At UNDP, Silence on North Korea Echoed in Zimbabwe, The Gambia and Cambodia

Byline: Matthew Russell Lee of Inner  City Press at the UN: News Analysis

UNITED NATIONS, March 8 -- While the UN and its UN Development Program deny Security Council diplomats' statement that the Kim Jong Il government has refused to allow auditors into North Korea, UNDP is embroiled in lower-profile controversies in Zimbabwe, Cambodia and The Gambia.

            In Zimbabwe, UNDP is once again trying to strong-arm reluctant non-governmental organizations to partner with the Robert Mugabe regime in a human rights commission. Zimbabwe's National Association of Non-Governmental Organizations states clearly that "It is not the UNDP's role to support the government in imposing a human rights commission. Day in and day out the government is attacking us and they can't respect our very existence. There hasn't been an honest broker in place."

            Calling UNDP's tactics bullying, NANGO put out a statement that "several organizations have so far been approached to endorse and support the commission as well as to attend an upcoming meeting and NANGO would like to advise that its position on not attending any consultations on the commission until efforts are made towards meeting pre-conditions, stands."

            This is worse than bad judgment on UNDP's part. As a dispenser of funds, to approach NGOs and urge them to participate in a Mugabe-sponsored human rights commission is, to some, tantamount to using UN money to try to make a dictator look better. Wouldn't be the first time...

North Korea, from a now-abandoned UN site

            Regarding North Korea, UNDP has still not answered written questions put to its senior officials including Kemal Dervis regarding its use of funds and trust funds, and how its supposed suspension of operations in North Korea is related to the "urgent audit" Ban Ki-moon called for in January. On Thursday, Inner City Press asked Ban Ki-moon's spokesperson about Security Council diplomats' statements that auditors have been barred from North Korea, and about the gap between Ban Ki-moon's February 28 letter, only announced on March 6. From the transcript:

Inner City Press: ... heard yesterday late from Security Council diplomats that North Korea has denied or has indicated it will deny visas to auditors, so I'm wondering, it's unclear to me if the letter was written, the letter that you spoke about was dated 28 February, and it was announced here 6 March. Was this after a denial of visas? Was this in anticipation of this coming up? Have visas been denied?  What's the status of the auditors getting in?

Spokesperson:  As far as I know, the UN has not been officially informed of any visa being denied.

Inner City Press: Not to say there's anything behind it, but what was this gap in the letter being dated 28 February and the decision to announce it here 6 March? What was the thinking behind that?

Spokesperson:  There was nothing particular behind it.

            Meanwhile, an excuse has been proffered for South Korean Ambassador Oh Joon's failure to answer the questions referred to him by Ban Ki-moon's spokesperson's office: Amb. Oh focuses on disarmament, and his colleague who covers economic and social matters has been called back to South Korea. When will he be back? Not in the foreseeable future. Conveniently, no arrangement have been made for answers until he returns to New York...

            Inner City Press also asked the spokesperson about the UN's role in the Extraordinary Chambers in the Courts of Cambodia (ECCC) Review Committee. The UN made a partial announcement about the process. Without even mentioning UNDP -- which has had to audit reported kickbacks to the Cambodian government in exchange for jobs with the Court -- Inner City Press asked about reports that Cambodia is seeking to charge international lawyers up to $2000 to be able to practice law in Cambodia in connection with the proceedings. From the transcript:

Question:  It's reported that Cambodia wants to charge $2,000 for every international lawyer that comes to represent either defendants or participate in it -- that's one of the sticking points. It hasn't really -- it's been said, but it hasn’t been written -- what are the sticking points that the UN is trying to resolve?

Spokesperson:  We can ask the Legal Office for you what the major points are.

            Later on Thursday, the spokesperson's office provide a copy of Michelle Lee's opening statement in Phnom Penh, and a statement that:

"At the previous Plenary session, held in November 2006, disagreements over how to incorporate international standards and Cambodian law made it impossible to adopt the draft internal rules as had been planned. Since that time, an ECCC review committee made up of national and international judges has been attempting to find common ground while maintaining international standards. The meeting is scheduled to conclude on 16 March, at which time it is hoped a date for the next full Plenary, and for the official adoption of the courts internal rules can be announced."

            Ban Ki-moon spokesperson's office added that "it is a closed door process so not sure there will be more for the moment." We'll be waiting.

            We're still waiting to hear anything, from UNDP or Ban Ki-moon's spokesperson's office, about the Resident Representative expelled from The Gambia. Inner City Press, after asking for an interview and being told none are being given, asked for an statement on what the UN and / or UNDP will do. Still no information has been provided. This is transparency? And where, in terms of holding a press conference -- 77 days and several controversies now, and counting -- is Kemal Dervis? To be continued.

    Again, because a number of Inner City Press' UNDP sources go out of their way to express commitment to serving the poor, and while it should be unnecessary, Inner City Press is compelled to conclude this installment in a necessarily-ongoing series by saluting the stated goals of UNDP and many of its staff. Keep those cards, letters and emails coming, and phone calls too, we apologize for any phone tag, but please continue trying, and keep the information flowing.

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At UNDP in N. Korea, March Payments Made, Auditors Excluded, Reports Forgotten

Byline: Matthew Russell Lee of Inner City Press at the UN: News Analysis

UNITED NATIONS, March 7 -- In the wake of the UN Development Program's ostensible suspension of its operation in North Korea on March 2, questions are building up about what the suspension in fact means. On Wednesday evening, a Security Council diplomat told Inner City Press that the Kim Jong Il government "refused to allow the auditors into the country." While this diplomat went on to claim that an audit could be performed from New York, based only on UNDP-provided records, it seems obvious that any credible audit would require access to the end-use of the funds, in North Korea.

            UNDP pays its staff in North Korea in advance, at the beginning of the month, and it is said that despite the statement of suspension, the March payments have already been made, and that UNDP will continue to make payments to the North Korean government, on behalf of other UN-affiliated agencies (and perhaps also the trust funds).

            In terms of what UN-affiliated agencies have been doing in North Korea, there has been less and less humanitarian work since the September 2005 crackdown on non-governmental and inter-governmental agencies, including UN agencies. The staffing of the World Food Program, for example, fell off dramatically. The question that insiders raise, however, is whether the flow of funds, particularly through the UNDP-administered trust funds, slowed down at all.

            It is becoming clear that Kemal Dervis cannot credibly claim not to have known of irregularities in UNDP's North Korea programs until late 2006. In fact, Resident Representative Timo Pakkala, whom Inner City Press previously reached out to when he was in New York at the Crowne Plaza hotel, filed at least monthly reports to the Office of the Administrator from the moment he arrived in-country in July 2005. These reports can't now disappear -- or can they?

Rising bread in DPRK per UN

            On the question of what will happen to UNDP trust funds related to North Korea, Inner City Press continues to await answers. From the transcript of the noon briefing of Wednesday, March 7:

Inner City Press: On DPRK, yesterday I heard from UNICEF.  They confirmed that they're continuing their operation in North Korea.  They've also said previously that they paid in hard currency and have seconded staff accepted by the North Korean Government.  So, it's still not clear to me on what grounds UNDP is suspending.  Are other UN agencies operating there going to continue?  If they don't meet the conditions, do they continue there?  And who exactly is being audited?  You may have answered this and I’ve seen press accounts saying … is this first round of audits, does it include UNICEF and WFP or not?

Spokesperson:  Not yet.  It started with UNDP, as you know.  And so far, the progress is going on, and as you know, we are dealing with autonomous agencies here.  Each one has their own set of rules, and even though they do agree that this is going to go on, the investigation, not all of this is going to be done at the same time.  And all of the agencies are not going to be going through the process of auditing right now.

Inner City Press: Sorry, since the UNDP's been the payment agent, they've been the one actually paying funds for the other agents.  Although they're saying they're suspending their operations, are they going to continue to pay for other agencies and are there trust funds that they administer that, in fact, hand money to these other agencies?  Are they being suspended?  Or are they continuing?

Spokesperson:  Well, Matthew, I would suggest you direct your question directly to UNDP, okay?

Question:  I did so yesterday.

Spokesperson:  Okay.

Inner City Press: Just a follow-up on that.  A couple of days ago, Monday, David Morrison was saying that nobody from their agency has been moved out of the country yet.  Is that still the case?  And when does the suspension begin?

Spokesperson:  Well, actually I would refer you, as I did right now, to David Morrison.  I cannot answer for them.

Inner City Press: Mr. Dervis... it would be a very timely press conference.

            It gets more timely, and more necessary, by the day. Moving in the other direction, a new waning of interest in real audits of North Korean programs was echoed, in some attendees' view, Wednesday morning at the UN by US envoy Christopher Hill. He was asked if he has spoken with human rights expert Jay Lefkowitz:

Q: Are you talking to Lefkowitz? Have you encouraged the North Koreans to let him in?

Mr. Hill: I look forward to seeing him and finding out what he's up to but no, I haven't been talking to them about that.

            Human rights, it seems, suddenly take a backseat. So too do the audits. A review of the papers already in New York? That's much less than was projected... Developing.

UNDP Stonewalls on Trust Funds for N. Korea, Including S. Korean Money: Unanswered Questions

Byline: Matthew Russell Lee of Inner City Press at the UN: News Analysis

UNITED NATIONS, March 6 -- In light of the UN Development Program's suspension of its operations in North Korea earlier this month, following the January 2007 calls for an urgent audit by UN Secretary General Ban Ki-moon, several simple questions have been asked by Inner City Press.

   How much money did UNDP expend in North Korea, and how much of this came from South Korea, particularly during Mr. Ban's tenure as that country's Minister of Foreign Affairs and Trade?

            Sources tell Inner City Press that there are funds beyond those disclosed by UNDP's Ad Melkert in January, which he put the size of UNDP's North Korea program in 2006 at $3.3 million, and by spokesman David Morrison on March 5, $4.4 million. These undisclosed funds are alleged to be found in Trust Funds co-sponsored by South Korea's Ministry of Foreign Affairs and Trade (including under Ban Ki-moon) and the South Korean reunification ministry, flowing to the North Korean government via a pass-through mechanism, with UNDP reported taking a four percent fee.

Kemal Dervis and UNDP logo: how much passing through?

            Inner City Press began asking these questions after receiving confirmation from the UN World Health Organization that it too accepts staff seconded from the North Korean government, one of the grounds for Mr. Ban's "urgent audit," and that WHO is receiving $10 million a year from the South Korean government (now, it is believed, through a Trust Fund). WHO's spokeswoman wrote:

Subject: RE: Ms. NcNab- Checking in for response to our previous questions, thanks

To: Inner City Press

From: Christine McNab [at] who.int

Hi Matthew, Here are the answers below.  

Q. Please comment on: whether the World Health Organization, herein below "you", in North Korea  uses personnel seconded by the government...

A. WHO has 17 staff in its office in the Democratic Peoples Republic of Korea (DPRK). There are four internationally recruited staff, including the WHO Representative, and 13  national staff. As with all agencies working in DPRK, the national staff are seconded from the government...

Q. Please confirm or deny that in mid-2005 a South Korean contribution  of some $10 million was received by WHO, and is so state the involvement of  the South Korean Ministry of Foreign Affairs and its then-head and provide  any and all documentation.

A. Yes, last year South Korea committed to providing the equivalent of US 10 million per year as support to DPRK through WHO for health-related humanitarian assistance, for three years, primarily in the field of maternal and child health. 

             While there have been competing claims, including from UN Secretariat officials, about whether UN funds and programs in North Korea beyond UNDP are being audited, and will continue operation, on the evening of March 6 Inner City Press asked UNICEF's Ann Veneman if her agency will continue in North Korea.

   "Yes," Ann Veneman said, noting that UNICEF is in a different building that UNDP in Pyongyang and is engaged, in her words, in more "humanitarian" activities then UNDP.  It is not clear that this was Ban Ki-moon's distinction in calling for audits. Rather, Mr. Ban referred to paying in hard currency and allowing a host-government role in staffing, both of which UNICEF below acknowledges. (Inner City Press thanked Ms. Veneman for UNICEF's having made available for interview its Senior Advisor for Children in Armed Conflict, Manuel Fontaine; Ms. Veneman countered by recommending a recent book on children and armed conflict, which we will soon review.)

            On January 19, Ban Ki-moon called for an urgent audit of all UN funds, programs and agencies. On January 22, this was scaled back to a focus on North Korea and, at least in the first instance, on UNDP. It has been said that the World Food Program and the UN Children's Fund, for example, will also be audited.

            On February 1, while attending a press briefing by UNDP Administrator Kemal Dervis, Inner City Press asked Mr. Dervis how much money UNDP has spent in North Korea in recent years, on its own before and for other agencies (or as a pass-through). Mr. Dervis did not answer, and subsequently his communications staff declared that "it would be inappropriate to comment" on its programs or spending in North Korea until the audit is completed.

            On March 2, Kemal Dervis wrote to North Korea's UN Ambassador that UNDP is suspending its programs in the country. Inner City Press is informed that an impact, and even intent, of this announcement is to make the audit more difficult. Inner City Press asked this question at Ban Ki-moon spokesperson's noon briefing on March 5.

            On March 6, the spokesperson announced that Ban Ki-moon has written to North Korea asking for access for the auditors. Meanwhile, Inner City Press has been informed that the Board of Auditors, meeting until late on March 5, acquiesced to an audit only in New York.

            But on the question of how much UNDP spent, and for and under whom, in North Korea, UNDP, the Secretariat and even the South Korea mission have been asked. On March 4, Inner City Press emailed questions to Kemal Dervis, Ad Melkert and other senior UNDP officials. For example:

            Bruce Jenks, the head of UNDP's Bureau for Resources and Strategic Partnerships was asked "The closing, will it impact South Korean funds dedicated to the DPRK? What will happen with those funds?" Mr. Jenks did not answer, and nor after two reminders did UNDP's Communications Office.

            Darshak Shaw, Director of UNDP's Office of Finance, was asked:

"can all the numbers for the audit be looked at in New York? Also, we still have a number of questions pending that have not been  answered, including the simple question about who many people UNDP employs / pays.  Perhaps you can answer that?"

            Mr. Shaw has not answered, nor after two reminders has UNDP's Communications Office. In fact, the Communications Office has ignored a request on the afternoon of March 5:

"Most pressingly, please specify which of the funds spending through UNDP in the past four years were from South Korea, and within these, which if any had the involvement of the South Korea Foreign Ministry and when?"

            Despite emailing to Inner City Press terse answering to unrelated questions, the above "most pressing" question has been ignored by UNDP. Therefore Inner City Press asked the UN's Office of the Spokesperson for the Secretary General, particularly for volume of South Korean funds passed-through UNDP while Ban Ki-moon headed South Korea's Ministry of Foreign Affairs and Trade. Inner City Press asked this question orally, not in the noon briefing, on the morning of March 5. Inner City Press was referred to Soung-ah Choi, a 2007 addition to the Spokesperson's office, and was told to put the question in writing, which was done:

"This is a question that I came into the OSSG earlier this morning to ask, was advised to direct it to you by email:

--what role if any did Ban Ki-moon play while with the Republic of Korea government in South Korean aid to the Democratic People's Republic of Korea?  If any, did any of this aid involve UN funds, programs or agencies? If any, could any of this aid be within the scope of the urgent audits Mr. Ban called for on Jan. 19, as modified Jan. 22?

Context: following UNDP's (quiet, online only) announcement that it suspended its operations in North Korea on March 1, Inner City Press has heard from sources information that gives rise to the above question, as well as to other questions posed directly to UNDP and to the Board of Auditors. (Including what impact the suspension of operations will have on the audit, on which we understand the 90 clock is already ticking). I'd wanted to just orally ask the above questions in your office, now do so by email."

            In response, the UN's Soung-ah Choi told Inner City Press this is not really a UN or Secretary General question, and that it can only be asked to the South Korea mission, specifically to Ambassador Oh Joon who, she said, was involved in North-South Korean relations and aid during the time frame.

[Update of March 16 -- it has been emphasized to Inner City Press that Amb. Oh's post was for international organizations; point taken.]

            On the morning of March 6, Inner City Press three times called Ambassador Oh. First, his secretary said he would call back in 15 minutes. Inner City Press explained what it wanted to know. Then, she said that Amb. Oh had been called away on urgent business, and to leave the question in his phone-mail. Inner City Press did so, along with an additional question, and waited. The day ended with no response by the South Korean mission to a question referred to them by the Office of the Spokesperson for Ban Ki-moon.

   While Inner City Press did later on March 6 get a response from UNICEF's Ann Veneman, that UNICEF's operations will continue, we would be remiss to not note that UNICEF has acknowledged both hard currency payments and acceptance of seconded staff.  Here were UNICEF's first responses to Inner City Press:

Q.  Whether you pay salary, DSA, utilities, rent and other expense in hard currency (Euros, dollars or otherwise) in North Korea

A: DPRK -- Of the 30 UNICEF staff in the Pyongyang office, 10 are international professionals recruited through New York headquarters and stationed in Pyongyang for up to five years.  They have the bulk of their salaries paid to personal overseas bank accounts. Twenty are local staff.  For local staff, UNICEF transfers their salaries to the host government, which in turn is responsible for paying each of the 20 national staff members... they are selected by the Ministry of Foreign Affairs which then seconds them to UNICEF. 

            Inner City Press has asked numerous UNDP officials, and spokespeople, to specify which of the three listed conditions, including stopping payment in hard currency and acceptance seconded staff, could not be met by March 1. In light of UNDP's refusal to answer this simple question, it is difficult to understand Ms. Veneman's statement that that UNICEF, with the same practices, can and will continue operating.

  At the March 6 noon briefing, Inner City Press again asked that UNDP's Administrator Kemal Dervis, who signed the letter suspending operations in North Korea and who is reportedly the stealth manner of the suspension's delayed announcement, come and answer questions. From the transcript:

Inner City Press: Yesterday, I’m told the UNDP was here. I wasn’t able to hear what they said in the hall because we had a briefing on human trafficking. But I’m told that they said they now put the value of UNDP’s program in 2006 in North Korea at 4.4 million rather than 3.2 as was previously said. So, I’m wondering, the numbers are changing. Is it possible rather than have a briefing out in the hall to actually have UNDP come and answer questions?  Probably Mr. Dervis, since he signed the letter to suspend operations in North Korea...

Spokesperson:  I’ll transmit your request to them... Only UNDP can answer.

            Again, why are these questions, which purportedly only UNDP can answer, being asked? Well, sources tell Inner City Press that there are funds beyond those disclosed by UNDP's Ad Melkert in January, which he put the size of UNDP's North Korea program in 2006 at $3.2 million, and by spokesman David Morrison on March 5, $4.4 million. These undisclosed funds are alleged to be found in Trust Funds co-sponsored by South Korea's Ministry of Foreign Affairs and Trade (including under Ban Ki-moon) and the South Korea ministry for reconciliation, flowing to the North Korean government via a pass-through mechanism, with UNDP reported taking a four percent fee. Recently, Inner City Press has heard of UNDP taken even higher "overhead" fees for administering pass-through funds. We will have more on this. Developing.

In Wake of UNDP's Stealth North Korea Shut Down, Spin Machine Re-Starts

Byline: Matthew Russell Lee of Inner City Press at the UN: News Analysis

UNITED NATIONS, March 5, updated March 6, 10 am -- As questions grew about the UN Development Program's decision to suspend operations in North Korea, the UN's humanitarian coordinator on Monday said UNDP's program have had little humanitarian impact, and that other UN programs should be able to "operate reasonably normally" in North Korea. Video here, from Minute 35:46. But since other UN funds and programs pay -- in hard currency -- through UNDP, and since UNDP's Timo Pakkala is the Resident Representative of the UN in North Korea and will be pulled out of the country, the story is clearly far from over. Ironically, on March 13 Mohamed ElBaradei of the UN-affiliated International Atomic Energy Agency will travel to Pyongyang, from which UNDP is departing.

            Monday at Ban Ki-moon's spokesperson's noon briefing, numerous reporters asked questions about UNDP's stealth suspension of operations on March 2, while not announcing it to the press or public beyond an update, dated March 1, slipped on its website. Inner City Press asked if the suspension has the effect of slowing the "urgent audit" which UNDP called for. It remains Inner City Press' understanding that this is the effect and, sources say, intent. This analysis is missed or disagreed with the Wall Street Journal and by a Congressperson who congratulates the UNDP Executive Board for suspending operations. Currently it appears that Mr. Kemal Dervis probably made the decision to suspend, and made the decision to not announce it to the press.

Dervis should speak, w/ or w/o ice water

            In the back of the briefing room stood UNDP's head of Communications, David Morrison. The spokesperson at one point said that he -- "Jim," as in the band The Doors, one wag joked -- would answer questions. From the transcript:

Question:  I just wanted to follow up.  As I understand it, the UNDP’s statement was posted on their website but I don’t think that we got any announcement.  I would like to put in a request that on announcements, such as this, those announcements should be made to us, not just posted.  We don’t go and read the UNDP website all the time.

Spokesperson:  Well, I think we have someone from the UNDP here.  I’m not sure.  Yes, we do have Jim back there and he will be glad to answer your questions right after the briefing.

            But Mr. Morrison never came to the rostrum. Rather, between the noon briefing and a previously scheduled briefing by new Under Secretary General of Management Alicia Barcena, Mr. Morrison conducted what he called a scrum in the hallway outside the briefing room. Later he stated to Inner City Press, in response to still-unanswered written inquiries, that "all questions" had been answered in the scrum, which Inner City Press could not attend due to the Alicia Barcena briefing, click here for video, starting at Minute 33:08, and here for Inner City Press' story.

[Update of March 6, 10 am -- Mr. Morrison writes that

"This is just to note that you have your facts wrong:  I began the briefing outside of 226 AFTER the noon briefing was complete, i.e. after the segment with Ms. Barcena.  I did this so that everyone could attend."

  We stand corrected. UNDP's David Morrison's hallways briefing did not conflict with the press conference of USG for Management Alicia Barcena, but rather with a long-scheduled press conference about the trafficking of women, which Inner City Press also covered, click here for that story. A direct request has been made to Kemal Dervis and his spokeswoman for a briefing in the UN's Room 226, rather than outside while another press conference takes place inside. And a simple question has been asked. We'll see.]

            Out in the hall, Mr. Morrison apparently told Reuters that unnamed North Korean "officials want to discuss again a further narrowing of the program." Mr. Morrison is also quoted with a number -- $4.4 million -- that is different than Ad Melkert's previous provided figure of $3.2 million as UNDP's 2006 expenditure in North Korea. Which is it?

           Mr. Morrison wrote, "I’m responding to the questions you’ve sent to Timo, Hafiz, etc. on DPR Korea.  It’s a shame you didn't come to the scrum I did outside of 226 following the noon briefing, as I answered all questions at that time."

   Inner City Press immediately replied with specific written questions, not one which have been answered. Some of the questions were also posed directly to spokespeople for the Secretary-General, although one these incongruously referred the questions to the South Korean mission to the UN. Whatever it takes, wherever we have to go, we'll get to the bottom of this. For now, click here for UNDP's Kemal Dervis' March 2 letter to the North Korean mission. As with the U.S. mission inquiry, it was Ad Melkert rather than Mr. Dervis who attended and spoke at the meetings. Where is Mr. Dervis? The time has come, as Inner City Press has requested, for a Kemal Dervis press conference.

Suspending Operations in N. Korea, UNDP Slows Audit Called for by Ban Ki-moon

Byline: Matthew Russell Lee of Inner City Press at the UN: News Analysis

UNITED NATIONS, March 3 -- The UN Development Program, facing an "urgent audit" of its North Korea operations called for by UN Secretary-General Ban Ki-moon, has now suspended its operations in the country. Sources tell Inner City Press that the effect, and even intent, of the suspension is to slow or stop the audit. The stand-off shapes up as a test for Ban Ki-moon.

            On January 19, Mr. Ban called for an urgent audit of UNDP and other funds, programs and agencies. On January 22, he limited the initial scope of the audits to North Korea and unspecified other countries where hard currency payments and government influence on hiring and blocking of auditors' access might be issues. Mr. Ban said that audit would be completed in 90 days or less. On January 25 at UNDP's Executive Board meeting in New York, a compromise was passed under which UNDP was to modify its programs in North Korea on or before March 1. North Korea, which has a seat on UNDP's 36-member Executive Board, did not vote against this compromise.

            Inner City Press exclusively confirmed the presence in New York of UNDP's North Korea resident representative Timo Pakkala in New York on February 8, by calling his room at the Crowne Plaza hotel. On February 12, UN Controller Warren Sach confirmed to Inner City Press that he had met with Mr. Pakkala in advance of the audit. Ban Ki-moon's spokesperson on February 20 confirmed that the 90-day clock has started.

            With a dateline of March 1, UNDP has stated on its web site that

As of 1 March 2007, UNDP has no choice but to suspend its operations in DPRK as the necessary conditions set out by the Executive Board on 25 January 2007 have not been met. These conditions included adjusting the content of the current Country Programme (2005-2006) and the proposed Country Programme (2007-2009) for DPRK to support sustainable human development objectives; ending all payments in hard currency to government, national partners, local staff and local vendors and discontinuing sub-contracting of national staff via government recruitment as of 1 March 2007. UNDP's position in DPRK could be reconsidered if these circumstances change.

            Source point out that North Korea's seat on UNDP's Executive Board could be in jeopardy, given its seeming refusal to comply with conditions voted by the Board. UNDP does not specify in its statement -- of which Inner City Press was not told, despite an email from Kemal Dervis spokeswoman on another UNDP matter on March 2 -- which of the three conditions was not met. UNDP has said it will not answer about North Korea until the audit is completed.

            Now Inner City Press is told that when the terms of reference of the audit were passed by UNDP to North Korean officials, the Kim Jong Il government responded with conditions, that no onsite access would be granted, and that they wanted the right to approve who would do the audit. Sources say that auditors, including Imran Vanker and others, have predictably responded, "no audit without access." What then of the 90 day time clock?

Pre-audit, sealed with a handshake?

            Inner City Press' questions to UN Controller Warren Sach have been responded to by a message that Mr. Sach is out of UN Headquarters until March 12. He is described as being "on mission," though no location is specified. It has been pointed out to Inner City Press that South Korea, including while Mr. Ban served as foreign minister, was a not insubstantial funder to North Korea, including through UN-affiliated funds, programs and agencies. UNDP, meanwhile, has said that it will not answer questions about North Korea until the audit is completed. Whether that essentially means "never, we'll never answer questions," remains to be seen.

            Much of the audit could be done of papers in UNDP's New York headquarters, in the offices of such officials as Darshak Shah, Hafiz Pasha, David Lockwood and Bruce Jenks. Some within UNDP are calling on Ban Ki-moon to remove immunity from such officials, so that a robust investigation can occur. Developing.

Other, earlier Inner City Press are listed here, and some are available in the ProQuest service.

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