By Matthew Russell Lee, Video, Q&A, HK here
UN GATE, Nov 9 – Four months after the arrest for UN bribery of former Senegalese foreign minister Cheik Gadio and Patrick Ho, the head of China Energy Fund Committee full funded by CEFC China Energy, his ultimate boss at CEFC Ye Jianming was brought in for questioning in China. Among the hooks for the prosecution was payments of alleged bribes not only through HSBC but also Mashreqbank based in Dubai. And on October 10, 2018 Mashreqbank was hit with and settled money laundering charges by the New York State Financial Services Department.
More than three years later on November 9, 2021 the US Federal Reserve announced, "Federal Reserve Board on Tuesday announced it has issued a consent cease and desist order against Mashreqbank psc, of the United Arab Emirates, for having insufficient policies and procedures to ensure that the activities conducted at its offices outside the United States complied with U.S. sanctions laws." Talk about a revolving door. Like immunity at the UN, which impunity has no end, for now.
On October 4, 2018 UN briber Ho was again denied bail. Periscope video here.
And the UN of Antonio Guterres, implicated, doesn't even audit who at the UN took CEFC's money, preferring instead to rough up, oust and ban the Press which asks. Fox News story here, GAP blogs I and II, Independent here. On July 19 first Rosenberg argued that under the Foreign Corrupt Practices Act, if Patrick Ho is a "domestic concern" some counts of the indictment must be dropped. The prosecution called the argument absurd -- Ho is a national of China and a resident of Hong Kong who acted for the "Energy NGO" China Energy Fund Committee in allegedly bribing UN President of the General Assembly Sam Kutesa, as well as Chad's President Idriss Deby - and the judge agreed. Next they argued that even a series of transfers from HSBC in Hong Kong to HSBC in New York to Mashreq Bank in NY to Mashreq Bank in Dubai did not fall under the money laundering statute. The judge, citing the the Daccarett case and Julius Baer cases from DC, disagreed. Periscope video here.
The motions to dismiss were denied, and Inner City Press left the court to deal with the UN, where Guterres even has Inner City Press banned from covering his July 20 meeting with US Secretary of State Mike Pompeo, and Pompeo's press remarks with Nikki Haley, UNwisely held inside the UN. We'll have more on this. Inner City Press made this connection: the president of ECOSOC is Marie Chatardová, Permanent Representative of the Czech Republic to the UN. Her president, in Prague Castle, is Miloš Zeman -- who, like Uganda's Foreign Minister Sam Kutesa when he was UN President of the General Assembly, made Ye Jianming an official adviser. (Inner City Press' CEFC investigative covered has been picked up in the Czech media, for example here.) Now on April 17, Zeman is set to meet this week with another Chinese state owned firm, CITIC and its chairman, Chang Zhenming. CITIC is reportedly seeking to buy a stake in CEFC's Czech-based unit CEFC Europe. So Inner City Press asks, would CITIC buy its way into China Energy Fund Group's consultative status with ECOSOC, presided over by the Czech Republic? The Czech Mission to the UN, and ECOSOC's supposed spokesperson Paul Simon, have yet to answer any of Inner City Press' written questions. This is today's UN, under Antonio Guterres.
Earlier, Zeman sent two officials to Chinese to inquire into the status or, or help, Ye Jianming: chancellor Vratislav Mynár and economic advisor Martin Nejedlý flew to Shanghai on March 13, along with CEFC European division head Jaroslav Tvrdik, and have now returned. They said Ye “is being investigated for a suspicion of breaking the law,” after meeting CEFC President Chan Chauto. CEFC’s Czech-based unit CEFC Europe said: “CEFC Europe has been informed about the planned change in the shareholder structure in which Mr Ye Jienming will no longer be active as a shareholder nor in the company’s leadership. NOW might Zeman's Representative Chatardová belatedly take action in the UN ECOSOC of which she is President?
Inner City Press has repeatedly written to the Czech Mission to the UN, to the attention of
Marie Chatardová as President of ECOSOC, asking how China Energy Fund Committee given all of the above can remain in special consultative status with ECOSOC. The Czech Mission has not answered, including when the question is raised at the UN's televised noon briefing, as Inner City Press asked again on March 19, UN transcript here: Inner City Press: Deputy SG Amina J. Mohammed is going to the Czech Republic about ECOSOC [Economic and Social Council]. So, I was going to and may still ask Brenden [Varma] this, but I wanted to ask you this. It has arisen that the China Energy Fund Committee, the ultimate owner in Shanghai has purportedly been brought in for questioning, and it turns out he was not only an adviser to Sam Kutesa as PGA [President of the General Assembly], but also an adviser of the Czech Republic President. The Czech Republic has sent people to sort of look into his situation, but the Czech Republic also has the presidency of ECOSOC. So, noting that I haven't gotten any answer from the Czech Mission, my question is…
Spokesman: I think those are questions that you should address to the Presidency of ECOSOC.
Inner City Press: I guess but my question is an overall UN question. Is there… is there any… it seems like it might be a conflict of interest if your President has a business relationship with an NGO to be in charge of the committee that is either… how do we get an answer if…?
Spokesman: That is a question for the… that’s a question for Member States. Member States elect the Presidency of ECOSOC. They elect the bureau. Those are Member State questions. I struggle to answer the questions directed to the Secretary-General. I think Member States need to answer other questions." But again, the Czech Mission has not answered repeated written questions. For example:
"Hello - this concerned ECOSOC, reiterating Inner City Press' question from November 28: yesterday in US Federal Court, China Energy Fund Committee was described as a front for bribes paid to former PGA Kutesa and others.
See, e.g., HlidacipPes.org, Czech Republic: “Global corruption scandal. The CEFC scrap, which the Czech Republic does not notice much, though it should” [citing Inner City Press' UN corruption coverage]
The US has executed search warrants on this NGO's offices. But it is still saying it is in "special consultative status" with ECOSOC.
What action has been taken by ECOSOC and/or its NGO Committee? How is the months-long inaction consistent with the principles of the UN and ECOSOC?
I asked again yesterday at the UN noon briefing, but am told the Secretariat has or will take no role. So I am asking you again. Please confirm receipt. Thank you in advance."
The Czech Mission, like Antonio Guterres' Secretariat's spokesperson for ECOSOC, has refused to answer. As to the Czech Republic, the reason for inaction and stonewalling of the Press may now be clear - alongside Antonio Guterres' Secretariat. We'll have more on this.
The UN, increasingly, is corrupt. It is alleged that Chadian president Deby took bribes for oil concessions in Chad, and that 2014-15 UN President of the General Assembly Sam Kutesa took bribes for oil concessions in Uganda. Kutesa's predecessor John Ashe died under indictment; the depths of the UN's corruption extend into 2017 with the signing of dubious rosewood export certificates in Nigeria by Secretary General Antonio Guterres' Deputy Amina J. Mohammed and set-aside UN employment for the German Ambassador's wife, via Guterres' chief of staff. At noon on November 21 Inner City Press asked Guterres spokesman Farhan Haq about the indictment and CEFC and its $5 million grant program with UN DESA, transcript here and below. Guterres had a 5:45 pm photo op with the "Winners of the Annual Award of the UN Grant on Sustainable Energy" - which seems to have been funded by China Energy Fund Committee, under the heading "Powering the Future We Want." He "canceled," photos here, but his Deputy Amina J. Mohammed was still listed giving remarks for / at the event at 1 pm, though at 5:30 pm those remarks were not on her website unlike later 2:30 pm remarks. On November 22 Inner City Press asked their spokesman Farhan Haq, who argued that the indictment is only of "Doctor Patrick Ho" personally, so it was fine to keep and go forward with CEFC's money. (He said Amina J. Mohammed did not speak.) But Ho founded and chairs CEFC, here is a photograph of Ho with UN DESA's former chief. Apparently things are more and more lax under Guterres: even Ng Lap Seng's Sun Kian Ip Foundation's money was returned. (Kutesa was also in the Ng Lap Seng case). Is the UN more hard up? The corruption is not past but current. From the UN's November 21 noon briefing transcript: Inner City Press: there was an indictment yesterday by the US Attorney for the Southern District of New York that's very… I would say… call it UN related. A company called China Energy Fund Committee was… as alleged, funnelled $500,000 bribes to Sam Kutesa, former President of the General Assembly. The indictment describes the meetings taking place not… on this very floor, on the second floor, setting up these bribes. And so I have a couple of questions. One is… and these were… these… mentioned in the indictment is the President of Uganda, Yoweri Museveni, who is… as you know, is a mediator on the Burundi file. So, I wanted to know, number one, after this indictment, what is the UN's office of OIOS [Office of Internal Oversight Services] doing to look at the… the… the UN persons that may… that… implicated in it? Two, is China Energy Fund Committee still affil… accredited by ECOSOC [Economic and Social Council]? And they seem to have a project with DESA [Department of Economic and Social Affairs], a $5 million project with DESA. And, three, what does this mean for… for the… Mr. [Michel] Kafando's and the Secretary-General's view of the Museveni role in the Burundi mediation? Spokesman: Well, regarding the question of Burundi mediation, obviously, he has a role separate and apart from the work of our envoy, Michel Kafando. You just heard a briefing from Mr. Kafando yesterday about what his work is on that. Regarding Mr. Kutesa, we don't have anything particular to say about his dealings as the Foreign Minister of Uganda. Obviously, he has served as a General Assembly President, and we want to make sure that all officials of the UN, including the General Assembly President, abide strictly by norms avoiding corruption and bribery. Obviously, how that is enforced is an issue for the specific Member States, so we would refer you, in this case, to the Member State of Uganda, which is responsible for Mr. Kutesa. And regarding the CEFC that you just mentioned, yes, they have accreditation at ECOSOC. We're checking with our colleagues in the Department of Economic and Social Affairs about the nature of their projects and what the status of that is. Inner City Press: There's a $5 million project that's online, which I guess… what I'm saying is, coming after the Ng Lap Seng/John Ashe case, it seems some sort of consonant with it. Basically, you have a big NGO [non-governmental organization] using UN access to purchase a… if the allegations are true, a PGA [President of the General Assembly]. And so, I guess I'm wondering, from the UN side, beyond referring to the Ugandan mission or whatever else, are there any reflections, number one, on how this process… what due diligence did DESA do before… before linking up with this NGO that's clearly a subsidiary of a Chinese oil company that was paying bribes in Chad, as well? Spokesman: "Well, the information about them paying bribes is something that's come out today. The ECOSOC accreditation came out sometime prior to all of this. So, that's a separate issue. Regarding the sort of probity we expect from officials, including General Assembly presidents, of course, we know that they belong to Member States, but we want them to uphold the high standards. This is something we made clear during John Ashe's time. This is something we're making clear now. And, of course, I believe my colleague Brenden will have more to say about the presidency of the General Assembly regarding this. But, again, these are issues that the Member States themselves will need to take responsibility for. These are officials of Member States. These are not staff of the United Nations. " The Kutesa scam began in long meetings in the UN PGA's office on the UN's second floor - where the UN now requires investigative Inner City Press to have a minder, unlike other correspondents - between Kutesa and China-based NGO China Energy Fund Committee led by Patrick C.P. Ho. The scheme involved Kutesa naming Ho a "Special Adviser to the PGA," and hosting an NGO meeting in the UN in April 2015. Kutesa traveled as PGA to China as part of the scheme. Ho's approach was through Kutesa's chief of staff Arthur Kafeero, whom as Inner City Press exclusively reported in August 2015 Kutesa tried to plant in the UN's Department of Political Affairs. See Inner City Press scoop here; note that the UN evicted Inner City Press for its corruption coverage in early 2016 and has kept it restricted since, even as UN corruption continues, even grows. And what do the member states do? On November 20 Inner City Press asked UK Permanent Representative Matthew Rycroft about the scandal and he said, "I'll look into that and get back to you." Video here. Update (no comment, cite to SDGs, here). From the US Attorney: "HO caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly (the “Ugandan Foreign Minister”). HO also provided the Ugandan Foreign Minister, as well as the President of Uganda, with gifts and promises of future benefits, including offering to share the profits of a potential joint venture in Uganda involving the Energy Company and businesses owned by the families of the Ugandan Foreign Minister and the President of Uganda. These payments and promises were made in exchange for assistance from the Ugandan Foreign Minister in obtaining business advantages for the Energy Company, including the potential acquisition of a Ugandan bank." We'll have more on this. Sam Kutesa had offshore accounts in the Seychelles, to receive funds from Enhas, a company of which despite the UN denying it to Inner City Press is listed as doing business with the UN's mission in the Congo, MONUSCO. The accounts, but not the UN / MONUSCO connection, have been revealed the leaked Appleby / Paradise Papers. Inner City Press on November 7 asked the spokesman for the President of the General Assembly about it, yielding only an answer that the current PGA is striving to make public his disclosure form but will not speak to former (or clearly, past) PGAs. Video here. But how then can the UN be said to have cleaned up after PGA John Ashe, RIP, was indicted for bribery? We'll have more on this.
