United Nations Compensation Commission

The United Nations Compensation Commission was created in 1991 as a subsidiary organ of the United Nations Security Council. Its mandate is to process claims and pay compensation for losses and damage suffered as a direct result of Iraq's 1990-1991 invasion and occupation of Kuwait. These losses included claims for loss of property, deaths, loss of natural resources, damage to public health and environmental damage.

At the first meeting in August 1991, six categories of claims were set up: claims from individuals forced to flee Kuwait between the invasion and the cease fire (Category A); claims from individuals who (or whose family) suffered injuries or death as a result of the invasion (B); claims from individuals for business losses, pain and anguish, property damage etc. less than $100,000 (C); claims from individuals for business losses, pain and anguish, property damage etc. more than $100,000 (D); claims from corporations and other entities for business (including oil sector) losses (E); and governmental and international agency claims for cost of resettling and providing relief to citizens, claims for damage to government property and to the environment (F). Category E and F claims were further broken down to subcategories.

Each claim category had specific dates for initiating the claim and providing required evidence. A total of over $350 billion in claims was submitted in 2,686,131 claims. Of these claims, 1,543,619 (57%) resulted in some sort of award. The total awarded, to be paid by Iraq from oil revenues, was just over $52 billion. As of August 2007 approximately $22.5 billion of this total had been paid to claimants. The UNCC adopted a policy of paying individuals first, with the result that the remaining sum is owed entirely to government entities (including state oil companies) of Kuwait and Saudi Arabia. The UNCC is making payments at approximately $300 million per quarter, depending on the extent of Iraq's oil revenue.

Copies of all major decisions and major evidence in support of claims can be found at the UNCC website.

The process of assessing and awarding claims was begun during the period of Saddam Hussein's stewardship of Iraq. However, many of the claims (especially major claims) were not settled until after a new management was in place in Iraq. Efforts by the Paris Club (an organisation set up by the world's industrialised nations during the 1950s to restruture debt from severely indebted nations) to seek debt forgiveness in order to allow Iraq to use its oil revenues to reconstruct met with some success among wealthy nations with the very notable exceptions of Kuwait and Saudi Arabia. (http://www.jubileeiraq.org/blog/2004_05.html) There are those who suggest that the concept of odious debt, under which a country should not be responsible for debt incurred by despotic regime for purposes such as strengthening itself and suppressing internal dissent. (http://www.jubileeiraq.org/blog/2004_05.html)