New U.N. Procurement Scandal Draws DOJ Attention 

By Stewart Stogel
January 24, 2006
Newsmax
Original Source: http://www.newsmax.com/archives/articles/2006/1/24/132109.shtml

UNITED NATIONS -- A new embezzlement scandal plagues the United Nations, the latest in a series of scandals to smear the world diplomatic body. 
A lot of Ben Franklins($100 bills) are missing. This is the tip of the iceberg, so confessed a senior United Nations official. 
The U.N. official was speaking about a scandal unrelated to the ongoing, multi-billion dollar scandal involving the Iraq Oil for Food Program. 
U.N. General Secretary Kofi Annan's latest headache involves the U.N. office of procurement and its administration of activities related to peacekeeping affairs. 
Last week, Annan suspended with pay several officials under investigation, including procurement director Andrew Toh. 
NewsMax has learned that the U.N. probe has broadened and now includes involvement by the U.S. Dept. of Justice. 
The DOJ, through the office of the U.S. Attorney for the Southern District of N.Y., launched a formal criminal investigation of Andrew Toh and his activities at the United Nations. 
Specifically, the U.S. attorney is investigating Toh's relationships with several U.S. companies. 
At the heart of the controversy are contracts with an estimated worth of several hundred million dollars, claims a U.N. official who requested confidentality. 
A preliminary U.N. report says contracts valued at $193 million may have been improperly awarded. 

Among some of the irregularities already uncovered by U.N. investigators are: 
·ð  Helicopter services in the Pacific nation of East Timor chartered for $10.4 million, when other bids were as low as $1.6 million. 
·ð  $2.4 million for the construction of 
airplane hangers in the Democratic Republic of the Congo which were never used. 
·ð  $65 million for fuel contracts to service U.N. operations in Haiti and Sudan, which were not needed. 
·ð  $85.9 million for a second contract to fuel U.N. operations in Suda
n, which apparently were not needed. 
Unlike the Oil-for-Food investigation - which never involved a formal criminal probe - the current U.N. investigation could result in formal indictments by a grand jury. 
It is not known whether the U.S. attorney has decided to covene a grand jury. 
It is also not known whether Annan would exercise his right to protect the U.N. employees under functional immunity statutes. 

Previously, the U.N. chief has declared he would not shield any U.N. staff members from criminal prosecution. 
On the current crisis, Annan has, so far, remained silent. 
Diplomats at the U.N. say Toh told them that he would likely try and cut a deal with the U.S. authorities. 
Toh, it is said, is threatening to name higher ups in the burgeoning U.N. procurement crisis.