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Kobina Annan, the Ghanaian ambassador to Morocco, is said by investigators to be “connected” to an African businessman at the centre of the scandal.
The oil for food programme was set up by the UN in 1995 to provide humanitarian supplies to Iraq, which was at the time prevented from trading normally with the rest of the world because of sanctions.
However, Saddam Hussein subverted the programme by taking kickbacks from companies involved and giving cut-price oil vouchers to influential individuals around the world.
Kobina is the second member of Annan’s family to be drawn into the scandal, which has led to the resignation of several senior UN officials.
The secretary-general has so far escaped censure, but the final verdict on his conduct will not be delivered by investigators until the autumn.
Kojo Annan, the secretary-general’s son who was involved with several companies seeking to profit from the programme, has been criticised and remains under investigation.
Inquiries into Kobina are at an early stage and he has not been interviewed.
However, investigators are understood to suspect that Michael Wilson, an African businessman, and Kobina had a business relationship at the time of the scandal.
A source close to the investigation said: “We believe Kobina Annan may be involved with Michael Wilson and Kojo Annan. We know there is a connection between Kobina and Wilson.”
The oil for food programme was the biggest humanitarian scheme undertaken. However, since the fall of Saddam allegations of corruption have surfaced forcing the UN to set up a commission, headed by Paul Volcker, the former head of the American Federal Reserve, to investigate it.
Saddam is alleged to have used valuable oil allocations to influence key figures around the world. Bribes were also demanded in return for oil, which were paid into a network of secret bank accounts.
Volcker has already uncovered a web of corruption at the UN, which appears to have allowed the scheme’s abuse to continue unchecked.
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