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NewsOctober 29, 2005

MOSCOW -- Various governments and companies are embroiled in a scandal over corruption in the U.N. oil-for-food program for Saddam Hussein's Iraq. A day after the release of a scathing report on the topic, mixed reactions are coming from governments and businesses named...

The Associated Press

MOSCOW -- Various governments and companies are embroiled in a scandal over corruption in the U.N. oil-for-food program for Saddam Hussein's Iraq. A day after the release of a scathing report on the topic, mixed reactions are coming from governments and businesses named.

The U.N. report issued Thursday found that more than 2,200 companies and individuals, or about half of all those involved in the humanitarian program, paid kickbacks and illegal surcharges to receive oil. Meanwhile, Saddam pocketed $1.8 billion, the report said.

Under the program that ran from 1996 to 2003, Iraq was allowed to sell oil provided the proceeds went to buying humanitarian goods to help offset U.N. sanctions.

Here is a sampling of the reactions from countries and companies named in the report:

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RUSSIAN RAGE: Russian officials are angry over accusations against companies and officials in that country and say some of the documents cited in the report were faked.

PARTIAL ADMISSION: Vehicle maker Volvo AB in Sweden acknowledged that one of its divisions made payments to an Iraqi official in return for oil, but said it didn't consider the payments bribery.

THE (ALLEGED) FRENCH CONNECTION: France "wants full light to be shed on the embezzlement that took place in the framework of the oil-for-food program," Foreign Ministry spokesman Jean-Baptiste Mattei said. The government is studying the report, and French judges are probing 10 French officials and business leaders on suspicion they received oil illicitly.

NOT US, MATE: Australian officials said they doubt the Australian Wheat Board knowingly made improper payments. According to the report, the board, which sold $2.3 billion of wheat to Iraq, made "side payments" for transportation to a company partially owned by Saddam's government.

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