More than US$50 billion later, U.N. to close First Gulf War commission

GENEVA (AN) — The United Nations will formally shutter a commission that it established more than three decades ago to pay more than US$50 billion in losses and damage from Iraq's 1990 invasion of Kuwait.

The U.N. Compensation Commission, created by a U.N. Security Council resolution on May 20, 1991, held its 89th and final session on Friday, according to U.N. officials in Geneva.

"After more than 31 years, the work of the compensation commission’s governing council has come to an end and the commission will formally close on 31 December 2022," the U.N. Office at Geneva announced.

As a subsidiary of the 15-nation council, the commission processed and paid claims for losses and damage suffered as a direct result of Iraq’s invasion and occupation of Kuwait from 1990 to 1991, when a U.N.-authorized international coalition led by the United States ousted Saddam Hussein's forces from the small oil-rich emirate.

The commission oversaw the U.N. Compensation Fund, which received a percentage of the proceeds – which ranged from 3% to 5% – from Iraq's export sales of oil and petroleum products.

Earlier this year the commission's governing council declared Iraq has fulfilled its international obligations.

A precedent-setting compensation model

The commission received 2.7 million claims seeking US$352 billion in all, the present of the commission's governing council, then-Ireland's U.N. Ambassador Michael Gaffey, told the Security Council when it voted in February to end Iraq’s requirement to compensate the victims of its invasion.

It decided to pay 1.5 million claimants a total of US$52.4 billion in compensation.

"This represents approximately 15% of the total claimed and reflects the thorough review undertaken by the commission," said Gaffey.

"It is an historic achievement for the United Nations and for effective multilateralism," he said. "The commission represents the first successful example of recourse for individuals to seek compensation from an aggressor state.”

Businesses received a hefty share of the proceeds; the Kuwait Petroleum Corp., for example, was awarded US$14.7 billion for production and sales losses.

However, the commission gave priority to people forced to flee Iraq or Kuwait, those who were injured or had family members killed, or who had personal losses of up to US$100,000, according to Gaffey.

"This humanitarian decision to focus first on urgent individual claims marked a significant step in the evolution of international claims practice," he said.

Iraq's Foreign Minister Fuad Hussein told the council the compensation fund's end marks the start of a new era for his nation.

“Iraq concludes today an important 30-years-long chapter and embarks on a new chapter in its diplomatic, political and economic journey," said Hussein.

"This will be an era of a more prominent regional and international role commensurate with Iraq's cultural and historical significance for the region and the world," he said, "an era during which Iraq will be an active member committed to the aspirations and goals of the international community."