{"id":36593,"date":"2012-03-31T21:12:51","date_gmt":"2012-03-31T21:12:51","guid":{"rendered":"http:\/\/www.colombotelegraph.com\/?p=36593"},"modified":"2012-04-07T22:27:01","modified_gmt":"2012-04-07T22:27:01","slug":"usd-1-6-million-un-corruption-files-un-in-a-cover-up-game","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/usd-1-6-million-un-corruption-files-un-in-a-cover-up-game\/","title":{"rendered":"USD 1.6 Million UN Corruption Files: UN In A Cover-Up Game"},"content":{"rendered":"<p><strong>By <a href=\"http:\/\/www.colombotelegraph.com\/?s=uvindu+kurukulasuriya&amp;x=15&amp;y=8\">Uvindu Kurukulasuriya<\/a> &#8211;<\/strong><\/p>\n<div id=\"attachment_5044\" style=\"width: 111px\" class=\"wp-caption alignright\"><a href=\"http:\/\/www.colombotelegraph.com\/index.php\/sunanda-saga-states-of-denial-and-ngo-accountability\/uvindu-2\/\" rel=\"attachment wp-att-5044\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5044\" class=\"size-full wp-image-5044\" title=\"uvindu\" src=\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/02\/uvindu1.jpg\" alt=\"\" width=\"101\" height=\"97\" \/><\/a><p id=\"caption-attachment-5044\" class=\"wp-caption-text\">Uvindu Kurukulasuriya<\/p><\/div>\n<p>A leaked 50 page document by the UN\u2019s Chief Investigator, Inga Britt Ahlenius, dated 14 July 2010 and entitled \u201cEnd of Assignment Report\u201d trashes Secretary General Ban Ki-moon on accountability and transparency, largely deservedly. <span style=\"text-decoration: underline;\"><a href=\"http:\/\/www.foreignpolicy.com\/files\/fp_uploaded_documents\/100719_0_ahleniussummary.pdf\">The UN\u2019s Chief Investigator wrote<\/a><\/span>, \u201cIs the United Nations now on the right path, more transparent, more accountable? I address this question under four main headlines: Transparency, Accountability, Oversight and Management of Reforms.\u00a0 My conclusion and answer follows from my detailed review of certain core aspects of the Organisation. In spite of all your good intentions pronounced in these respects, my answer to this question is regrettably: NO\u2026 And at the end of my report I summarize my observations: there is no transparency, there is lack of accountability. Rather than supporting the internal oversight which is the sign of strong leadership and good governance, you have strived to control it which is to undermine its position. I do not see any signs of reforms in the organization.\u201d<br \/>\nWhere does this lead us? Let\u2019s consider this in more detail. <a href=\"http:\/\/www.colombotelegraph.com\/index.php\/un-corruption-files-un-paid-us-1-6-million-to-ghost-companies-in-sri-lanka\/\"><span style=\"text-decoration: underline;\">Last Wednesday Colombo Telegraph exposed a US$ 1.57 million corrupt deal<\/span> <\/a>related to United Nations Food and Agriculture Organisation in Sri Lanka. Documents obtained by The Colombo Telegraph show how United Nations funds were paid to three Sri Lankan companies which were physically not contactable.\u00a0 US$ 1.57 million (Approximately Rs. 167,000,000.00 \u2013 valuation 2008) was paid to supply companies which the Food and Agriculture Organisation (FAO) of the United Nations could not contact.<\/p>\n<div id=\"attachment_36594\" style=\"width: 505px\" class=\"wp-caption alignright\"><a href=\"http:\/\/www.colombotelegraph.com\/index.php\/usd-1-6-million-un-corruption-files-un-in-a-cover-up-game\/patrick-evans-and-dihan-hettige\/\" rel=\"attachment wp-att-36594\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-36594\" class=\"size-full wp-image-36594\" title=\"Patrick Evans and Dihan Hettige\" src=\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Patrick-Evans-and-Dihan-Hettige.jpg\" alt=\"\" width=\"495\" height=\"342\" srcset=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Patrick-Evans-and-Dihan-Hettige.jpg 495w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Patrick-Evans-and-Dihan-Hettige-300x207.jpg 300w\" sizes=\"auto, (max-width: 495px) 100vw, 495px\" \/><\/a><p id=\"caption-attachment-36594\" class=\"wp-caption-text\">Patrick Evans and Dihan Hettige<\/p><\/div>\n<p>The FAO in Sri Lanka purchased project deliveries for the Northern and Eastern Provinces of Sri Lanka to a value exceeding US$ 1.5 million from three suppliers, namely, Dev Trades, A. F. Associates and YCO Farm. These suppliers could not be found in their given registered addresses and were not present at the given addresses. Two FAO staff members Niranjala Gunaraj, Finance Assistant, and Thevarajah Vaigunthan, National Project Officer, both attached to the FAO Emergency Unit, collected the payments on behalf of these three companies.<\/p>\n<p>We asked the UN to publish their own investigative report. We wrote to FAO Country Representative, Patrick Evans and Assistant FAO Representative (Administration), Dihan Hettige, asking what happened to the inquiry findings. <a href=\"http:\/\/www.colombotelegraph.com\/index.php\/un-corruption-files-un-replied\/\"><span style=\"text-decoration: underline;\">After a week Patrick Evans replied to our queries<\/span>. <\/a><br \/>\nInterestingly, Patrick has never denied they paid US$ 1.57 million to \u201cghost\u201d companies. He says; \u201cThe issue you are raising has been thoroughly investigated and addressed in a proper manner.\u201d But we beg to differ and can categorically state that the UN FAO Country Representative is in a cover-up game.<br \/>\nThe issue was not addressed in a proper manner. Patrick says;\u00a0 1.\u00a0 no money was stolen or lost, 2.\u00a0 all inputs were delivered to the beneficiaries and were of suitable quality,3.\u00a0 no crime was committed, 4.\u00a0 transparent procurement procedures were not properly followed and 5.\u00a0 immediate action was taken to correct the situation including removal of the staff member involved and publication of an article in the local newspapers informing the public of the same.<br \/>\n<strong>Let us examine these responses one by one;\u00a0<\/strong><br \/>\nHe accepts transparent procurement procedures were not properly followed. Why an UN FAO organization had failed to follow transparent procurement procedures? It is in itself a crime. He says; no money was stolen or lost. When you purchase goods from \u201cGhost\u201d companies where has the money been paid to? Today we can expose part of this corrupt deal. It shows where the money went. Bank details of one of this \u201cghost\u201d companies, A. F. Associates shows employees of the UNFAO were paid millions of Rupees to their personal accounts.<br \/>\nBank details showcasing transfers of monies from A.F Associates, prove that millions of rupees were transferred to two employees personnel accounts. In 2008 September and October only A.F Associates transferred Rs.\u00a0 4.1 million to A. Sivanandan\u2019s personnel account in Jaffna and C.R. Moses\u2019s personnel account in Batticaloa. (<strong>See the box below<\/strong>)<br \/>\nHe says; all inputs were delivered to the beneficiaries and were of suitable quality. How can \u201cGhost\u201d companies deliver goods to beneficiaries? Where is the proof? Patrick\u2019s own files which were obtained by us shows low inputs were delivered to the beneficiaries of low quality. Effectively, cheating Sri Lanka\u2019s poor \u2013 the farmers in supplying low quality seed and agricultural products.<br \/>\nAn email dated October 1, 2008 from Benziger, from the FAO office in Trincomalee says;\u00a0 \u201c<strong><em>I regret to inform you that there are long term pending issues with procurement system connected to inferior quality of inputs, in which we brought this issue to Colombo level is not at the first time now. Anyhow, it is very much worrying that such issues is keep on continuing in the FAO system and expanded to other UN agencies. \u2026.Further we came to know that the price different is unreasonable and price difference were very high ( please check with Poultry purchase order).<\/em><\/strong>\u201d ( <strong>see box for full email <\/strong>)<br \/>\nThe point however is this. Patrick Evans says no crime was committed.\u00a0 Is purchasing from \u201cGhost\u201d companies and paying for same not a fraud? Is fraud not a crime?<br \/>\nEvans also maintains that immediate action was taken to correct the situation including removal of the staff member involved and publication of an article in the local newspapers informing the public of the same.\u00a0 Patrick is again misleading the public. If there was no crime committed why was the staff member removed from the organization and his contract not renewed? Why was there a delay in the publishing of such notice in a local newspaper and informing the public of same? If he was involved in a fraud, why was he not reported to the Police or CID in Sri Lanka?<br \/>\nImmediate action was not taken. According to UN files, whistleblowers within the organisation kept raising these irregularities from 2006 onwards, but no action was taken until the end of 2008. In 2008, an inquiry was initiated through FAO Headquarters Audit Department, where three officials, namely, Ms. Maria Carbone, Ms. Georgina Costello and Mr. Dennis Richards came to Sri Lanka to conduct the inquiry.<br \/>\nOn May 10, 2009 UN FAO put an advertisement in the Sunday Observer business page with a photograph of Thevarajah Vaigunathan and said \u201cThis serves to inform the general public that Mr. Thevarajah Vaigunathan former National Project Officer of the Food and Agricultural Oraganisation (FAO) of the United Nations, is no longer employed by FAO, and FAO is not liable for any of his transactions\/actions.\u201d<br \/>\nSo, is this enough? Was it only Vaigunathan who was involved in this corruption? Who are the others? Why did not the UN hand over the investigations to the police?<br \/>\nWith FAO denying there was no crime committed, and with all the other staff both in the office and in the field intact how would have the FAO played a major role in supporting the re-settlement process in the north and east of Sri Lanka assisting returning IDPs to resume productive livelihoods? What is the assurance of the quality of the assistance provided and that there was no further fraud?\u00a0 There is no question the current maha paddy harvest is the largest ever recorded in the country.<br \/>\nThis issue is about accountability for the funds received for the development of Sri Lanka. Evans says; \u00a0&#8220;the FAO continues to assist the Government to addressing priority needs in the agriculture, fisheries, livestock and forestry sectors.\u201d Why was the Government not informed of the said fraud when it was clear that there were many staff members both local and foreign involved?<br \/>\nSo, this is the level of UN transparency and accountability. This in fact undermines the UN\u2019s system of independent investigations.<br \/>\nThere are many similar experiences around the world. A good example for this is Lockheed\u2019s PAE subsidiary a no-bid $250 million contract to build peacekeeper bases for the hybrid UN African Union Mission in Darfur, known as UNAMID. Faced with questions about why competition rules were waived and the aura of corruption, American press questioned this deal for months and eight months after press investigations UN\u2019s Ban Ki-moon admitted in a report that \u201cLockheed Martin in Darfur is far behind schedule and has not performed as expected.\u201d The issue is still unfolding.<br \/>\nAccording to our investigations, the evidence was clear, but the FAO Country Representative Patrick Evans and Assistant FAO Representative (Administration), Dihan Hettige, encouraged FAO headquarters to bury this incident. Why? Why did Dihan Hettige want to bury the investigation?<br \/>\nDihan Hettige was the Communications Director of the Ministry of Relief, Rehabilitation and Reconstruction under President Chandrika Kumaratunge, before he joined the UN FAO. He has a history of engaging in cover-up games. A report by Transparency International Sri Lanka questions his role when he had been employed at the Ministry to which we today carry his response. (<a href=\"http:\/\/www.dailynews.lk\/2005\/01\/28\/new02.html\"><strong><span style=\"text-decoration: underline;\">Click here to read Dihan Hettige&#8217;s cover-up game<\/span><\/strong>.<\/a>)<br \/>\nSpeaking to <a href=\"http:\/\/www.thesundayleader.lk\/2012\/04\/01\/usd-1-6-million-un-corruption-files\/\">The Sunday Leader on Friday<\/a>, Patrick said \u201cWe found that no theft had occurred either of money or of the product. Two separate auditing companies from Rome and Bangkok investigated the accounts and found no irregularities.\u201d Patrick did you provide the email dated October 1, 2008 from Benziger, from the FAO Trincomalee office to the auditors?<br \/>\nWhy don\u2019t you publish the report? We want the UN to publish its own report into this incident upholding the principles of transparency and accountability.<br \/>\n<strong>uvindu@journalist.com<\/strong><\/p>\n<div id=\"attachment_36615\" style=\"width: 455px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.colombotelegraph.com\/index.php\/usd-1-6-million-un-corruption-files-un-in-a-cover-up-game\/bank-transactions\/\" rel=\"attachment wp-att-36615\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-36615\" class=\"size-full wp-image-36615\" title=\"bank transactions\" src=\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/bank-transactions.jpg\" alt=\"\" width=\"445\" height=\"169\" srcset=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/bank-transactions.jpg 445w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/bank-transactions-300x113.jpg 300w\" sizes=\"auto, (max-width: 445px) 100vw, 445px\" \/><\/a><p id=\"caption-attachment-36615\" class=\"wp-caption-text\">Bank Transactions<\/p><\/div>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.colombotelegraph.com\/index.php\/usd-1-6-million-un-corruption-files-un-in-a-cover-up-game\/letter-form-trinco-office-1st-part\/\" rel=\"attachment wp-att-36606\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-36606\" title=\"Letter form Trinco office 1st part\" src=\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-form-Trinco-office-1st-part.jpg\" alt=\"\" width=\"603\" height=\"194\" srcset=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-form-Trinco-office-1st-part.jpg 2536w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-form-Trinco-office-1st-part-300x96.jpg 300w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-form-Trinco-office-1st-part-1024x329.jpg 1024w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-form-Trinco-office-1st-part-800x257.jpg 800w\" sizes=\"auto, (max-width: 603px) 100vw, 603px\" \/><\/a><\/p>\n<div id=\"attachment_36597\" style=\"width: 615px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.colombotelegraph.com\/index.php\/usd-1-6-million-un-corruption-files-un-in-a-cover-up-game\/letter-from-trinco-2nd-part\/\" rel=\"attachment wp-att-36597\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-36597\" class=\" wp-image-36597    \" title=\"Letter from trinco 2nd part\" src=\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-from-trinco-2nd-part.jpg\" alt=\"\" width=\"605\" height=\"834\" srcset=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-from-trinco-2nd-part.jpg 2548w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-from-trinco-2nd-part-217x300.jpg 217w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-from-trinco-2nd-part-743x1024.jpg 743w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/03\/Letter-from-trinco-2nd-part-800x1102.jpg 800w\" sizes=\"auto, (max-width: 605px) 100vw, 605px\" \/><\/a><p id=\"caption-attachment-36597\" class=\"wp-caption-text\">An email dated October 1, 2008 from Benziger, from the FAO office in Trincomalee (page 2)<\/p><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p> [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":36594,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,47,1,2375],"tags":[],"class_list":["post-36593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colombotelegraph","category-corruption-2","category-news","category-stories"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - 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