U.S. and Iraq Spar Over Who Should Run Corruption Inquiry Into Oil-for-Food Program
By SUSAN SACHS and JUDITH MILLER

raq's political leaders are sparring with the American occupation administration over who should investigate possible official and corporate corruption in the United Nations oil-for-food program.

The dispute pits L. Paul Bremer III, the American administrator of Iraq, against the Iraqi Governing Council, whose members Mr. Bremer appointed last year. As the June 30 date for an American power transfer approaches, the two sides have increasingly been at odds over the future political setup.

It is not clear whether the present Governing Council will retain any power in a transitional government.

Governing Council members said they wanted to supervise any Iraqi inquiry into the oil-for-food program, and had asked the American accounting firm KPMG International in February to assemble possible evidence of alleged kickbacks and bribes paid under the now-defunct oil-for-food program.

Mr. Bremer has refused to release money to pay KPMG and instead has now approved the hiring of a different company, Ernst & Young, to conduct a $20 million investigation on behalf of a different agency of Iraq's transitional government.