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 Second Report of the Secretary-General pursuant to paragraph 6 of resolution 1956 (2010) - JUNE 2012

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PostSubject: Second Report of the Secretary-General pursuant to paragraph 6 of resolution 1956 (2010) - JUNE 2012   Tue Aug 21, 2012 10:55 am

United Nations S/2012/508
Security Council
Distr.: General
29 June 2012
Original: English
12-39355 (E) 050712
*1239355*

Second report of the Secretary-General pursuant to paragraph 6 of resolution 1956 (2010)

I. Introduction

1. The present report is submitted pursuant to paragraph 6 of Security Council
resolution 1956 (2010), in which the Council requested me to provide written
reports on an ongoing basis to the Council every six months, with the first report
due no later than 1 January 2012, about the United Nations Compensation Fund,
evaluating the continued compliance with the provisions of paragraph 21 of
resolution 1483 (2003). This second report covers the developments following the
issuance of the first report (S/2011/795) on 22 December 2011.

II. Developments

2. In its authority over the arrangements for ensuring that payments are made to
the Compensation Fund, the Governing Council of the United Nations
Compensation Commission has continued to actively monitor developments
following the expiration of the mandate of the International Advisory and
Monitoring Board for Iraq on 30 June 2011 and the transfer of the oversight of the
control, reporting and use of Iraqi oil export revenues to Iraq’s Committee of
Financial Experts.

3. The President of the Governing Council and the Executive Head of the
Compensation Commission secretariat met with Iraq’s Committee of Financial
Experts in Baghdad in January 2012, and the Executive Head met with the
Committee again in Geneva in April 2012. During those meetings, the Head of the
Committee reiterated the importance that the Government of Iraq attaches to
ensuring continued observance of the relevant United Nations resolutions, and
advised that the Committee had no plans to alter the current mechanism for payment
of 5 per cent of revenue from the sale of Iraqi petroleum and petroleum products
into the Compensation Fund.

4. A delegation from Iraq’s Committee of Financial Experts attended the opening
plenary of the seventy-third Governing Council session of the Compensation
Commission on 1 May 2012. The Head of the Committee confirmed that the
mechanism for the valuation and the transfer of the equivalent of 5 per cent of
non-monetary payments of petroleum, petroleum products and natural gas made to
service providers had been approved by the Ministry of Finance of Iraq and that, in
that regard, $109.9 million was transferred to the Compensation Fund in accordance
with paragraph 3 of Security Council resolution 1956 (2010). The Governing
Council welcomed this development.

5. In its conclusion on the issue of arrangements for ensuring that payments are
made to the Compensation Fund at the seventy-third session, the Governing Council
noted its satisfaction with the continued transfer of 5 per cent of Iraq’s oil revenue
to the Compensation Fund since the transition of oversight to Iraq’s Committee of
Financial Experts and with the Commission’s positive working relationship with the
Committee. The Council also directed the Compensation Commission Executive
Head to continue to regularly engage with the Committee of Financial Experts
regarding all payment and accounting mechanisms and to keep the Governing
Council advised of any developments.

6. The average monthly income to the Compensation Fund for the first four
months of 2012 was approximately $352 million, excluding the $109.9 million
transferred in relation to non-monetary payments. Income for the month of April
2012 was $396.3 million, which is reflective of Iraq’s increased oil production.
Since the last report, the Compensation Commission has made two payments to
Kuwait of more than $1 billion each; the first was made on 26 January 2012 and the
second on 26 April 2012. The overall amount of compensation made available to
date by the Commission is approximately $36.4 billion, with a total outstanding
balance of $16 billion remaining to be paid. It is estimated that this balance will be
paid in full by early 2015. The next payment to Kuwait is scheduled to be made on
26 July 2012 and is expected to be close to $1.3 billion.

7. The audit of the Development Fund for Iraq and the successor account to the
Fund covering the period 1 January to 31 December 2011 has been conducted;
however, it has not yet been finalized. As a result, the findings will be reflected in
my third report.

8. I welcome the fact that the mechanism for the valuation and the transfer of the
equivalent of 5 per cent of non-monetary payments to service providers has been
established by the Government of Iraq. Furthermore, current levels of income to the
Compensation Fund suggest that the Government of Iraq is in compliance with its
obligations under paragraph 21 of resolution 1483 (2003). However, only after an
audit of the Development Fund for Iraq and the successor account to the Fund is
finalized will it be possible to confirm this conclusion.

9. I would like to conclude by expressing my ongoing appreciation to the
Government of Iraq, including its Committee of Financial Experts, for its continued
commitment to fulfilling its obligations and its ongoing cooperation with the
Compensation Commission.

http://daccess-dds-ny.un.org/doc/UNDOC/GEN/N12/393/55/PDF/N1239355.pdf?OpenElement

_________________
"Prohibido Olvidar los embustes fomentado por los famosos rumoristas del patio para beneficiar las ventas a los dealers amigos de ellos y cojer de pendejo a la gente humilde de este pais por querer ganarse una comission bajo el engano de informaciones falsas de las fechas y rates del RV del Iraqui Dinar".
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