. Speaker, the facts are clear. Saddam Hussein engaged in an ongoing circumvention of the Oil for Food program, flouted the U.N. resolutions, persecuted his own people, and was engaged in widespread corruption. He was assisted in these activities by a number of companies and perhaps countries, as well as people within the U.N. bureaucracy itself. This is just one more example that gives credibility to our campaign to remove the regime of terror and replace it with one that truly represents the Iraqi people.

   Mr. Speaker, thanks to the Oil for Food program, Iraq was able to successfully advance its foreign policy by offering future contracts to companies for oil exploration, thus receiving a buy-in from other countries, bolstering Saddam Hussein's legitimacy.

   The Oil for Food program was suspended just before Operation Iraqi Freedom began on March 19, 2003. The U.N. staff in Iraq departed on March 28, 2003. As U.N. forces moved north towards Baghdad, the U.N. Security Council adopted Resolution 1472, restarting the program's operations, empowering the United Nations to take direct control of all aspects of the program, and directing the United Nations to set priorities on the delivery of already contracted supplies. This actually enhanced U.N. authority and then was later extended on June 3, 2003, a remarkable usurpation of power given the record of the U.N. up to that time administering the program.

   On May 22, 2003, Resolution 1483 was adopted, lifting sanctions on Iraq and providing for the phasing out of the Oil for Food program's ongoing operations within 6 months. In accordance with the resolution, the program was terminated on November 21, 2003, and was taken over by the U.S. occupation authority, the Coalition Provisional Authority.

   Mr. Speaker, my colleagues can be assured that the CPA is now more effectively delivering food and resources to the people of Iraq than Saddam Hussein ever did. Today, Iraqi resources are being used for the Iraqi people for the first time in decades. Our achievements are impressive in this area and should demonstrate our commitment to the people of Iraq.

   Mr. Speaker, before I close, I would once again call for a full and thorough investigation of the expenditures of all funds involved in the Oil for Food program. The corruption was so deep in the Saddam Hussein administration and in those countries, companies and international institutions that propped up the regime, I am convinced that we will not like what we discover.