AZ and GSK face Iraqi claims for UN oil-for-food program

Officials in the Iraqi capital of Baghdad have begun criminal proceedings against a number of foreign companies, including UK drug major GlaxoSmithKline and Anglo-Swedish giant AstraZeneca, seeking about $10.0 billion in compensation over the scandal-ridden United Natons oil-for-food program. Both pharmaceutical firms, which are headquartered in London, have denied wrongdoing.

While he was in power, the oil-for-food program allowed Saddam Hussein to buy humanitarian supplies under the UN's supervision. However, an inquiry led by former US Federal Reserve chairman Paul Volcker revealed that corruption was rampant within the scheme, as foreign companies gave money to Iraqi officials to secure lucrative contracts or to buy oil for less than its true market value. A US criminal investigation into the program has led to several convictions and saw US oil giant Chevron pay $30.0 million to resolve liabilities.