UNITED NATIONS, Aug 16: UN Secretary-General Kofi Annan on Monday commissioned a full financial and internal control review of the United Nations procurement system, following irregularities uncovered by both the world body’s own oversight office and the UN-approved panel probing the Iraq oil-for-food programme.

To carry out this new review, the UN will be retaining the services of an independent external consultancy company. The review is expected to be completed by the end of September, according to Mr Annan’s spokesman in New York.

The third Interim Report of the Independent Inquiry Committee (IIC), headed by former US Federal Reserve chairman Paul Volcker, last week accused former procurement officer Alexander Yakovlev of soliciting kickbacks. It also concluded that the former executive director of the UN Office of the Iraq Programme, Benon Sevan, ‘corruptly benefited’ from his role in the oil-for-food-programme.

Voicing deep concern at the report’s findings, Mr Annan waived the immunity of Mr Yakovlev, and stressed that he would do the same for Mr Sevan, as soon as he receives any properly supported request from an appropriate law enforcement authority.

Mr Annan also said the UN would act vigorously to ensure there are no more ‘bad apples’ in its procurement department, and pledged that the corruption outlined ‘will not happen again’.

As a temporary and exceptional measure, pending the completion of the external review, Mr Annan placed the procurement division under the direct authority of Warren Sachs, the UN controller.