answersLogoWhite

0


Best Answer

It was intended to allow Iraq to sell oil through an escrow system in exchange for food, medicine, and other humanitarian needs for ordinary Iraqi citizens without allowing Iraq to rebuild its military. It is termed a scandal because of the corruption related to it and not, contrarily to popular belief, because of it having allowed Iraq to rebuild its military.

Individuals and organizations favoring Saddam's Iraqi regime were offered oil contracts through the Oil-for-Food program. These contracts were then sold on the open market and the seller was allowed to keep a transaction fee. These contracts were awarded to persons who agreed to refund a portion of this fee the Iraqi government or politicians who could influence their countries' policies toward Iraq. Companies that sold commodities were overcharging by up to 10%, with part of the overcharged amount being diverted into private bank accounts for Saddam Hussein and other regime officials and the other part being kept by the supplier. Some commodities ordered and paid for were never delivered or were unfit for use, and the distribution system within Iraq was controlled by politics, not humanitarianism. The French bank handling funds transfers for the program made payments without proof that goods were delivered and to third parties who were not authorized recipients. Investigators estimate that the bank received more than $700 million in fees under the program. This webpage gives more detail about the program and the various UN officials, politicians, businessmen and companies involved in the scandal. http://en.wikipedia.org/wiki/Oil-for-Food_Programme

User Avatar

Wiki User

โˆ™ 2007-08-13 21:06:30
This answer is:
User Avatar
Study guides

Add your answer:

Earn +20 pts
Q: What is the oil for food scandal?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What oil reserve in Wyoming was a part of the Harding scandal?

Teapot Dome Scandal


What is president hardings biggest scandal involving oil?

Tea Pot Dome Scandal


What are the release dates for Food for Scandal - 1920?

Food for Scandal - 1920 was released on: USA: 12 September 1920


What is meant by the teapot dome scandal?

The teapot dome scandal is a different name for the incident where the US government leased oil to a private oil company in 1921. This was one of the many scandals of the Harding administration.


Was the teapot dome scandal?

Also called Oil Reserves Scandal or Elk Hills Scandal, the Teapot Dome Scandal was a bribery incident that took place in the United States from 1920 to 1923, during the administration of President Warren G. Harding.


What was the teapot dome scandal-?

Also called Oil Reserves Scandal or Elk Hills Scandal, the Teapot Dome Scandal was a bribery incident that took place in the United States from 1920 to 1923, during the administration of President Warren G. Harding.


Harding's interior secretary and subject of oil scandal?

Albert B. Fall.


Illegal leasing of government oil reserves to private oil companies by Secretary of the Interior Albert Fall?

The Teapot Dome Scandal


What food scandal has hit Europe?

beef dinners that contian horse meat


Who benefited from the transaction known as the teapot dome scandal?

albert fall and private oil companies


What did the teapot dome scandal reveal about Warren G. Harding?

Study Island: Something about drilling oil.. The only answer that says something about drilling oil


Albert Fall found guilty of?

He was guilty of commiting a scandal involving

People also asked