Nearly $165bn transferred to Iraq fund: UN chief

UNITED NATIONS: In his latest report on the Development Fund for Iraq, UN chief Ban Ki-moon today said $165.1 billion has been deposited in it
from oil exports, from its inception through the end of last year.

During that time, $10.4 billion has been deposited in the Development Fund from the balance of the oil-for-food funds held under escrow by the United Nations, and a further $1.5 billion has been deposited as proceeds from frozen assets, UN spokesperson Michele Montas told reporters here.

Oil exports account for just over $165 million of the Development Fund for Iraq, which was established in 2003, the same year the Security Council phased out the oil-for-food programme, under which a sanctions-bound Iraq was allowed to use monitored oil sales revenue for humanitarian purchases.

The balance of the oil-for-food funds held under escrow by the UN deposited into the Fund amounted to $10 billion, with a further $1.5 billion deposited as proceeds from frozen assets, according to a report by Ban to the Council that was made public today, the UN said.

The International Advisory and Monitoring Board, an independent body set up by the Council, has found that the Committee of Financial Experts, set up by Iraq, is ready to assume oversight responsibilities of the Fund, it said.

"It will be important to ensure that a proper succession mechanism and process be considered," Ban wrote in his report. A recent independent audit of the Fund highlighted areas of concern, including "weaknesses in controls over oil extraction and use of the resources," Ban said.