Spreading The Guilt

Whilst Saddam Hussein stands trial, it is worth remembering that others had hand in keeping him in power.

Today it is reported that the German/American carmaker DaimlerChrysler has suspended at least six managers over allegations that they had bribed officials to obtain import licences for Iraq, under the United Nations Oil-for-Food programme.

The managers belonged to DaimlerChrysler Overseas. The suspension follows an investigation by the UN and the US Securities and Exchange Commission (SEC) into the company.

Paul Volcker, the former US Federal Reserve Chairman, issued a report last year that alleged that companies, including Daimler, had made illicit payments to Saddam Hussein's regime.

The allegations relate to the sale of Mercedes vehicles, and spare parts to Iraq under the Oil-for-Food programme.

According to the Volcker report, Wolfgang Denk, an area manager at Daimler, agreed in 2001 to pay a DM13,000 kickback on a contract to sell an armoured van and submitted an inflated contract price to the UN.

Both Herr Denk, and Daimler told the Volcker committee that it did not knowingly pay a kickback.

The company said last year that it had identified suspect payments.

The investigations by the SEC and the US Department of Justice began in 2004, after a former employee filed a complaint. The employee, whom Daimler said had been dismissed for falsifying financial data, alleged that the company had kept secret bank accounts to bribe foreign officials.

Daimler has dismissed the accusation.

Let us see what comes of this.