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Reuters
04 April, 2016, 12:05
Update: 04 April, 2016, 12:05
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U.N. audit identifies serious lapses linked to alleged bribery

Reuters
04 April, 2016, 12:05
Update: 04 April, 2016, 12:05
The United Nations headquarters building is pictured though a window with the UN logo in the foreground in the Manhattan borough of New York 15 August, 2014. Photo: Reuters

United Nations: The United Nations’ internal investigations office has uncovered serious lapses and due-diligence failures in the world body’s interaction with organizations tied to an alleged bribery scheme involving a former U.N. General Assembly president.

The 21-page confidential report by the U.N. Office of Internal Oversight Services’ (OIOS), reviewed by Reuters, outlines the results of an audit ordered by Secretary-General Ban Ki-moon in response to charges against John Ashe, General Assembly president in 2013-2014, and six other people.

The report gave the U.N. an overall grade of ‘partially satisfactory’ in the 22 March  report, which is available to U.N. member states on request. It noted ‘important deficiencies’ in the way United Nations and its staff interacted with non-governmental organizations (NGOs) and oversees U.N. employees.

It is the biggest financial corruption crisis to rock the United Nations since the Oil-for-Food scandal hit the world body during the tenure of Ban’s predecessor Kofi Annan. U.N. officials and diplomats say latest scandal highlights the need for greater transparency at the United Nations.

OIOS recommended improvements in internal U.N. risk management and controls in light of the irregularities uncovered—a U.N. document improperly altered, travel expenses paid by NGOs against U.N. guidelines, U.N. employees keeping iPads given to them by an NGO headed by an indicted individual.

OIOS urged Ban to ensure that any outside organizations the U.N. deals with are properly vetted. It also said that the U.N. should review any continuing relations with NGOs linked to the indictment.

The audit came in response to an ongoing U.S. investigation that has since October resulted in charges against seven people including Ashe, a former U.N. ambassador from Antigua and Barbuda.

U.S. prosecutors say Ashe received $1.3 million in bribes from Chinese businessmen including Ng Lap Seng, a billionaire real estate developer who heads Macau-based Sun Kian Ip Group and was seeking to build a U.N.-sponsored conference center in Macau.

Francis Lorenzo, a suspended deputy U.N. ambassador from the Dominican Republic who prosecutors said helped facilitate Ng’s bribes and received bribes himself, pleaded guilty in March and agreed to cooperate with U.S. authorities.Sheri Yan, chief executive of Global Sustainability Foundation, a New York-based NGO, and Heidi Hong Piao, its finance director, accused of facilitating bribes to Ashe, pleaded guilty in January. Julia Vivi Wang has not yet entered a plea, and Ng’s assistant Jeff Yin pleaded not guilty.

Attorneys for those charged either did not respond or declined to comment when contacted by Reuters. A spokesman for the Manhattan U.S. attorney’s office also declined to comment.

U.N. spokesman Stephane Dujarric said that while the Secretary-General was glad that the audit found many controls working properly, the flagged procedural lapses were a concern.

‘Instructions reinforcing the correct procedures with respect to document issuance have been issued to the Departments and Offices concerned,’ Dujarric said.

‘With regard to the specific cases referred to in the audit, action is being taken to determine responsibility and any measures, including possible disciplinary action, that may be deemed appropriate,’ he said, adding that the U.N. was committed to cooperating with the U.S. authorities.

 

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