UN pays out Iraqi compensation

UN pays out Iraqi compensation

Future oil-for-food funds may not be used for compensation payments

The United Nations has said hundreds of millions of dollars have been paid out to victims of the 1990 Iraqi invasion of Kuwait.

The UN said on Tuesday $863.7m (£556m) was paid to the victims, with $738m going to Kuwait's wealthy elite, companies and the state.

The UK was the second largest payment of $23m followed by Israel with $20m.

The UN Compensation Commission (UNCC), which is dealing with almost $350bn in claims against Iraq, said a total sum of $17.5bn has been paid out to date.

Tuesday's payout was larger than expected because of soaring oil prices.

As tension grew in the Gulf in the run-up to the war with Iraq, oil had climbed up to $33 a barrel in recent months.

Oil-for-food

The Geneva-based fund gets 25% of the revenues from the UN oil-for-food programme.

This programme, which allowed Iraq to sell oil, was put on hold last month shortly before the start of the US-led war on Iraq.

But it remains to be seen whether future oil-for-food funds will be used for compensation payments, rather than for the reconstruction of post-war Iraq.

The latest batch was paid out to affluent citizens of Kuwait, who could prove they had lost more than $100,000 because of the invasion, as well as Kuwaiti companies and state-owned entities.

One of the recipients is a Kuwaiti national who lost an Islamic art collection, carpets, jewellery and thoroughbred horses after the Iraqi leader Saddam Hussein invaded his country in 1990.

He initially claimed $16.5m in losses, but was given $4.2m, UN officials said.

But the Kuwaitis were not the only ones to have received funds.

In total, some 370 individual claimants, companies and state entities in 27 countries were compensated.