Monday, February 7 2005 21:56 Hrs (IST) - World Time -

United Nations: The United Nations has suspended head of the now defunct oil-for-food programme in Iraq Benon V Sevan and another official Joseph J Stephanides who supervised contract selection following a report by an independent inquiry panel holding them responsible for irregularities.

The world body officials said the decision was taken on Friday (Feb 4, 2005) and conveyed to the two officials.

The action comes within days of the United Nations promising disciplinary action against them in the wake of the report by the Volcker panel released last week.

But the two officials continue to receive pay.

Sevan had already retired from the UN after about 40 years of service but had been retained on a 'one dollar salary' and hence the action is more or less symbolic.

The men were suspended with pay because, in the opinion of the UN, the panel apparently had not presented sufficient evidence to impose extreme penalty including dismissal, officials said.

Both have denied any wrongdoing and Sevan's lawyers had said in a statement that he did not "accept anything from anyone."

The panel, in its report, held that Sevan repeatedly sought oil contracts from Iraq for a small trading company which it said "seriously undermined the integrity of the United Nations."

Stephanides, according to the panel, had sought to "taint" the competitive process for granting contracts.

The panel is expected to present its final report in mid summer and among those being investigated is Secretary-General Kofi Annan's son, Kojo, in connection with grant of a contract for inspection to a firm for which he worked though both Kojo and the firm deny that he had any hand in it.