UNITED NATIONS COMPENSATION COMMISSION PAYS OUT $1.4 BILLION

UNITED NATIONS COMPENSATION COMMISSION PAYS OUT $1.4 BILLION

The United Nations Compensation Commission has made available today, in the second payment of the third phase of the payments mechanism, a total of some $1,464.18 million to 24 governments and one international organization for distribution to 716 successful claimants.  This amount includes some: 

$198.07 million for 617 claims in category D (claims of individuals for damages above $100,000); $952.07 million for 77 claims in category E (claims of corporations, other private legal entities and public sector enterprises); and $314.03 million for 22 claims in category F (claims of governments and international organizations).

The present payment brings the overall amount of compensation made available to date by the United Nations Compensation Commission to more than

$11,051.99 million.  The first phase of payments 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 successful claimants in categories A and C was concluded in September 2000.  A total of some

$8,227.13 million was made available to 1,501,713 claimants in all categories, under the first and second phases of payments.

In the third phase of the payments mechanism, each successful claimant in categories D, E and F shall receive an initial amount of up to $5 million in accordance with decision 100 of the Governing Council of the Compensation Commission.  Subsequent rounds of payments of up to $10 million are to be made to successful claimants in these categories of claims in the order in which they have been approved.  The third phase of payments commenced in October 2000.  Including today's payment, a total of some $2,824.87 million was made available to

2,081 claimants in categories D, E and F under the third phase.

Funds to pay the awards of compensation are drawn from the United Nations Compensation Fund which receives up to 30 per cent of the revenue generated by the export of Iraqi petroleum and petroleum products.  At present, the Compensation Fund receives 25 per cent of the proceeds under the ‘oil-for-food’ mechanism in accordance with Security Council resolution 1330 adopted on 5 December 2000.

The Governing Council monitors the distribution of payments to claimants by the relevant 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 to claimants by governments and international organizations within 12 months of receiving payment shall be returned to the Commission promptly.  Further payments to governments and international organizations shall be suspended where they fail to report on the distribution of funds to successful claimants or fail to return undistributed funds on time.

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

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