UN Secretary-General Kofi Annan said Monday he was "disappointed and surprised" that his son received payments for seven years from a firm participating in the UN-run Iraqi oil-for-food program, which is now being investigated for alleged corruption.  

"Naturally I was very disappointed and surprised," Annan told reporters in the UN headquarters in New York.

He said he had been working on the understanding that his son, Kojo Annan, had stopped receiving monthly payments from the Swiss firm Cotecna in 1998 and he "had not expected that the relationship continued."

"He is an independent businessman. He is a grown man, and I don't get involved with his activities and he doesn't get involved in mine," Annan said.

UN spokesman Fred Eckhard said last week Kojo's lawyer had informed an independent panel, appointed by Annan to look into the corruption scandal relating to the oil-for-food program, that Kojo, a former employee of Cotecna, continued receiving US$2,000 monthly from the company until February 2004.

Annan again denied any involvement in granting Cotecna the contract in Iraq.

"As I have stated earlier, I have no involvement with granting of contracts, either on this Cotecna one, or others," Annan said, while urging patience until US Federal Reserves former Chairman Paul Volcker, head of the investigating panel, completes his work.

The UN leader also admitted the scandal surrounding the now-defunct oil-for-food program has caused negative impact on his work.

Noting he wanted to focus on UN reforms and other top priorities next year, Annan said: "Obviously in this climate and with this oil-for-food discussions, it is not going to be easy."

The oil-for-food program, which started in December 1996, allowed Iraq to export oil worth US$69.5 billion. The United Nations oversaw Iraq's oil sales and its purchase of humanitarian supplies. The program was shut down in November last year.

The corruption rumors surfaced 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 list allegedly includes UN official Benon Sevan, who had been in charge of the program. But he vigorously denied the charge.

Later, a US congressional body accused the world body of poor management of the program, which it said allowed Hussein to acquire more than US$10 billion in oil revenues.

Annan launched an internal inquiry in February but canceled it in March to allow a broader, independent examination.

(Xinhua News Agency November 30, 2004)