Inner City Press: Investigative Reporting from the United Nations

As Killing of Those Seeking to Surrender in Sri Lanka Is Alleged, Will UN Investigate?

By Matthew Russell Lee

UNITED NATIONS, December 14 -- In the final days in Sri Lanka of what even the UN called the bloodbath on the beach, there were reports that when some in the Liberation Tigers of Tamil Eelam sought to surrender with white flags, they were killed by the Army. The UN's Vijay Nambiar, it was reported, had urged the LTTE officials to come out waving white flags.

Now, General Sarath Fonseka has confirmed that Gotabhaya Rajapaksa, presidential brother and Defense Secretary, ordered his forced to execute even those seeking to surrender, in violation of the Geneva Conventions.

Months ago the UN Secretary General Ban Ki-moon, who has met with all three Rajapaksa brothers, spoke vaguely about an independent international inquiry into war crimes in Sri Lanka. While he seemed to count on the Rajapaksas to credibly investigate themselves, this has not happened.

Even since killing of tens of thousands of civilians in Sri Lanka in the first five months of this year, Ban has sent a group of UN investigators to Guinea to probe the killing of 157 civilians there.

While his excuse for the seeming double standard is that neighboring African states requested the Guinea inquiry, can the UN accept that human rights only matter if the neighbors say so? Watch this site.

UN's Ban and Mahinda Rajapaksa, brother Gotabhaya off camera to right

Footnote: the North Korean cargo airplane found full of weapons in Bangkok, in violation of UN sanctions, reported had a Sri Lankan connection. Will the UN remain silent about this, too? Ban Ki-moon was asked about the North Korean plane during his end of the year press conference on Monday -- the questions above were not allowed -- and Ban said it is up to the Security Council. And so the buck passing continues.

Ban Blurs UN's Role in Congo War Crimes, Heads to Copenhagen, Lessons UN-Learned

By Matthew Russell Lee

UNITED NATIONS, December 14 -- In a bland but disjointed end of the year press conference on Monday, the UN's Ban Ki-moon was asked to summarize his accomplishments since his election as Secretary General in 2006. He responded with litany of UN buzzwords -- food security, gender entity, Millennium Development Goals -- and admitted that there are "regional conflict issues not yet resolved."

That is an understatement. Less than an hour before Mr. Ban's press conference, three officials of Human Rights Watch detailed how the UN Mission in the Congo is becoming "implicated in violations of the laws of war" by providing logistical support to units of the Congolese Army found to have raped and murdered civilians.

Ban read from a prepared statement on this, mischaracterizing a memo by his own Office of Legal Affairs which Inner City Press put online yesterday, here. Ban argued that OLA advised suspending assistance to particular units and the Congo Mission, MONUC, did so. But OLA suggested suspending assistance to entire operations, and criticized MONUC for not have a policy from the beginning.

An earlier OLA memo from April, which Inner City Press will now put online here, told MONUC to either lead operations to minimize rights violations, or not work with the Congolese Army at all. Perhaps Ban was misinformed about the memos. Perhaps he has not and will not hear the reports of the UN's assistance to the Congolese Army being diverted and resold in Goma.

Inner City Press, having questioned the HRW officials and been the first to publish the OLA memos, was prepared to ask Ban about them. But Ban's new Spokesman Martin Nesirky never called on Inner City Press, even after a request to follow up.

Instead, the press conference's mere 13 questions included fully three about Western Sahara -- all yielding the same banal answer -- and several about climate change. Surprisingly, since this has become his main issue, Ban did not have anything ready when asked what proposals he is taking to Copenhagen. He said it is up to member states, he is merely a bridge. A bridge to where?

UN's Ban and bully pulpit, straight talk in war crimes not shown, questions not taken

In Denmark he will "launch" a report by a group of businessmen including Carlos Slim Helu and a company, Vattenfell, which impermissibly uses its position in the UN to promote itself.

Beyond the Congo, and the failure of Ban's purported reform of the UN's contract system, Inner City Press intended to ask why the investigation of Congo mission chief Alan Doss' presumptive nepotism, urging UNDP to show him "leeway" and give his daughter a job, has now dragged on for five months. Also, this question about Sri Lanka: "General Fonskea has said that Gotabaya Rajapaksa, the president's brother, ordered that surrendering LTTE commanders be killed. Since you've met with Gotabya Rajapaksa, what's your response, and why have you not moved for an inquiry or investigation of war crimes in Sri Lanka?"

The question was not allowed. With the UN implicated in war crimes, pablum answers to pre-selected questions are doled out in a nearly empty room. The climate may be changing, but this UN is not.

UN Violates Law in Congo, Leaked UN Legal Memo Shows, Doss on Grill in NY

By Matthew Russell Lee

UNITED NATIONS, December 13 -- What are the consequences if the UN violates international law, as defined by the UN's own Office of Legal Affairs? The question is now squarely raise by an October 2009 memorandum to the UN Mission in the Congo (MONUC) from chief UN legal office Patricia O'Brien, obtained by Inner City Press and published online here.

In the October 12 memo, marked "Priority Confidential" and addressed to top UN peacekeeper Alain Le Roy, MONUC's policies for providing assistance to the Congolese army (FARDC) are found to violate international law. Specifically, MONUC's policies, then and now, do not provide for suspending assistance to operations of the FARDC in which laws are violated, but rather only partial suspension to particular units.

OLA notes that MONUC, even in the cases (so far only one) in which is suspends assistance to a particular unit, might just increase support to other units in the operation. Before publishing this memo, Inner City Press asked UN Spokesman Martin Nesirky for an answer, and received a three paragraph UN Peacekeeping response which does not even address OLA's critique of the lack of a policy for initiating support to an FARDC operation.

The UN's own Special Rapporteur on extra judicial execution Philip Alston has noted that MONUC worked with - and continues to work with - units under Colonel Zimulinda, which he charges with murder and mass rape.

These decisions are made by the chief of MONUC Alan Doss, embroiled since the summer in a nepotism scandal in which as exposed by Inner City Press he asked the UN Development Program to show him "leeway" and give his daughter a job, in violation of applicable rules.

Doss is scheduled to be in New York from December 14 on, to brief the Council -- but perhaps hide from the Press -- on December 16. In the interim there will be press conferences about among other things MONUC's violations of international law under Doss' tenure. Watch this site.

In Congo, UN's Doss under fire, legal violations not shown

As noted, Inner City Press before publishing this October 2009 OLA memo asked the UN about reports its own Office of Legal Affairs advised MONUC not to work with units of the Congolese army involved in these and other crimes. The response:

Subj: your question on the DRC
From: unspokesperson-donotreply [at] un.org
To: Inner City Press
Sent: 12/10/2009 1:33:20 P.M. Eastern Standard Time

I. The tasks carried out by MONUC are determined by the Security Council. The mission has a mandate to provide support to the Congolese Armed Forces (FARDC) in disarming illegal armed groups while protecting the civilian population. MONUC continues to give the highest priority to protection of civilians.

II. In furtherance of this mandate, MONUC and DPKO requested advice from the Office of Legal Affairs regarding the conditions governing their collaboration with the FARDC. In full transparency, the Secretariat and the Mission advised the Security Council of the risks involved and potential consequences of cooperating with the FARDC. The Security Council has repeatedly expressed their unanimous support for MONUC and for the joint operations with the FARDC against the FDLR, with full respect for International Humanitarian, Human Rights and Refugee Law.

III. After extensive consultations between the Secretariat the Mission and OLA, a policy was developed, setting out the conditions under which the Mission would support FARDC. This policy was transmitted to the DRC Government in November. It specifies that all MONUC participation in FARDC operations must be jointly planned and must respect international humanitarian law, human rights and refugee law. The policy also includes measures designed to improve FARDC performance as well as to prevent and sanctioning violations. This 'conditionality' provision is why the Mission suspended support to a specific FARDC unit believed to have been involved in the targeted killing of civilians in the Lukweti area of North Kivu.

But this response does not address the October 2009 memo, which says that MONUC should have had a policy before begin to support FARDC operations, and should suspend assistance to entire operations, rather that particular unit. Watch this site.

* * *

IMF Studies Congo Deals by India and China, Quid Pro Quo by Canada at Paris Club on Mining, UN's Kivu Spin

By Matthew Russell Lee

UNITED NATIONS, December 11 -- The Congo battles for and is embattled by its natural resources, the International Monetary Fund made plain on Friday, perhaps inadvertently. During a press conference call explaining the IMF's $550 million facility to the Democratic Republic of the Congo, the IMF's Brian Ames put the DRC's external debt at $13 billion.

Inner City Press asked about new debts to China and prospectively India, about conflict and mining in the East, and Canada's use in the Paris Club of debt relief to strong-arm for two of its mining firm.

Ames, who traveled to Kinshasa to negotiate about what he called the "China deal," described how with IMF pressure the deal decreased in size from $9 billion to $6.2 billion, with "only" $3 billion guaranteed by the Congolese government.

Even this guarantee, he emphasized, could only become due in 25 years. Still, the IMF urged the restructuring of the China deal. Inner City Press asked about a newly reported loan proposal by India to the Congo, for $263 million.

Ames said that was just an announcement, when Congolese officials were in India. To Inner City Press, a connection with the Congo's loud demand that Indian peacekeepers leave the UN Mission in the Congo, MONUC, is inescapable. India is paid by the UN and makes money on these peacekeepers. How does this sum relate to whatever concessional rates India will offer to the Congo?

Inner City Press asked what the IMF thinks of Canada's delay of a Paris Club vote on debt relief to the Congo based on contracts canceled to Canadian mining firms. Ames agreed that this had happened, saying it was really about 1st Quantum. But what about Toronto-based Lundin Mining, whose 24% stake in the Tenke Fungurume mine and its $1.8 billion contract are being "re-negotiated"?

After Ames said that Canada had, after a week's delay in November, agreed on a conference call to go forward with debt relief, Inner City Press him if 1st Quantum's contract was restored. No, he answered, but the Congolese government, which already won a round of litigation in its own courts, has agreed to international arbitration.

Congo's Kabila and China's Hu Jintao, Indian UN peacekeepers and IMF and Canadian pressure not shown

Ames' colleague, whom Ames instructed to "earn his paycheck," added the 1st Quantum has other mines in the Congo, that the dispute involves only one mine. Yes, but that is the $553 million Kolwezi copper and cobalt project.

Inner City Press asked if the IMF has concerns, similar to those evidence on the China deal, about the prospects of an Indian infrastructure loan. It is just a proposal, Ames said, adding that it would be for two hydro electric projects and one water project. Actually, the third would be $50 million towards the rehabilitation of the rail system in Kinshasa.

When Inner City Press asked about reports, including by the UN's Group of Experts, of illegal mining in the Kivus, Ames said that since this revenue stream has yet to go to the government, its diversion does not have an impact and is not considered. Actually, the UN Group's report shows that units of the Congolese army are involved in the illegal mining.

Inner City Press asked the UN about reports its own Office of Legal Affairs advised MONUC not to work with units of the Congolese army involved in these and other crimes. The response:

Subj: your question on the DRC
From: unspokesperson-donotreply [at] un.org
To: Inner City Press
Sent: 12/10/2009 1:33:20 P.M. Eastern Standard Time

Let's remember that the IMF is ostensibly part of the UN system. We will continue to follow this -- watch this site.

* * *

IMF Murky on Angola's Oil, Bond and China Deals, Doles Out $1.4 Billion

By Matthew Russell Lee

UNITED NATIONS, November 25 -- Days after announcing a $1.4 billion arrangement with Angola, the International Monetary Fund held a press conference call to offer explanations. At the end, things were murkier than before. Inner City Press asked if the IMF had been able to fully assess the income and distribution of revenue from the state owned oil company Sonangol.

The IMF's Lamine Leigh, who led the Fund's missions to Angola in August and September, replied that "in the context of our negotiations, Sonangol participated fairly well." Inner City Press asked, since Sonangol has accounts in off shore financial centers and tax havens, if the IMF had gotten to the bottom of these accounts.

After a long pause, Lamine Leigh proffered another answer, that the government has "committed to steps in the more general area of resource revenue transparency." But what about the Sonangol accounts?

Oil in Angola, Sonangol's accounts not shown

Inner City Press asked about the statement by IMF Deputy Managing Director and Acting Chair Takatoshi Kato that in Angola "measures will be taken to strengthen further the regulatory and supervisory framework." The IMF's Senior Advisor on Africa Sean Nolan replied that the IMF analyzed the effect of the exchange rate on borrowers and "on the banks."

In fact, Angola's government has gotten billions in pre-export oil loans from, for example, BNP Paribas, Standard Chartered and Deutsche Bank. The latter has made similar loans in Turkmenistan, assailed by transparency and human rights advocates. How much of the IMF's new arrangement benefits these banks?

In fact, the questioner after Inner City Press, cutting off follow up, was from Standard Bank. Other than Inner City Press, the only other media questioner was from Reuters.

Before the call ended, Inner City Press was able to ask about Angola's reported $4 billion bond sale planned for December. Sean Nolan said that the IMF's "understanding" with Angola does involve a "fundraising effort," but that the timing was not agreed to, the IMF does not "micromanage" to that extent. Nolan added that there is an agreement on an "overall limit."

"Is it four billion dollars?" Inner City Press asked.

Nolan replied that the precise limit will be "clear in the documents," which have yet to be released. Why play hide the ball?

Nolan praised the country for "appointing reputable financial and legal advisers for the transaction" -- JPMorgan Chase will be the manager.

Nolan continued that the actual size of the bond sale will depend on how much "concessionary lending" Angola gets from "countries with a strong record of financial support to Angola."

Inner City Press asked if the size of China's loans to Angola -- China gets 16% of its foreign oil from Angola -- were known by the IMF or considered.

"That hasn't figured in our discussions," the IMF's Nolan responded. Why not? Watch this site.

* * *

IMF's Report Buries Its Icesave Conditionality, Enforcer's Duplicity?

By Matthew Russell Lee

UNITED NATIONS, November 3 -- While the IMF has acknowledged that its second round of disbursements to crisis-hit Iceland was delayed for months by the country's failure to placate those in the Netherlands and UK who did business with IceSave, the IMF's just released report on Iceland buries the issue on page 30 of the 98 page report. The IMF states that

"[t]he terms and conditions of Nordic loans, amounting to $2.5 billion, have been finalized. Their disbursement has been linked to resolution of the Icesave dispute with the U.K. and Netherlands over deposit insurance liabilities. After protracted discussions, the three governments have reached an agreement on this"

Once that agreement was reached, on October 18, the IMF then went forward with a letter of intent and memorandum of understanding for the second tranche of financing. But, as with the IMF's moves in Latvia for Swedish banks, some see the Fund operating as an enforcement or collections agent for creditors who even less would like to show their hand.

Iceland / Icesave protest, but is the heartfelt sign true?

Since the IMF does not like to admit or reveal its degree of control over the countries it lends to, the de facto conditions for loans, such as paying off on IceSave, are often not explicit in what purport to be full agreements containing all express and implied terms.

In fact, the IMF has claimed that it "no longer" engages in conditionality. But the Iceland report has an entire chart about conditionalities. It's just that the most important one was left unsaid. Is this diplomacy or duplicity?

The IMF's Iceland report continues, about other loan requests including from Russia:

"A loan from the Faroe Islands ($50 million) has already disbursed, and a loan from Poland has been agreed ($200 million), and will disburse alongside the next 3 program reviews. A $500 million loan originally committed by Russia is no longer expected, but the $250 million in over-financing in the original program, an expected macro-stabilization loan from the EU ($150 million), and use of an existing repo facility with the BIS ($700 million, of which $214 million is outstanding) will more than offset this."

Offset may be the right word. Last year, in the midst of Iceland's abortive run for a seat on the UN Security Council, the country announced it had to seek a $4 billion loan from Russia. It was after that that the IMF loan commitment was made -- an "offset," some saw it -- and after talks in Istanbul, on October 15 the already whittled down loan request to Russia was formally rejected.

Then the deal with the UK and Netherlands, and the IMF's releasing. While the IMF calls these types of moves only technical, others call them power politics. Watch this site.

* * *

IMF Plays Ukraine, Zim and Pakistan As "Technical" Questions, Pushes Tax Hikes in Serbia

By Matthew Russell Lee

UNITED NATIONS, October 22 -- Are the International Monetary Fund's negotiations with countries about the level of taxes and salaries for public sector employees, the pricing of electricity and the privatization of social services political, or merely "economic and technical"? The questions arose Thursday in connection with Ukraine, Zimbabwe and Pakistan, among others, in the IMF's first press briefing since its annual meeting in Turkey.

IMF spokesperson Caroline Atkinson fielded questions for half an hour, leaving unanswered one submitted by Inner City Press about Serbia, where the IMF's Paul Thompson has been quoted that "if the Serbian delegation has a concrete pan for decreasing expenses, we will support it, if not, they will have to agree with us and think about increasing taxes." Left unanswered: how is raising taxes merely "technical"?

Ms. Atkinson did respond to Inner City Press' questions about Ukraine, Zimbabwe and Pakistan. While a full transcript is available online here, and video here, in sum the Q & A went as follows:

Inner City Press asked, In Ukraine, the opposition party is critical of the IMF as funding the campaign of Tymoshenko. What is the IMF's response to the opposition's criticism? Ms. Atkinson replied that IMF funds go to the central bank, and that the IMF has a team on the ground in Kiev for a third review.

The opposition was not, it seems, saying that money from the IMF is being used by Tymoshenko for advertisements or to pay poll workers, but rather "MP and opposition government's finance minister, Mykola Azarov, said this at a meeting with delegates of an IMF mission, 'We must say that the program of cooperation with the IMF has turned out to be ineffective, and nothing is left but to consider the IMF's assistance as politically motivated, as funding of one of the candidates running for the presidency.'"

When another reporter asked a follow up question about Ukraine, wondering if with the IMF mission on the ground, the upcoming election "is an issue," Ms. Atkinson said the IMF does not comment while a mission is in the field, negotiating a program, but that information -- and one hopes some questions and answers -- will be provided once the mission is completed

IMF points the way, in budgets... and politics?

On Zimbabwe, Inner City Press asked, "NGOs are critical of the IMF for, they say, pushing Zimbabwe to privatize its social services system. Has the IMF pushed for that, and how does it respond to the criticism?" Ms. Aktinson, while saying she can get back to Inner City Press with more information, argued that the IMF does not favor or disfavor particular privatizations, but must be pushing to strengthen the social service sector to help the poor.

But speaking just ahead of civil society's consultative meeting with an IMF team under Article IV of the Fund's Articles of Agreement, NANGO said "'we are opposed to some IMF polices such as privatization of basic social services. We know it from the past that some IMF policies have worked against people in this country. They have affected the social services sector and their polices are anti-people and negative'... [NANGO] said some of the IMF instigated polices which had brought suffering to the people were the Economic Structural Adjustment Programme (ESAP) and Zimbabwe Programme for Economic and Social Transformation (ZIMPREST)." It's a pretty specific critique, and we'll publish the IMF's response upon receipt.

Following up on Inner City Press' questions and article from August 2009, it asked "in Pakistan, the IMF in August extended for a year the country's time to eliminate electricity subsidies. Now, while the IMF says 2 price increases will be implemented, others say this is not possible politically. What is the IMF's thinking on consumer power pricing in Pakistan?"

Ms. Aktinson replied that "as I believe you know, the issue of issue of electric subsidy is typically done by the World Bank and Asian Development Bank," that IMF gets involved due to the budget."we will be having another review of the Pakistan program in early November." We'll be there....

* * *

On Food Speculation, UN's Expert Says Nothing's Being Done, S. Korean Land Grabs from Madagascar to Sudan, Brazil on Ethanol

By Matthew Russell Lee

UNITED NATIONS, October 21 -- After many speeches at the UN about the need to crack down on financial speculation in food, nothing has been done, the UN's expert on the right to food told Inner City Press on Wednesday.

Olivier de Schutter, a Belgian law professor just back from a visit to Brazil about, among other things, the loss of land for food to ethanol, replied that "nothing is moving at the inter-governmental level." This despite a statement by the G-20 in April favoring the regulation of hedge funds which present systemic risk. The argument is that commodities index funds which speculate in food present systemic risk to net food importing countries. But nothing has been done.

De Schutter spoke about the monopolization of the seed industry, and made a slew of recommendations for governments. The three top monopolizers -- Monsanto, Dupont and the Swiss-based Syngenta -- are all members of the UN Global Compact, and claim to comply with human rights. De Schutter pointed out the antitrust law is directed as national and not global or subnational markets. It is all very heady but one wonders what effect it has.

Brazil might be one of de Schutter's claims to impact. He spoke glowingly of President Lula, saying that Brazil has said that only 19% of land can be used for sugar cane for ethanol, and has committed to monitor labor rights. But what about, for example, Indonesia and Malaysia?

De Schutter, action on food speculation not shown

After De Schutter's briefing, Inner City Press asked his staffer for an update on the proposed land grab in Madagascar by South Korea based Daewoo, which was reputed after the coup in that country. De Schutter had been scheduled to visit, but it was put off by the coup. The same thing happened in Honduras. So perhaps De Schutter does have an effect after all, mused one wag.

Footnote: immediately after De Schutter's briefing, the UN's Haile Menkerios was scheduled to speak to the Press about Madagascar. While the UN usually compartmentalizes its work such that a rapporteur looks at land grabs, while the Secretariat remains on "political affairs" narrowly defined, this land grab played a role in the change of government. Now it's said the South Korean deal is being pursued from India, while South Korea appears to have moved on to 690,000 hectares in Sudan. Watch this site.

These reports are usually also available through Google News and on Lexis-Nexis.

Click here for a Reuters AlertNet piece by this correspondent about Uganda's Lord's Resistance Army. Click here for an earlier Reuters AlertNet piece about the Somali National Reconciliation Congress, and the UN's $200,000 contribution from an undefined trust fund. Video Analysis here

Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.

Inner City Press -- Investigative Reporting From the Inner City to Wall Street to the United Nations