Iraq continues to pay five percent of oil revenues to Compensation Fund says Ban Ki-moon

UNITED NATIONS, Dec 15 (KUNA) — Governing Council of the UN Compensation Commission noted Iraq’s commitment to meeting its obligations, and expressed its satisfaction with continued transfers of five per cent of Iraq’s oil revenues to the Compensation Fund under the oversight of the Iraq Committee of Financial Experts (COFE), Secretary-General Ban Ki-moon said.

Ban, in a report to the Security Council late on Friday, said the average monthly income to the Compensation Fund since July 2012 has amounted to approximately USD 386 million as compared to USD 368 million for the first half of the year.

Since late June, the Compensation Commission has made two payments to Kuwait totaling almost USD 2.4 billion. The first was made on 26 July 2012 and the second on October 25, 2012.

The overall amount of compensation made available to date by the Commission is USD 38.8 billion. Approximately USD 13.6 billion remains outstanding to two oil sector claims which were awarded compensation for damages to Kuwait’s oil field assets – oil wells, pipelines and related equipment – and associated production and sales losses.

Based on current levels of income to the Fund and recent projections, the report said, it is still estimated that the Commission will pay the outstanding balance in full by April 2015.

The Commission pays compensation to individuals and companies that suffered during the Iraqi invasion of Kuwait in August 1990. The report stated that although Baghdad is making progress with regard to the installation of oil metering systems, the audit report contains a qualified opinion as the auditors, Ernst Young, were not able to reliably determine the volume of all quantities extracted and pumped to export terminals in the absence of a comprehensive metering system.

“While noting the issues raised in the audit report, based on current levels of income to the Compensation Fund and the Governing Council’s satisfaction therewith, I am pleased to note that the Government of Iraq remains committed to complying with its obligations” under relevant resolutions, Ban said, expressing “my ongoing appreciation to the Government of Iraq and the Iraq (COFE) for their continued cooperation with the Compensation Commission.”