As ICP
Probes UN
Pension Fund,
Boykin at
Global Town
Hall Meeting?
By
Matthew
Russell Lee,
Exclusive
series
UNITED
NATIONS,
April 12 --
Irregularities
at the $50
billion UN
Joint Staff
Pension Fund,
which Inner
City Press has
previously
exclusively
covered, for
example here,
have grown
worse,
according to
whistleblower
communications
received by
Inner City
Press from
multiple
sources, and
published on
March 29.
On
April 13,
after
Secretary
General Ban
Ki-moon's
chief of staff
scheduled a
"Global Town
Hall Meeting"
to "provide
reassurance
concerning the
health of the
Fund itself...
in response to
recent
attention
surrounding
the UN Joint
Staff Pension
Fund," Inner
City Press
asked Ban's
spokesman:
Inner City
Press: This
has to do with
what you put
out or what
was put out
from
Under-Secretary-General
[Yukio] Takasu
about the
pension
fund.
Now I'm aware
there's going
to be some
kind of town
hall meeting
about it. I
guess I would
just wait to
see what
happens at the
town hall
meeting,
except that I
notice that
the statement
had almost
nothing do
about the
investment
component, Ms.
[Carol] Boykin
and the
representative
of the
Secretary-General
on
investments,
and I wanted
to ask, one,
there's an
OIOS [United
Nations Office
of Internal
Oversight
Services]
report about
procurement of
an IT
contractor
called
[inaudible --
it's Murex]
that remains
outstanding.
There's the
postponement
of a D-2
position based
on a finding
of dispute
tribunal.
So is this
town hall
meeting
intended to
address all of
these issues?
Spokesman
Stephane
Dujarric:
I think the
town hall
meeting is
intending to
address the
concerns that
staff members
either through
staff
representatives
or
individually
have
raised.
I think it's a
very normal
reaction to
the concern.
Whenever
people talk
about their
pensions, I
think people…
it's their
future.
And I think
it's… it's
only normal
that the
management,
senior
management of
this
Organization
would address
directly and
all the
questions.
There will be…
there are no
issues that
are off-topic
during the
town hall
meeting.
If people want
to raise
issues about
investment
issues, about
staffing
issues.
Inner City
Press:
Will Ms.
Boykin be
there and be
able to answer
question?
Spokesman
Dujarric:
I don't know
personally.
I would
assume…
strongly
assume and
based on my
assumptions
that the
leadership of
the Pension
Fund, whether
it's on the
investment
side, the
liability
side, will
obviously be
there and be
able to answer
questions.
I think…
again, it's
best to
address these
things head
on.
If that's
true, about
addressing
things head
one, why did
the UN resist
confirming
when Inner
City Press
three times
asked if
Investment
Committee
chair Ivan
Pictet had
resigned?
Why did
Ban's
representative
to the Pension
Fund Carolyn
Boykin never
appear to
answer
questions as
had been
proffered?
Now
there's talk
of a shift
into hedge
funds, and
irregularities
in contracting
for IT
services, from
Murex
(criticized by
the UN's own
Office of
Internal
Oversight
Services)
prospectively
to Bloomberg
without a full
procurement
process. The
way to
"provide
clarity" is to
answer or at
least try to
answer
questions when
they are
asked. We'll
have more on
this.
On
April 8, after
Inner City
Press three
times asked
the UN
spokespeople
to simply
confirm that
Ivan Pictet
resigned as
chair of the
Fund's
Investment
Committee,
lead spokesman
Stephane
Dujarric
belated
acknowledged
it. UN's
transcript.
Then on
April 10,
against
belatedly, the
UN issued a
lengthy
statement,
which in
fairness we
publish here
in full, while
our series on
the Pension
Fund, now on
its Investment
Committee,
continues:
In response to
recent reports
about the
Joint Staff
Pension Fund,
Under-Secretary-General
for Management
Yukio Takasu
has the
following to
say:
Various
communications,
including in
the media,
have
unfortunately
been
circulated
recently
alleging fraud
and
irregularities
at the United
Nations Joint
Staff Pension
Fund (“UNJSPF”
or “the
Fund”). I
would like to
provide some
factual
information to
clarify any
misunderstandings
and
misrepresentations.
The UNJSPF
enjoys a
healthy funded
status in
excess of 90%,
and we are
committed to
preserving the
sanctity of
the Fund.
The UNJSPF
takes every
precaution
they can to
prevent fraud.
Staff who have
any
information of
alleged
wrongdoing are
obliged to
report those
concerns to
the United
Nations Office
of Internal
Oversight
Services
(OIOS). All
allegations of
fraud,
misconduct, or
violation of
applicable
human
resources or
financial
rules and
regulations
are, and will
continue to
be, taken
seriously and
fully
considered.
OIOS has
confirmed that
they have
reviewed the
nature of the
recent
allegations
that have been
brought to
their
attention.
OIOS has
indicated that
none of the
allegations
that have
appeared in
the press thus
far constitute
financial
fraud. OIOS is
collecting all
information
available on
this
situation, and
will examine
closely every
allegation.
As required
for any large
pension fund,
the UNJSPF has
a very robust
internal
control
framework,
with several
oversight
bodies
including, but
not limited
to, internal
auditors
(OIOS),
external
auditors, a
Pension Board,
an Audit
Committee, an
Asset
Liability
Monitoring
Committee, an
Enterprise-wide
Risk
Management
Working Group,
and Risk
Management
&
Compliance
staff.
The governance
structure of
UNJSPF also
reflects a
clear
delineation of
responsibilities.
Reporting to
the UNJSPF
Board, the
Chief
Executive
Officer, Mr.
Arvizú, is
responsible
for the
liability side
of the Fund,
primarily for
administration
and benefit
payments.
Management of
the
investments of
the Fund is
the
responsibility
of the
Representative
of the
Secretary-General
(“RSG”), Ms.
Carol Boykin,
who reports to
the
Secretary-General.
In order to
ensure the
effective
operation of
the Fund, the
United Nations
Pension Board
has long
recognized the
requirements
of the Fund to
have staff
with very
specific and
long-term
expertise,
owing to the
complex
pension
design,
financial
management and
global
payroll, and
that the
Fund’s human
resources
management
should be in
line with its
operational
and investment
needs. As
such, since
2000, there
has been a
memorandum of
understanding
in place which
stipulates
that UN
administrative
procedures and
directives do
not
automatically
apply to the
Fund staff,
since the
requirements
of the Board
take
precedence.
The United
Nations
Pension Board,
and the
General
Assembly, have
requested that
this existing
memorandum of
understanding
be reviewed
and updated.
Consideration
on the
elements of a
revised
memorandum of
understanding
is ongoing and
will involve
the
appropriate
consultations
with staff.
Any decisions
on human
resources
policies or
the financial
rules
governing the
operations of
the UNJSPF
will be taken
with a view to
ensuring they
are best
suited to meet
the
operational
and investment
needs of the
Fund.
We'll
have more on
this - watch
this site.
From the UN's
April 8
transcript:
Inner
City Press:
This has to do
with the
Pension Fund,
as I alluded
to. I
asked Farhan,
then I asked
you, whether
the head of
the investment
committee of
this $50
billion fund
has
resigned.
And I wanted
to ask now,
that I've
heard that a
memo has gone
to the Fifth
Committee to
that effect.
Spokesman:
Yes, it has…
he did
leave.
He did
resign.
And if I'm not
mistaken, he
said that
after, I
think, almost
10 years of
service, he
felt it was
time to move
on.
We're
obviously very
grateful for
the time and
effort Mr.
Pictet put
into his role.
Inner City
Press:
I've heard
also that his
letter of
resignation
actually makes
some
criticism.
Is that a full
summary?
Spokesman: No,
I would…
I would not
agree with
that
assessment.
Inner City
Press: What's
the process
for actually
appointing a
new
Chairperson of
this $50
billion
fund?
What's the
Secretary-General's
role?
Spokesman: I
will find out.
Well, Inner
City Press is
multiply
informed that
RSG Carolyn
Boykin has
been proposing
current IC
member Linah
Kelebogile
Mohohlo, but
that there are
attendance
issues.
Other IC
members with
questions:
Simon Zheng of
China, about
Boykin's (lack
of) knowledge
of the RMB,
and Achim
Kassow of
Germany. There
are others,
and we'll have
more.
On March 30,
Inner City
Press asked UN
deputy
spokesperson
Farhan Haq:
Inner
City
Press..
about alleged
irregularities
in the Pension
Fund and a
desire by the
current Chief
of the Pension
Fund to change
the rules so
there's less
outside
review. Is the
Secretariat
aware of these
concerns and
how does the
Secretariat
think they
should be
resolved, and
how would
staff in New
York be
represented as
to this $53
billion fund?
Deputy
Spokesman
Haq: As
you know, the
Secretariat in
the form of
the
Secretary-General
does not have
control over
the Pension
Fund.
It's not
something that
I can comment
on.
You'd have to
take that up
directly with
the Pension
Fund.
It seemed a
strange or
telling
answer, given
that there is
a
Representative
of the
Secretary
General to the
pension fund,
Caro Boykin,
on whom Inner
City Press has
previously
reported, here.
More recently,
as first
reported here
by Inner City
Press,
Boykin's
management has
been questioned
by the UN
Dispute
Tribunal on
March 30,
2015, here,
in Singh vs
UNSG (Ban
Ki-moon):
"the
Applicant’s
request for
management
evaluation was
deem
ed premature,
and thus not
receivable.
However, the
MEU made the
following
observations:
"Following
communications
with the
UNJSPF, the
MEU noted that
the job
opening for
the Post was
exceptionally
approved by
[OHRM] and
later reviewed
and approved
by the Central
Review Board.
The MEU
learned that
the CFA
exception was
granted
because the
future
incumbent will
be in charge
of managing
all
investments of
the [IMD],
which are
valued at USD
53 billion."
So after
learning more
about the
growing
scandal in the
UN Pension
Fund,
including
through a
staff meeting
on March 31
that was
itself
controversial,
Inner City
Press on April
1 asked Haq
again.
Haq
now said he
had spoken
with Boykin
who might --
might -- speak
to the press.
Inner City
Press asked,
yes or no, if
Investment
Committee
chairman Ivan
Pictet has
quit.
Haq did not
answer.
There
are $53
billion at
stake here,
and the
Secretary
General
appoints the
members of the
Investment
Committee.
We'll have
more on this.
And
on this, the
allegations of
(some) staff:
-Attempts
by the fund
CEO, Sergio
Arvizú, to
recruit a new
CFO,
subsequent
found to be
unsuitable for
the post.
-
A consultancy
services
contract worth
$520,000,
divided into
two, so as to
avoid scrutiny
by the
Headquarters
Committee on
Contracts, a
committee that
only reviews
procurement
requests above
$500,000.
-
Attempts by
the CEO to
approve return
air tickets
from Mexico to
New York for
four
individuals
with no
relationship,
contractual or
otherwise, to
the fund.
-
Irregular
modification
of a vacancy
announcement
in order to
favor a
particular
candidate to
the post of
D-1 Chief of
Legal
Services.
-
Attempts by
the CEO to
give a
short-term
contract to a
90 year-old
referee on his
CV -- this
person was
said, on March
31, to be
closer to 100
years old.
A failure to
disclose a
conflict of
interest
involving JP
Morgan Chase
was also
alleged.
The UN Pension
Fund, which
has resisted
not only Press
coverage but
also
accountability
to its own
pensioneers,
is said to be
poised to
implement a
major
reduction in
staff rights,
according to a
communication
a
whistleblower
directed to
Inner City
Press on April
2, 2014 and
which Inner
City Press
published on
April 3, here.
Inner City
Press
immediately
began
investigating
the complaint,
including a
draft
Secretary
General's
Bulletin said
to be pushed
by Pension
Fund CEO
Sergio Arvizu
Trevino. From
April 3
through the UN
noon briefing
on April 14,
Inner City
Press asked
Secretary
General Ban
Ki-moon's
spokespeople
three times
for a
response,
including to
staff unions'
letters of
protest.
Finally on
April 14 came
this response
from Ban's
spokesman:
Subject:
Your
question on
the Joint
Staff Pension
Fund
From: UN
Spokesperson -
Do Not Reply
[at] org
Date: Mon, Apr
14, 2014 at
4:21 PM
To:
Matthew.Lee
[at]
innercitypress.com
Cc: Stephane
Dujarric [at]
org
The UN
Joint Staff
Pension Fund
(UNJSPF) is
not a
Secretariat
entity but
composed of
many member
organizations.
The matter of
formalizing
delegation of
certain
authorities in
human
resources
matters to the
CEO of the
UNJSPF follows
discussions at
the Board and
the General
Assembly. The
General
Assembly
requested a
review of the
policies
governing the
recruitment,
promotion and
retention of
the staff of
the Fund and
measures to
find suitable
candidates for
certain Fund
positions that
were difficult
to fill. The
review found
that the
currently
applicable
memorandum of
understanding
between the
Office of
Human
Resources
Management and
the UNJSPF no
longer fully
meets the
needs of the
Fund as a
inter-agency
entity with a
unique
mandate.
This despite
extensive
protest from
impacted
staff, for
example this
received by
Inner City
Press:
"There
is no way they
accept 'No"
for an answer
to this
mandate even
though they
say we are
here to listen
to your
concerns,
unless you
stand united
and firm with
details
clearly
expressed and
drafted
sitting with
the staff and
their
representatives.
This divide
and rule must
stop and an
inclusive
conversation
guaranteeing
staff rights
for grievances
and
eliminating
this mess
until the IPAS
goes live and
works as
necessary.
Sending you
the complete
documents we
have received
so far, thanks
to those who
contributed
some documents
attached here
that are taken
from the
various
communications
and found at
printers
(special
thanks to
those high
level people).
Will send more
as they become
available.
And
so there will
be more -
watch this
site.
Tellingly, UN
Management has
engaged in
what many view
as censorship,
click here for
that.
In the interim
the old Staff
Union has
gotten
involved,
stating that
it is
"confident
that the draft
is real and is
currently
under
consideration"
--
In
case this
draft is
approved the
CEO of the
fund will be
able to:
remove
the UN
contracts of
over 230
pension fund
staff;
appoint,
promote
and terminate
pension board
staff at will;
make
exceptions to
the staff
rules; and
much more.
Worryingly,
it
was the
Pension Board
that was
supposed to
formulate
proposals on
HR issues and
present them
to the General
Assembly. We
understand
that the CEO
is now
pressuring the
Secretary-General
to sign this
off before the
Pension Board
even meets,
thus making it
a fait
accompli.
This would
contradict the
wishes of the
General
Assembly.
The
staff of the
fund manage
$45 billion -
your $45
billion. They
rightly work
in a diligent
and
independent
manner, which
is essential -
it's your
retirement
income at
stake.
We are
aware of
strange
management
practices at
the Pension
Fund for a
while. Staff
members there
work under one
of two types
of contracts:
a regular UN
contract or a
contract
limited to
service in the
Pension Fund.
If this draft
goes forward,
the Fund's CEO
will have
absolute power
over his staff
and we will
have very
little
oversight on
the way our
pension fund
is managed.
The whistleblower's
summary
points at CEO
Sergio Arvizu
Trevino and
his deputy
Paul Dooley.
Back in July
2013 when the
UN Pension
Fund was
poised to
designate a
new deputy
director,
sources told
Inner City
Press that
first among
the three
finalists was
an individual
previously
recommended
for discipline
by the Office
of Internal
Oversight
Service, Paul
Dooley.
Inner
City Press, contacted by
whistleblowers
inside the
Pension Fund,
previously dug
into a lack of
accountability
there. It
obtained and
reported on
OIOS'
"Investigation
of conflict of
interest,
favoritism and
mismanagement
at the UN
Joint Staff
Pension Fund"
describing how
through the
Pension Fund's
Paul Dooley,
millions of
dollars in
contacts were
given to a
company called
Sprig, Ltd,
run by Gerald
Bodell, who
was previously
Dooley's
supervisor at
Guardian
Mortgage
Corporation.
Recommendations
1 and 2 of the
OIOS
investigative
report
directed that
"appropriate
action be
taken”
regarding
Dooley as well
as Dulcie
Bull.
Previous
chief
Bernard G.
Cocheme
refused to
implement the
recommendation
for
discipline.
Farhan Haq,
then as now a
UN
spokesperson,
confirmed to
Inner City
Press Cocheme's
decision not
to discipline:
Subj:
Your
question on
OIOS and the
Pension Fund
From: Farhan
Haq [at]
un.org
To: Inner City
Press
In March 2006,
the OIOS
completed an
investigation
into
allegations of
possible
conflict of
interest,
favoritism and
mismanagement
at the United
Nations Joint
Staff Pension
Fund. Based
upon the
evidence
adduced, OIOS
concluded that
several staff
members -
including two
Senior UNJSPF
staff - have
acted
improperly in
connection to
contracts for
information
technology
services
awarded to a
consultant
retained by
UNJSPF.
OIOS
issued
several
recommendations
in this case,
including that
UNJSPF
management
take
appropriate
action against
its two staff.
The Chief
Executive
Officer of
UNJSPF
informed OIOS
that he
disagrees with
the findings
and
recommendations
of the report
of
investigation
- as regards
the actions of
his staff -
and advised
that he
"intends to
take no
action" with
regard to
them. OIOS
advised him
that pursuant
to its
mandate, it
will report
his response
to the General
Assembly.
That was one
thing. But
to now promote
the individual
to deputy
chief? As one
Pension Fund
source put it
to Inner City
Press, there
is less and
less
accountability
in the UN, the
more and more
they talk
about it
elsewhere.
Back
then, the UN
fought back
against Inner
City Press'
reports by a spurious
Security
complaint how
Inner City
Press went to
the Pension
Fund to cover
a meeting.
This was
repeated last
year when
Inner City
Press covered
meetings of
Herve Ladsous'
Senior
Advisory Group
on
Peacekeeping
Operations
including a
Sri Lankan
military
figure
depicted in
the UN's own
reports as
engaged in war
crimes.
In
2013, the UN
threatened to
suspend or
withdraw Inner
City Press' accreditation
for merely
hanging a sign
of the new Free UN Coalition for Access, which it
co-founded to
oppose the
earlier type
of attacks,
against any
journalist.
Labor rights,
free press
without
favoritism or
censorship -
what is Ban's
UN coming to?
Watch this
site.
* * *
These
reports
are
usually also available through Google
News and on Lexis-Nexis.
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for Sept 26, 2011 New Yorker on Inner City
Press at UN
Click
for
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