"Stop Paying Hard Cash to N. Korea"

In response to increasing suspicions that the United Nations Development Programme (UNDP) has transferred hard currency directly to the regime of Kim Jong Il under the name of the agency’s development funds for North Korea, UNDP decided to stop paying hard currency for its operation in North Korea as of March 1. In addition to this, U.N. Secretary-General Ban Ki-moon called for an independent external investigation into all activities of U.N. programs including UNDP last Saturday.

Before this, the Wall Street Journal reported that the United States charged that U.N development agency is funneling a great amount of hard currency to North Korea and planned to ask suspension of UNDP aid to North Korea until its operating transparency is secured.

The Wall Street Journal also raised concerns that as ousted Iraqi leader Saddam Hussein raised illicit money by subverting the Oil-for-Food Program, Kim Jong Il might have converted U.N. development funds to his illicit nuclear programs. The newspaper also said that there were irregularities in favor of North Korea in employing local staff, renting offices, paying for staff meals and spending activity expenses.

In regard to this, UNDP Associate Administrator Ad Melkert held a press conference at UN Headquarters in New York last Saturday and said, “UN internal inspectors also raised questions on operating activities in North Korea.” Mr. Melkert added that, “The agency will end all payments in hard currency to the government of North Korea, local project partners, local staff, and local vendors as of March 1.”

Following this, Mr. Melkert also said that “The agency would stop hiring local staff through the recommendation of the North Korean government,” and added that, “The agency would propose independent external audits of the UNDP’s activities in North Korea in next week’s meeting of its executive board.”

This is a reaction of the U.S. government accusation, saying that, “The agency failed to meet its commitment to transparency because many irregularities were noticed, such as hiring employees unilaterally recommended by the North Korean government.”

However, Mr. Melkert denied allegations that hundreds of millions of dollars were funneled into North Korea by saying that “Over a period of ten years, it is just tens of millions of dollars that the agency has spent on North Korea.”

On the same day, the UN spokesperson Michele Montas announced that after having a talk with Associate Administrator Ad Melkert about the agency’s activities in North Korea, Secretary-General Ban called for an urgent, system-wide and external investigation into all activities done around the globe by the UN funds and programs.

kong@donga.com