UNITED NATIONS COMPENSATION COMMISSION PAYS OUT $1.2 BILLION

Press Release
IK/298

UNITED NATIONS COMPENSATION COMMISSION PAYS OUT $1.2 BILLION

GENEVA, 26 October (UN Information Service) -- The United Nations Compensation Commission has today commenced the third phase of payments by making available a total of $1,275,020,540.47 to 38 governments and one international organization for distribution to 1,538 successful claimants.

This amount includes: $135,319,179.80 for 435 claims in category "D" (claims of individuals for damages above $100,000); $1,008,561,481.67 for 868 claims in category "E" ($130,433,379 for 49 claims in category "F" (claims of governments and international organizations); and $706,500 for 186 claims in category "A" (claims of individuals for departure from Kuwait or Iraq).

The attached table lists the governments and international organizations receiving funds, and the amounts of money to be made available to each of them. The first phase of payments by the Compensation Commission involved an initial payment of $2,500 to each successful individual claimant in categories "A" and "C" (claims of individuals for damages up to $100,000), as well as payment of the full amount to all successful claimants in category "B" (claims for death or serious personal injury). In the second phase, payments of up to $100,000 were subsequently made available to approved claims in categories "A", "C", "D", "E" and "F" in two rounds comprising payment amounts of up to $25,000 and $75,000 respectively. The second phase of payments which resulted in payment in full to all successful claimants in categories "A" and "C" was concluded in September 2000. A total of $8,139,891,896.26 was made available to 1,502,521 claimants in all categories under the first and second phases of payments.

In respect of the third phase of payments, the Compensation Commission Governing Council in decision 100 decided that successful claimants in categories "D", "E" and "F" would receive an initial amount of $5 million in the order in which the claims have been approved. Subsequent payments of $10 million will be made to successful claimants in those categories of claims.

Funds to pay the awards of compensation are drawn from the United Nations Compensation Fund which currently receives 30 per cent of the revenue generated from the export of Iraqi petroleum and petroleum products. At present, funds are made available to the Compensation Fund from the proceeds of the "oil-for-food" mechanism established by Security Council resolution 986 (1995) and subsequent resolutions.

The present payment brings the overall amount of compensation made available to date by the United Nations Compensation Commission to $9,414,912,436.73. The Governing Council monitors the distribution of payments to claimants by

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governments and international organizations. Governments and international organizations are obligated to distribute funds to successful claimants within six months of receiving payment and to report on payments made to claimants no later than three months thereafter. Any funds undistributed within 12 months of receiving payment shall be returned to the Commission promptly. Further payments to governments and international organizations shall be suspended where governments and international organizations fail to report on distribution of funds or fail to return undistributed funds on time.

Further information about the Commission can be found on the United Nations Compensation Commission Web site located at http://www.uncc.ch.

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