Saturday, January 20, 2007

Is another UN scandal brewing?

It looks that way if you believe an article in yesterday's Wall Street Journal about the UN Development Program (UNDP) in North Korea. The article claims to be based on an exchange of letters between the US and UN as well as previously undisclosed documents. It sounds to me as the Journal report is probably fairly accurate.

Here's what our Ambassador of the US Mission to the UN, Mark Wallace, wrote about the UNDP program in North Korea, it "has for years operated in blatant violation of UN rules, served as a steady and large source of hard currency and other resources for the DPRK government with minimal or no assurance that UNDP funds and resources are utilized for legitimate development activities."

What are some activities UNDP money and resources have been used for?
  • Paying the government in cash the salaries of UNDP employees selected by the government and about whom the UNDP knows virtually nothing.
  • Paying government vendors in cash. By 'cash' I don't mean checks. I mean greenbacks or whatever hard currencky North Korea will accept.
  • Project audits performed by government employees, whose efforts they are themselves auditing.
And then the head of UNDP refused to provide copies of internal audits as they are confidential.

It certainly smells fishy.

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