UNSCAM UPDATE: Claudia Rosett has more on oil-for-food stonewalling at the U.N.:

Both letters, to Saybolt and Cotecna, are signed on behalf of Mr. Sevan, each by a different member of Mr. Annan’s staff. Mr. Sevan was on vacation, pending retirement, when they were drawn up. The letter to Cotecna was a pointed reminder of terms of the U.N. contracts with Cotecna, detailing that all documentation connected with Oil for Food “shall be the property of the United Nations, shall be treated as confidential and shall be delivered only to the United Nations authorized officials on completion of work under this contract.”

In the letter to Saybolt, dated 12 days later, the message had become tougher and yet more detailed, telling the company that any requests for information not already public should be relayed to the U.N., including “the reason why it is being sought.” The letter to Saybolt also made specific mention that if U.N. internal audit reports are asked for, “we would not agree to their release.” These would be the same internal audits that the U.N. Secretariat–which administered the Oil for Food program–did not share with the Security Council and has refused to provide to Congress.

In other words, in the interval between March 19, when Mr. Annan finally conceded in the face of overwhelming evidence that the program might after all need investigating by independent experts, and April 21, when former Federal Reserve chairman Paul Volcker was appointed to head to the investigation, Mr. Annan’s office explicitly reminded these two crucial contractors, which worked for the Secretariat’s Oil for Food program checking the imports and exports involved in more than $100 billion worth of Saddam’s oil sales and relief imports, to keep quiet. . . .

It’s that phrase, “unless otherwise authorized,” that needs attention. The U.N. has the authority to open the books if its officials so choose; the main question is whether the boss wants to. A senior congressional staffer notes that “with the stroke of a pen, the U.N. can clear the companies from all confidentiality.”

I can’t think of any legitimate reason for this stuff to be kept confidential. In fact, I can’t see any legitimate reason for the U.N. not to have an open-books policy in general, not just when there’s a scandal. But I’m pretty sure they’re hiding something nasty here.

UPDATE: More here:

Senior government officials, giant oil firms and even the U.N. official directly responsible for the oil-for-food program are among those who have been implicated in a giant bribery scheme by Saddam to evade international sanctions for more than six years.

“This emerging scandal is a huge black mark against the U.N.,” said Rep. Christopher Shays, Connecticut Republican. Mr. Shays heads a Government Reform subcommittee that is investigating the affair.

“Anything short of a prompt, thorough airing would leave the United Nations under an ominous cloud,” he said.

Indeed.

UPDATE: And be sure to follow the Friends of Saddam UNScam blog for more developments.