As UN Won't Account for US Tax Fund, $100 M Earmark for Security Questioned

By Matthew Russell Lee

UNITED NATIONS, February 7 -- As in Washington the House of Representatives prepares to vote on a proposal to have the UN return hundreds of millions of dollars to the US, in New York the UN is refusing to answer simple questions about how much money is at issue.

Meanwhile it has emerged that for fully $100 million of the so-called Tax Equalization fund, the US Mission or US State Department told the UN to use it for security. To some it is unclear if this donation -- or “ultimate earmark,” as we are calling it -- was done legally or transparently.

The House bill targets money left over from closed down UN peacekeeping missions, for example in Eritrea and Chad, and the US Tax Equalization Fund. Of this, Esther Brimmer, assistant secretary of state for international organization affairs, told CQ that

“the $179 million in overpayments are in the form of credits, not cash, and thus cannot be refunded per se. Moreover, Brimmer said, much of that sum – up to $100 million – already has been repurposed to help enhance security at the U.N. complex in New York City.”

The question now arises, how did the US Mission or State Department give the UN the approval to “repurpose... up to $100 million,” even if ostensibly for security of the UN in New York City?

On February 4, Inner City Press asked Secretary General Ban Ki-moon's deputy spokesman Farhan Haq about the proposal in Congress:

Inner City Press: there is this proposal in the House of Representatives by Eric Cantor [Republican-Virginia] and others to ask for a refund from the UN tax equalization fund and also from closed-down UN peacekeeping operations. I wonder if, I mean this is on — it’s not only on their website, they said they are going to bring it to a vote. Is there some way to know how much is in each fund and also what does the UN think about this open call by the host, in the host country’s parliament, I guess, to have this money returned?

Acting Deputy Spokesperson Haq: Well, first of all, it is not by the host country’s parliament at this stage. This is something happening within a parliamentary body, if you will. And we don’t comment on processes as they work their way through the legislative system. So we leave it to the legislature of the United States to work out this particular matter.

Inner City Press: Is it possible to know how much money is in each, just objectively, in each pool…?

Acting Deputy Spokesperson: Yeah, I believe my colleagues in the Department of Peacekeeping Operations are looking into that matter.

But three days later not even an estimate has been provided.

UN's Ban in DC, repurposed $100 M & DPKO estimates not shown

On February 7, Inner City Press asked Ban's main spokesman Martin Nesirky:

Inner City Press: There is a discussion in Washington, although admittedly on probably more among one party than another about recouping funds from the UN. And I just wanted to, I understand that that’s something that’s taking place in Washington, but the numbers that they are using, they are saying there is $243 million in funds from closed peacekeeping operations and $180 million in this thing called the tax equalization fund. And I just wonder, is that something… can the UN… I’ve been trying to get this… Can they confirm that those were the numbers? And if they can, if there is some argument of why none of this should be returned, it would be good to hear it, but I just want to make sure if those are the numbers, the numbers being thrown around down there, are in fact the numbers accepted up here?

Spokesperson Nesirky: I think we will be able to give you some numbers a little bit later today.

By close of business six hours later, no numbers had been provided. Inner City Press has submitted more questions, including with regard to Esther Brimmer's quotes:

How was the referenced money “repurposed”? Did the US Mission or State Department indicate how it could be repurposed? How? What other countries have allowed extra budgetary money to be similarly repurposed and how much?

Do the UN Secretariat agree with the State Dept that it is not possible to refund monies to the US from the Tax Equalization Fund?

How was the $100 million referenced in Esther Brimmer's quotes spent?

Is it possible for funds to be reimbursed to the US from the UN from the closed peacekeeping accounts?

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