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Greed and Graft at U.N. Climate ProgramAugust 14, 2019
Whistleblowers and experts allege corruption at a United Nations Development Program project for reducing greenhouse gas emissions in Russia, according to a Foreign Policy investigation.
On Dec. 16, 2018, Dmitry Ershov, a Russian national who once managed a multimillion-dollar environmental project for the United Nations Development Program in Russia, sat down in his Moscow study and recorded a sobering videotaped message to the project’s key international funders: The United Nations is ripping you off.
“Donors, please do not let the UNDP get away with stealing your money and covering it up for years and years,” said Ershov, sitting stiffly at a desk, addressing his camera in heavily accented English.
Ershov is one of nearly a dozen former U.N. employees, auditors, and consultants who have been flagging concerns for nearly a decade about mismanagement and alleged misappropriation of millions of dollars in international funds from the Global Environment Facility, or GEF, which are intended to reduce greenhouse gas emissions in Russia. But their concerns about irregularities in the program—which were first reported internally back in 2011—were largely dismissed or ignored for several years by their superiors in Istanbul, New York, and Washington, as well as by donor governments, including the United States.
A Foreign Policy investigation into the case—based on an extensive trove of internal U.N. documents and interviews with key players—provides further evidence to support Ershov’s claims and sheds an unflattering light on the failings of the U.N., the GEF, and the donor governments themselves to provide reliable oversight of well-meaning programs to combat environmental scourges, including the depletion of the ozone layer and global warming.A 2017 confidential audit appendix—which was shared with UNDP officials in New York and Istanbul but has never previously been made public—found “strong indicators of deliberate misappropriation” of millions of dollars in funds from the project between 2010 and 2014.
A 2017 confidential audit appendix found “strong indicators of deliberate misappropriation” of millions of dollars in funds from the project between 2010 and 2014. But UNDP challenged that characterization. A subsequent investigation by UNDP’s Office of Audit and Investigations “did not find evidence of misappropriation of funds, but separately after review did conclude that project management had not met expected standards,”.
The UNDP investigation offers a snapshot into a sprawling and growing international bureaucracy aimed at grappling with one of the world’s greatest challenges. It also shows how reluctant international institutions like the U.N., as well as the governments that fund them, are to investigate potential corruption under their watch and to act on the claims of whistleblowers who draw it to their attention. The U.N. has long faced criticism that it has done too little to support and protect whistleblowers. In the Russia program, UNDP investigators cleared officials accused of wrongdoing on the grounds that they did not fully understand they were violating U.N. rules designed to prevent abuse….
Ershov says he was pushed out of his U.N. job in October 2014 for raising concerns about conflicts of interest in the GEF program. He has spent the last four and a half years prodding the UNDP, the GEF, and donors to investigate his claims that U.N. and Russian officials had awarded lucrative contracts to friends and family for a program that produced few environmental achievements.
Last month, Ershov presented representatives of the 32-member GEF Council with a copy of his videoand a statement urging them to open an independent investigation into his allegations.
But Ershov’s appeals have repeatedly been brushed aside, and he has been dismissed by senior UNDP officials as a disgruntled former contract employee who is seeking revenge against his boss for having refused to renew his contract. John O’Brien, UNDP’s, O’Brien conceded that there were “very serious issues” with the program, noting that three independent consultants had flagged concerns about how funds were spent. “I have some concerns about where this might lead for UNDP,” he wrote.Three years earlier, O’Brien wrote an internal memo saying the program had little to show for the $1.4 million it spent in its first year, and he proposed flagging it as a “problem project.” But he was overruled.…
https://www.ft.com/content/054a529c-e793-489b-8986-b65d01672766