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At the UN, Incomplete Reforms Allow for Gifts of Free Housing to UN Officials by Member States

BYLINE: Matthew Russell Lee of Inner City Press at the UN

  UNITED NATIONS, August 30 -- When UN officials receive free or cut-rate housing from their countries of nationality, the UN does not consider it a gift or favor, or even remuneration. Wednesday as Inner City Press' inquiry continued, it emerged that the issue is far from abstract.

   In response to follow-up questions, Kofi Annan's spokesman Stephane Dujarric said, "I'm not saying there are not people that do get some benefits and have declared them, because there are, and that's being looked at." When asked if the list of recipient will be made public, Mr. Dujarric said, "These are issues that are being discussed... we may very well move to some form of public disclosure."

            At the spokesman's noon media briefing on Wednesday, Inner City Press asked about whether such housing subsidies violate UN Staff Regulation 1.2(j), which states plainly that "No staff member may accept any honour, decoration, favour, gift, or remuneration from any Government."

   As transcribed, Inner City Press requested that the spokesman "at tomorrow’s briefing publicly say if those subsidies are illegal under the rules or not." Mr. Dujarric responded, "They need to be declared and then they are deducted from the allowances received.  But I will take a look at the staff rules in details and try to square that circle."

Paul Volcker and Stephane Dujarric's predecessor Fred Eckhard in May 2004 per UN: Two years later, public disclosure is still "tricky"

            UN insiders interviewed by Inner City Press have characterized member-states' provision of free or cut-rate housing to their national who serve as UN officials as both an open secret and as a scandal. In most legal systems a judge would be prohibited from presiding or ruling in a case in which he or she was receiving free housing from one of the litigants. By contrast at the UN as disclosed Wednesday senior officials in such departments as peacekeeping and political affairs can make decisions impacting their countries while at the same time receiving free housing from these countries.

            What of this apparent conflict of interest? Asked about this Wednesday afternoon, Mr. Dujarric said among other things, "You have to have an honor system." He used as an example that the head of the UN Department of Political Affairs Ibrahim Gambari, formerly foreign minister of Nigeria, might recuse himself from sensitive matters concerning Nigeria -- but not because of any housing subsidy. Mr. Dujarric added that he was neither saying nor not saying if Mr. Gambari receives any housing subsidy. (UN insiders note that the housing subsidy question should be addressed by Mr. Gambari's predecessor at DPA.) Mr. Dujarric also pointedly denied that any housing subsidies were provided to Jean-Marie Guehenno or Louise Frechette. The Canadian mission's press officer Michael Kovrig, in response to a follow-up question from Inner City Press, wrote: "I can now confirm that Foreign Affairs and International Trade Canada did not provide any housing subsidy to Deputy Secretary-General Frechette."

            So it is a practice without practitioners? Wednesday Mr. Dujarric acknowledged that there are senior UN officials who "get some benefits and have declared them." But will that be disclosed?

            Kofi Annan's office and others provide various explanations or contexts for the practice. They note that unless the organization recruits only from within, many of the top jobs at the UN are filled by former diplomats who may already have been receiving housing subsidies from their governments.  (Notably, the interpretation proffered Wednesday is not limited to such circumstances.)

            Mr. Dujarric offered, using Belgium only as a example presumably hypothetical, that "Belgium has an Under-Secretary General, that's important to them, so they say, fine, we'll provide you with the apartment. But that's not remuneration... Remuneration is a salary, rather than a housing subsidy, which is usually more in-kind."  Asked about UN Charter Article 100.1, which requires UN personnel to "refrain from any action which might reflect on their position as international officials responsible only to the Organization" of the UN, Mr. Dujarric added, "We're saying you're not to accept orders or instruction from member states, nor are member states to give orders or instructions. There are two sides to this, obviously."

            Another explanation offered for the lack of public disclosure of UN officials' receipt of free or cut-rate housing from member-states is that some UN officials are no longer on good terms with those in power in their counties of nationality. Public disclosure, it was argued Wednesday, might put these UN officials at risk. The other side, whether the one referred to by Kofi Annan's spokesman or not, is the need at least for disclosure of what nearly any legal or administrative system would deem a possible conflict of interest: the provision and acceptance of free housing from a nation or party the recipient may impact.

            To the argument that if senior UN officials claim they cannot live on their UN compensation packages and need benefits from their nations, the UN should increase their compensation rather than accept conflicting payments from member states, a defender of the current policy quipped that while a certain U.S. Senator from Minnesota might want transparency at the UN, will he also not complain about the cost?

            Wednesday Inner City Press asked that Kofi Annan's spokesman at Thursday's "briefing publicly say if those subsidies are illegal under the rules or not." Mr. Dujarric answered, "They need to be declared and then they are deducted from the allowances received.  But I will take a look at the staff rules in details and try to square that circle."

            This still-rolling circle began, as much as anywhere, when high-placed sources within UN Headquarters showed Inner City Press a copy of a letter from U.S. Ambassador John R. Bolton, dated June 27, 2006, to Secretary-General. Kofi Annan. The letter asked Mr. Annan for information about UN officials who receive housing subsidies from their countries of nationality in contravention of their duties, under Article 100.1 of the UN Charter, to "refrain from any action which might reflect on their position as international officials responsible only to the Organization" of the UN.  Why the U.S. Mission, which is so often quick to comment, made no public statement about the June 27 letter is not known.

            Two weeks ago, Inner City Press asked the deputy spokesman of the U.S. Mission, Benjamin Chang, if any response to the letter, whose existence had yet to be publicly disclosed, had been received. A week later, the lead spokesman of the U.S. Mission Richard A. Grenell called Inner City Press offering to fax a copy of John Bolton's letter.  In response to Inner City Press' questions to Kofi Annan's office about the letter, it emerged that despite the passage of two months, the letter had not been responded to.

            On the August 29 noon briefing, Inner City Press again asked Kofi Annan's spokesman about housing subsidies:

Inner City Press Question:  Yesterday, you promised an answer right after the briefing on the staff rules and housing subsidies.

Spokesman:  I do have an answer, which is, first of all, we are in the process of replying to Ambassador Bolton’s letter.  The rules pertaining to rental subsidies and deductions are regulated through administrative instructions issued by the Secretary-General, which we can give you copies of since they are public documents.  They provide that staff members who receive housing assistance, including housing provided by the Organization, a Government or a related institution, either free of charge or substantially lower rates, shall subsequently be subjected to payroll deductions from their salaries.  We are in the process of checking data to determine if those staff members who are in receipt of that assistance are subject to payroll deductions.  These are things that are asked in the financial disclosure forms.  Those forms are currently being examined by the Ethics Office.  Obviously, anything that needs to be flagged will be flagged.

Inner City Press Question:  On the second manner that arose yesterday, on the Compass Group…

Spokesman:  I have nothing new to add to that.

[Ed.'s note: The Times of London of Aug 30 has added to that, click here to view.]

            Just as there appears to be no legal mechanism to require those at the very top of the UN to comply with stated ruled, such as filing the financial disclosure forms, so too there appears to be no outside non-Secretariat body to apply the rules, as written, to the fact of housing subsidies from governments. While it has now been admitted that such subsidies are paid, UN Staff Regulation 1.2(j) states that "No staff member may accept any honour, decoration, favour, gift, or remuneration from any Government." Staff Regulation 1.2(l) says that "no staff member shall accept any honour, decoration, favour, gift or remuneration from any non-governmental source without first obtaining the approval of the Secretary-General." This Regulation allows the Secretary-General to make exception only for NON-governmental sources: the prohibit on government sources is absolute, unless the regulation is read to exclude everything except salary payments.

            Wednesday Kofi Annan's spokesman Stephane Dujarric told Inner City Press that the UN "in the last three years partly as a result of Oil-for Food and [the] Volcker [Committee], is really trying to bring itself up to standards it was never made to meet by the public or by the member states. I think we've done a tremendous amount in that regard. The issue of public disclosure is more tricky."

            Mr. Dujarric himself disclosed, "I get a base salary, I hardly get any housing subsidy since I own my apartment, but I get school subsidies. If I had been a member of the French civil service, which I'm not, and they provided me with some help for my kids, then I would have to declare it and it would be deducted from what the UN gives me." Ah, sunshine. If only those above will follow suit.

            On the lighter side, Wednesday Don King strutted out of the Security Council with a freakingly tall Russian boxer promoting a fight. How these connections are made is not known. Across the hall from the spokesman's office, a journalist reported seeing a mouse.

            Thursday at the UN, the IAEA report on Iran is slated to be released at midday. The U.S. and UK resolution on Sudan has been "put in blue," portending a vote on Thursday, the last day of Ghana's interesting Council presidency. China, it is said, may abstain but not veto. We'll see.

Feedback: editorial [at] innercitypress.com

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Inquiry Into Housing Subsidies Contrary to UN Charter Goes Ignored for 8 Weeks, As Head UN Peacekeeper Does Not Respond

Click here for August 28 follow-up story by Inner City Press.

Byline: Matthew Russell Lee of Inner City Press at the UN

UNITED NATIONS, August 24 (updated Aug. 28, 1 pm) -- UN Secretary-General Kofi Annan has let eight weeks pass without responding to a request for information about senior UN officials receiving housing subsidies from their country of nationality, it emerged on Thursday.  Former Deputy Secretary Louise Frechette was asked if she received such subsidies and said no, according to UN spokesman Stephane Dujarric. Despite a specific request from Inner City Press at 5 p.m. Thursday for a similar response from Jean-Marie Guehenno, the head of UN peacekeeping, five hours later by 10 p.m. deadline no response was received. Deputy UN peacekeeping spokesman Hernan Vales said that since Mr. Guehenno is out of the country, no response will be possible until next week.

            High-placed sources within UN Headquarters showed Inner City Press a copy of a letter from U.S. Ambassador John R. Bolton, dated June 27, 2006, to Secretary-General. Kofi Annan. The letter asked Mr. Annan for information about UN officials who receive housing subsidies from their countries of nationality in contravention of their duties, under Article 100.1 of the UN Charter, to "refrain from any action which might reflect on their position as international officials responsible only to the Organization" of the UN.

            One week ago, Inner City Press asked the deputy spokesman of the U.S. Mission, Benjamin Chang, if any response to the letter, whose existence had yet to be publicly disclosed, had been received. Inner City Press also asked if the U.S. Mission was aware if the Secretary-General has filed his required financial disclosure.  While the latter question has yet to be answered, Mr. Chang stated that while he was unaware of Ambassador Bolton's letter he would check.

            Late on the afternoon of August 24, the lead spokesman of the U.S. Mission Richard A. Grenell called Inner City Press offering to fax a copy of John Bolton's letter. His office told Inner City Press that no response has been received, eight weeks after the letter was sent to Kofi Annan.

            Inner City Press then immediately provided a copy of the letter to UN spokesman Stephane Dujarric, and asked if and why not response had been provided, and for responses specifically on Louise Frechette and Jean-Marie Guehenno. These two individuals were named to Inner City Press by the sources who first showed glimpses of the letter.

            Mr. Dujarric responded, as to Canadian Ms. Frechette, that "I asked her and she said no."  As to Jean-Marie Guehenno, Annan's spokesman's office did not provide a denial, nor any other response for the following five hours.

Guehenno, back in Haiti

            On August 22, at the UN's formal noon press conference, Inner City Press had inquired into the location and activities of Mr. Guehenno, whose deputy Hedi Annabi had been conducting the UN peacekeeping work of meeting with potential troop contributors to the UN's Lebanon force. The spokesman said that Mr. "Guehenno is in France on personal business." Video here, from Minute 42:23.

            In the spirit of disclosure, Inner City Press has previously interviewed Jean-Marie Guehenno concerning this year's loss of focus, at least in Africa,on peacekeeping and concerning the offer of a colonel's position in the Congolese Army to Peter Karim, whose militia took hostage seven UN peacekeepers earlier until early last month. Mr. Guehenno, who had previously told Inner City Press that Peter Karim "is on drugs," more recently explained the negotiations as solved because the hostage takers "just wanted jobs." Mr. Guehenno also responded to questions about the UN's Congo Mission's self-exoneration regarding reported abuse at Kazana in Eastern Congo by saying the report was still being considered, a statement yet to be followed up. Video here, Minutes 23:50 to 30:30.

            Thursday afternoon, less than an hour after the U.S. Mission provided a copy of John Bolton's letter, Inner City Press sought out lead UN Peacekeeping spokesman Nick Birnback but was told that he is out until August 29. Deputy spokesman for peacekeeping Hernan Vales said that "all of these issues are personal and confidential" and are "not really work related."

            As Inner City Press, and the letter, pointed out to Mr. Vales, the UN's bulletin on financial disclosure and declaration of interest statements, Document ST/SGB/2006/6, requires the disclosure of "any form of supplement, direct or indirect, to the United Nations emoluments, including provisions of housing or subsidized housing or any... benefit, remuneration or in kind contribution from any government, governmental agency or other non United Nations source aggregating $250 or more...".  Article 100.1 of the UN Charter requires that Secretariat staff "refrain from any action which might reflect on their position as international officials responsible only to the Organization" of the UN.

            Asked to respond to this logic, that senior UN official need to have their allegiance be, and to seen to be, only to the UN, and not their country of nationality, Mr. Vales asked Inner City Press to hold off publishing this story. When Mr. Vales then said that no response would be possible until next week, Inner City Press decided to wait four more hours for any written responses, and then publish.

Update of August 25, 5 p.m. -- Just prior to the UN noon press briefing on Friday, Kofi Annan's spokesman called Inner City Press aside and said, "I have answers for you, if you'll wait until after the briefing."

 "What are the answers?"

  "We're aware of the letter and we're responding to it. These are obviously issues we are looking at through the financial disclosures."

  The spokesman issued an off-the-record, then subsequently on-the-record, denial as to Jean-Marie Guehenno. On other issues he has promised to respond.

Update of August 28, 1 p.m. -- At Monday's noon briefing, UN spokesman Stephane Dujarric answered questions about the housing subsidies by saying it is still being looked into.

  Also Monday Inner City Press asked Ambassador Bolton three questions: his view on the Secretariat's non-response for two months, what the letter was getting at, and whether he is aware if the Secretary-General has filed in required financial disclosure form. Video here, from Minute 8:20.

  Amb. Bolton answered that the housing subsidies to which the letter referred appear to violate UN regulations, that he wanted an answer, and that he is not aware if Mr. Annan has filed his financial disclosure form. This last, Inner City Press asked in connection with its inquiry into the purchase of part of Compass / ESS, embroiled in a United Nations scandal, by Sweden's Wallenberg family, of which the UN's Secretary General's wife is a member, click here for that August 28 story by Inner City Press.

Congo Shootout Triggers Kofi Annan Call, While Agent Orange Protest Yields Email from Old London

Byline: Matthew Russell Lee at the UN

UNITED NATIONS, August 22 -- Kofi Annan placed telephone calls to the Congo as his envoy William Lacy Swing was pinned down by the DCR presidential guards' artillery fire while in the home of second-place finisher Jean-Pierre Bemba. These details emerged Tuesday at UN headquarters, from which Mr. Annan has been placing a much higher volume of calls about the Middle East.

   In an impromptu interview with Inner City Press in the hallway outside the Security Council, the UN's deputy chief of peacekeeping Hedi Annabi said Mr. Swing is safe and sound, and that the Secretary-General's calls to both Joseph Kabila and Bemba "seemed to have some effect." Another UN staffer soon thereafter made an off-color and -the-cuff joke about invitations to have lunch with Bemba, whose campaigning includes denying a cannibal past.

   The Security Council after a hastily-called meeting on Tuesday afternoon issued a press statement calling among other things on Messrs. Kabila and Bemba to keep their gunmen off the streets, for the electoral process and calendar to be respected. Inner City Press asked the Council's president Nana Effah-Apenteng if any appeals or challenges to the election have yet been filed, and if the Kabila forces, which fired even on William Lacy Swing, had committed to the Secretary-General to henceforth cease and desist. "Don't know" was the answer to the former, and to the latter too, in essence. Video at http://webcast.un.org/ramgen/sc/so060822pm1.rm

            While the shooting at his envoy got Kofi on the phone to Kinshasa, the same can't be said of Somalia, as it veers toward Horn-wide war. For weeks Inner City Press has asked what the UN is doing, including specifically for it to confirm or deny the widely-reported presence of Ethiopian troops in Baidoa and elsewhere. Monday Kofi Annan's spokesman said the "Somalia file is with the Department of Political Affairs," whom he would ask to respond. Tuesday at noon, Inner City Press repeated its request. At an early afternoon stakeout, UN Under Secretary General Ibrahim Gambari was asked by Inner City Press what he and his office are going on Somalia, specifically the Ethiopian troops.

UN's Air Africa -- coming or going? per Ian Steele

  Mr. Gambari responded that "DPA is the lead department on Somalia... We support Francois Fall" who is "promoting dialogue" between the "fragile and weak" Transitional Federal Government and the Islamic Courts. Without specifying whether Ethiopian troops are in Somalia or not, Mr. Gambari inveighed against the introduction of elements into "fragile" Somalia. Video at http://webcast.un.org/ramgen/sc/so060822pm.rm

            But it precisely because the Transitional Federal Government installed in Baidoa is so fragile, and losing support, that Ethiopia's intervening, and the UN looking the other way...

  Near deadline, from the Office of the Spokesman for the Secretary-General came this:

"Like you, we have read reports in the press of the presence of Ethiopian troops on Somali soil but have no independent confirmation of it. The UN Political Office for Somalia (DPA's primary source of information on Somalia), which is based in Nairobi, has neither the mandate nor the field monitoring capacity to assess the veracity of such reports."

  So -- the UN's lead division on Somalia has as its primary (and apparently only) sources of information an office that says it has no mandate to see or report on the invasion of one country by another? The questions will continue because they must.

On the UN - Corporate Beat, Dow Chemical Luncheon Chickens Come Home to Roost

Byline: Matthew Russell Lee at the UN

           

UNITED NATIONS, August 22 -- Across from UN on Manhattan's East Side on Tuesday there was a protest of the use of Agent Orange in Southeast Asia. A manufacturer and distributor of Agent Orange, Dow Chemical, was celebrated at UN Headquarters less than a month ago, in a luncheon addressed by Deputy Secretary General Mark Malloch Brown and Mr. Amir A. Dossal, the head of the UN Foundation for International Partnerships. Inner City Press covered and questioned the luncheon on July 25, inquiring into how the UN screens and even tries to reform the corporations with which it interacts.

     Tuesday at a noon press conference Kofi Annan's spokesman was asked this question, and he said that "it's clear that the Secretary-General has made an effort to reach out to transnational corporations, who have a role to play in the world we live in." Asked by Inner City Press how the UN's "bully pulpit" is used to improve these corporations, the spokesman said that's what the Global Compact is for.  Video at http://webcast.un.org/ramgen/pressbriefing/brief060822.rm, Minutes 21:10 to 23:15.

            Later on Tuesday the spokesman's office sent Inner City Press a copy of Dow Chemical's May 25, 2006 letter to Kofi Annan, asking him to attend the luncheon at that time two months out. The luncheon and the partnership with the UN are presented as fait accompli. Only the luncheon's date is in question, to accommodate the Secretary-General's schedule. As it turned out, due to intervening world events, Mr. Malloch Brown attended in Kofi Annan's stead. At the luncheon, the Deputy Secretary General said of Dow, "we endorse it."

   Since the May 25 letter does not refer to any review of Dow Chemical's record, or any discussions for example with Amnesty International, which is on record questioning Dow's ethics, the question of question of oversight and safeguards remains unanswered. Email inquiries on Tuesday resulted in a call back from Mr. Dossal's office in New York, saying that he is in London but would call at or just after 5 p.m.. 6 p.m. his office called to say Mr. Dossal had dictated an email, which subsequently arrived. Given the proximity between its receipt and deadline, it is presented in full without comment:

From: dossal [at] un.org

To: matthew.lee [at] innercitypress.com

Cc: OSSG, ODSG

Sent: Tue, 22 Aug 2006 6:02 PM

Subject: Re: Request for your comment on 7/25/06 Dow Chemical lunch, in light of today's Agent Orange protest on 1st Avenue

Dear Mr. Lee,

Thank you very much for the follow-up regarding the Dow/Blue Planet Run event.  I am currently out of the country, but I wanted to provide you with some background information below. As you may know, over 1.5 billion people do not have access to clean water.  Dow Chemical is part of a global water challenge to work on raising our awareness and mobilizing new resources to bring safe drinking water to people in developing countries.  The CEO of Dow is personally committed to this effort, working with the Blue Planet Run Foundation.  The intention is to attract new funders who will contribute towards the achievement of this pressing Millennium Development Goal.

As you might be aware, it has been this Secretary-General's stated commitment to engage all actors, especially to harness the leadership of companies, foundations and NGOs to find creative solutions in addressing problems in the developing world. We feel that encouraging Dow Chemical and other multi-nationals to support the MDGs will make them more sensitive and more aware of their responsibility to be good corporate citizens.  FYI, the Global Water Challenge includes a number of companies and foundations, including the UN Foundation, and NGOs, who are committed to finding solutions. I hope this information is helpful.

Amir A. Dossal, Executive Director

UN Office for International Partnerships

http://www.un.org/unfip/

http://www.un.org/democracyfund/

            For now, Inner City Press' previous description of the July 25 Dow luncheon is at http://www.innercitypress.com/unhq072506.html with links to other perspectives on Dow Chemical's performance, not mentioned at the lunch or in the lead-up, it appears.

Other Inner City Press reports are archived on www.InnerCityPress.org

Congo Shootout Triggers Kofi Annan Call, While Agent Orange Protest Yields Email from Old London

On the UN - Corporate Beat, Dow Chemical Luncheon Chickens Come Home to Roost

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Through the UN's One-Way Mirror, Sustainable Development To Be Discussed by Corporations, Even Nuclear Areva

Racial Disparities Grew Worse in 2005 at Citigroup, HSBC and Other Large Banks

Mine Your Own Business: Explosive Remnants of War and the Great Powers, Amid the Paparazzi

Human Rights Are Lost in the Mail: DR Congo Got the Letter, But the Process is Still Murky

Iraq's Oil to be Metered by Shell, While Basrah Project Remains Less than Clear

At the UN, Dues Threats and Presidents-Elect, Unanswered Greek Mission Questions

Kofi, Kony, Kagame and Coltan: This Moment in the Congo and Kampala

As Operation Swarmer Begins, UN's Qazi Denies It's Civil War and Has No Answers if Iraq's Oil is Being Metered

Cash Crop: In Nepal, Bhutanese Refugees Prohibited from Income Generation Even in their Camps

The Shorted and Shorting in Humanitarian Aid: From Davos to Darfur, the Numbers Don't Add Up

UN Reform: Transparency Later, Not Now -- At Least Not for AXA - WFP Insurance Contract

In Congolese Chaos, Shots Fired at U.N. Helicopter Gunship

In the Sudanese Crisis, Oil Revenue Goes Missing, UN Says

Empty Words on Money Laundering and Narcotics, from the UN and Georgia

What is the Sound of Eleven Uzbeks Disappearing? A Lack of Seats in Tashkent, a Turf War at UN

Kosovo: Of Collective Punishment and Electricity; Lights Out on Privatization of Ferronikeli Mines

Abkhazia: Cleansing and (Money) Laundering, Says Georgia

Post-Tsunami Human Rights Abuses, including by UNDP in the Maldives

Who Pays for the Global Bird Flu Fight? Not the Corporations, So Far - UN

Citigroup Dissembles at United Nations Environmental Conference

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