Impact of report on Annan still uncertain

UNITED NATIONS - Secretary-General Kofi Annan was cleared Tuesday of interfering in the awarding of a contract in Iraq to a firm that employed his son but he was faulted for not probing possible conflict-of-interest properly.

The independent inquiry, led by former U.S. Federal Reserve chairman Paul Volcker, released its second interim report on the oil-for-food program, this time focusing on Annan and his son, Kojo, who worked for the Swiss firm Cotecna.

NBC News’ Carl Quintanilla reports on the mood at the United Nations after the release of Volcker's latest report and what the future holds for the U.N. Secretary-General.

The Volcker report clears Kofi Annan for blame for any personal wrongdoing  and clears him of blame for his sons actions. But, what will the fallout be for Annan?  
It is important to remember that it clears him only to the extent that it says there is no evidence that he influenced the contracts. Volcker was adamant in saying that this is all they could find. No one is giving him complete absolution, but the report simply said there is no evidence to suggest that he did anything wrong.

Politically the fallout for Annan really depends on which side you are on. All of his supporters say that it backs up his claim that he was involved in no wrongdoing. His critics however continue to call out for his resignation. They say that anyone who failed to properly follow-up on an inquiry is not the person you want reforming the U.N. in the wake of their human rights scandals and other scandals.

The report basically cleared Annan of evidence of any corruption allegations, but it was critical of Annan’s oversight of the whole $64 billion oil-for-food program. Will there be further calls for Annan’s resignation?
It is likely that anyone who was already calling for Annan’s resignation will see this as more fuel to add to the fire, not necessarily because he was found to have done anything wrong, but because he wasn’t.

That means politically, it is difficult to see how he can lead a charge toward higher integrity and higher ethical standards for the U.N., especially since this report is not done and the investigation continues.

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