The Oil-for-Food programme was set up by the United Nations to allow the Iraqi Government to sell oil in exchange for humanitarian goods, food and medicine, which were in short supply because of sanctions imposed on Saddam Hussein's regime after its invasion of Kuwait.

The programme, which the United Nations ran until the US-led invasion in 2003, oversaw £34 billion in Iraqi oil sales. According to the UN, it nearly doubled the average Iraqi’s daily food intake and significantly relieved the suffering of ordinary Iraqis under the sanctions.

But one of the flaws in the system was that it gave Saddam the opportunity to buy influence and friends by selling oil allocations at below-market prices to favoured parties who could then sell them on at a profit. The Iraqi regime also received cash kickbacks for the allocation of lucrative oil concessions.

The scandal over the way the programme was run erupted early last year when an Iraqi newspaper published a list of 270 people, including politicians, UN officials and companies, which it alleged had profited from the sale of oil.

The allegations of corruption went far and wide, sparking several continuing investigations. Even Kofi Annan, the UN Secretary-General, became embroiled when he was criticised over his son’s work for the programme. Mr Annan was cleared of any wrongdoing in an interim report by a UN committee issued in March.

Last month a Texas businessman, a Bulgarian and a Briton were accused of taking part in an alleged scheme to pay bribes to the former Iraqi regime as part of the programme.

US Senate investigators have found that the Saddam regime made £9.3 billion from abusing the programme, including selling oil to neighbouring states that were eager to breach sanctions.

Oil consignments were openly sent from Iraq to Jordan and Turkey during the early 1990s despite a US military presence in the area.

A further £2.3 billion was allegedly earned through bribes and illegal surcharges on services and goods provided by companies contracted under the Oil-for-Food programme, the Senate investigators found.

The Senate Permanent Sub-Committee of Investigations says that it has discovered documents detailing oil allocations totalling 20 million barrels allegedly given to George Galloway, the MP for Bethnal Green and Bow.

The committee also said it has discovered allocations for 11 million barrels in oil allegedly received by the French Interior Minister, Charles Pasqua.

Mr Galloway has strongly denied these allegations. In December last year he won a libel action against The Daily Telegraph over claims relating to the scheme. The Senate committee claims that its claims stem from documents unrelated to the Telegraph articles.

Last month the newspaper won permission to appeal against the ruling to pay £150,000 damages and £1.2 million in costs.

While investigators continue to probe the Oil-for-Food scandal, the true extent of the corruption may never be known. When Saddam Hussein’s regime crumbled much of the evidence of what went on under the programme disappeared with it.

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