United Nations Development Program (UNDP) - foxnews.com

1 Reportof Investigationlb)('2-)UnitedNationsDevelo pmentProgram(UNDP) :UnitedNationsDevelopmentProgram (UNDP) St atus:ClosedPeriodof Investigation:08/06/07-05/16/08 CaseNumber:en)( ")(1-: (2.')OIG/ ,QuickImpactProjects(QIP),a $ ,wassignedon9/30/03andendedon12l3 ,theUnitedNationsDevelopmentProgram(UNDP )subcontracted100%of theseprojectsto theUnitedNationsOfficeforProjectServices (UNOPS).UNOPS thensubcontractedtheprojectsto ,ananonymouscomplainantcontactedtheRegio nalInspectorGeneral,Investigations(RIOII ),Manilaofficeto conveyallegationsof abuseby : Inspiteofbeingtoldin writingthatUNDP couldonlybill"nominal"closeoutcostsafter 12131/06,UNOPS claimedto expend$ $ USAID letterof credit(LOC)in 5/07andthenanother$ UNDPandUNOPS staffareunwillingto meetwithUSAIDto explainthedrawdowns.

2 ProjectsworkedbyUNOPS werenotcompletedasclaimedandothershavede fectsandwarrantyissuesthatUNDP refusesto ,neglectedrepairsanduninstalledequipment andmaterials- allof whichwasbilledas thecityofQaJatrevealedexamplesofQIPproje ctswhichwerereportedto USAIDas "complete"whenin , bepaid90%of theircontracts;thefinalretentionpaymentw asto theMissionwhichrenderedit impossibleto ascertainif thesefinal10%paymentswerepaid,as claimed,andif so,if theywerepaidafterthewarrantyperiodsexpir edor before.".m~:Signatun:DaleSign~d:6120/08 NlIm~:Signaturr:,)~ :.\~Ij08/06/07-05/16/08 Page2 of14 Documentsrequestedby theAgencyandby thisofficewereneverfurnishedby Quantities(BOQ),forexample,listthenumber of itemsusedin all Engineers(ACE)personnelassignedto monitortheseprojectscouldhaveusedthesedo cumentsto comparethenumberof all itemslisted(doorknobs,sinks,etc.

3 Withthecounttheytookat eachsite,thereconciliationof whichwoulddetermineif approximatetotalof$6,706,242in UNDP officialadvisedinseveralemailsto theMissionthatthesewithdrawalscoveredexp endituresincurredpriorto12/31 ,no letteraccountingforapproximately$ theamountdrawnin 2007,includingover$175,000in theUNOPSA dvisorto theDirectorwhodraftedthisletter,it $1millionof theexpensesidentifiedin theletterconstitutedtransfersof fundsbackto otherUnitedNationsprojectsthathadbeen"lo aned"to a systemin whichmillionsof dollarsweresystemicallytransferredto andfromUSAlDprojectswithouttheknowledgeo r consentof (bothcurrentandformer)anddocwnentreviews revealedthattheUnitedNations' haddrawnfromtheLOCandhowmuchit ascertainhowmuchwasloanedfromotherprojec tsor.

4 TheFinalProjectReportfromUNOPSandUNDP,re ceivedbytheMissionon6/4/07,indicatesa totalexpenditureof $25,652, $ a featofprecisionspendingandaccountingfora nycontractor,particularlyoneworkingin a challengingenvironmentsuchas ,as of 6130/07,a fullsixmonthsaftertheprojectended,UNDP hadonlywithdrawn$24,706,242fromtheletter of ,oneyearaftertheawardended,$946,231still remainedin therefusalof theUnitedNationsto cooperatewiththisinvestigation, ,as written,allowedonlyforUNaudits- notexternalor USAID audits, be interviewed,others,notablyincludingtheUN DPA fghanistanCountryDirector, attemptsto 'sOfficefortheSouthernDistrictof NewYork(SDNY)until4/8/08whenthematterwas declinedin lieuofadministrativeactionby Investigation( h) (Z )08/06/07~5116/08 Page3 of14 AnanonymouscalleradvisedtheManilaRIGIIon 811/07thatUNDP incurred$ 2007in spiteof beingtoldin \vritingfromtheMissionthatonlynQminalexp ensescouldbe incurredaftertheprojectendednn12/31 $ credit(LOC)in thespririgof providesUpportto theMissionto properlyaddresstheseissues.

5 (Attachment1)LieutenantColonel(h)(1)(c") ArmyCorpsof Engineers(ACE),wasintemewedon8/'/;/07.(b )(VI)Heworkedon theQIJ?sipge)at<? : numberof theUNDP'sprojectsstillhaddefectsandwarra ntyissueswhichUNDPT efusedto ~ completertecessaryrepairsandwalkedotfsom eprojects,requiringothercOntractorsto completethework.(Attachment2)Thecaseagen ttraveledto Afghanistanin 8/0 TOn8 :( b ) ( '1)(C)a)civilianemployeewiththeACKandLTC (b) ,)(c3 Theyadvisedthatin thecityof Qalat(\:)(&, ,if savable,wouldrequireabout$200,000to fIx,TheWomen'sCenterwouldneed$20,000;the DaAfghanBankwouldrequireabout$25,000andt wodistrictcenterswouldeachr~quiresome$40 , themmayneedto' ,rangedfrominstallationof windowsso poorthatwaterentersstrUctures,to applicationof inaccurate,suchasreportingprojects;inclu dingthosementionedabove,to be "complete.

6 "Theyfurtherexplainedthatduringthewarran typeriod,if anyproblemswerereportedto UNOPSbyUSAID,UNOPS wasresponsibleforfixingit. Onmanyprojects,UNOPS receiveda reportof problemsbefotethesixmonthwarrantyperiod, ,10%of eachproject'sfinancingwassupposedto bewithhelduntilthewarrantyperiodendedor contractors~hefull100%beforethewarrantyp eriodexpired.( b )(1)(L)wmd 0,) (7)( )alsoadvisedthata BOQis a listof materialsandsuppliesto be usedona( b) ( ~,) ,theyweresupposedto receivea copyof ,forexample,wereto beinstalledin a ,therewasnowayto knowexactlywhatcostswereincurred.(Attach ment3)(h)( )08/06/01~5/16/08 Page4 of14( "')( C: (b)(7)(C)theQIPC ognizantTedinicalOfficer(CTO),wasalsoint erviewedon8/16 :> unusuallysmaUnumbero drawdownsfromtheLOeandsubmittedtoofewcer tificationsofptbpeiuseof fundS(Forms272).

7 On12131 expire,shereceiveda fonnalextensionrequestfromUNDPat 5:01PM.[Note:therequestwasapprovedbyCarl osHaddad,.UNDPC ountryDirector.] USAID couldgeta ONOPS representativeon andtheyrefusedto spiteof herrequestsfor130 Qdata,thetJNI)prefusedto 5/01~aftertheUNDP withdrewremainingfundsfromtheLOC, , it, (b)(I)t;lfoundfaultwithmuchof the'infonnation;containedtherein.(Attach ments4 )(;,)(G (. h;C 7)(C)theUSAID/Af'ghanistanDeputyControll er,wasinterviewedon8/18 <iarepQrtfromUNDP indicatingthat$ ~purp<>rtedlyforcostsincurredin ' ~theMission~ivedsixbindersandhewasallowe dto go to thetimeof thisinterview,he wasstillundertakinghisreview.

8 (Attachment6)(0)((:,)On8120/07,LTC(b)(7) (c). servedin AfghanistanwiththeACEand("oversawtheQIPf rom-12/05to (0)(7)(o)UNOPSP rojectManager;lb))thatUNOPS wasusingUSAIDQIP fundsfornon-QIPprojects,includingbuildin ga newofficein (~X7){Djltookover,inCludingmissingpaperw ork,lackof req\,lCstedinformationanda trainof ){:! firedCbJ7)(j)) returnthe$ cost'around$332, $600, theybuiltit wheretheyinitia1l~' to() (hJC7)(C) (b)" $2millionin partsandwhenhe (Attachment7)On8/22/07agentsfromtheRIGM anilaofficeconducteda sitevisitin Qalat, "ingwasnoted:Reportof Investigation( b) ( )08/06/07-05/16/08 Page5 of14 TheQalatAirstripwasoriginallybudgetedat $300, theACE, be gravelandsufficientlydrainedto allowfora varietyof uses, <.}}

9 1 (r1)u.)(b)(G)gaveUNOPSa runwaydesignusedbyanothercontractoronMay 14, $749,000ontheairstrip,it wascompleted-unpaved,andlittlemorethana dirtstrip; C-130transportbut,accordingto theACE, ,C-130shavesubsequentlylandedat theKandaharairport,equipmentthentranspor tedoverlandto theACE,onesideof cIaybindingsealantwasusedas a rains,therunwayisunusableas it a dirtbermonbothsidesof thestripwhichUNDP calls"drainage."Sideditchesweresupposedt o nosidedrainage,erosionrillsorrutswillcon tinueto expanduntiltheyreachthenmwayitself,destr oyingit Investigation(. b)C'2--)08/06/07-05/16/08 Page6 of 14 TheTamak:Bridgecostapproximately$250, ,is onlyopendueto anoutsideinfusionof workaftertheUnitedNations"completed"its andUNOPS- poorlysitedandwasdesignedtoosmallforthes itewhereit significantdamagein 2006(whenthesephotosweretaken;thebridgeh assubsequentlybeenpartiallyrepairedbyano thercontractor).

10 UNOPS claimsthatthedamagewaspursuantto extremeflooding,however(asotherphotosand analysisbytheACEdemonstrate)thewaterleve lmaynothaverisenas highas theDecember31,2006 USAID/UNOPSSubProjectMonitoringReportema iledto "100%completed"by12/31 thecaseagent'ssitevisit,it wasclearthatsignificantworkstillneededto bedoneto ( b) CL)08/06/07-05/16/08 Page7 of14 TheDaAfghanBankwasbuiltat a costto theUStaxpayerof approximately$375, currentlyin use,thewiringfora generatorwasneverhookedupas UNDP didnotcompleteelectricityor theRIGvisit,electriccordsfromotherenergy sourceswererunto ,accordingto theACE, in watered,waterrunsto thebankandgoesunderthewall, claydamatthebaseof thestairsin an un-successfulattemptto rains,watersinksintothebuildingthroughth efoundation,downthesteps,to theRIGvisit,waterwasseento be its December31,2006 SubProjectMonitoringReportthatthisprojec twas"100%complete"as of November15, thetimeof theQIPproject,andthusto theUStaxpayer.