

"....The staff is sick and tired of the impunity extended by the office of the Secretary-General to senior managers for their failings especially in situations where it has led to death and disability....." - UN Staff Union
By George Russell
Published September 28, 2010
| FoxNews.com
In an eerie replay of a scandal that enveloped the United Nations Development Program, an internal audit by the U.N.’s World Food Program shows significant “lapses,” “anomalies,” and unexplained variations last year in the way the relief agency reported its financial and commodity management in North Korea.
The holes in WFP’s humanitarian reporting raise questions of whether a U.N. agency has allowed money and supplies intended for starving North Koreans to end up in the hands of the country’s brutal communist rulers, who are under international sanctions aimed at halting their aggressive atomic weapons program.
According to WFP itself, in response to questions from Fox News, the confidential audit “highlighted a small number of inconsistencies in commodity accounting that have subsequently been addressed.” All the issues involved have since been “closed,” the agency added.
However, Fox News obtained a copy of a summary of projects undertaken by WFP’s internal watchdog Office of Internal Audit between July and September of last year, which lists the North Korean lapses first among its audit highlights. Among other things, it notes:
--“inconsistent data and unreliable information systems used for reporting [WFP] commodity movements, stock balances and food utilization” in North Korea;
--“lapses…in financial and commodity management processes.”
---“numerous anomalies…in information systems used for reporting commodity movements and food utilization in the CO [WFP local country office].”
CLICK HERE TO READ THE SUMMARY DOCUMENT
The full extent of the management lapses and their consequences cannot be determined without the unexpurgated audit report—and the WFP is not willing to make that public. The agency flatly turned down a request by Fox News for the document.
In fact, WFP has not even supplied a copy of the audit report to nations, including the U.S., that supervise its operations through a 36-member executive board. (The U.S. government gave about $1.76 billion to WFP in 2009, and has so far contributed $959 million this year.)
A Fox News query to the U.S. Mission to the U.N. in Geneva got confirmation that the U.S. government did not have the report, and that “WFP does not currently share its internal audit reports with the WFP Executive Board members.”
By now, however, it was supposed to. A policy that allowed the WFP’s executive director, Josette Sheeran, to give such audit reports to executive board members on demand was up for approval by the board at its last meeting in June. However, it was withdrawn from the board’s agenda; it is now up for consideration at the next Board meeting in November.
Even then, however, the wording of a draft version of the decision underlines that the sunlight provisions “will not be applied retroactively.”
The audit references to lapses in relief aid reporting practices are not the first indicator that the regime of ailing dictator Kim Jong Il might have the opportunity to exploit WFP resources in North Korea.
In June 2009, Fox News got an admission from the relief agency that its food supplies were carried from China to North Korea on vessels owned by the Kim regime. The potential transportation costs for those relief supplies appeared to be enormously high to outside shipping experts asked by Fox News to analyze the agency’s relief program documents. No mention of the regime’s role in transporting WFP goods appeared in the documents or on the agency’s website.
Click here to read more on this from Foxnews.com.
WFP has delivered more than $1 billion worth of food aid to North Korea since 2000, but the amount of donated money available for that effort has dwindled sharply as the Kim regime has exploded two nuclear bombs, threatened neighboring Japan and South Korea with war, and even sunk a South Korean warship on the high seas, according to the best forensic evidence available.
Its current plans call for spending about $91 million for food for about 2.2 million North Koreans this year.
The WFP audit reference to lapsed internal controls in North Korea, and the agency’s pooh-poohing of them, also bears a disturbing resemblance to the early stages of a battle over the role of the United Nations Development Program in North Korea, which led to the closure of UNDP's North Korea office for two years, from 2007 to 2009. The WFP was later named as the U.N.’s lead agency in the country.
In 2006, a whistleblower named Artjon Shkurtaj revealed that UNDP procedures in North Korea had funneled millions of dollars in hard currency to the Kim regime, allowed North Korean government nominees to occupy sensitive UNDP positions in the local country office, kept thousands of U.S. dollars counterfeited by North Korea without informing U.S. authorities, and other transgressions.
All were flatly denied by the U.N. agency, though many of the accusations were later revealed to have been mentioned in internal audit reports — which UNDP refused to make public, on the same grounds currently used by WFP, that they were internal management tools. The existence of the audit criticisms were only made known through an external board of auditors’ investigation in 2007.
A further outside investigation revealed that UNDP’s transgressions were even worse than the auditors had suggested. Not only had UNDP routinely continued to hand over millions in hard currency to the Kim regime, use government nominated officials in sensitive positions, and transfer sensitive equipment with potential for terrorist use or for use in creating weapons of mass destruction, it had done so in violation of U.N. Security Council sanctions in force at the time, and also contravened its own basic financial rules and regulations.
Click here to read the Fox News story on the report.
In the midst of the furor over its North Korean activities, UNDP finally agreed to make future internal audit reports public—at least to governments on its executive board, and as long as they applied in writing. Since then, it has also amended its internal procedures and is now relaunching itself in North Korea. (To date, the U.N. has not paid recompense to Shkurtaj that was mandated by its own ethics officer in the wake of the UNDP scandal.)
Is the World Food Program following the unsettling trail blazed by UNDP in North Korea, before it mended its ways?
Without the full internal audits, it is hard to tell—but the stonewalling of those audits looks very familiar.
George Russell is executive editor of Fox News.
By Matthew Russell Lee
UNITED NATIONS, March 11 -- When whistleblower Ismael Ahmed complained of irregularities in and then retaliation by the UN Development Program in Somalia, UNDP's own ethics machinery rejected his claims. But on appeal, as reflected in a 16 page decision Inner City Pressobtained and is putting online here, Mr. Ahmed prevailed.
But there's more. The first retaliator against Ahmed, Eric Overvest, was promoted to the UNDP in Haiti. After the earthquake, he was quoted that the situation was "an opportunity" -- rather the way he saw Somalia.
Inner City Press is informed that Overvest also retaliated against Dr. Edwina Thompson, an Australia national, who was hired to evaluate the remittance program.
Overvest demanded that she should approve a report from a second consultant that he had hied in Nairobi. In response to this she wrote to him on 5 November 2007 saying that “I would love to comply with your request to endorse Jamasai's report, if for no other reason than to expedite payment for my fee. I hope however that you'll appreciate as a matter of principle that I am unable to do that”. However, Overvest went ahead and issued the report claiming that it was a consolidated report jointly produced by the two consultants.
On 23 November Edwina wrote to Eric and said: “As I said previously, I cannot agree with all the findings in Jamasai's report because some of them are neither factual, nor based on adequate investigations. Moreover, I am certainly not happy that Jamasai will take portions of my report and reference me as an acknowledgement. May I remind you that we did not agree that a 'consolidated' report would be produced. The revised TOR was to produce two reports, and then discuss what should happen once your team reviewed the quality. I have not been consulted in your process, even despite my comprehensive email correspondence with yourself since the original submission of my report - which is indeed almost 2 months ago. This is entirely unprofessional, and I am convinced will not stand up if the UNDP Evaluation Office were to review what has unfolded”.
UNDP's Helen Clark @ WEF, musical chairs to Haiti not shown
On 29 November Edwina responded to Eric again and said: “At the teleconference meeting you agreed that we would submit individual reports - I was given the extra task of assessing risk issues, while Jamasai was tasked to focus on the Central Bank. We did not agree that there would be a consolidated report. I have not approved any ensuing consolidation by Jamasai. Regardless of this, I understand that you had already distributed your consolidated report with my name on it before asking for my feedback by COB on 23 November. Perhaps you could explain this. On the issue of payment; no, I have not received it. I understand from your finance and admin staff that you have been blocking that payment. If you will now approve it again, I would be grateful”.
Edwina faced retaliation for producing an independent report. Almost six months after she submitted her report, her consultancy fees were still being blocked by Eric. Although in earlier emails Eric argued that her payment was ready, after this email he confirmed that her payment would not be processed until she complied with his demands.
And now Eric Overvest has been replaced by his former boss, Bruno Lemarquis, also responsible for the retalation. We aim to have more on this.
By Matthew Russell Lee
UNITED NATIONS, March 10 -- The President of the UN General Assembly Ali Treki has "reminded" Switzerland of its duty to respect the Vienna Convention on diplomatic immunity and the right to travel, three weeks after Inner City Press exclusively reported and then asked about Treki being on a Swiss and thus EU / Schengen group travel ban list.
In a cryptic statement issued Tuesday night, Treki's spokesman Jean Victor Nkolo said
"Answering a ['lingering'] question regarding relations between Libya and Switzerland, the Spokesperson of the Presidency of the United Nations General Assembly, indicated that the President of the General Assembly is following the deterioration in the relationship between the two countries. He emphasized that the President of the General Assembly stresses the need to resolve this dispute in a manner that upholds the principles of international law and respects the international agreements, in particular the Vienna Convention on diplomatic immunities and privileges, and the right of all individuals for free movement in accordance United Nations norms and standards."
Inner City Press asked Nkolo is this was belated confirmation that the PGA's office knows, as Inner City Press was told and as Italy implicit confirmed, that Treki is on Switzerland's Schengen travel ban notice. The usually effusive Nkolo said that "the statement speaks for itself."
Inner City Press was told by a well placed source that due to concerns about the list, the PGAs office asked Switzerland if Treki was still free to travel to Geneva, and got an affirmative answer. But the rest of the Schengen group? Why is Italy mentioning Treki when it asks for Switzerland to modify the list it sent out?
The irony here is that Switzerland's ire is directed at Gaddafi for its imprisonment of two Swiss businessmen in retaliation Switzerland acting on physical abuse by Gaddafi's son in Switzerland. But Treki is not getting along with Libya's mission to the UN. Because he was formerly Libya's foreign minister, he was put on the list. Treki is in a very delicate position, especially given that his PGA mandate expires in September. Paraphrasing Tom -- and not Alejandro -- Wolfe, can you go home again?
Libya's Ali Treki, Swiss Schengen list not shown
Meanwhile, with Treki slated to travel to Seoul, the story is that he will be speaking about the G-20 and South Korea's upcoming chairmanship and meeting. South Korea, of course, is not part of the Schengen group...
Footnotes: later on March 9, the PGA's office issued a press statement about Treki's meeting with the son of Gabon's long time dictator Omar Bongo, Ali Bongo, now president. Earlier on March 9, the International Peace Institute barred from Ali Bongo's presentation journalists and others who had RSVP-ed. Much demand for the dictator!
On Treki and his Office, Close UN watchers still wonder why the PGA's Office has allowed long time UN Security officer Ralph Hering to be the scapegoat for Treki's daughter's invitation of the KFC Colonel Sander impersonator to the UN's second floor. There are other PGA injustice issues still pending. Watch this site.
London - The United Nations Ethics Committee has upheld complaints by a former employee of the U.N. Development Programme who said he suffered retaliation from the UNDP for alleging that its Somalia programme was corrupt.
The man, Ismail Ahmed, was transferred to another office without proper visa support, and the UNDP Somalia office later told a potential employer not to hire him because of his "silly non-proven accusations", Ethics Committee Chairman Robert Benson found in a report seen by Reuters.
A new UN Security Council report says that as much as half the food aid sent to Somalia is diverted to a network of corrupt contractors, radical Islamist militants and local UN staff members, the New York Times reported on Tuesday.
The report outlines such serious problems that it recommends Secretary General Ban Ki-moon open an independent investigation into the World Food Programme's operations in Somalia, the paper said, noting diplomats had shown it the as yet unpublished document.
Ahmed has identified one of the main authors of the retaliation as Eric vervest, a Dutch national who is now in charge of the UNDP office in earthquake-stricken Haiti.
Ahmed's case has been supported by the U.S.-based Government Accountability Project (GAP), a non-profit organisation which backs whistleblowers in exposing corruption.
The United Nations cannot account for tens of millions of dollars provided to the troubled Afghan election commission, according to two confidential U.N. audits and interviews with current and former senior diplomats. (Read both audits.)
As Afghanistan prepares for a second round of national voting, the documents and interviews paint the fullest picture to date of the finances of the election commission, which has been accused of facilitating election fraud and operating ghost polling places. The new disclosures also deepen the questions about the U.N.'s oversight of money provided by the United States and other nations to ensure a fair election in Afghanistan.
"Everybody kept sending money" to the elections commission, said Peter Galbraith, the former deputy chief of the U.N. mission in Afghanistan. "Nobody put the brakes on. U.S. taxpayers spent hundreds of millions of dollars on a fraudulent election." Galbraith, a deputy to the senior U.N. official in Afghanistan, was fired last month after protesting fraud in the elections.
The audits come as President Barack Obama is struggling to craft a war policy for Afghanistan that would establish a stable government in a country with few democratic traditions. Senior aides have made clear that Obama will not commit to sending additional troops until there is a legitimately elected government in Kabul. On Wednesday, insurgents stormed a housing compound primarily occupied by U.N. election officials, killing eight people, including two election workers.
Afghanistan's Independent Election Commission initially reported that President Hamid Karzai had won the majority of votes in the August election. A recount was ordered after another U.N.-backed panel uncovered evidence of widespread fraud. After weeks of prodding from the Obama administration, Karzai agreed last week to a runoff.
The U.N. audit reports, which are near completion but still in draft form, are likely to fuel debate over the Afghanistan election commission's ability to carry out the new round of voting. Karzai's challenger, Abdullah Abdullah, has suggested he may boycott the elections unless Karzai dismisses the chairman and two other commissioners.
In interviews, senior U.S. and U.N. officials said that U.N. leaders had ignored warnings as far back as 2007 that the election commission was a pro-Karzai body with few internal controls.
Another top official in the U.N.'s Afghanistan mission, Robert Watkins, acknowledged in an interview that some commission employees had contributed to the fraud in the first round of voting.
"It's clear that some of the people" working for the commission at the polling centers "were complicit in fraud," Watkins said. "Some of the staff hired were not working in the best interests of impartial elections."
But Watkins said the United Nations is working to improve the commission's performance in the runoff. He said the U.N. planned to slash the number of poll workers and blackball any that may have been implicated in fraud in the August elections.
As of April 2009, the U.N. had spent $72.4 million supporting the commission, with $56.7 million of that coming from the U.S. Agency for International Development, the audit said. Total election costs are now estimated at greater than $300 million, with the U.S. providing a third to half the total funding, according to one senior U.N. official familiar with the elections process.
The draft audit reports indicate that as many as one-third of payroll requests from the Afghan commission to the United Nations included "discrepancies," such as incorrect names or amounts.
In another instance, the U.N. Development Program paid $6.8 million for transportation services in areas where no U.N. officials were present. Auditors found that the development agency had "inadequate controls" over U.S. taxpayer money used to fund the commission.
A UNDP spokesman, Stephane Dujarric, said he could not comment on specific findings in the audits, since they were still in draft form. However, he said the agency strived to rigorously account for spending despite operating in a war zone.
"The insecurity, the lack of infrastructure, the pervasive corruption and harshness of the terrain make the implementation of any project extremely difficult," Dujarric said. "That being said, those challenges in no way absolve us of constantly doing our utmost to ensure that monies given to us by donors are properly spent and accounted for."
Watkins acknowledged that the U.N. had concerns about the commission as elections approached. The development agency works closely with the commission, paying salaries, buying supplies and handling logistical questions.
However, he said no evidence had surfaced that money flowing to the commission had been used to buy votes or bribe officials. "The indications were that (the commission) did not have sufficient controls in place. I can't jump to the conclusion that the money was misappropriated."
Watkins said he was "much more confident" about the commission's spending practices after the U.N. tightened controls this summer. "I think we have a good partner" in the commission, Watkins said.
The U.N., he said, had suggested cutting the number of polling workers from 160,000 to 60,000 for the runoff election, in part to ensure better-trained workers. The smaller work force also reflects an effort by the U.N. to have fewer polling stations and fewer workers per station. He also said the U.N. would blackball at least 200 workers who had been linked to voting centers where fraud was alleged.
In public statements, commission officials have not yet committed to reducing staff or polling stations. A commission spokesman did not return a request for comment.
The confidential reports are being written by two U.N. audit agencies to examine charges that the U.N. had failed to safeguard $263 million in money from the U.S. Agency for International Development that was channeled through the development agency to fund the elections and rebuilding projects. USAID money accounted for about 40 percent of U.N. spending in Afghanistan between 2003 and 2009, the audits said.
Overall, the audits found that U.N. monitoring of U.S. taxpayer funds was "seriously inadequate." Auditors could not find receipts, work plans or documentation to back up costs for projects such as roads and bridges. U.N. officials did not conduct site visits to confirm work and did not prepare financial reports for donor countries like the U.S., the audits found.
The main focus for criticism, however, was U.N. support of the election commission, a seven-member board whose members were appointed by Karzai. Using U.S. money, the U.N. development agency paid for commission salaries, helped contract out services and was supposed to train the commission to carry out its election responsibilities independently.
But the audit found that the development agency project was "not well managed" and contained several "weaknesses."
Auditors found that the U.N. development agency had sent more than $7 million to the elections commission -- including cash payments to temporary staff -- without proof of expenditures.
The commission also failed to send any financial reports to the U.N. between September 2008 and June 2009, despite a requirement for monthly statements. The U.N. sent $9 million in total to the commission without ever receiving a financial report, the audit said.
The auditors made no findings as to whether the money that flowed to the commission was implicated in the fraudulent vote counting. Auditors said that they had hired an outside audit firm to conduct a more detailed review.
Harry Edwards, a spokesman for USAID, said the agency had not seen the audits and could not comment.
Galbraith cautioned against drawing conclusions as to whether U.N. oversight of financial issues played a significant role in the voting fraud. He blamed Kai Eide, the Norwegian diplomat who is the senior U.N. official in Afghanistan and his former boss, as well as himself, for not flagging problems with the commission earlier. Eide has denied any effort to cover up evidence of fraud in the elections process.
"The flaw was not a management flaw," Galbraith said. "It was a political flaw to put all this money into an institution that was not as advertised. It was a political judgment not to say, 'if you want us to pay for these elections, then we insist you do them in this way.'"
One former U.N. official with knowledge of the elections process said that the allegations of financial mismanagement were not surprising. The official, who did not want to be named because of the sensitivity of the topic, said that neither the U.N. nor the elections commission had a well-developed accounting program.
The commission "had no control over their financial management side," the U.N. official said. "It was chaotic. There was no outside oversight."
Instead, this official said that senior U.N. and U.S. diplomats pushed for the U.N. development agency to "deliver" the election by working with the elections commission -- despite warnings that the commission was not truly independent.
"Nobody was paying attention. Nobody wanted to do anything about" the problems at the election commission, the official said.
The draft audits are the latest sign of problems with U.N. oversight of U.S. money in Afghanistan. Last year, the USAID inspector general issued a report charging that the U.N. had failed to complete U.S.-funded rebuilding projects and stonewalled an investigation into the $25.6 million program. USAID's inspector general continues to investigate Gary K. Helseth, who headed the U.N. Office for Project Services between 2003 and 2006, in connection with the rebuilding program, a spokeswoman said. Helseth's attorney did not return a request for comment.
The U.N. audits, however, also criticized the work of USAID's inspector general. The USAID report, for instance, contained allegations that Mark Oviatt, the senior UNOPS official who replaced Helseth, had used USAID money to renovate a guest house for himself. Instead, the audit found that the U.N. had paid $35,000 out of its own pocket to conduct the renovation. Oviatt declined comment.
The U.N. audits also chastised the inspector general's report for attempting to shirk USAID's responsibility for problems with the development projects.
Donna Dinkler, a spokeswoman for USAID's inspector general, said, "They can say what they want, but we stand by our findings."