The United Nations Security Council (UNSC) has said it is disappointed with the Iraqi government's "slow progress" closing the remaining contracts and the associated letters of credit (L/Cs) under the Oil-for-Food Programme.

The L/C-based programme - operated on behalf of the UN by BNP Paribas in New York - began in December 1996 and was finally closed in May 2004, with some contracts still pending,

Letters exchanged

In a letter to UN secretary-general Ban Ki-moon, the UNSC's president Vitaly Churkin of Russia said members noted "with concern and disappointment" Iraq's slow progress implementing the remaining contracts and associated L/Cs under the programme, recalling that the council had recommended that it be closed during 2007.

Churkin's letter responded to one sent by former UN secretary-general Kofi Annan who left office last December. In his letter, Annan said he told the Iraqi government of the "need to make every effort to execute all outstanding contracts and letters of credit within the recommended time frames so that the programme can close as currently scheduled during the course of 2007".

Payment requests

The former UN secretary-general added that two vendors had complained that authentication documents had been "improperly withheld" by the Iraqi authorities, which have allegedly requested payments as a condition for authentication.

"These complaints have been shared with the Iraqi authorities but, regrettably, we have received no response," Annan said in his letter.

Solution sought

Council members "want to reaffirm the importance of promptly finding a final solution to the remaining issues, and in particular the question of processing of the authentication documents for the arrival of goods in Iraq, so that payments can be made to the concerned companies and so that the programme can close," Churkin said in his letter.

He added that members stressed the "high importance" that the UN Controller consult with the Iraqi authorities "as soon as possible" with a view to solving issues outstanding.

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