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UN spends millions in Somalia "for What reason"?

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EXCLUSIVE: The United Nations Development Program, the U.N.’s flagship anti-poverty agency, spent tens of millions to make terrorism-battered Somalia safer, but never verified that the work was done, or even that its government partners had the capacity to do their jobs,  according to a scathing  internal auditors’ report.

According to the United Nations Development Program’s project website, about $25 million was spent in 2013 on the audited projects mentioned in the organization’s internal report—roughly  half the $59 million spent on UNDP programs and management in Somalia that year.

The project website shows the work as being mostly centered in the capital of Mogadishu and intended to provide “coordination and support to Somali security sectors,” develop an “efficient, effective, professional civilian police service” and “policy and law making processes,” as well as a “community security” projects aimed at reducing “armed violence.” 

In a brutal counterpoint to those activities, in June 2013, radical Islamic Al-Shabaab militants struck  the main U.N. compound in Mogadishu, killing eight local and international security staffers, and forcing other U.N. staffers to remain in Kenya, where U.N. operations for Somalia have centered for years, in fear for their lives.

The report, prepared by UNDP’s Office of Audit and Investigations, or OAI, was based an examination this past spring of UNDP’s Somalia country office in Kenya—the hub of coordination for some 20 U.N. agencies—which maintains senior management offshoots in Mogadishu and outlying Somalian centers. The OAI probe aimed at assessing “the adequacy and effectiveness” of UNDP leadership, coordination and management in Somalia during the preceding year. 

What the auditors found  in examining the office’s operations were financial records in disarray,  a tangled skein of bureaucratic  lines of authority , special boards intended to oversee the accomplishment of projects meeting sporadically or never, and project reports that were “either poorly written or not prepared at all.” 

Some of the financial accounting lapses that the auditors noted seemed especially egregious. In one case, $3 million had been spent by UNDP’s top official, known as the Resident Coordinator, for “support to U.N. coordination.” 

According to the audit, the support is supposed to provide for “analysis, planning, tracking and reporting” on the use of resources. In 2013, the auditors noted,  no report was filed on how the coordination money was spent. 

In other words, the money that was supposed to be spent on tracking how UNDP spent the rest of its money apparently wasn’t tracked.

Overall,  the auditors noted, many  other spending records had not been set up in UNDP’s global financing tracking system—and when they were entered, were sometimes set up so that expenses couldn’t be tallied.

In one case, the auditors noted $6.6 million had been handed over to government partners  as “grants” for projects rather than “advances,” meaning UNDP “could not track how such advances were expensed and how accountability for those funds was discharged.”

When it came to actual project oversight, the auditors rated UNDP’s lapses as even worse than its financial pecadillos:  they were labeled as “high (critical) priority,” for fixing,  meaning that “failure to take action could result in major negative consequences for UNDP.”

Chief among them was a lack of “capacity assessment,” meaning a tough and detailed evaluation of the ability of UNDP’s partners in Somalia, which included both central and regional governments,  actually to carry out the projects assigned to them, as well as “account and report for the funds provided by UNDP.”

Instead, the watchdogs reported, UNDP assessed future capacity on “earlier experience in working the with prospective partner.” As a result, the auditors said, UNDP was in no position to take timely action to “mitigate risks of irregularities” or of potential fraud.

And, in fact, the auditors noted, “several cases of alleged fraud by implementing partners” were already under investigation by OAI while UNDP’s haphazard management progressed through 2013. In response to questions from Fox News, a UNDP spokesman confirmed that the fraud cases involved Somali government partners of the U.N. organization.

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