Terrorist attacks on the UN's Baghdad headquarters, confusion in the Coalition Provisional Authority (CPA) and uncertainty over the constitution of the Iraqi Governing Council (IGC) could delay the end of Iraq's oil-for-food programme (OFP) according to a top UN official.

The letter of credit (L/C) based scheme that fed and provided medical care to Iraqis under lengthy UN sanctions is due to be phased out on 21 November 2003 and transferred to the CPA under Security Council resolution 1483 of last May but as yet the final details of mechanisms to replace the scheme have not been thrashed out.

Pipeline delays

Executive Director of OFP, Benon Sevan told the UN Security Council last month that he will wind the programme up but pointed out that the lack of staff available since the UN decamped to Kuwait and elsewhere due to security concerns, that process is becoming difficult.

Turmoil in Iraq is delaying goods in the pipeline. The OFP head says that because of the "drastic reduction" of international staff in Baghdad, the working groups that should be coordinating the prioritisation of deliveries have been unable to meet according to Sevan.

Security concerns have made previous plans drawn up by the CPA and OFP to verify supplies and equipment already in the pipeline obsolete and new arrangements for inspections, possibly in neighbouring countries, need to be agreed upon.

Uncertain end

For the time being UN officials are confident that local staff can maintain the OFP distribution network as it winds down but even its short-term future is not absolutely certain.

"Despite the enormity of the tasks involved, the UN remained confident, subject to security conditions, of meeting the challenge for an orderly termination of the programme by 21 November," Sevan says in his progress report to the Security Council.

Stark warning

Sevan issues a stark warning about the OFP replacement scheme in his report. He is critical of the speed at which the CPA appears to move and explains "handover preparations and best-case scenarios have been undermined by chronic insecurity and the tragic terrorist attack of 19 August on UN headquarters in Baghdad."

"After a very slow start, the CPA has finally taken steps to increase its staff capacity for the transfer process," according to Sevan. "Regrettably, however, CPA's efforts coincide with the heightened insecurity and drastic reduction in the number of UN international staff in the three northern governorates."

IGC concerns

According to the officer in charge of the Iraqi Ministry of Trade, Yousif M Abdul-Rahman Al-Ani, the IGC is keen to speed up contracts under the OFP for which L/Cs have already been received but which are stuck in the pipeline. Several companies across the world are waiting for progress on major contracts for the supply of OFP allowable goods and services to Iraq.

After 21 November, Iraqi oil revenues are to be placed in a fund controlled by coalition authorities that is to be used to help rebuild Iraq.

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