U.N. Probe Into Internal Fraud Expands

By Bradley Brooks
January 24, 2006
The Washington Post
Original Source: http://www.washingtonpost.com/wp-dyn/content/article/2006/01/24/AR2006012400396.html

UNITED NATIONS -- A U.N. inquiry into fraud and corruption in purchases made for global peacekeeping operations has expanded to include more than 200 investigations, according to a top official.
That has doubled the investigations from just a few months ago, said Christopher Burnham, the U.N.'s undersecretary-general for management.
In monetary terms, Burnham said that the potential abuse could go into tens of millions of dollars.
U.S. Ambassador John Bolton _ a strong advocate for top-to-bottom reform at the global body _ said Monday's developments show that drastic changes are needed.
It's a very disturbing report and will require very careful study, Bolton said. It reinforces our view that activity the Security Council and the General Assembly authorize has to be under careful supervision and scrutiny.
Last week, the U.N. said it ordered eight staff members to take paid leave as part of the fraud investigation.
While the U.N. didn't identify the suspended staff members, two top U.N. officials said Assistant Secretary-General Andrew Toh, who headed the division responsible for procurement, was among those included.
In addition, one corporation, which was not identified, was suspended from doing business with the U.N.
In 2005, the U.N.'s Procurement Department handled almost $2 billion in purchasing for the Department of Peacekeeping, officials said.
The U.N.'s Office of Internal Oversight Services on Friday completed an internal audit into the allegations of fraud that raises a number of serious allegations and concerns, Burnham said.
While the audit will not be made available to the public, Burnham read a few passages, including one stating that important controls into ensuring transparency in procurements were lacking, while existing ones were often bypassed.
But Burnham underscored that the U.N. is working to police itself.
We're doing all the right things to ensure that the global taxpayer's money will be protected going forward, and that we are ferreting out corruption and fraud where it existed and exists, he said.
Burnham said any criminal wrongdoing discovered in the investigation would be turned over to the U.S. attorney for the southern district of New York.
It was last summer that such cooperation led to former U.N. procurement officer Alexander Yakovlev pleading guilty to wire and money laundering.
For Bolton, the U.N. investigation points to larger issues.
It's not simply this incident or that incident of mismanagement, he said. It is a culture problem we're facing here.