Blair and Kofi Annan

Tony Blair has given his support to the UN's role in Iraq despite claims that its oil-for-food programme was corrupt.

Speaking at his monthly press conference in Downing Street on Thursday, the prime minister backed the New York body to oversee the handover of power in Baghdad.

Earlier in the day the UN security council announced an investigation into allegations that its oil-for-food programme under the previous sanctions regime in Iraq was abused throughout the diplomatic system.

But Blair said a line had to be drawn under the Saddam Hussein era and that the UN is the right institution to bring democracy into the country.

"You have got the distinguish between what happened before... and the process being conducted by [special envoy] Mr Brahimi at the moment which I think you will find has got a broad basis of consent within the various groupings in Iraq," he told reporters.

"Whatever difficulties there are historically about the UN's role in Iraq, my assessment is that both within Iraq and the international community, the UN is the authority that has the legitimacy to be able to certify and help guide the transition.

"After all this is an extraordinary and crucial moment in