This is the translated version of the French report submitted to the Security Council. The English version has not yet been posted.
I have highlighted some of the significant areas. There are a number of resolutions that are referenced. Resolution 1859 is the December resolution with five items that was enacted under Chapter VII. One of the five items was the Secretary General's report regarding the IAMB/DFI. This resolution is still in effect as well as the referenced other relevant resolutions.
The time frames that are referenced indicate the DFI program will continue to the end of the year.
Nations S/2009/430
Security Council
Distr. General
August 24, 2009
French
Original: English
First report of the Secretary
General pursuant to paragraph 3
resolution 1859 (2008)
I. Introduction
1. This report was prepared pursuant to paragraph 3 of resolution 1859 (2008) Security Council, in which the Council requested me to report has four times per year the activities of the Development Fund for Iraq and International Advisory and Monitoring, particularly as regards progress in strengthening the administrative and financial control of Development Fund for Iraq, his first briefing to be presented to later than March 31, 2009, and written reports to be half.
II. History
2. The proceeds of oil exports from Iraq is paid to Fund development for Iraq, established pursuant to resolution 1483 (2003) of Security Council, which have also been transferred balances Program Oil-food cons "of the UN and other frozen Iraqi funds.
3. In 2003, the Security Council also decided that all sales export of petroleum, petroleum products and natural gas originating in Iraq should be aligned with best practices in force in the international market and be audited by independent accountants reporting to the International Advisory and inspection to ensure transparency, and further decided, except as provided in paragraph 4 below, All proceeds from these sales would be paid to the Development Fund for Iraq, until a representative Iraqi government and recognized by the international community is properly constituted.
4. The Council further decided that 5% of the products referred to in paragraph 3 above would be paid to the Compensation Fund established pursuant to resolution 687 (1991).
5. The International Advisory and Control was established as an organ Control of the Development Fund for Iraq under the mandate contained in resolution 1483 (2003) Security Council. This mandate subsequently been extended by resolutions 1546 (2004), 1637 (2005), S/2009/430 2 09-48439 1723 (2006), 1790 (2007) and 1859 (2008). In resolution 1859 the Council also extended until December 31, 2009 immunities applicable to oil and petroleum products, as well as proceeds from the sale of these products paid Development Fund for Iraq.
6. The International Advisory and control among its members representatives of the Secretary-General, Director General of the IMF (IMF), the Director General of Arab Fund ECOSOC and the President of the World Bank and the Iraqi government. In addition, representatives of the Council of the Institution Iraqi Supreme Audit and the Committee of Financial Experts continue participate in the International Advisory and supervision to continuity.
7. The International Advisory and Oversight held 25 meetings since December 2003, including 2 in 2009. All documentation, including statements releases, minutes of all meetings, the full audit reports and key documents concerning the mandate and activities of the Council may be available on its website (www.iamb.info).
8. The International Advisory and Control was informed that since the date of inception to December 31, 2008, it had been deposited in Fund development for Iraq worth about 165.1 billion dollars United states from export sales of petroleum and petroleum products and $ 10.4 billion dollars for the balance of funds of the Oil cons food placed in an escrow account by UN and $ 1.5 billion representing the proceeds of assets frozen.
9. In 2006, the Council of Ministers of the Republic of Iraq has established the committee financial experts who would work in cooperation with the International Council Advisory and Monitoring Board and the expiration of the mandate of the latter, assume the tasks for control of the Development Fund for Iraq. Committee financial experts is headed by the Chairman of the Supreme Iraqi control and report directly to Cabinet. Since its inception, the Committee worked closely with the Council International Advisory and Monitoring Board and attended all its meetings. He meets regularly and plays an increasing role in monitoring and implementation of recommendations in independent audit reports requested by the International Advisory Board.
10. In April 2009, the Comptroller of the United Nations, Jun Yamazaki, my representative appointed to the International Advisory and Monitoring Board for Iraq, made a briefed the Council on the activities of the Development Fund for Iraq and International Advisory Board.
11. The issues discussed in this report were being agenda recent meetings of the International Advisory and Oversight held Amman 2 and April 3, 2009 and in Vienna on 22 and July 23, 2009, and report recent activities of the Council and the Development Fund for Iraq.
III. Recent activities concerning the Fund Development Iraq
and the International Advisory and Monitoring
12. At the Amman meeting, the International Advisory and Oversight considered the request of the Security Council on the presentations by representatives of the International Monetary Fund and World Bank, pursuant to paragraph 4 of resolution 1859 (2008) Security Council. Under current practice, it was reiterated that the representatives on International Council should make presentations to their respective organizations personal. The International Monetary Fund and World Bank had responded accordingly at the request of the Security Council.
13. Approaching the end of the mandate of the International Advisory and Monitoring, December 31, 2008, the President sent to S. E. M. Al --Maliki, Prime Minister of Iraq, a letter dated October 27, 2008, in recommending that the Committee of Financial Experts assume the tasks the Board had before. In April 2009, the Council again wrote to Iraqi Prime Minister and reiterated its belief that the Committee of Financial Experts was ready and able to perform these tasks.
14. I share the opinion of the International Advisory and Monitoring by which the Committee financial experts is ready to undertake these tasks and perform ably independent verifications of the Development Fund for Iraq. As the Security Council prepares to consider this question including the mandate of the Development Fund for Iraq at the end of the year, will be important to ensure the establishment of a mechanism and process appropriate to take over.
15. The external auditor periodically presented to the International Council Advisory and Monitoring presentations on the progress of audits in 2008. First draft audit report on the Development Fund for Iraq, on the period ending December 31, 2008, was considered by the Council international consultative meeting in April 2009 and the final report was discussed at meeting in July 2009 in Vienna. The audit report was also presented Ministry of Finance and the Iraqi Council of Ministers and it is possible to available on the Council website (www.iamb.info) and that of the Committee financial experts (www.cofe-iq.net).
16. The management letter on internal controls and management letter for user departments for the period 1 January 2008 to December 31, 2008, produced by the external auditor are also posted on the Council website International Advisory.
17. The audit continues to highlight key issues regarding gaps controls over oil extraction and use of resources. Access to certain departments and regions had been postponed previously but this issue was resolved through the intervention of the Expert Committee financial and control work in the field is now complete.
18. The audit also continues to be attached to many reservations and the Council International Advisory and Monitoring Board expressed concern that issues, including the fact that the proceeds of cash sales of fuel by the United State Oil Marketing (SOMO) still does not be deposited into the Development Fund for Iraq are still not
resolved.
19. The International Advisory and control has focused on these concerns in the press and he has published in the minutes meeting.
20. Recognizing the skills and abilities of the Committee of Financial Experts, with the assistance of the Council of Supreme Audit of Iraq, International Advisory and Control has already given much detailed activities of monitoring and investigation of audit findings. The Iraqi officials, the Committee of Financial Experts and Board of Supreme Audit of Iraq reported periodically to the International Advisory measures taken to response to audit recommendations that had not been implemented.
21. The International Advisory and control is concerned one of its first recommendations in 2004 on the system measure of oil production has not yet been fully implemented. The information provided in response to requests from the external auditor have revealed that at December 31, 2008, overall 33% of the system was in place. In no comprehensive system to control oil production, the auditor external was not able to compare the figures of total production to those SOMO of the quantity received and the amount consumed in the country. He however, could compare the figures for quantities of oil received by SOMO to those export sales.
22. The experts on oil from the Iraqi Ministry of Oil have a presentation to the International Advisory and Monitoring Board on the extent of oil production. Some progress has been made, and the Ministry of Oil started to implement such a code for the hydrocarbons to tax purposes. But much remains to be done before a system of checks and Measurement fully operational production, distribution and sale oil export could be fully applied. According to the Ministry of oil, it will be in 2011 at the earliest.
23. Before December 31, 2007, SOMO has resorted to barter with Syrian government and private companies for exports of oil and petroleum products. According to SOMO, the value of transactions with the Syrian government since their inception until December 31, 2008 amounts to 750 865 dollars and that transactions with private companies 348 815 dollars. I note with satisfaction of the auditor's findings external, KPMG, that there was no such transaction in 2008.
24. To increase transparency and improve control of Fund operations development for Iraq and given the findings of external auditors, the International Advisory and Oversight requested that the financial statements Fund are posted regularly every month on the site of the Expert Committee financiers. The IAMB has also asked the Committee financial experts to develop a realistic action plan with deadlines to address the issue of reservations by KPMG in their opinion. He has additionally asked to submit every two months a report on progress made in this regard and these reports should be published on Council web sites International Advisory Committee and financial experts. International Council Advisory Committee also hired financial experts to continue working diligently to support the measures necessary to ensure the enactment rapid Parliamentary laws and regulations regarding structures organizational, job descriptions and systems of internal control, the development of an action plan with milestones, approved by the Council of Ministers for the implementation of a comprehensive system for measuring oil production.
25. I note with satisfaction the steps taken by the Committee of Experts finance, in particular its dynamic interaction with the Council of Ministers which led to the adoption of guidelines for implementation by all departments, working committees to examine issues organization and information systems raised in audits Fund development for Iraq. The Committee of Financial Experts will monitor progress made by departments in implementing these guidelines and the Council the Supreme Audit Institution will report to the Iraqi Council of Ministers on the outcome of an investigation conducted and revealed deficiencies in internal control departments.
26. I also note with appreciation the detailed monitoring reports of Committee financial experts and the Council of the Institution which are published The website of the International Advisory and Monitoring. Despite progress they reported, these reports clearly show that much remains to ensure full implementation of audit recommendations and strengthen systems of internal control. The International Advisory and Oversight reiterated its earlier recommendation that the Iraqi Government increased efforts to monitor the issue of Iraqi assets frozen abroad particular to determine whether to create a separate unit deal with this situation. I note that the Committee financial experts took contact with the Iraqi Finance Ministry on this.
27. The representative of the Committee financial experts have regularly submitted to International Advisory and control presentations on its activities, program and coordinating its work with the International Council Advisory facilitate the transfer of responsibilities for control International Advisory Committee at the end of 2009. The Panel Financial initiated the process of hiring the auditor for 2009, in under its action plan for 2009. The International Advisory and Control agreed that the 2009 audit should cover the period 1st January 2009 to December 31, 2009, an interim audit was conducted for the period 1 January 2009 to June 30, 2009. The interim audit will be conducted under the supervision of the International Advisory and Monitoring, while final audit should be conducted entirely under the control of the Expert Committee financial, since the mandate of the International Advisory and control should have expired at the end of the period. Council International Advisory and Monitoring Board approved the proposed process and endorsed the recommendation of the financial experts on audit operations. 28. Control systems must be improved urgently in organisms Iraqi keys, including SOMO, and the various Iraqi ministries. The International Advisory and supervisory work closely with the Committee of Financial Experts and the Iraqi Government to follow progress in strengthening financial control and administrative Development Fund for Iraq and to report thereon.
29. The International Advisory and Control noted that in 2008 the Ministry of Justice of the United States issued press releases on trial which followed the Volcker investigation on the oil-cons food, indicating the fines for companies and individuals involved. The amounts of these fines should be deposited into the account of Development Fund for Iraq, by check payable to the Fund. The Auditor External confirmed that amounts totaling approximately 50 million dollars in total were registered as such in the account of the Development Fund for Iraq in FY 2008.
30. The next meeting of the International Advisory and Monitoring, with Participation Committee financial experts, is tentatively scheduled for December 2009. Meanwhile, the Committee of Financial Experts will periodically separate meetings. (W1)
I have highlighted some of the significant areas. There are a number of resolutions that are referenced. Resolution 1859 is the December resolution with five items that was enacted under Chapter VII. One of the five items was the Secretary General's report regarding the IAMB/DFI. This resolution is still in effect as well as the referenced other relevant resolutions.
The time frames that are referenced indicate the DFI program will continue to the end of the year.
Nations S/2009/430
Security Council
Distr. General
August 24, 2009
French
Original: English
First report of the Secretary
General pursuant to paragraph 3
resolution 1859 (2008)
I. Introduction
1. This report was prepared pursuant to paragraph 3 of resolution 1859 (2008) Security Council, in which the Council requested me to report has four times per year the activities of the Development Fund for Iraq and International Advisory and Monitoring, particularly as regards progress in strengthening the administrative and financial control of Development Fund for Iraq, his first briefing to be presented to later than March 31, 2009, and written reports to be half.
II. History
2. The proceeds of oil exports from Iraq is paid to Fund development for Iraq, established pursuant to resolution 1483 (2003) of Security Council, which have also been transferred balances Program Oil-food cons "of the UN and other frozen Iraqi funds.
3. In 2003, the Security Council also decided that all sales export of petroleum, petroleum products and natural gas originating in Iraq should be aligned with best practices in force in the international market and be audited by independent accountants reporting to the International Advisory and inspection to ensure transparency, and further decided, except as provided in paragraph 4 below, All proceeds from these sales would be paid to the Development Fund for Iraq, until a representative Iraqi government and recognized by the international community is properly constituted.
4. The Council further decided that 5% of the products referred to in paragraph 3 above would be paid to the Compensation Fund established pursuant to resolution 687 (1991).
5. The International Advisory and Control was established as an organ Control of the Development Fund for Iraq under the mandate contained in resolution 1483 (2003) Security Council. This mandate subsequently been extended by resolutions 1546 (2004), 1637 (2005), S/2009/430 2 09-48439 1723 (2006), 1790 (2007) and 1859 (2008). In resolution 1859 the Council also extended until December 31, 2009 immunities applicable to oil and petroleum products, as well as proceeds from the sale of these products paid Development Fund for Iraq.
6. The International Advisory and control among its members representatives of the Secretary-General, Director General of the IMF (IMF), the Director General of Arab Fund ECOSOC and the President of the World Bank and the Iraqi government. In addition, representatives of the Council of the Institution Iraqi Supreme Audit and the Committee of Financial Experts continue participate in the International Advisory and supervision to continuity.
7. The International Advisory and Oversight held 25 meetings since December 2003, including 2 in 2009. All documentation, including statements releases, minutes of all meetings, the full audit reports and key documents concerning the mandate and activities of the Council may be available on its website (www.iamb.info).
8. The International Advisory and Control was informed that since the date of inception to December 31, 2008, it had been deposited in Fund development for Iraq worth about 165.1 billion dollars United states from export sales of petroleum and petroleum products and $ 10.4 billion dollars for the balance of funds of the Oil cons food placed in an escrow account by UN and $ 1.5 billion representing the proceeds of assets frozen.
9. In 2006, the Council of Ministers of the Republic of Iraq has established the committee financial experts who would work in cooperation with the International Council Advisory and Monitoring Board and the expiration of the mandate of the latter, assume the tasks for control of the Development Fund for Iraq. Committee financial experts is headed by the Chairman of the Supreme Iraqi control and report directly to Cabinet. Since its inception, the Committee worked closely with the Council International Advisory and Monitoring Board and attended all its meetings. He meets regularly and plays an increasing role in monitoring and implementation of recommendations in independent audit reports requested by the International Advisory Board.
10. In April 2009, the Comptroller of the United Nations, Jun Yamazaki, my representative appointed to the International Advisory and Monitoring Board for Iraq, made a briefed the Council on the activities of the Development Fund for Iraq and International Advisory Board.
11. The issues discussed in this report were being agenda recent meetings of the International Advisory and Oversight held Amman 2 and April 3, 2009 and in Vienna on 22 and July 23, 2009, and report recent activities of the Council and the Development Fund for Iraq.
III. Recent activities concerning the Fund Development Iraq
and the International Advisory and Monitoring
12. At the Amman meeting, the International Advisory and Oversight considered the request of the Security Council on the presentations by representatives of the International Monetary Fund and World Bank, pursuant to paragraph 4 of resolution 1859 (2008) Security Council. Under current practice, it was reiterated that the representatives on International Council should make presentations to their respective organizations personal. The International Monetary Fund and World Bank had responded accordingly at the request of the Security Council.
13. Approaching the end of the mandate of the International Advisory and Monitoring, December 31, 2008, the President sent to S. E. M. Al --Maliki, Prime Minister of Iraq, a letter dated October 27, 2008, in recommending that the Committee of Financial Experts assume the tasks the Board had before. In April 2009, the Council again wrote to Iraqi Prime Minister and reiterated its belief that the Committee of Financial Experts was ready and able to perform these tasks.
14. I share the opinion of the International Advisory and Monitoring by which the Committee financial experts is ready to undertake these tasks and perform ably independent verifications of the Development Fund for Iraq. As the Security Council prepares to consider this question including the mandate of the Development Fund for Iraq at the end of the year, will be important to ensure the establishment of a mechanism and process appropriate to take over.
15. The external auditor periodically presented to the International Council Advisory and Monitoring presentations on the progress of audits in 2008. First draft audit report on the Development Fund for Iraq, on the period ending December 31, 2008, was considered by the Council international consultative meeting in April 2009 and the final report was discussed at meeting in July 2009 in Vienna. The audit report was also presented Ministry of Finance and the Iraqi Council of Ministers and it is possible to available on the Council website (www.iamb.info) and that of the Committee financial experts (www.cofe-iq.net).
16. The management letter on internal controls and management letter for user departments for the period 1 January 2008 to December 31, 2008, produced by the external auditor are also posted on the Council website International Advisory.
17. The audit continues to highlight key issues regarding gaps controls over oil extraction and use of resources. Access to certain departments and regions had been postponed previously but this issue was resolved through the intervention of the Expert Committee financial and control work in the field is now complete.
18. The audit also continues to be attached to many reservations and the Council International Advisory and Monitoring Board expressed concern that issues, including the fact that the proceeds of cash sales of fuel by the United State Oil Marketing (SOMO) still does not be deposited into the Development Fund for Iraq are still not
resolved.
19. The International Advisory and control has focused on these concerns in the press and he has published in the minutes meeting.
20. Recognizing the skills and abilities of the Committee of Financial Experts, with the assistance of the Council of Supreme Audit of Iraq, International Advisory and Control has already given much detailed activities of monitoring and investigation of audit findings. The Iraqi officials, the Committee of Financial Experts and Board of Supreme Audit of Iraq reported periodically to the International Advisory measures taken to response to audit recommendations that had not been implemented.
21. The International Advisory and control is concerned one of its first recommendations in 2004 on the system measure of oil production has not yet been fully implemented. The information provided in response to requests from the external auditor have revealed that at December 31, 2008, overall 33% of the system was in place. In no comprehensive system to control oil production, the auditor external was not able to compare the figures of total production to those SOMO of the quantity received and the amount consumed in the country. He however, could compare the figures for quantities of oil received by SOMO to those export sales.
22. The experts on oil from the Iraqi Ministry of Oil have a presentation to the International Advisory and Monitoring Board on the extent of oil production. Some progress has been made, and the Ministry of Oil started to implement such a code for the hydrocarbons to tax purposes. But much remains to be done before a system of checks and Measurement fully operational production, distribution and sale oil export could be fully applied. According to the Ministry of oil, it will be in 2011 at the earliest.
23. Before December 31, 2007, SOMO has resorted to barter with Syrian government and private companies for exports of oil and petroleum products. According to SOMO, the value of transactions with the Syrian government since their inception until December 31, 2008 amounts to 750 865 dollars and that transactions with private companies 348 815 dollars. I note with satisfaction of the auditor's findings external, KPMG, that there was no such transaction in 2008.
24. To increase transparency and improve control of Fund operations development for Iraq and given the findings of external auditors, the International Advisory and Oversight requested that the financial statements Fund are posted regularly every month on the site of the Expert Committee financiers. The IAMB has also asked the Committee financial experts to develop a realistic action plan with deadlines to address the issue of reservations by KPMG in their opinion. He has additionally asked to submit every two months a report on progress made in this regard and these reports should be published on Council web sites International Advisory Committee and financial experts. International Council Advisory Committee also hired financial experts to continue working diligently to support the measures necessary to ensure the enactment rapid Parliamentary laws and regulations regarding structures organizational, job descriptions and systems of internal control, the development of an action plan with milestones, approved by the Council of Ministers for the implementation of a comprehensive system for measuring oil production.
25. I note with satisfaction the steps taken by the Committee of Experts finance, in particular its dynamic interaction with the Council of Ministers which led to the adoption of guidelines for implementation by all departments, working committees to examine issues organization and information systems raised in audits Fund development for Iraq. The Committee of Financial Experts will monitor progress made by departments in implementing these guidelines and the Council the Supreme Audit Institution will report to the Iraqi Council of Ministers on the outcome of an investigation conducted and revealed deficiencies in internal control departments.
26. I also note with appreciation the detailed monitoring reports of Committee financial experts and the Council of the Institution which are published The website of the International Advisory and Monitoring. Despite progress they reported, these reports clearly show that much remains to ensure full implementation of audit recommendations and strengthen systems of internal control. The International Advisory and Oversight reiterated its earlier recommendation that the Iraqi Government increased efforts to monitor the issue of Iraqi assets frozen abroad particular to determine whether to create a separate unit deal with this situation. I note that the Committee financial experts took contact with the Iraqi Finance Ministry on this.
27. The representative of the Committee financial experts have regularly submitted to International Advisory and control presentations on its activities, program and coordinating its work with the International Council Advisory facilitate the transfer of responsibilities for control International Advisory Committee at the end of 2009. The Panel Financial initiated the process of hiring the auditor for 2009, in under its action plan for 2009. The International Advisory and Control agreed that the 2009 audit should cover the period 1st January 2009 to December 31, 2009, an interim audit was conducted for the period 1 January 2009 to June 30, 2009. The interim audit will be conducted under the supervision of the International Advisory and Monitoring, while final audit should be conducted entirely under the control of the Expert Committee financial, since the mandate of the International Advisory and control should have expired at the end of the period. Council International Advisory and Monitoring Board approved the proposed process and endorsed the recommendation of the financial experts on audit operations. 28. Control systems must be improved urgently in organisms Iraqi keys, including SOMO, and the various Iraqi ministries. The International Advisory and supervisory work closely with the Committee of Financial Experts and the Iraqi Government to follow progress in strengthening financial control and administrative Development Fund for Iraq and to report thereon.
29. The International Advisory and Control noted that in 2008 the Ministry of Justice of the United States issued press releases on trial which followed the Volcker investigation on the oil-cons food, indicating the fines for companies and individuals involved. The amounts of these fines should be deposited into the account of Development Fund for Iraq, by check payable to the Fund. The Auditor External confirmed that amounts totaling approximately 50 million dollars in total were registered as such in the account of the Development Fund for Iraq in FY 2008.
30. The next meeting of the International Advisory and Monitoring, with Participation Committee financial experts, is tentatively scheduled for December 2009. Meanwhile, the Committee of Financial Experts will periodically separate meetings. (W1)