Sunday Times Pays Out Over Annan Story

The Sunday Times agreed today to pay damages to the son of United Nations secretary general Kofi Annan over an article that alleged he participated in Iraq's controversial oil-for-food programme.

The paper apologised in court to Kojo Annan and agreed to pay substantial damages plus his legal costs.

Alastair Brett, the Sunday Times' solicitor, said the paper accepted its allegation was untrue.

Mr Annan said he had found the Sunday Times article, which was published in January, "very offensive and hurtful".

"It made a very serious accusation. It was wrong," he said in a statement. "My integrity and, more importantly, that of my father, was repeatedly called into question during the last year by some in the media and scrutinised from all corners."

He added: "These allegations have greatly affected me personally and from a business perspective."

His solicitor, Simon Smith, told the high court in London that the Sunday Times alleged Mr Annan had admitted to a friend that he became involved in negotiations to sell two million barrels of Iraqi oil to a Moroccan company in 2001.

Mr Smith said the newspaper claimed the allegation was true and it had sources to corroborate it, but then changed its position.

The UN independent inquiry into the oil-for-food programme investigated the allegations and found no evidence of Mr Annan's participation in negotiations for an oil transaction.