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Inner City Press Podcast --

UNDP Will Be Called to Greater Transparency, Says President of Spain, on UNDP's Board, and Flaws of UNOPS

Byline: Matthew Russell Lee of Inner City Press at the UN, 15th in a series Intro, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, 12th, 13th, 14th

UNITED NATIONS, December 18 -- The failure of the UN Development Program to provide copies of its audits, even to the 36 countries which serve on its Executive Board, was raised on Monday to Spanish president Jose Luis Rodriguez Zapatero. Spain had just announced a major fund with UNDP, in a photo-op with UNDP Administrator at which no questions were allowed. Inner City Press asked about transparency, and bringing UNDP at least in line with the rest of the UN system in terms of providing full copies of audits. Video here, from minute 11:57. Spain in 2007 is on UNDP's Executive Board.

"In the management of public funds, transparency must be a constant demand," Spanish president Zapatero said. "Of course the government of Spain, as an active contributor to UN programs, always wants maximum transparency... That is fundamental."

Therefore it would appear that at the upcoming UNDP Executive Board meetings beginning January 19, 2007, Spain will be looking for a change in UNDP policies -- or demanding such changes, if they have not by then been formally proposed by the Dervis - Melkert regime at UNDP.

Messrs. Zapatero and Ban Ki-Moon, Dec. 18, 2006

Ad Melkert on December 15 answered Inner City Press' questions by stating that he is now aiming for more transparency - click here for Inner City Press' story, here for a UN mis-summary, and here for a slightly more accurate UN News write-up, including:

"Responding to a reporter's questions on the lack of availability and detail of UNDP audits and the reported difficulty in getting media requests answered by the agency, Mr. Melkert said any report that he had told staff not to talk to the press was 'absolutely totally ludicrous.' But he added he would like the agency's transparency level to reach wider UN standards. 'Talking about transparency, the best criterion for me is my own transparency - I'd like to bring our procedures in line with the UN procedures, I think that should be normal, so I'm looking into that at this moment,' he said."

Kemal Dervis appears for a press conference on December 21 and well might be expected to commit himself on this issue, even in his opening statement so that questions can be asked on other, also-pressing matters.

UNDP manages the UN Office of Project Services, UNOPS. Beyond the previously reported controversy regarding UNOPS' (and UNDP's) provision of funds to support one side of the debate about Cyprus, and the subsequent demand for testimony from UNDP's representative, there are other UNOPS issues. Inner City Press has obtained an April 2006 memo concerning UNOPS relocation to Copenhagen. Previously, senior UN officials have ridiculed this move, purportedly to save funds, to Inner City Press. "Copenhagen sure has a low cost of living," one said sarcastically. The Staff Council has other concerns, including:

"Inadequate oversight of the MCC, which at that time was chaired by the current Deputy Secretary-General, to ensure financial disclipline and respond to management failures as evidenced in the audit reports [of 2004, A/59/5/Add.10, Supp. No. 5J, etc.]....The executive board has been generally vague on any specific measures to address structural and systemic problems of UNOPS. There was no follow-up on the Staff Council's request to the OIOS on management and waste of financial resources...UNOPS staff are not considered as internal candidates at UNDP and other agencies in New York. Affected General-Service staff holding a G-4 visa and unsuccessful in seeking employment within 30 days after the end of their contract, will be required to relocate to their home country."

This provision of U.S. immigration law, that G-4 visa holders have to leave the U.S. thirty days after losing their job, is a major factor in the fear of retaliation among staff and employees of the UN in New York. A change in immigration law, or significant strengthening of whistleblower protections are needed. UNDP's position will be inquired into (particularly after UNDP answers the many long-pending questions, including one concerning UNDP's activities in Somalia, and others for 2006 Trust Fund Agreements for contributions from SPAIN, China, Norway, France, the UK, Russia and the United States, and information about Africa, which should be provided forthwith, including in keep with the December 18 statement of the president of Spain, major UNDP contributor. Developing...

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. As they used to say on TV game shows, 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.

Feedback: Editorial [at] innercitypress.com

UN Office: S-453A, UN, NY 10017 USA Tel: 212-963-1439

Reporter's mobile (and weekends): 718-716-3540

UNDP's Ad Melkert Says He Will Finally Increase Transparency, Describes Fraud in Russia, Dodges Uganda

Byline: Matthew Russell Lee of Inner City Press at the UN - 14th in a series Intro followed by 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, 12th, 13th

UNITED NATIONS, December 15 -- "I'd like to bring our transparency in line with the UN procedure", the Associate Administrator of the UN Development Program, Ad Melkert, answered Inner City Press on Friday. This answer came after UNDP had refused to provide copies or even summaries of audits of its admittedly troubled Russian Federation office, and after Inner City Press pointed out that the UN Secretariat at least provides full copies to any of the 192 member states which make a request. Mr. Melkert added, "That should be normal... Talking about transparency, the best criteria for me is my own transparency.. I'm looking into that right now." Video here, from Minute 45:46.

Inner City Press inquired into a meeting Mr. Melkert held on December 1 with the staff of UNDP's Poverty Group, concerning steps taken to quickly bring Jeffrey Sachs' team from the UN Millennium Group onto the UNDP payroll. Having just referred to transparency, Mr. Melkert nevertheless began with the "hope you are not going to ask me about all the meeting that I've had." He continued that "for this exception case, yes, this First December meeting, I was... It was a managerial decision to merge, it's my responsibility, everybody can and should work with that. With respect to staff rules, we have tried to make the best out of that." While confirming much of what Inner City Press sources have said about the meeting, Mr. Melkert denied that he has told staff not to speak to the press. Time will tell.

Mr. Melkert claimed that UNDP never funded disarmament in Uganda, only "community development." Rather than naming Karamoja, the region in Eastern Uganda in which the program was funded, Mr. Melkert apparently confused it with the Lord's Resistance Army-impacted area he called "Northern Uganda," where he said it is "hard to distinguish from the situation of risk and potential conflict including the roles weapons play." Video here, from Minute 36:25. But William Orme, previously of UNDP's Communications Office, said earlier in the year there was a voluntary disarmament component, and UNDP in Uganda issued a press release announcing the suspension of funding. When the seeming dissembling spreads to the Number Two in the agency, the plot thickens. What will the often invisible Number One, Kemal Dervis, have to say? While his December 18 appearance has been cancelled, Inner City Press was again told on Friday that he will appear on December 21. He can be expected to be asked to spell out UNDP's plan for greater transparency, among other things.

UNDP's Klein in Uganda UNDP's Melkert in New York, 12/15/06

Perhaps as a forerunner of the increased transparency needed at UNDP, hopefully as a sample of the type of response that will come regarding other scandals and locales inquired into, the following was provided to Inner City Press in response to questions:

Subject: UNDP responses

From: cassandra.waldon [at] undp.org

To: Inner City Press

"On UNDP's Russia office: Three Resident Representatives have headed the UNDP Country Office (CO) in the Russian Federation since it began operations in 1997. Philippe Elghouayel served from August 1997 until January 2001. Frederick Lyons served from March 2001 until April 2003. Stefan Vassilev served as acting Resident Representative from April until June 2003, and then as Resident Representative from September 2003 until August 2005.

A full internal UNDP audit of the Russia Country Office was conducted in August 2001. This cited numerous shortcomings and gave the CO an overall rating of "deficient." A follow-up partial audit was conducted in September 2003. This noted improvement in many areas and issued a rating of "partially satisfactory."

The discovery of suspected fraudulent activity triggered an internal investigation in June 2005. This investigation concluded that one payment amounting to $190,000 was fraudulent. Additional payments that could be fraudulent were under investigation. Three former UNDP staff members, all locally employed Russian nationals, were implicated in the fraud. All three resigned from the Country Office before the investigation was launched.

When the extent of the fraud became evident, Mr. Vassilev was summoned to headquarters. He was removed from his post in August 2005 and subjected to disciplinary proceedings stemming from shortcomings in management performance and oversight. Mr. Vassilev is no longer employed by UNDP.

In September 2005, drawing on the evidence collected in the investigation, the UNDP Administrator made an official request to Russian law enforcement authorities to open a criminal investigation into the fraud. Such an investigation was opened by the Moscow Prosecutor and is currently under way, with UNDP's active cooperation.

UNDP informed its Executive Board of the fraud, as part of its regular reporting processes. In the wake of the special audit and rigorous internal reviews, UNDP has undertaken a painstaking restructuring of its finance operations and management structure, enacting the recommendations both of UNDP auditors and of a regular UN Board of Auditors audit conducted early in 2006. In addition, oversight roles and functions have been carefully reviewed at Headquarters, and fresh efforts have been devoted to ensuring that audit recommendations are heeded.

To support these corrective efforts, UNDP has assigned some of its most experienced staff to the Russia CO. Ercan Murat, a UNDP veteran who had served previously as Resident Representative in Azerbaijan, the Kyrgyz Republic, and Afghanistan, came out of retirement to serve as acting Resident Representative in Russia from September 2005 until September 2006. Marco Borsotti, who currently serves as UNDP Resident Representative in Azerbaijan, has received clearance from the Russian Government and is expected to take up his post as the new Resident Representative in January 2007.

The effectiveness of UNDP's corrective measures was recently confirmed through an independent external review which judged the management practices of the Russia CO to be fundamentally sound and in line with UNDP regulations and standards."

There. Some of the things not yet addressed are the Brussels funding for the Moscow planetarium project, as well as the other requested audits concerning Honduras, Afghanistan and the Private Sector Unit of the Bureau of Resources and Strategic Partnerships. There is also the reference to "receiv[ing] clearance from the Russian Government," more on which anon.

In fairness, on Thursday evening UNDP sent Inner City Press among other things this denial:

---Original Message-----
Subject: UNDP responses

From: cassandra.waldon [at] undp.org

To: Inner City Press
Sent: Thu, 14 Dec 2006 7:00 PM

"Dear Matthew, regarding the allegations relating to the Bratislava Regional Centre... Ben Slay has not collected any improper daily sustenance allowance at any time. We find no suggestion that his predecessor did, either, but because his tenure ended some time ago, we are pulling additional records out of storage to confirm this. The Vienna office you appear to be making reference to opened before Ben Slay even arrived as Director of the Bratislava Centre. Ben Slay sometimes works from the Vienna office. He does not collect DSA for doing so. "

Sources in Bratislava indicate that the individual opened a small UNPD office in Vienna, then sought to recruit other UNDP officials in Slovakia to relocate to Vienna, "to make his move look less strange." When an investigation into UNDP-Bratislava and the antics of Kalman Mizsei began, the individual hurriedly moved back to Slovakia...

The UN Development Program Is Important For The Poor, It Therefore Must Be Made Transparent

Tenth Installment in Inner City Press' Ongoing UNDP Series, Reported by Matthew Russell Lee: Intro followed by second, third, fourth, fifth, sixth, seventh, eighth, ninth

UNITED NATIONS, December 10 -- The UN Development Program, a $5 billion agency whose Administrator Kemal Dervis has not held a press conference in UN Headquarters for over 14 months, on December 8 issued a press release attacking Inner City Press by name. The same day, UNDP informed Inner City Press that it would no longer respond to any requests for comments about seeming violations of UN recruitment, hiring and promotion rules, and that it does not disclose to the press or to the public its internal audits.

Given that it appears, at least for the short term, that UNDP will not be providing even this basic information, despite its status as an international agency funded by the publics of member states, Inner City Press has decided to recapitulate the reasons that it began this series about UNDP on November 29, and why it will continue. This brief overview inevitably may mention UNDP's press release. But since UNDP did not contact Inner City Press for comment before distributing its press release, and only provided the subject of its statement with a copy six hours after it was released.

UNDP's Kemal Dervis, at left - holding secret audits?

UNDP has an important role, including enabling development to benefit poor people. It is therefore important that UNDP be transparent, both in its finances and its hiring and promotion practices. UNDP often preaches to the governments of developing countries that they must become more transparent. For example, only last week Neil Buhne, UNPD's representative in Bulgaria and previously Belarus, preached in Sofia on the topic of transparent administrative services, saying that a lack of transparency can intensity existing inequalities. But this preaching must be applied all the more to UNDP itself. It is particularly inappropriate for UNDP to now say that it will not release its audits of its spending, nor comment on seeming violations of its own stated rules against cronyism and sham competition in hiring and promotion.

There are many, many serious and well-meaning people within UNDP. Some of them clearly see a need for improvements in how UNDP is run, and feel the threat of retaliation if they make their views known in a way in which their supervisors and other high UNDP officials could identify them. For this reason, Inner City Press has been willing where necessary to use anonymous sources in the course of this series. Inner City Press follows accepted rules of journalism, explaining the reasons for which a source has requested anonymity. As one employee said, "You will not get any on the record sources on this story. But everyone in this workplace knows this is true."

This last quote was concerned widely-alleged sexual harassment by an individual whom UNDP selected to head up its entire Europe and CIS States operation. It is time, then, to explain why Inner City Press in this series has at time mentioned sexual harassment. While this has provided a pretext for UNDP's Communications Office, and also former UNDP Administrator, to try to portray the entire series as salacious and as a violation of privacy, this aspect of harassment is integral to the story. First, the incidents took place in the workplace. But also, the fact that the incidents were allow to go on for so long, due to connections to high officials of the UN and rich UN supporters, shows inappropriate favoritism and lawlessness within this organization which so impacts the world's poor.

A UN source generally respected by Inner City Press has explained that the UN is "like a village," leading to upset at overly-personal investigative reporting. This village analogy seems apt, not only among the press corps and members of Security Council members' missions, but among the UN staff as a whole, for example in the Headquarters cafeteria, or during this past summer's World Cup. There is another aspect, though: some of the UN, particularly UNDP, is like a *feudal* village, in which a small group and some courtiers who feel they are protected are left outside of otherwise-applicable rules, and bristle if this is ever reported.

To do such reporting, one must be in the village, but not entirely of it. UNDP has asked Inner City Press, "Who is telling you these things?" But Inner City Press will not sell out its sources. UNDP has demanded to speak with editors or, it would seem, corporate owners amenable to pressure. It is a dynamic well sketched by one of the paragon American journalists, I.F. Stone, and it is not a demand to which Inner City Press will acquiesce.

UNDP, even after declaring that is will not respond to questions about seeming violations of applicable rules on hiring and promotion, has sent Inner City Press a ludicrous list of supposedly required corrections. These include demands that a headline, "UNDP Spent $567,000 on a Book to Praise Itself," be modified since it is UNDP's position that despite the payments, the book is a work of independent scholarship. Perhaps UNDP deserves this repetition of the argument. But reasonable minds can and do disagree with UNDP.

We have waited to the near-end of this column to sketch the history and motives of Inner City Press. First, Inner City Press has long reported on and been immersed in community development efforts. Among other things, Inner City Press has investigated and reported on redlining by banks: their failure to lend fairly to low income people. In connection with this reporting, Inner City Press vindicated the rights to information of the wider press corps, for example in a Freedom of Information Act win in the U.S. Court of Appeals for the Third Circuit, reported in the New York Times earlier this year. Click here for a more detailed write-up by the Reporters Committee for Freedom of the Press.

Inner City Press' investigative series on Citigroup, which like this series included reporting on the nitty-gritty of employment practices, resulted in Citigroup being held accountable to its overseer, the Federal Reserve Board, which imposed a fine of $75 million and required detailed reforms. But where are the overseers of UNDP?

In its UN reporting, Inner City Press most often focuses on human rights. In fact, Inner City Press' first stories on UNDP involved the agency's funding of disarmament programs in Uganda, where civilians have ended up killed in the name of disarmament, as now confirmed by the UN High Commissioner of Human Rights. UNDP's Communications Office repeatedly misstated and tried to downplay UNDP's enabling of the Ugandan People's Defense Forces' disarmament programs, and despite having quietly announced a suspension of funding in June, has most recently reverted to entire denial. The issue will continue to be pursued so that it is not repeated.

To avoid any misunderstanding, which some have tried to cause, that Inner City Press is part of the so-called vast right wing conspiracy, we simply state that Inner City Press has most often be placed in the public record on the left wing side of the equation. That does not mean that lack of transparency and lack of accountability in programs to benefit to the poor should be excused -- in fact, quite the contrary, in fact. That is the motive and justification for this ongoing series.

Some have asked, why UNDP and not (yet) other UN agencies. Only a few months ago, Inner City Press inquired closely into the process for selecting Josette Sheeran Shiner as the new head of the World Food Program. But the range of issues at UNDP, from a lack of oversight on disarmament programs it funded in Uganda, to allowing its head of European and CIS states to run wild (to choose only two examples), may indicate that UNDP's amorphous mandate combined with a lack of transparency and of independent press coverage have resulted a fiefdom whose only response to questions is to attack the questioner. How UNDP's December 8 press release comports with the UN System's exhortations for journalistic freedom, or with UNDP's own purported attempts to encourage governments in the developing world to allow for media independence, remains to be seen.

Since we cannot resist further reporting, we feel that the following UNDP staff email, the identity of whose sender we will protect due to fear of retaliation, may show why we use anonymous sources and why UNDP's arbitrary employment practices are a legitimate journalistic subject. This extended quote precisely illustrated the reality of UNDP conduct in connection with the Millennium Development Goals project.

Dear Matthew, thanks for your recent coverage of UNDP HR policies. I would like to reconfirm your information regarding the integration of the Millennium Project (MP) in UNDP Bureau for Development Policy Poverty Group, directed by Nora Lustig.

The evidence gathered in the adopted project document regarding Dr. Sachs' remuneration shows that over 200,000 US Dollars are supposed to cover his services. I believe you already have this document in your possession.

The problems associated with the Millennium Project's integration go far beyond Dr. Sachs' charity fees. Ms. Chandrika Bahadur and M. Guido Schmidt-Traub, who have been working for the MP over the last years have benefited from the different breaches of procedures during the merger. Their "new" positions with UNDP have only been advertised for a week on a limited basis. There has not been a formal panel interview process but a mere "desk review" of the different candidates. Following that fast-track process, MM. Melkert and Gleeson recommended the appointment of Ms. Bahadur and M. Schmidt-Traub as policy advisors and, for the latter, head of the MDG support team. While both candidates show limited professional and managerial experience, they have furthermore benefited from promotions that are not linked with their background. Ms. Bahadur has been hired as P4 though she does not have the minimum professional required for that level (7 years). M Schmidt Traub has been appointed as P5 and head of MDG support team though he has very limited managerial experience (this position involves managing a team of 25 professional staff) no background in economics or development (M. Schmidt Traub has a degree in Chemistry).... At the junior level, some Research Associate staff do not even have master's degrees, which is mandatory to be considered even for an internship.

Following growing tensions among UNDP staff, M. Melkert, UNDP Associate Administrator, met the extended Poverty group team on December 1. He took full responsibility for the decisions made regarding the merger between the MP and the Poverty Group, including HR management decisions. The Associate Administrator considers that it is the role of UNDP's top management to make strategic decisions, including breaking UNDP HR policies in the name of necessity and higher interests. This approach is not acceptable within an international organization accountable to member countries and publicly funded.

Hopefully member states will take the opportunity of UNDP Executive Board meeting to ask UNDP Senior management for clarification on these matters."

We share that final hope, and trust that this series will play some small role in cleaning up UNDP, for the benefit of the poor. And so this series will continue.

Here is / was UNDP's position on the above-described:

From: cassandra.waldon [at] undp.org
To: Inner City Press
Sent: Wed, 6 Dec 2006 6:27 PM
Subject: RE: Additional Qs re UNDP, response to your Q re deadlines, thank you in advance

Dear Matthew,

For the record, Jeffrey Sachs will continue to be involved with the UN’s effort on the Millennium Development Goals. As of 1 January, he will serve as Special Adviser to UNDP on the Millennium Development Goals. His salary will continue to be $75,000 per year.... we have decided to merge the work of the Millennium Project into UNDP. To this end, UNDP has set up a new sub-unit in our poverty group, which will consist of some 20 positions.

To complete the integration by the end of the year, UNDP management is using an expedited competitive recruiting process for five lead positions. These five positions have been advertised and are in the process of being filled.

Five other positions do not require a competitive process under UNDP recruitment procedures and will be filled with people currently working for the Millennium Project.

All other positions will be recruited according to standard UNDP recruitment procedures, and this process is on-going.

and then

In a message dated 12/8/2006 7:14:39 PM Eastern Standard Time, cassandra.waldon@undp.org writes:

Dear Matthew,

UNDP is working to address the numerous questions you have asked us. As many of your concerns touch upon similar kinds of issues we thought it might be helpful if we were to state, for the record:

--That we will no longer be responding to unsubstantiated allegations about UNDP�s recruitment and personnel practices. We urge you to desist from publishing such allegations...

--That we do not release the reports of our internal audits and investigations. The results of these reports are communicated on an annual basis to the UNDP Executive Board in the form of an annual Administrator�s report on Internal Audit and Oversight...

In this, UNDP lags behind even the rest of the UN System. Compare to Secretariat's Office of Internal Oversight Services (OIOS), under General Assembly Resolution 59/272 of December 23, 2004:

-- OIOS provides a summary of all of its reports to all member states as well as the general public in its annual reports; whereas UNDP only provides a summary of its reports to the limited membership of its executive board (with not even summaries provided to the general public).

-- OIOS makes some reports available as public documents; UNDP makes no reports available to the general public.

-- OIOS makes all non-public reports available to all member states at their request; UNDP makes only summaries (and not the full text of reports) available to only 36 out of 192 member states.

This is not to say that the UN Secretariat is transparent enough -- rather, that UNDP is even less transparency, despite its $5 billion a year budget. Developing.

Other Inner City Press reports are available in the ProQuest service and some are archived on www.InnerCityPress.com --

At the UN, Indigenous Rights Get Deferred, As U.S. Abstains, Deftly or Deceptively

At the UN, Threat and Possible Statement on Fiji Spotlights Selection and Payment of UN Peacekeepers

At the UN, China and Islamic Dev't Bank Oppose Soros and World Bank On How to Fight Poverty

At the UN, Misdirection on Somalia and Myanmar, No Answers from UNDP's Kemal Dervis

UNDP Dodges Questions of Disarmament Abuse in Uganda and of Loss of Togo AIDS Grant, Dhaka Snafu

At the UN, The Swan Song of Jan Egeland and the Third Committee Loop, Somalia Echoes Congo

UN Silent As Protesters Tear Gassed in Ivory Coast, As UNMOVIC Plods On and War Spreads in Somalia

In the UN, Uzbekistan Gets a Pass on Human Rights As Opposition to U.S. Grows and War's On in Somalia

At the UN, Cluster Bombs Unremembered, Uighurs Disappeared and Jay-Z Returns with Water -- for Life

From the UN, Silence on War Crimes Enforcement and Conflicts of Interest on Complaint from Bahrain

En Route to Deutsche Bank, the UN's Door Revolves, While Ban Ki-moon Arrives and Moldova Spins