Danish supplier admitted role in UN oil-for-food fraud

On August 19, 2005, Danish industrial pipe production company Grundfos admitted to paying bribes to Iraqi authorities of Saddam Hussein's government under the UN oil-for-food program, which was created to exchange Iraqi oil for food and medicine in 1996. An internal Grundfos investigation uncovered the bribes, prompting Chief Executive Jens Joergen Madsen to issue a statement apologizing for the fraud. On February 3, 2005, a previous investigation by the Independent Inquiry Committee (IIC) concluded that head of the program Benon Sevan "seriously undermined" UN integrity. US prosecutors eventually indicted Sevan, forcing him to resign.


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