By Matthew Russell Lee
UNITED NATIONS, February 10, 1pm -- On the $100 million of US Tax Equalization Funds that are being “re-purposed” for use at the UN, Secretary General Ban Ki-moon's spokesman Martin Nesirky repeatedly told Inner City Press this week to “ask the US State Department.”
While Inner City Press did ask US Ambassador Susan Rice, it seemed strange for the UN to refuse to provide information about its own plans and use of $100 million.
On February 10, Inner City Press asked Nesirky about a statement by US Under Secretary of State for Management Patrick Kennedy, that “In this case the United Nations notified the State Department that it intended to use [TEF funds] for security enhancement.”
Inner City Press asked Nesirky who in the UN told the State Department that the UN intended to repurpose the $100 million in US funds: was it Capital Master Plan director Michael Adlerstein? Department of Management chief Angela Kane? Or Secretary General Ban Ki-moon himself? Nesirky would not answer.
Inner City Press asked if the $100 million will be paid to the UN selected contractor Skanska, recently charged in New York City with defrauding minority sub-contractor rules and involved in South America in what is called the Skanska Scandal. Nesirky would not answer.
Given that the Capital Master Plan is ostensibly subject to UN General Assembly oversight, with reports that purport to disclose cost overruns, Inner City Press asked if this $100 million is anywhere in the UN budget documents. Nesirky would not say.
Cutting off the questions, he said that this should be dealt with “off line” - that is, not in the press briefings. But Inner City Press has submitted a number of written questions to Nesirky's office that have not been answered.
Beyond the above, there is unclarity about the TEF. Inner City Press on February 9 asked in writing, with no acknowledgment much less answer:
What are the sources of funds which are deposited into the TEF? Isn't the TEF funded only through the Staff Assessment? You seem to be saying that the TEF is funded through the Staff Assessment AS WELL AS through "reimbursements" from the United States. Please provide a balance sheet of the TEF which shows the deposits made into it as well as the disbursements made from it for 2009 and 2010.
You answered that the "net balance of $179 million" was "due to the United States" from the TEF as of 31 December 2009. What was the net balance due to the United States from the TEF as of 31 December 2010, and what is the net balance due to the United States as of today, 9 February 2011?
You stated that "The US levies taxes on its nationals in respect of their UN earnings, and reimburses the UN for the same." Are you saying that the US makes payments to the UN which are deposited into the TEF, and that these payments are equal to the amount it receives in taxes from its nationals who work for the UN?
Regulation 4.12 of the UN Financial Regulations states that --
“In accordance with regulation 3.2, any balance on a Member State’s tax equalization account after the obligations referred to in regulation 4.11 have been satisfied shall be credited against the assessed contributions due from that Member State the following year.”
Were the balances from 2009 credited toward the US' assessment for 2010, as required by UN Financial Regulation 4.12? If not, then why? Was the UN not following its own financial regulations when it allowed the "balances due" to the US to reach $179 million as of the end of 2009? Please explain.
None of these questions have been answered. One problem here is that by refusing to state which UN officials notified the US State Department about the re-purposing of $100 million, responsibility must go to the top. And when Ban said that 99% of his officials make public financial disclosure and Inner City Press showed this is untrue, Nesirky said it was all a metaphor. Watch this site.
