MALAYSIA'S" OIL-FOR-FOOD SCANDAL: READ IT HERE

NEW YORK: Elderly Texas oilman Oscar Wyatt Jr has been sentenced to a year in prison for his role in corrupting the UN oil-for-food program, through which he landed contracts by giving Iraqi officials illegal payments.

Wyatt, 83, cried as he addressed the court yesterday, saying he "would never do anything to hurt my country".

Moments later, US District judge Denny Chin imposed a sentence below the 18 months to two years in prison to which Wyatt had agreed when he pleaded guilty to conspiracy last month.

Wyatt also agreed to forfeit $US11million ($12.5million).

"It's very, very difficult for me to express anything but appreciation to the judge for his fairness," Mr Wyatt said after his sentencing.

The judge's reasons for leniency included Wyatt's age, military service in World War II and the many heartfelt letters sent to the court on his behalf, including notes from members of Congress, police chiefs, mayors, even actor Farrah Fawcett.

But Justice Chin noted: "There's little doubt in my mind that he broke the law."

Before pleading guilty on the 12th day of his trial and conceding he approved a $US200,000 illegal payment to an Iraqi bank account in December 2001, Wyatt had insisted he never paid an illegal surcharge to the Iraqi government to win oil contracts.

The judge said evidence showed Wyatt had paid at least $8million to Iraqi officials to get an unfair share of contracts connected to the UN oil-for-food program, which ran from 1996 to 2003.

The program allowed the Iraqi government to sell oil to buy food and medicine for its suffering citizens.

But authorities said the program was corrupted when Iraqi officials began demanding illegal surcharges in return for contracts to buy Iraqi oil.

The 2005 UN Volcker inquiry found AWB, the former Australian Wheat Board, paid $300million to Saddam Hussein - the single biggest source of kickbacks to the Iraqi government - in exchange for wheat contracts.

The Australian Cole inquiry that followed found 11 former AWB executives may have broken the law, but no charges have been laid. - AP