In
Sudan,
Exchange Rate
Scam Alleged
in UN Staff
Dollars to
Bank of
Khartoum
By
Matthew
Russell Lee,
Exclusive
UNITED
NATIONS,
January 5 –
With the UN
having
belatedly moved
to stand up to
pressure from
the Sudanese
government of
Omar
al Bashir, who
has ordered UN
officials
Yvonne Helle
and Ali
Al-Za'tari
to leave the
country, Inner
City Press has
reported on a
way in which
the UN
transferred
the U.S.
dollars of UN
national staff
in Sudan to
the Bank of
Khartoum.
Inner City
Press has
exclusively
published a letter from the
UN Federal
Credit Union
claiming the
transfer was
related to UN
sanctions,
and an opinion
from the US
Office of
Financial
Assets Control
which says
that is not
the case.
Inner City
Press
questions to
the UN and its
agencies were
by then
pending for
days.
On December
30, the day it
was belatedly
received,
Inner City
Press
published a
response from
the UN and the
UN Development
Program,
below.
Since then,
Inner City
Press has obtained
a series of
e-mails from
UN whistleblowers
to UNDP about
the transfer
to the Bank of
Khartoum, as
well as UNDP's
responses.
On November
28, Sudan
whistleblowers
wrote to
UNDP's hotline
that under an
arrangement
with Bank of
Khartoum (BoK)
would become
the recipient
of all UN
local staff
salaries in US
dollars while
it would be
paying their
salaries in
local currency
using the UN
exchange rate
around 5.99
SDG.
The
bank of
Khartoum will
be benefiting
from the
difference
between the UN
exchange rate
and The
Central Bank
of Sudan rate
for commercial
importers of
8.47 SDG (BoK
USD selling
rate for
businessmen).
The net profit
per each US
dollar
channeled to
Bank of
Khartoum is approximately
2.47 SDG.
There were
additional
charges in the
whistleblowers'
communications
to UNDP, including
about how Bank
of Khartoum
was chosen
(this is not
addressed in
the UN's and
UNDP's
response to
Inner City
Press, below.)
UNDP's response
to the
whistleblowers
was to ask for
identifying
information
about the
whistleblowers,
and then to
blandly state
that it is not
uncommon in
areas such as
Sudan, to make
similar
arrangements
with Banks to
pay the salary
of local
staff."
But what about
the obvious
exchange rate
loss? It is
reminiscent of
another UN
scam Inner
City Press exclusively
uncovered,
the
overpayment of
Myanmar by
inflated
foreign
exchange rate
in the wake of
Cyclone
Nargis.
And what about
the losses to
UN system
staff set forth
in their
complaint to
Al Za'tari,
which Inner
City Press exclusively
published here?
On
December 30,
Inner City
Press wrote to
UN
spokespeople
again:
"This
is a request
that Deputy SG
Eliasson or
someone else
from the
Secretariat
hold a press
availability
on Sudan's
decision to
expel Yvonne
Helle (which I
asked about at
the December
24 noon
briefing) and
Ali
Al-Za'tari.. A
media
availability
by the
Secretariat,
ideally the
DSG but
another if
necessary,
later this
afternoon is
being
requested,
including on
behalf of the
Free UN
Coalition for
Access. Either
way, am
awaiting
Secretariat
response on
why UN
national staff
members' US
dollar
accounts in
UNFCU were
transferred to
the Bank of
Khartoum, and
why the UN
Secretariat
said nothing
publicly when
the Country
Director of
UNFPA was
expelled from
Sudan in
April."
This last
question,
about the UN's
silence on the
UNFPA ouster
in April, has
yet to be
answered. But
on UNFCU, the
UN Office of
the
Spokesperson
sent this,
which we
publish in
full:
"There
has been a
restriction on
the cashing of
foreign checks
by Sudanese
national
staff.
At the same
time, the Bank
of Khartoum
has put on
hold all
foreign check
cashing by all
staff in
Sudan.
Since this
decision was
taken in
November 2014,
UNDP has
been working
with UNFCU to
find an
acceptable
solution.
"UNDP would
like to
further
clarify that
the issue is
unrelated
to the
requested
departure by
the Sudan
government of
the
United
Nations
Resident
Coordinator
and
Humanitarian
Coordinator,
and Resident
Representative
of the United
Nations
Development
Progamme
(UNDP) and
the
UNDP
Country
Director. UNDP
is
coordinating
with the UN
and with the
Government of
Sudan to
address the
situation.
UNDP remains
strongly
committed to
the human
development,
peace
and
security of
all the
citizens of
Sudan."
Again, see UNFCU's letter,
here, and
OFAC's
reply to UN
staff, here.
We'll have
more on this.
In the first
document Inner
City Press
exclusively
published, here,
UNFCU's
President and
CEO William
Predmore told
national staff
in Sudan that
"We
understand the
concerns of
our members
after
necessary
account
restrictions
were implosed,
and we regret
there was not
an opportunity
to deliver
communications
more swiftly
to the
individuals
impacted... As
you may be
aware, UNFCU
is subject to
U.S.
Regulations
(including
those
promulgated by
the Office of
Foreign Assets
Controls
(OFAC)). In
order to
ensure
compliance
with those
regulations,
checking
account
services and
debit card
services were
terminated for
local staff.”
(Many were
stranded with
AMT cards that
didn't work,
while their
dollars were
transferred to
the Bank of
Khartoum.)
But
contrary to
what UNFCU's
Predmore told
staff in
writing, the
US OFAC in the
second
document Inner
City Press is
exclusively
publishing
today, here,
told UN staff
that sanctions
law and
regulation
does NOT
require what
the UN has
done, citing
31 CFR
538.531. Click
here to view
in PDF.
Last week
Inner City
Press exclusively
reported
on the UN
Federal Credit
Union abruptly
telling UN
national staff
in Sudan that
their accounts
were being
frozen and the
dollars in
them
transferred to
the Bank of
Khartoum.
Inner City
Press has asked the UN, including UNDP,
OCHA and UNFPA,
to explain
this.
On December 27
Inner City
Press
exclusively
published a
complaint
filed with Ali
Al-Za'tari
about the
change, here.
Inner City
Press notes
that the
decision to
give the UN
national
staff's
dollars to the
Bank of
Khartoum flies
in the face,
in fact, of
the
sanctions.
The complaint
to Al-Za'tari
states that
“UNFCU
closed
checking and
savings
accounts of
national staff
without prior
notification
and
consultation
and
unilaterally
transferred
all funds of
staff members'
accounts to
local saving
accounts to be
paid in SDG by
Bank of
Khartoum...
Based on the
long years of
established
provision of
the UNFCU
service,
majority of
national staff
have made long
term financial
arrangements
taking into
account UNFCU
deposits
facilities
which provided
solutions to
many of their
problems such
as medical
treatments and
education to
them and their
families.”
Tellingly,
Predmore's
letter to
staff also
says that the
switch was
made pursuant
to UNDP's
rules. What
rules?
Now the UN
Security
Council is set
to meet
on December 30
about Sudan's
order to Ali
Al-Za'tari and
Yvonne Helle
to leave; the
Council will
say they are
in support of
UN staff. What
will they do
about UN staff
members'
dollars having
been given to
the Sudanese
authorities?
In essence,
UNDP and its
Resident
Coordinator
Ali Al-Za'tari
gave Khartoum
the U.S.
dollars of UN
national
staff, without
notice. Even
that wasn't
enough to keep
him in the
country. But
it is
reminiscent of
another UN
scam Inner
City Press exclusively
uncovered,
the
overpayment of
Myanmar by
inflated
foreign
exchange rate
in the wake of
Cyclone
Nargis.
That was covered
and credited
– will this
be? Or does
the scam
here extend
to covering up
the complicity
of UN
officials
like not only
Herve
Ladsous
but even, yes,
Ali
Al-Za'tari,
who remained
silent when
UNFPA's
country
director was
thrown out of
Sudan in
April, and as
Inner City
Press asked
the UN on
December 24,
gave in
quickly to the
ouster of
Yvonne Helle?
Watch this
site.