UN Asks Former Official at UNOPS to Repay $63.6 million : NY Times / Tom McDermott

The fallout from the scandal continues at UNOPS over funds the organization raised by overcharging governments who funded construction projects.  UNOPS then invested those 'extra' funds in dicey schemes  which later suffered enormous losses.  

UNOPS Executive Director resigned under pressure and Vanshelboim, the Deputy Executive Director, was fired.  Vanshelboim was ordered to repay to the UN the $63 million lost in the investments.  He is now arguing at the UN tribunal that he should not be held responsible.  Stay tuned.

Tom

  

See our previous articles :  A Scandal Pops  The Thin Blue Line   UNOPS Scandal Rolls On

View the article in the NYTimes.  Below is a summary

- Vitaly Vanshelboim, a former top official at the UN's logistics agency, invested about $60 million of UN funds with companies linked to a British businessman named David Kendrick. This was despite internal warnings and concentrating risk.

- The investments were meant to finance renewable energy and housing projects, but went poorly. The UN has only recouped about 10% of its investment. 

- After this scandal was reported by the New York Times, Vanshelboim's boss Grete Faremo resigned. Vanshelboim was later fired.

- Vanshelboim has now been ordered to personally repay $63.6 million to the UN. He has also been fined a year's salary and risks losing his UN pension if he does not repay the money. 

- Vanshelboim is appealing his firing, fine, and repayment order through the UN's internal court system. He has not been criminally charged.

- A UN review blamed the bad investments on a "culture of fear" where underlings did not question the actions of Vanshelboim and Faremo. 

- The US mission to the UN has demanded more transparency about the findings of investigations into Vanshelboim's conduct. The US also wants changes to the governance of the UN logistics agency involved..