Koffi Annan and the UN have been mired in the oil—for—food scandal for the past year. To deflect criticism, they appointed Paul Volcker to engage in one of those internal investigations which are usually a prelude to absolution of those involved in crime. Volcker, an ex—Federal reserve chairman, was presumed to be a neutral observer. However, appearances can be deceiving. Fox News  and the New York Post now report that Volcker, along with a close friend, Paul Desmarais, Sr., serve on an advisory board of the Power Corporation. This company and a Belgian company are the largest shareholders in the French oil company Total. Total did billions of dollars of business with Saddam Hussein and has an ownership interest in BNP Paribas—a bank directly involved in almost all oil—for—food transactions. A BNP director also serves on the board of Power, along with Volcker and Desmarais.
 
What has not been included in these reports is that Desmarais has a son who is married to the daughter of  the former Prime Minister of Canada, Jean Chretien. During his premiership, Chretien pursued a strong anti—US line and opposed the war against Iraq. Therefore it seems that Desmarais had no problem pulling strings to help protect his interest in Total and its involvement in Iraq oil and oil—for—food dealings.
 
Can one assume that Desmarais's good friend, Paul Volcker, may not also have mixed feelings regarding how deeply to investigate the UN oil—for—food scandal when such investigations may expose Total's involvement in the scandal? After all, the truth may harm Volcker's friend and Volcker's business relationship with a company deeply involved with Saddam Hussein.
 
In any case, to protect his reputation Paul Volcker should step down immediately. By not seeing this image of having a conflict of image, Volcker is either arrogant, obtuse, or incompetent. Either of these would be grounds for dismissal. Paul, do the honorable thing, and resign.

Ed Lasky   1 28 05