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DA calls for oil-for-food report probe

24th August 2009

By: Sapa

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The Democratic Alliance (DA) has called for a judicial investigation into a report handed to the then President Thabo Mbeki three years ago detailing the alleged knowledge senior officials had of shady oil deals with Iraq.

The Sunday Times reported that the Donen Commission, set up by Mbeki, found that Deputy President Kgalema Motlanthe, who was African National Congress (ANC) secretary-general at the time, was privy to material information related to money paid illicitly to the Iraqi regime.

According to the newspaper, the commission also cast doubt on a submission by businessperson Tokyo Sexwale, now Human Settlements Minister, that he did not know that a company of which he was codirector had paid money to Saddam Hussein's government - in violation of the United Nations (UN) oil-for-food programme.

The DA expressed reservations about the newspaper article, saying it was hard to understand the nature of the allegations as it quoted "selectively" from the Donen report, but urged President Jacob Zuma to show the political will to establish the truth.

In a statement, party chief whip Ian Davidson said Zuma should release the report and then appoint a commission of investigation with more extensive powers.

If any officials were found to have violated the UN agreement, under which all oil revenue was meant to go towards humanitarian purposes, they should be brought to book.

"A commission of investigation into those South African companies implicated in the UN oil-for-food programme needs to be reconstituted. It needs to be chaired by a judge and, importantly, must have the powers of subpoena," he said.

It is estimated that late Iraqi dictator Hussein's regime made $1,8-billion in surcharges and kickbacks on such deals.

At issue, are surcharges on oil-for-food deals the regime demanded be paid into Iraqi government bank accounts, in violation of stipulations that all oil sales revenue go to a UN-supervised account to be used for humanitarian purposes only.

South African businessperson Sandile Majali, the CE of Mocoh and Imvume, was among those believed to have channelled money to the regime. Sexwale is a former co-director of Mocoh and reportedly told the commission he did not know the company was told to pay surcharges on oil deals with Iraq.

The newspaper reported that the Donen Commission expressed reservations about his version.

According to the Sunday Times, Mbeki kept the report under wraps and Motlanthe, during his brief stint as President, also resisted calls to release it.

"President Jacob Zuma has ignored similar requests," the report read.

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