Probe clears Annan, raps son

The company received a $10 million a year UN contract in late 1998 to certify goods coming into Iraq under the scandal-tainted $67 billion oil-for-food programme, which began in late 1996 and ended in 2003. ‘‘There is no evidence that the selection of Cotecna in 1998 was subject to any affirmative or improper influence of the secretary-general in the bidding or selection process,’’ Volcker told a news conference.

‘‘Based on the record and lack of evidence of impropriety, it is the finding of the committee that Cotecna was awarded the contract in 1998 on the ground that it was the lowest bidder,’’ he said.

Annan issued a statement saying, “As I had always hoped and firmly believed, the inquiry has cleared me of any wrongdoing.”

But Volcker’s committee said a probe initiated by Annan himself into the Cotecna contract was inadequate and the case should have been referred to the UN watchdog agency for an independent investigation. As for the younger Annan, the report said he ‘‘intentionally deceived the secretary-general’’ about his continuing financial relationship with Cotecna.

‘‘Significant questions remain about Kojo and his actions during the fall of 1998 as well as the integrity of his business and financial dealings with respect to the oil-for-food program. The committee’s investigation of these matters is continuing,’’ the report said.

The Volcker committee accused Cotecna of making ‘‘false statements to the public, the United Nations and the committee by asserting that Kojo Annan had resigned his consultancy on Oct. 9, 1998,’’ when in fact he had been on a retainer afterward.

The report also said Annan’s chief of staff destroyed three years of documents after the announcement of the independent enquiry. The panel said then-chief of staff Iqbal Riza issued the order last year, just one day after the UN Security Council authorised the probe by the Volcker panel. —Reuters