Inner City Press
Global Inner Cities Report - March 9, 2006
Humanitarian Aid:
From Davos to Darfur, the Numbers Don't Add Up
Byline:
Matthew Russell Lee, Inner City Press U.N. Correspondent
UNITED
NATIONS, March 9 -- Jan Egeland, who for many became a poster boy for the UN in
the aftermath of the December 2004 tsunami, on Thursday launched a major
post-tsunami humanitarian mechanism, the Central Emergency Response Fund or CERF.
The fund's goal is $500 million, to allow for more rapid responses to crises. At
a press briefing at the UN in New York, Mr. Egeland said that so far $256
million has been pledged. He was accompanied by Dr. Keith Mitchell, the prime
minister of Grenada, a nation to which previously-pledged disaster support
"never materialized," according to Dr. Mitchell.
Mr.
Egeland spoke about the Darfur region of Sudan, for which UNHCR had earlier
reduced its budget by 44 percent, citing the ongoing lack of security for its
personnel. One wonders if the reduction is meant to send a message (or be
symbolic, see below) to the African Union meeting on March 10, at which possible
changes to the peacekeeping force in Darfur will be discussed.
Mr. Egeland reported that the 14,000 humanitarian workers in and around Darfur
are now in retreat, and that the situation is not improving, despite the
inclusion of the SLA from South Sudan in the government. (Relatedly, the UN's
Jan Pronk speaking from Paris earlier on March 9 reiterated that in Sudan, oil
revenues are available but the capacity to deliver remains low. Mr. Pronk has
stated he is awaiting from the International Monetary Fund specifics about oil
and revenue in Sudan; Inner City Press submitted this Sudan question in writing
to the IMF at its March 9 briefing but it has yet to be answered.)
At the 3/9/06 briefing Darfur
Whether corporations are or will be involved in the CERF was asked, by Inner
City Press. Mr. Egeland cited the two non (central) governmental contributions
listed in a prior press release: $850,211 from Hyogo Prefecture in Japan, and
$10,000 from the Disaster Resource Network, which Mr. Egeland specified is a
project of the World Economic Forum. The WEF, known for its annual confab in
Davos, lists among its industry partners such financial institutions as
Citigroup, Barclays, Merrill Lynch, Deutsche Bank, UBS and JP Morgan Chase -- at
which, the press release notes, CERF has its bank account. Mr. Egeland specified
that $77 million of the $256 million has been banked, and characterized the
joint $10,000 contribution as "symbolic." (Symbolic of what, wondered one wag.)
Not on
WEF's list of industry partners is the French conglomerate AXA, which as
previously reported has been awarded a $930,000 drought insurance contract by
the UN's World Food Programme. Since Inner City Press' last report, the WFP in
Rome has answered Inner City Press' question
"on why the payout on
the insurance contract from AXA was lower than predicted, the answer is that our
original estimate was based on a premium of US $2 million for an estimated
payout of $20 million. WFP is a voluntarily funded agency, and since we only
received $930,000 in donations for the premium, the best offer (from AXA) was
for a payout of $7.1 million... Potential suppliers register with the UN Global
Market, and are screened by a vendor selection committee according to their
ability to provide the goods/services WFP requires as well as to ensure they
meet UN standards (e.g. they do not produce landmines, do not use child labor
and are not included on the Security Council's list of known terrorist groups,
such as Al-Qaeda/Taliban suspects)."
Inner
City Press is inquiring further into the standards of the UN Global Market; in
the interim,
this
WFP publication, "How
To Do Business With WFP,"
provides some description. We'll have more on these topics; watch this space.
UN Reform: Transparency Later, Not
Now -- At Least Not for AXA - WFP Insurance Contract
Byline: Matthew
Russell Lee, Inner City Press U.N. Correspondent
UNITED NATIONS, March 7 -- A plan for
management reform of the United Nations system was presented Tuesday to the
General Assembly, including a proposal for outsourcing of work and improvement
procurement procedures. A senior UN official who asked not to be named
emphasized that the UN currently spends only $20,000 a year to train its 70
procurement staffers; the proposal would raise that figure to $10,00,000. It's
unclear whether that training would extend to entities like the UN's World Food
Programme, which on March 6 announced a $930,000 contract with the French
financial services company AXA Re, to insure against drought in Ethiopia.
At an on-the-record briefing Tuesday afternoon,
Inner City Press asked how AXA had been selected for this contract. It has been
reported that there were four other bidders, left unnamed. Inner City Press was
referred to WFP's New York based spokesman, who said he didn't know who else bid
for the contract, and said that "if you are suggesting that there's something
inappropriate, you're barking up the wrong tree."
To ask for information about a
near-million dollar contract is not to suggest anything. Among the questions:
while it was initially said that the selected insurer would pay out $15 to $20
million in the event of drought, the AXA contract calls for a $7.1 payment. To
ask for an explanation of the difference is not to cast aspersions. But there is
a climate of paranoia and defensiveness these days at the UN, at least in New
York. Inner City Press immediately emailed written questions to the WFP in Rome
and to Richard Wilcox, the WFP's Business Planning Director, who was asked what
screening procedures the WFP uses in procurement. (As simply one example or
question, AXA founder Claude Bebear and its CEO Henri de Castries have been
caught up in a money laundering investigation, the point being not the outcome
but the WFP's procedures). At press time, only the following was received:
-----Original
Message-----
From: Senior
Public Affairs Officer, World Food Programme
To:
innercitypress.com
Sent: Tue, 7
Mar 2006 20:08:05 +0100
Subject: Re:
Press inquiry
"AXA won the
contract with WFP through a competitive international tender. Five re-insurance
companies bid for the contract, and AXA was chosen on the basis of price and
technical competence. I'm afraid I don't have the details of the other four
bidders, and while we publish the winners of tenders, we don't make the bids
themselves public."
Not even the names of the bidders?
The Secretary General's March 7 reform proposal states, at page 28, that "in May
2006, I shall submit... a detailed policy proposal containing new and clear
rules on public access to United Nations documentation." That will or would be
not a moment too soon.
Also at the UN headquarters on Tuesday,
ex-Knicks player John Starks spoke in advance of a March 15 event scheduled
Madison Square Garden, Dunk Malaria. The sponsor is Hedge Funds Versus Malaria,
whose founder Lance Laifer also spoke, along with the UN's Djibril Diallo
(himself a malaria survivor, from Senegal). When asked by Inner City Press which
hedge funds are involved, Mr. Laifer mentioned several including his own
(Hilltop Partners), and Seneca Capital. He agreed that recruiting the area's
other (more winning) team, the (Bed) Nets, makes sense. A Knicks representative
said that the wider NBA will be involved, and that the NBA wanted to attend but
was focused Tuesday on the first sporting event in New Orleans since Hurricane
Katrina. The press release, reiterated by public address system five minutes
before the event, said Alan Houston would be there. John Starks filled in ably,
even joking that he'd better dunk carefully, given his shooting percentage...
In the Sudanese Crisis, Oil
Revenue Goes Missing, UN Says
Byline: Matthew Russell Lee, Inner
City Press U.N. Correspondent
UNITED NATIONS, Feb. 28 – The UN’s Jan Pronk, briefing reporters on
Tuesday about developments in Sudan, said that his mission is
underfunded and that as regards Sudan’s oil sales, there is no
transparency and little benefit to the Sudanese people. In the North
–South conflict, according to Mr. Pronk, the North claims to have
forwarded $700 million in oil revenues to the South, as a sort of peace
dividend. But the South says the money has not been received. Mr. Pronk
said, “Where is the oil? How much is there? How much is being produced?
What is the reference price?” Mr. Pronk said he is awaiting information
from the International Monetary Fund. “There is no transparency,” he
said.
When
asked by Inner City Press if he could, within the bounds of diplomacy,
provide guidance to countries which are economically engaged with Sudan,
Mr. Pronk declined, limiting his response to the Security Council’s
consideration of a list of responsible individuals (but not
corporations). Unstated at the briefing was the well documented
engagement in Sudanese oil by Security Council member China.
Mr. Pronk
also spoke of Chad, into which the conflict has spread, and where the
government recently reneged on its previous commitments that the revenue
from the Chad-Cameroon oil pipeline, run by ExxonMobil, would be devoted
to social welfare programs. Mr. Pronk stated that Chad is blocking
action on cease-fire and other issues in the Abuja process.
Mr. Pronk
referred several times to Al Qaeda. On the one hand he stated that a
force from the UN, rather than NATO, would be less likely to “set off a
jihad.” On the other hand he referred to death threats in letters – not
against him, he said, but unnamed others. This is based on intelligence,
he said.
Interviewed after the briefing by Inner City Press, Mr. Pronk elaborated
on his earlier comment that NATO has “boots on the ground” in Darfur.
Asked about press reports that NATO has been providing air support to
the African Union force in Darfur, Mr. Pronk shook his head. “They have
a few helicopters,” he said. “But nothing more than that.”
Logistically, while Mr. Pronk had planned to meet with the African
Union at a meeting about Darfur on March 3, that meeting has been
postponed for a week. Mr. Pronk will be in Paris on that day at what he
called “his” Consortium meeting, but said that “we” will be represented
at the Feb. 10 AU meeting. We’ll see…
Other Inner City Press
reports are archived on
www.InnerCityPress.org -
In Locked Down
Iraq, Oil Flows Unmetered While Questions Run in Circles
What is the Sound
of Eleven Uzbeks Disappearing? A Lack of Seats in Tashkent, a Turf War
at UN
Kosovo: Of
Collective Punishment and Electricity; Lights Out on Privatization of
Ferronikeli Mines
Abkhazia:
Cleansing and (Money) Laundering, Says Georgia, Even Terror’s Haven
Post-Tsunami
Human Rights Abuses, including by UNDP in the Maldives
Halliburton
Repays $9 Million, While Iraq’s Oil Remains Unmetered
Darfur on the
Margins: Slovenia’s President Drnovsek’s Quixotic Call for Action
Ignored
Who Pays for the
Global Bird Flu Fight? Not the Corporations, So Far - UN
Citigroup
Dissembles at United Nations Environmental Conference
Other Inner City Press
reports are archived on
www.InnerCityPress.org -
For reporting about banks, predatory
lending, consumer protection, money laundering, mergers or the Community Reinvestment Act (CRA), click
here for Inner
City Press's
weekly CRA Report.
Inner City Press also reports weekly concerning the
Federal Reserve,
environmental justice,
global inner cities, and more recently
on the United
Nations, where Inner City Press
is accredited media. Follow those links
for more of Inner City Press's reporting, or, click
here
for five ways to
contact us,
with or for more information.
©opyright 2005-2006 Inner City Press, Inc. To request
reprint or other permission, e-contact Editors [at] innercitypress.com - phone: (718) 716-3540