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The U.N.'s Waste, Fraud, and Abuse
By Charles M. Lichenstein
Sidebar to: We Aren't the World.
In 1992 and 1993, former U.S. Attorney General Richard Thornburgh served as
U.N. Under-Secretary-General for Administration and Management with a specific
mandate to evaluate the U.N.'s effectiveness. After a year on the job, he prepared a report
on U.N. mismanagement and waste and tried repeatedly to galvanize the secretary general
into effective action. In frustration, he went public with his recommendations and
testified on March 5, 1993 before the House Subcommittee (of International Relations)
on International Security, International Organizations, and Human Rights. Here are some
highlights of his report and testimony:
Inspector General. Key recommendation: to uncover "waste, fraud, and abuse" within
the Secretariat, an independent, professional Inspector General has to be named, with full
subpoena power over U.N. personnel and records.
Peacekeeping Field Operations. A McKinsey & Co. management audit uncovered no
less than $100 million in annual waste owing to duplication and overlap, managerial
incompetence, and lack of communications within the field structures.
"Featherbedding." One example: 500 typists employed to transcribe the dictation of
translators. Use of basic word processors would save about $20 million a year.
Financial Management. McKinsey & Co. recommended improvements in foreign
exchange transactions, centralization of cash management, and automated payments.
Projected annual savings: $12 million to $15 million.
Career Service. Nearly 90 percent of all staff assessments are positive. As Thornburgh
notes, not only does incompetence carry no penalty, there is no incentive for meritorious
service. Top jobs in the U.N. Secretariat are compensated up to 150 percent of
comparable U.S. supergrades--and it's all tax-free.
"Consultants." Although it is in violation of the U.N.'s own regulations, top bureaucrats
are routinely "retired" (with lump-sum separation pay up to $500,000) and then
immediately rehired as "consultants" at 85 to 100 percent of previous pay.
Procurement. In 1990-91, of 5,450 contracts let, only 17 percent were put out for
competitive bidding, contrary to U.N. regulations for all except "emergency" cases.
Printing. About two-thirds of all printing needs are generated during the annual three-
month General Assembly. Yet the print shop is fully staffed year-round. Contracting out
during peak times would, according to Thornburgh and a 60 Minutes investigation
(broadcast September 20, 1993), save "tens of millions" annually.
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