No proof of large-scale UN funds diversion in N Korea
Sunday, 3 June 2007
UNITED NATIONS, June 2 (AFP): An audit of operations of three UN agencies in North Korea has found no proof of US charges of systematic diversion of large-scale UN funding to the Pyongyang regime, the world body said yesterday.
"The report does not indicate that large-scale UN funding has been systematically diverted, as has been alleged," said a statement released by UN spokeswoman Michele Montas.
It said, however, that UN chief Ban Ki-moon expected the agencies-the UN Development Programme (UNDP), UN Children's Fund (UNICEF) and UN Population Fund (UNPF) -- "to act upon the findings in the audit as quickly and transparently as possible."
The preliminary UN Board of Auditors report did highlight hurdles UN funds and programmes have faced in North Korea, particularly "independence of staff hiring, foreign currency transactions and access to local projects," the statement noted.
In January, the US mission to the United Nations charged that North Korea had, since 1998 and with the complicity of UNDP, "systematically perverted" the UN aid programme "for the benefit of the Kim Jong Il regime, rather than the people of North Korea."
Although the exact amount of hard currency supplied to Pyongyang through UNDP is not known, information gathered by the Americans then suggested-without evidence-that tens of millions of dollars might have gone into North Korea's coffers since 1998.
North Korea angrily denied the US allegations, describing them as part of a smear campaign by hardliners in Washington to try to derail US-North Korean talks.
Following the US claims, Ban called for an audit of UN programmes and funding in countries such as North Korea.
His office said that Friday's report was only the first result of that initiative, making it clear that follow up action would be required in a number of areas in a subsequent audit phase that would include a visit by auditors to North Korea.
UNDP spokesman David Morrison told reporters Friday that over the past decade, funds from his agency amounted to less than two per cent of all development aid to North Korea, and only around roughly 0.1 per cent of foreign currency flowing into the Stalinist state.
He stressed that UN agencies, international non-governmental organisations, foreign diplomatic missions and tourists operating in North Korea must pay in either hard currency or the local won, in which case hard currency must be converted at a bank in the country.
And he pointed out that, while the audit report suggested that UNDP had made certain payments directly in hard currency instead of converting it at the local bank and using North Korean currency, UNDP's financial regulations did not set restrictions on use of foreign money.
"The report does not indicate that large-scale UN funding has been systematically diverted, as has been alleged," said a statement released by UN spokeswoman Michele Montas.
It said, however, that UN chief Ban Ki-moon expected the agencies-the UN Development Programme (UNDP), UN Children's Fund (UNICEF) and UN Population Fund (UNPF) -- "to act upon the findings in the audit as quickly and transparently as possible."
The preliminary UN Board of Auditors report did highlight hurdles UN funds and programmes have faced in North Korea, particularly "independence of staff hiring, foreign currency transactions and access to local projects," the statement noted.
In January, the US mission to the United Nations charged that North Korea had, since 1998 and with the complicity of UNDP, "systematically perverted" the UN aid programme "for the benefit of the Kim Jong Il regime, rather than the people of North Korea."
Although the exact amount of hard currency supplied to Pyongyang through UNDP is not known, information gathered by the Americans then suggested-without evidence-that tens of millions of dollars might have gone into North Korea's coffers since 1998.
North Korea angrily denied the US allegations, describing them as part of a smear campaign by hardliners in Washington to try to derail US-North Korean talks.
Following the US claims, Ban called for an audit of UN programmes and funding in countries such as North Korea.
His office said that Friday's report was only the first result of that initiative, making it clear that follow up action would be required in a number of areas in a subsequent audit phase that would include a visit by auditors to North Korea.
UNDP spokesman David Morrison told reporters Friday that over the past decade, funds from his agency amounted to less than two per cent of all development aid to North Korea, and only around roughly 0.1 per cent of foreign currency flowing into the Stalinist state.
He stressed that UN agencies, international non-governmental organisations, foreign diplomatic missions and tourists operating in North Korea must pay in either hard currency or the local won, in which case hard currency must be converted at a bank in the country.
And he pointed out that, while the audit report suggested that UNDP had made certain payments directly in hard currency instead of converting it at the local bank and using North Korean currency, UNDP's financial regulations did not set restrictions on use of foreign money.