On Sri Lanka, IMF Said Ready to Lend, Dodges Ethnic Cleansing, Where Are Obama, UK?

Byline: Matthew Russell Lee of Inner City Press at UN
www.innercitypress.com/imf4srilanka052109.html

UNITED NATIONS, May 20 – With the Red Cross blocked from access in Sri Lanka to the wounded and dying, with NGOs increasingly barred from the UN-financed camps for IDPs, in Washington the International Monetary Fund said Thursday that it looks forward to presenting for approval to its Board Sri Lanka's request for a $1.9 billion loan.

The statement was made by the IMF's director of external relations Caroline Atkinson. Inner City Press online asked a follow-up during the Fund's biweekly press briefing, which Ms. Atkinson re-stated: please state whether as the Sri Lankan government says the proceeds of any IMF loan would support re-housing in the north, which some would described as ethnic cleansing?

The IMF's Ms. Atkinson responded, “Perhaps it's just helpful to clarify that when the IMF lends, it is not for specific projects. We lend to support a country's finances. We make a loan to the Central Bank to support reserves. Any other question?”

On March 12, Inner City Press went to the IMF in Washington and asked Ms. Atkinson's colleague David Hawley what safeguards were being considered to ensure that the proceeds of any IMF loan to Sri Lanka wouldn't be enable war or ethnic relocation. Mr. Hawley said that things were at an early stage. Later, French Ambassador to the UN Jean-Maurice Ripert told Inner City Press that “the Americans are trying to play with the loan.”

The U.S. subsequently confirmed this, receiving human rights credit for raising the issue. The UK has as well. After a contrary statement by the UK Ambassador to the UN, in response to Inner City Press' question at the UN Security Council stakeout, UK Foreign Minister David Miliband said he didn't think conditions for an IMF loan to Sri Lanka were right. Are they now?

Now, after two weeks ago refusing to take the question at their briefing, the IMF says that while there is still no access to the killing zone in the North, while doctors who reported on the war as well as offering treatment are detained and interrogated, it wants to present the loan for approval by its Board within weeks.

What happened, some ask, to the ostensibly US and UK opposition? At the US State Department this week, the Obama Administration appeared to waiver or move on from it previous position, both on the loan and as stated by the President following Time magazine's diagnosis that Barack Obama was failing the Sri Lanka test.

The IMF's implicit argument that it is not supporting what a government does on the ground by lending to its Central Bank is specious. In fact, many experts on Sri Lanka note that the government's military offensive in the North was assisted not only by aid after the tsunami, but even more by the proceeds, to the Central Bank, of debt forgiveness. Now during the current crisis the IMF wants to make a loan to the Sri Lankan Central Bank. Ms. Atkinson alluded to, but did not give an explanation as requested by Inner City Press, of a “larger facility” being discussed.

Victor's justice, victor's loans, some call it, as they call the UN's Ban Ki-moon's impending visit to Sri Lanka a sort of victory tour. Inner City Press leaves today on the UN trip. Watch this site.

In Geneva on Monday, the UN Human Rights Council has scheduled a session on Sri Lanka. There is talk of satellite photos being used, to show deep mortar craters in the “No Fire” Zone. There are stories of senior LTTE leaders trying to surrender, carrying white flags, shot to death.

And see, www.innercitypress.com/imf4srilanka052109.html

On Sri Lanka, IMF Dodges Loan and Human Rights Questions, UK Reverses Course

Byline: Matthew Russell Lee of Inner City Press at UN
www.innercitypress.com/imf3srilanka050709.html

UNITED NATIONS, May 7 -- With controversy about Sri Lanka's application to the International Monetary Fund for a $1.9 billion loan swirling from London to Australia, IMF spokesman David Hawley held the organization's fortnightly press conference on Thursday in Washington. In Colombo, the government has said it is close to getting not only the IMF loan, but also another one from Libya. From the UN in New York, Inner City Press before the briefing sent a question to Mr. Hawley, his deputy William Murray and IMF Asia contact Yoshiko Kamata:

Please be sure this is put to IMF spokesman during 930 briefing-- “On Sri Lanka's application for a $1.9 billion loan, French Ambassador to the UN Ripert told Inner City Press that "the Americans are trying to play with the loan." Please confirm, deny and explain the status of the loan and respond to the human rights and press freedom questions raised.”

The IMF states that accredited journalists like Inner City Press can have questions answered during the briefing by submitting them electronically. Having heard nothing back, Inner City Press called Asia specialist Yoshiko Kamata. When Inner City Press was able to attend the IMF briefing in March and asked about the Sri Lanka, Ms. Kamata afterwards approached to offer to help get information. On May 7, her voice mail said she would be away until May 11, and to call the general number. Inner City Press asked Deputy William Murray and reached him.

I don't think you're going to get an answer to that question, Murray said, saying he was unaware of the Ripert quote. That quote about the IMF was picked up in the Times of London, the Australian and elsewhere, so it seemed fair to assume that the IMF's media professionals would or could find it.

Inner City Press said, just have the question asked, it is a matter of some controversy. We're in the middle of a press conference, Murray said. The line went dead.

Despite its timely submission, it appears that the question was not asked at the IMF briefing. The press conference ended quickly, meaning that there were few other questions asked. So there was no lack of time. But after closing the briefing, Murray sent the following response:

Subj: RE: Press question for 9:30 on Sri Lanka
From: William Murray [at] imf.org
To: Inner City Press,
CC: ".dhawley" Media [at] imf.org
Sent: 5/7/2009 10:21:36 A.M. Eastern Standard Time

Matthew, Our discussions with the Sri Lankan authorities about an economic program that could be supported by IMF financing are still ongoing. That is the current status.

The answer does not respond to the question, and the refusal to have publicly asked a question timely submitted raises other questions. Watch this site, and, for example, this article from Colombo, "Sri Lanka Will Get IMF Loan This Month."

Footnote: Weeks after the United Kingdom's Permanent Representative to the UN John Sawers told the Press there was "no relation" between the conflict in North Sri Lanka and the application to the IMF for a $1.9 billion loan, Sawers' boss David Miliband reportedly told the House of Commons that the situation on the ground in Sri Lanka would have to be considered before any positive action is taking on the loan. Inner City Press will be seeking new comment from the UK Mission to the UN. Wednesday was not possible, we'll see.

And see, www.innercitypress.com/imf3srilanka050709.html

On Sri Lanka, France Pitches Hospital Not IMF or Genocide, Ban Vs. Adada

Byline: Matthew Russell Lee of Inner City Press at UN
www.innercitypress.com/sc5srilanka042809.html

UNITED NATIONS, April 28, updated -- As French foreign minister Bernard Kouchner was en route to Sri Lanka, his ambassador at the UN Jean-Maurice Ripert explained to Inner City Press Kouchner's reasoning for going, and for not cancelling his trip after Sri Lanka denied Sweden's foreign minister a visa, saying that France and the UK were only allowed in as two of the five Permanent Members of the UN Security Council.

"They have already left," Ripert said, referring to Kouchner and UK foreign minister David Miliband. "We have deployed a very important hospital structure, more than 1 [m]illion Euro for humanitarian help... the British have given 2 million something, so they want to go there and put some pressure."

Of Kouchner, Ripert said "he wants to install the hospital as close as possible to the conflict zone and he thinks he has to be there to be sure it goes there." Of the barring of Sweden's minister, Ripert said "it has been condemned by the presidency of the EU... We don't go there as Europeans, we go there are French and British. We have been the ones, I was the one last week starting the whole process. They will meet with the president and his brother the minister of defense."

Inner City Press asked about the EU's leverage over Sri Lanka on tariff issues, and the pending request for a $1.9 billion loan from the International Monetary Fund. "The Americans want to play with the question of the IMF loan," Ripert said, "what is important is to get the commitment to stop."

Supplemental analysis: the Ripert quote "The Americans want to play with the question of the IMF loan" is verbatim. However a desires has been expressed to add that the question of the IMF loan is being discussed, is in the air, by the American and others, but that France believes the priority should be on getting a commitment to stop, presumably the bombing and offensive military action in the "No Fire" zone.

Ripert was asked if what is happening in Sri Lanka might be genocide. He answered, "When you start a discussion of words, then one doesn't talk about the subject, you talk about the words."

Inner City Press asked if Vijay Nambiar told the Council that Sri Lanka had agreed to a UN humanitarian assessment mission to the conflict zone. "I'm not sure," Ripert answered.

At the UN's noon briefing on Tuesday, Inner City Press asked

Inner City Press: First, I wanted to know if the UN has any response to the Government’s barring and denial of a visa to the Swedish Foreign Minister. There was a three-country team there. Does the UN think that was a useful move?

Spokesperson: We don’t have any reaction at this point on this.

Inner City Press: And Mr. Holmes had announced a $10 million CERF grant to Sri Lanka. Given the issues that have arisen about the camps and detention and lack of freedom of movement, [are] there any kind of conditions on that money? And was there any development on the 13 UN staff members still held in the camps?

Spokesperson: We have no new development on the 13 staff members. They are still there. I can also add that Mr. Holmes stressed yesterday -- when he spoke publicly -– he stressed with Government officials the need for a humanitarian pause to conduct an assessment of the conflict and to bring in emergency supplies, including food and medical supplies. And he also asked for access to the screening points and the need for the release of those 13 UN staff members, and approximately 207 members of non-governmental organizations who are also trapped in the area. But you can ask further questions. In terms of the Fund itself, you can ask Mr. Holmes tomorrow, since you’ll get a chance to talk to him tomorrow afternoon.

Inner City Press: Maybe I didn’t understand correctly, but when Mr. [Vijay] Nambiar [the Secretary-General’s envoy to Sri Lanka] returned, it seemed like the Secretary-General put out a statement that there had been a commitment by the Government to allow a humanitarian team into the conflict zone. Since it hasn’t happened yet -– and there’s some confusion about what was actually committed to -– I just want to ask again if it’s at all possible to have some opportunity with Mr. Nambiar that he speak to the press and say what took place over there. Since he was the envoy.

Spokesperson: I think what Mr. Nambiar has said was reflected in the statements we put out. He had received the agreement of the Government. So I don’t have any further comments on that. In terms of what had actually happened since Mr. Holmes met with the President, you can ask your question to Mr. Holmes.

Inner City Press: But Mr. Nambiar -– since Mr. [Ibrahim] Gambari [and other] various envoys that the Secretary-General sends, they almost always brief the press. And you always say, “We’ll make the request”, and then they’re possible. Is there some reason -– can Mr. Nambiar brief or can he give some statement of why he’s not doing it?

Spokesperson Montas: He doesn’t have to do it, you know.

And coming out of the Secretary General's monthly lunch with the Security Council, Nambiar did not say anything.

Footnote: The politics of Darfur, or how the issue is concerned at the UN and in the West, were on display Tuesday at the Security Council's monthly lunch with Secretary General Ban Ki-moon. While this event is decidedly closed to the press, well placed sources at the lunch immediately afterwards told Inner City Press that Mr. Ban assured "the Western powers" -- the US, France and UK -- that he had already spoken to his envoy to Darfur, Rodolphe Adada, about their concerns Adada has gone soft on Khartoum and President al-Bashir. This showed, the sources said, Ban's approach to Western powers, and these powers lack of seriousness, then, on the question of Sri Lanka.

Footnote: We continue to wait for the UK's formal answer to the first of the two questions which Inner City Press asked the UK Mission to the UN two questions on Sri Lanka early on April 15:

Does the UK believe that international law and the rights of UN humanitarian staff are being violated by the now-acknowledged detention of UN staff in the Sri Lankan government's “IDP” camps?

It has been reported this morning that Sri Lanka's “minister also told the British Foreign Secretary that there was concern that the LTTE would continue to consolidate its fortification of the No-Fire Zone.” Please confirm the accuracy of that, and of this and if so, does the UK interpret it as saying that an offensive on the No-Fire Zone and the civilians in it will begin? What did the UK Foreign Secretary say?

As of this press time 13 days later, the formal answer has been referral to Minister Miliband's April 12 statement, and this. On April 21, Inner City Press put the question to U.S. Ambassador Susan Rice, whose spokesman the following day cleared this response: "UN personnel should have freedom of movement and be treated with respect." But they are still detained as of this writing. As more answers arrive or are released we will report them on this site.

And see, www.innercitypress.com/sc5srilanka042809.html

Fed's Geithner Evaded Taxes at IMF, Used Statute of Limitations Later, Mishandled Citigroup

Byline: Matthew Russell Lee of Inner City Press at UN
www.innercitypress.com/imf1geithner011409.html

UNITED NATIONS, January 14 -- While working for the UN-affiliated International Monetary Fund earlier this decade, Treasury Secretary-nominee Timothy Geithner did not pay required taxes to the Treasury Department's Internal Revenue Service. This would seem to be problematize, to be diplomatic, Geithner's ability to gain confirmation by the U.S. Senate to oversee the IRS.

This would seem to be problematize, to be diplomatic, Geithner's ability to gain confirmation by the U.S. Senate to oversee the IRS. But Democratic Senators and Barack Obama himself are calling Geithner's an "innocent mistake" which should not impinge on confirmation. Some ask how a financial whiz, head of the Federal Reserve Bank of New York, would claim ignorance of basic tax law as a defense.

Worse, Geithner initially hid behind the statute of limitations to refuse to pay $25,000 in taxes for 2001 and 2002: "A three-year statute of limitations had precluded the [IRS] from auditing the 2001 and 2002 tax returns." But his supporters argue that Geithner's expertise is needed to confront the global financial crisis.

But what of Geithner's role, as the President of the New York Fed, in mis-regulating Citigroup, an institution which has already swallowed $45 billion in Troubled Assets Relief Program funds, and billions more in guarantees for toxic loans still on its books? Said otherwise, how can those who oversaw -- or turned a blind eye to -- the origins of the financial meltdown be presented as the only ones who can now save the day?

Also on Citigroup, sources say that the Feds are pushing Richard Parsons to take over as the embattled company's chairman. He ran Dime Savings Bank, part of the now-collapsed Washington Mutual franchise. At Citigroup's annual meetings, at Inner City Press asked questions about predatory lending from the floor of Carnegie Hall, Parsons never spoke up. What did he think of the questions, of Citigroup's venture into predatory lending with Commercial Credit, Associates First Capital and CitiFinancial? The questions should be answered.

Leaving the Federal Reserve Board is Randy Kroszner, who had served the Fed's point Governor on community and consumer issues. A new Fed advisor on these issues was recently withheld from the press without explanation by the Fed's public relations office. Fed chairman Ben Bernanke hides behind the Federal Open Markets Committee news blackout requirements in order to skip speaking to non-financial audiences, but disagrees with and ignored the requirement of public notice and comment while granting bank holding company status to Morgan Stanley, CIT, Goldman Sachs and GMAC.

A cavalier approach to the law, by both Bernanke and Geithner -- is this what would help to solve the financial crisis?

And see, www.innercitypress.com/imf1geithner011409.html