Top > Business > 2006 > December > 2006-12-27

Iraqi`s Take Legal Action on Oil-for-Food Scandal

Iraqi citizens have filed a lawsuit, in a Manhattan court, against Australian wheat exporter AWB and European bank BNP Paribas for there involvement in the scandal related to the UN`s Oil-for-Food project. The lawsuit was reported on Saturday by a lawyer representing the Iraqi citizens, who claim to have been harmed by the corruption and bribe that have been exposed in the program.

Joshua Glatter, from the legal firm Osen & Associates, said that his firm and 3 other firms are representing a civil suit on behalf of Iraqi citizens, who were entitled to receive benefits from the oil-for-food program. Glatter said that the lawsuit against BPN Paribas and AWB was filed in the Federal Court in Manhattan. He added that the court hasn`t decided if it will accept the lawsuit. The attorney said that the lawsuit was file under American laws regarding money laundering and corruption outside US territory, as well as, the Racketeer Influenced and Corrupt Organizations Act (RICO), which allows the filing of lawsuits against organizations committing criminal actions.

The UN`s Oil-for-Food project, orchestrated the sale of Iraqi oil in the international market. The profits made from the sale were supposed to be used for the purchase of food, medicine and other goods that weren`t under the embargo imposed on Iraq after the Gulf War in 1991. In October 2005, President of Federal Feserve Paul Walker published the findings of an independent investigation, which found that over 2,200 companies, including AWB, bribed Sadam Hussain`s government, in an attempt to draw income from the Oil-for-Food program.