NEWS

House Foreign Affairs Committee

U.S. House of Representatives

Ileana Ros-Lehtinen, Ranking Republican

CONTACT: Sam Stratman, (202) 226-7875, June 1, 2007

Lee Cohen, (202) 226-1139

For IMMEDIATE Release

Ros-Lehtinen Comments on Release of Audit Report on UN Activities in North Korea

(WASHINGTON) –U.S. Rep. Ileana Ros-Lehtinen (R-FL), Ranking Republican on the House Foreign Affairs Committee, commented on the report presented by the UN Board of Auditors on the activities of four United Nations agencies in North Korea -- the UN Development Program (UNDP), the UN Children's Fund (UNICEF), the UN Population Fund (UNFPA), and the UN Office for Project Services (UNOPS). The Board’s work was initiated in response to concerns raised by the United States in January of this year regarding irregularities and the potential diversion of funds in UNDP operations inside North Korea. The statement of Rep. Ros-Lehtinen follows:

"I was disappointed to note that the document released today was not an actual country office audit of UN agency operations in North Korea. Rather than an audit, it is a mere report that leaves many key questions unanswered.

Given the grave irregularities that have been publicly reported and raised by UNDP Executive Board members over the past few months, the scope of the auditors' efforts is gravely deficient.

The auditors never traveled to North Korea or interviewed UNDP local employees, and it is not clear whether they sought to do so. They were limited to reviewing those documents that were made available to them in New York, which were not exhaustive. They could not determine what cash payments had been made to North Korean staff and suppliers. They did not address the accountability of or control over North Korean employees. They did not look into the issue of counterfeit U.S. currency that was held at UN offices in Pyongyang. They could not look into the validity of North Korean entities that received UN payments.

Throughout the report, the auditors note the 'limited scope' of their work product, which 'does not constitute a full-scope country office audit.'

Even within that constrained access and mandate, however, the auditors found significant problems and irregularities: UNDP hired North Korean government officials as local employees and made local payments in foreign currencies contrary to established instructions and procedures. In fact, UNDP officials only had access to UNDP-funded projects under the supervision of North Korean authorities.

Given the many questions remaining, it is bewildering that 'no further audit procedures have been suggested for the Audit Board to perform.'

I urge the United States, as an Executive Board member of UNDP, to press for a real, comprehensive audit of UN agency programs in North Korea, programs which have consumed millions of dollars. Full accountability for past activities is integral to the future credibility of those agencies and the UN system as a whole."

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