Johannesburg — A TEAM of forensic auditors from London-based auditing firm KPMG is in Baghdad to probe allegations of corruption relating to oil vouchers issued by former Iraqi President's Saddam Hussein's regime.

Iraq's Governing Council has appointed KPMG and international law firm Freshfields Bruckhaus Deringer to review and report on the United Nations Food for Oil programme, under which Iraq was allowed to sell oil in exchange for medicine and food.

Four South African companies appear on a list, published last month by Iraqi newspaper Al-Mada, naming 270 companies, individuals and organisations from 46 countries around the world who may have violated UN restrictions while trading oil with Iraq.

The South African companies jointly received 21 million barrels of oil between December 2000 and June last year. Two of the companies were headed by media-shy Johannesburg businessman Sandi Majali, who the Sunday Times last week revealed had close ties to powerful ANC officials and former Iraqi Deputy Prime Minister Tariq Aziz.

One of Majali's companies, Imvume Resources, won a contract to supply the South African government with over R1-billion worth of Iraqi Basrah Light oil shortly after he and ANC Secretary-General Kgalema Motlanthe and the party's treasurer general, Mendi Msimang, had travelled to Iraq.

The four local companies are: Montega Trading, then headed by Majali, which received four million barrels of oil; Imvume Management, now headed by Majali, nine million barrels; Mvelaphanda, headed by former Gauteng Premier Tokyo Sexwale, four million barrels; and Omni Oil, which received four million barrels and is headed by Cape Town businessman Rodney Hemphill, one of Majali's former business partners. Hemphill and Majali were shareholders of Montega Trading, along with American Iraqi Shakir Al-Khafaji.

Montega ran into trouble with the UN in February 2001 for discharging an oil cargo in Singapore instead of the intended destination, the US. It was alleged at the time that the company and its Swiss partner, Glencor Trading, stood to make an extra $7-million from the diversion because Iraqi oil had different prices for various destinations. The UN ordered the companies to repay the estimated $7-million.

Hemphill said yesterday Omni Oil only ever had legitimate dealings with Iraq in exchange for food products under the UN programme, and that it continued to fulfil its contractual obligations.

The list was compiled from documents seized from the country's oil ministry. Investigators now want to establish whether Saddam bought support from foreign companies and individuals with millions of barrels of oil.

Majali, through a firm of attorneys, has declined to comment, citing an impending lawsuit. A ttorney Barry Aaron, who acts for Majali, this week sent a letter instructing the Sunday Times to stop investigating his client.

The list has caused an international scandal by implicating prominent people in Russia, Switzerland and France - as well as top UN officials - in questionable oil deals.