Annan has taken quick steps in response to Oil-for-Food findings – spokesman

From whistle-blower protection to greater financial disclosure, the United Nations has already begun implementing the recommendations of Independent Inquiry Committee (IIC) into the Iraq Oil-for-Food Programme, which in its final report delivered yesterday found both misadministration and evidence of corruption.

"The action that will be taken on this (final) report is following through on the recommendations of Mr. Volcker," UN spokesman Stephane Dujarric said in reply to a question at the daily press briefing, referring to the IIC Chairman, former United States Federal Reserve Chairman Paul Volcker.

"And as the reports have been coming out we have taken action on these recommendations which include the creation of follow-up committees to audit the management findings. It includes better whistle-blower protection. It includes creation of an ethics office. It includes greater financial disclosure by UN officials," Mr. Dujarric said.

He added that the Volcker report helped not only to get to the truth of what had happened in the Oil-for-Food Programme, but also served as "lessons learned on how we can improve the administration of this organization."

According to the spokesman, the Secretary-General took quick action in the wake of Volcker reports.

"The Secretary-General has vigorously enacted a set of concrete reforms aimed at preventing fraud, improving efficiency and following through on audit recommendations," Mr. Dujarric told the UN News Service. One such step was the establishment of a new Internal Oversight Committee to ensure that every oversight recommendation is properly implemented.

With regard to whistle-blowers, under procedures now under way, staff will have the ability to seek protection from a newly established Ethics Office when managers or other staff try to penalize them for reporting misconduct, Mr. Dujarric said. There will be a very clear and thorough set of provisions, outlining what kinds of complaints will be protected, and what kinds of actions could be considered reprisals.

The UN has also adopted a new, proactive approach to tightening controls over large donor-funded humanitarian programmes, the spokesman said, citing the example of the tsunami response, which is being administered by the office of the UN relief coordinator with the help from PricewaterhouseCoopers.

"This shows that we are committed to raising our standards of documentation, financial controls, oversight and reporting requirements," the spokesman said.

To promote transparency in procurement, all vendors are listed on the UN website and full information is provided on each contract throughout its life and a two-tiered bidding process is in use, separating the financial bid from the technical part. Thus the requisitioning office has no information on cost. Only after the technical bid is completed is the sealed financial bid opened to evaluate which is the lowest qualified bidder.

The UN is hoping to require that all officials at the Director D-1 level and above will also be required to fill out financial disclosure forms, Mr. Dujarric noted. That change in staff regulations would require approval of the General Assembly.