United Nations Secretary-General Kofi Annan has decided to finance an independent investigation into alleged corruption in the now-defunct Iraqi oil-for-food program with US$30 million in oil revenues generated under the program.

In a letter sent to the Security Council on Wednesday, Annan said the investigation panel led by former US Federal Reserve Board Chairman Paul Volcker could be financed from funds left over in the account established by the council to cover the UN-run program operational and administrative costs.

The secretary-general said he "is informing the interim government of Iraq of his decision."

Citing estimates by Volcker, the letter said the inquiry, which started this summer, requires 30 million dollars to cover its cost through the end of 2005.

The oil-for-food program was set up by the Security Council in December 1996 to ease suffering of Iraqis caused by stringent UN-imposed sanctions and to pay reparations to victims of the 1991 Gulf War.

The program allowed Saddam Hussein's government to export oil and buy humanitarian supplies with oil revenues under the monitoring of a Security Council committee.

Corruption rumors started to float in January when an Iraqi newspaper published a list of about 270 prominent figures from more than 46 countries, saying they received oil money from Saddam Hussein's regime.

The report said the Saddam regime tried to bribe these foreigners for support. The list purportedly includes UN official Benon Sevan, who is in charge of the oil-for-food program. But the charge has been categorically denied by Sevan.

(Xinhua News Agency October 14, 2004)