COMPENSATION COMMISSION TO PAY ADDITIONAL CLAIMS EARLY NEXT YEAR IF IRAQ BEGINS SELLING OIL IN DECEMBER
Press Release
IK/209
COMPENSATION COMMISSION TO PAY ADDITIONAL CLAIMS EARLY NEXT YEAR IF IRAQ BEGINS SELLING OIL IN DECEMBER
19961202 GENEVA, 29 November (UN Information Service) -- The United Nations Compensation Commission estimates that if Iraq is able to commence selling oil in December under the terms of Security Council resolution 986 (1995), the Commission should begin receiving funds in late February or early March, with payments to claimants starting a month later.Under the terms of resolution 986, 30 per cent of the $2 billion in oil sales over six months would go to the Commission, which was set up by Security Council resolution 692 (1992) to receive claims from individuals, corporations and governments for damages resulting from Iraq's invasion of Kuwait in August 1990.
The Commission has already assessed and paid in full all claims in Category B, relating to severe personal injury or death, with 4,000 claimants paid $13.4 million dollars. All claims in Category A -- those forced to leave Kuwait or Iraq -- have been assessed and 862,000 claims approved for payment once funds become available, with compensation amounting to $3.2 billion.
The Commission is continuing work on the 430,000 claims lodged under Category C -- personal loss or damage up to $100,000. When it meets in December, the Governing Council will be asked to approve another 70,000 of these claims for amounts totalling $650 million. That would bring to 201,000 the number of claims approved so far under Category C, for a total value of $1.6 billion.
The Commission estimates that, if resolution 986 is implemented in December, the first payments to claimants under Categories A and C could begin by late March 1997. Under rules set by the Governing Council, payments will proceed according to the order in which the claims were approved. The first payments therefore will be to 53,000 claimants in Category A and 2,874 claimants in Category C. In the first phase, claimants in Categories A and C will receive $2,500 of their claim.
So long as the operation of resolution 986 -- with its limits on the amount of oil to be sold -- remains the Commission's only source of funds, it will take more than two years to complete the first phase of partial payments.
- 2 - Press Release IK/209 2 December 1996
"The Commission is ready to start a substantial payments programme at the rhythm of the available resources", says Ambassador Carlos Alzamora, Executive Secretary of the Commission. Under the Commission's rules, payments are made to claimants through their governments, which are provided with a list of names and the amounts to be paid. Governments are bound to report back to the Commission within six months with evidence that the payments have reached the intended beneficiaries. Altogether, the Commission has received claims from individuals or companies from 92 countries. In addition, the Office of the United Nations High Commissioner for Refugees, the United Nations Development Programme and the United Nations Relief and Works Agency for Palestine Refugees in the Near East have filed claims on behalf of Palestinians.
The Governing Council meeting scheduled for 16 December will also consider the decision of the panel resolving the claim by the Kuwait Oil Company for damages and costs related to extinguishing the oil well fires set by the departing Iraqi forces. The asserted value of what is called the WBC, or "Well Blowout Claim", is $961 million. If approved by the Governing Council, the panel's decision will be made public.
Part of the monies received will also be used by the Commission to cover operating costs. The Commission must, in addition, pay back those countries which responded to its current financial crisis with recoverable contributions. So far, $5.3 million has been advanced or pledged by three States.
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