Secretary-General Kofi Annan has suspended the head of the UN oil-for-food programme in Iraq and a senior official who dealt with contracts following an independent investigation that accused them of misconduct.
Benon Sevan, who was in charge of the €49.5bn humanitarian programme, and Joseph Stephanides, who currently heads the UN Security Council Affairs Division, have been suspended with pay, spokesman Fred Eckhard said.
Sevan and Stephanides were told they would receive a letter this week “laying out the charges against them", which will allow them to defend themselves before UN disciplinary bodies in what will likely be a lengthy appeals process, he said.
“Suspension is the beginning of a disciplinary process,” Eckhard said.
Sevan, a Cypriot, ran the oil-for-food programme from 1996 until it ended in November 2003 and retired from the United Nations last year but remains on the payroll for one dollar a year to help with the investigation. Stephanides is scheduled to retire in about five months.
An investigation led by former US Federal Reserve Chairman Paul Volcker accused Sevan of a “grave conflict of interest,” saying his conduct in soliciting oil deals from Iraq was ”ethically improper and seriously undermined the integrity of the United Nations.”