By Judy Aita
Washington File United Nations Correspondent

United Nations -- Secretary-General Kofi Annan is awaiting a formal response from the Security Council on his proposal to launch an inquiry into allegations of fraud and corruption in the United Nations' former Oil-for-Food Program for Iraq.

In a letter to the Security Council released by the United Nations March 29, Annan said he wants the inquiry to examine the conduct of the United Nations, its contractors, and other entities involved in the administration and implementation of the program.

The secretary-general began discussing the possibility of an inquiry after news media around the world reported allegations of fraud and corruption in the program, including overpricing and kickbacks to U.N. officials and high-ranking members of Saddam Hussein's regime in order to secure contracts. U.N. Under Secretary General Benon Sevan, who headed the program, has been mentioned in news reports as being involved in the scheme to skim billions of dollars from the program, which was set up to aid Iraqi civilians hurt by sanctions.

The program ended in November 2003 with the remaining funds being turned over to the Coalition Provisional Authority (CPA) and Iraqi officials.

Annan consulted with the Security Council because he wants to launch a broad investigation into the matter, U.N. spokesman Fred Eckhard said.

"The Office for Internal Oversight Services can investigate U.N. personnel. But if he wants to look more widely at the Oil-for-Food Program, including the conduct of corporations, contractors, he needed the approval, the nod, the agreement of the Security Council," Eckhard said.

Eckhard said that Annan felt he won the approval of Security Council members during private talks.

"But we are waiting for that to be officially conveyed," the spokesman said.

In his letter, Annan told the Security Council that he intends to select panel members "whom I consider to be of the highest integrity and to possess the necessary expertise for carrying out the inquiry in an expeditious and effective manner."

The secretary-general said that the panel members would be named "in due course."

The secretary-general also said the panel would have "unrestricted access to all relevant United Nations records and information, written or unwritten, and to interview all relevant United Nations officials and personnel, regardless of their seniority."

The panel also would be authorized to approach and seek the cooperation of U.N. member states and their relevant authorities, Annan said.

The Office of International Oversight Services (OIOS) recently began its own inquiry into the Oil-for-Food Program allegations. The secretary general said he will ask OIOS to end its inquiry and turn over its documents and other materials to the new panel.

The secretary general promised that he will take any "action as I may deem appropriate and is within my authority in regard to individuals or entities found to have violated the rules or procedures of the organization or to have engaged in abusive, illicit, or corrupt activities."

The panel is to report in three months.