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  UN Reform, SHOCK...GASP...'pattern of mismanagement and fraud'... NO..
A pattern of mismanagement and fraud in the UN oil-for-food program in Iraq reflects a ''failure of leadership" at the United Nations and underscores the need for urgent reform, a draft congressional report said yesterday.

The report, written by the House International Relations subcommittee, called for better accountability and oversight at the United Nations and demanded new investigations of corruption in its purchasing department.

It largely echoed the findings of a recently completed oil-for-food investigation led by former Federal Reserve chairman Paul Volcker. But the report also contained the transcript of a candid discussion among investigators on how UN Secretary-General Kofi Annan should be judged for his involvement in oil-for-food failures.

The congressional draft includes a rough transcript of a March 8 meeting of Volcker, Parton, and several other members of their investigation team. That document shows that Volcker was aware an accusation against Annan could force his resignation.

''Well, my general feeling about the report is that if you accuse him of lying, he is gone and I don't know if we have the evidence to make that accusation -- but, we have a lot of unexplained business," the transcript quotes Volcker as saying.
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