UNDP: Fattens Up Wall Street With $4B; Fattens Up The Rich With $2.03B.

By J. Yanqui Zaza

The Perspective
Atlanta, Georgia
May 4, 2020

How did the idea to reduce poverty, etc. by UNDP (United Nations Development Programme) change onto profit-making (i.e., the idea to invest $4.7B of donors’ money into investment portfolios)?  (See page # 159 of UNDP 2017 Financial Statements). Or why did UNDP pay $5M to 13 officers and pay generous salary and benefits to 600 employees, but then hired third parties to perform its key Program, the $4.3B Development Program? (See Page 149).  More so, why did UNDP allocate a significant portion of the program ($2.0B) to individuals, but allocated a minuscule amount to companies? (See page # 153).

Were these professional individuals or connected consultants? Did governments have a say in hiring consultants? Were some of these contractors urban landlords who usually inflate costs of housing leased to consultants? Sadly, why does the United Nations add 65% of the based salary to the original salary, resulting in excessive salary?

Let us look at an example: Personnel salary: Based Salary- $64,000 Plus (Post Adjustment $64,000 X 65% =$42,000)
Total salary: $106,048- (Based salary $64,000 plus Post Adjustment $42,000). Fast forward to the idea of UNDP using donors’ funds to make profits. Is it prudent for UNDP to invest donors’ $4B in firms on Wall Street (i.e., the gambling industry) when healthcare centers lack medicine, equipment, materials, etc., schooled-aged children are not in school, income inequality is increasing, etc.? Certainly, it is a good idea, even for religious institutions, to invest idle cash and generate income. However, UNDP should not invest donations at the expense of fighting poverty, education, etc.

Was it possible for UNDP to make a profit and at the same time fulfill its mission? I think so. In fact, the issue is not about investing donors’ $4B into risky portfolios. Rather, has UNDP failed its 1965 mission, to reduce poverty, increase stability, and promote prosperity, is the real issue? Or has it joined the World Bank that collected $1.7 trillion income from lending money from poor countries and/or has joined other institutions that pay excessive salaries as shown below? 

 

UNICEF

UNDP

MERCY

CARE

UNESCO

UNFPA

I.R.C.

Revenue

$5.1B

$5.2B

$0.4B

$0.6B

$0.6B

$1.8B

$0.7B

Program/supply

 $1.1B

 $1.1B

 $0.03B

 $0.1B

 $0.04B

$0.5B

$0.2B

Sal. /Adm. Exp.

 $2.1B

 $1.1B

 $0.2B

 $0.28B

 $0.4B

$0.6B

$0.3B

Profit-making/

 $4.1B

 $5.1B

 $0.1B

 $0.1B

 $0.5B

$1.1B

$0.1B

(B represents US billions of dollars).

Are the excessive payments undermining the mission of UNDP? UNDP does not share that view. Therefore, it regularly includes an evaluation section within its Audited Financial Statements. For instance, on page # 44 through page # 77 of its 2017 Audited Financial statements, UNDP listed (1) Board Recommendations; (2) UNDP Responses; and (3) Board Assessments.

Let us review the key mission of UNDP (i.e., the $4.3B “Development Programs”) as per the schedule and determine if UNDP spent the $4.3B on shelter, food, clinic, education, etc.


Description

AMOUNT

Contractual expenses (Individuals and Companies)

$1.9B

Staff and Operating expenses

 $1.1B

Supplies and Programs

 $0.9B

Others

 $0.4B

Total Development Cost

 $4.3B

The numbers are self-explanatory. UNDP transferred $1.9B to individuals and companies to perform services and paid $989M for programs and supplies. Did UNDP use the $989M to build clinics, bridges, low-income housing units, farm to market roads or agricultural activities? The records do not disclose that UNDP paid or accrued expense for any of these activities that would have provided and enhance education, shelter, and food. So, is it possible for mankind to escape poverty if there is inadequate funding to finance shelter, education and food?

The “Human Development Department of the UN said no. The Administrator of the “Human Development, Achim Steiner stated that too many people are not emancipating from poverty. In the “Human Development” 2018 Annual Report, Steiner stated that UNDP “…is failing its mission...many people have little prospects for a better future. Lacking hope, purpose, or dignity, they watch from society’s sidelines as they see others pull ahead to ever greater prosperity. Far too often gender, ethnicity, or parents’ wealth still determines a person’s place in society,” he added.

Criticism against UNDP, USAID, etc., continued even after the United Nations selected former President of the United States William J. Clinton as the Chair of the Haitian Recovery Operation in 2010. The global charities gave over $3B in response to the 7.0 Earthquake that killed 200,000 Haitians, destroyed 100,000 properties, etc. Sadly, Haitians have little to show for the $3B donations, Critics complained. This is because UNDP, USAID, etc., funneled the money through friendly companies, they added.

Liberians thank UNDP for countless donations such as the April 22, 2020, $10,000 worth of supplies donated to fight the Coronavirus. However, some Liberians have mixed views on the efforts of UNDP toward sustaining peace and stability in Liberia. For instance, had UNDP addressed the underlying problems (poverty, education, shelter) in Liberia, the April 14, 1979 (Rights and Rice) rally, and the April 12, 1980 Coup might not have occurred.

Also, why is UNDP silent on the findings that multinational corporations transfer about $60B out of Africa every year, depriving Africa of the revenue needed to build schools, clinic, grow food, etc.? In 2014 Mr. Thabo Mbeki, former President of South Africa and his African Union Committee on Illicit Financial Flow from Africa, reported that multinational corporations are responsible for 95% of the $60B that is transferred from Africa every year. In fact, Liberia was one of the seven countries that the investigators investigated. Also, UNDP is silent on the findings of Moore Stephens Audit Firm, which reported that former President Ellen Johnson Sirleaf Administration awarded 66 fraudulent concessionary agreements to investors.

Further, if corruption undermines the efforts to reduce poverty, why is UNDP silent on the L$16B money saga and the decision by President George Weah not to disclose the sources used to build his 48 real estate properties?  

UNDP can begin to encourage President George Weah to fight corruption and it also can take some of these measures, which might help in reducing poverty:

  1. UNDP should encourage the W/B not to be an owner and at the same time a creditor of Liberia’s state-owned entities. This is because chief executives of the W/B will demand maximum profits at the expense of taxpayers: Page # 74 through page # 93 of the Pro-Poor Agenda for Development and Prosperity (PAPD) indicate that W/B’s subsidiary called International Finance Company (IFC) will own shares in Liberia’s state-owned entities and W/B’s subsidiary called International Bank for Reconstruction and Development (IBRD) will give loans to state-owned entities.

  2. Liberia should add gold deposits to its cash reserves: Adding gold deposits to Liberia’s Net International Foreign Exchange Reserves will reduce the government’s debt.

  3. Correct the Denominator Liberian officials determine to compute debt to Gross Domestic Product (GDP) ratio/revenue deficit percentage: Encourage Liberian officials to provide a schedule to explain how Liberia’s debt ratio to GDP dropped from 35% in June of 2017 to 26% in June of 2018. How did the authorities compute $3B as Nominal GDP in 2018(i.e., which was the denominator), when Real GDP was $1B and Liberia’s inflationary rate was around 26% in 2018, for instance?

Source:
(https://undocs.org/pdf?symbol=en/A/72/5/Add.1)UNDP 2017 Audited Financial Statements
(http://pubdocs.worldbank.org/en/625641565356285634/IBRD-Financial-Statements-June-2019.pdf)World Bank/IBRD 2019 Audited Financial Statements: W/B: “…provides financing instruments and knowledge services to middle-income and creditworthy low- income countries to reduce poverty and promote shared prosperity, while ensuring that social, environmental, and governance considerations are taken into account.”
(https://www.unicef.org/about/execboard/files/A-74-5-Add3-BOA_report-ODS-EN.pdf)UNICEF 2018 Audited Financial Statements
(https://www.unfpa.org/sites/default/files/resource-pdf/A_74_5_Add.8_E.pdf) UNFPA Audited Financial statements 2018
(https://www.care.org/sites/default/files/care_usa_and_subsidiaries_consolidated_fs_final_secured.pdf)CARE USA and Subsidiaries 2019 Financial Statements
(http://www.unesco.org/new/fileadmin/MULTIMEDIA/HQ/BFM/1611_19_financial_statements_E.pdf) UNESCO 2019 FINANCIAL STATEMENTS
(https://www.rescue.org/sites/default/files/document/3566/fy2018financialstatements.pdf) INTERNATIONAL RECUSE COMMITTEE



 

 

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