Annan orders action against UN officials

United Nations Secretary-General Kofi Annan has ordered disciplinary action against the head of the now-defunct oil-for-food programme for Iraq after an independent inquiry indicted him of 'ethically improper' conduct.

The inquiry panel, headed by former US Reserve Chairman Paul Volcker, said the conduct of Benon Sevan, a Cypriot, who had served the world body for more than 40 years, showed 'grave conflict of interest'.

The inquiry found that he had solicited and received allocations of oil from the Saddam Hussein regime for a trading company, thus 'undermining the integrity' of the world body.

Releasing the report, Volcker said former UN Secretary-general Boutros Boutros Ghali and Annan's son Kojo were also under investigation.

The panel has so far not found any criminal wrongdoing but is still investigating 'the scope and extent of benefit' that Sevan received for his requests.

Annan's new Chief-of-Staff Mark Malloch Brown told reporters that the Secretary-General would waive Sevan's diplomatic immunity should it be established that there was a criminal wrongdoing on his part and the prosecutors conclude that it was hindering their investigations.

Annan also decided to initiate disciplinary action against another official Joseph Stephanides, who was chief of UN Sanctions Branch, on the basis of the finding of the inquiry panel appointed by him after allegations of corruption in the programme surfaced.