In January 2001 Jessop contacted the Foreign & Commonwealth Office for advice on the recently introduced Iraqi government demand that contracts be uplifted to include 10% "after sales service fees", which he explained was code for payments to the Iraqi regime. He was advised that he should not proceed with contracts that would put him in breach of UN sanctions. Despite this, later that month Jessop applied for a licence to supply goods to Iraq in a contract that was inflated to pay the kickback.
Investigation and Proceedings
The Iraq Government's demands for kickbacks on contracts came under UN scrutiny following the international action against Iraq in 2003. The UN Independent Inquiry Committee was established and published its final report ("the Volcker Report") on the manipulation of the Oil-For-Food Programme in October 2005 and made a referral to the UK authorities in December 2005. Following the provision of additional funding from HM Treasury (with the support of the Attorney General), the SFO commenced an investigation in 2007.
The defendant was charged in November 2009 and a trial was set for 21 March this year. He indicated shortly ahead of trial that he would plead guilty and has today admitted ten counts of engaging in activities to make funds available to the Iraqi Government in contravention of the legislation implemented in 2000, i.e. The Iraq (United Nations Sanctions) Order 2000 (Statutory Instrument 3241) which made it a criminal offence to do so without a licence granted by HM Treasury.
In addition to the custodial sentence of 24 weeks imposed by HHJ Leonard, the defendant has been ordered to pay £150,000 to the Development Fund for Iraq and pay prosecution costs of £25,000. Both orders are to be paid within 12 months.
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