Archive for the ‘UN’ Category

Statement of UNDP on DPRK activity audit

Wednesday, June 6th, 2007

UNDP welcomes the preliminary report (DPRK-prelimauditreport-20070601.pdf) of UN Board of Auditors (UNBOA) on the operations of UNDP and other UN agencies in DPRK.  UNDP has cooperated fully with the audit process and will continue to do so. 

UNDP operated in DPRK at the express wish of its Executive Board.  Member states encouraged UNDP to assist the country to engage progressively with the norms and standards of the global community. 

The operating environment was very difficult.  In recent years UNDP tightened control mechanisms and conducted frequent audits (1999, 2001 and 2004).  These audits did not lead to any suggestion that UNDP funding was being diverted to purposes other than those for which it was intended. 

UNDP is encouraged that the UNBOA preliminary report confirms:

– That UNDP operated a relatively modest programme in DPRK ($2-3 million per year – far less than “$100s of millions” alleged in press reports)
– That UNDP international staff could – and did – regularly visit project sites to verify how UNDP funding was being used

The preliminary report also highlights specific aspects of the difficult operating environment in DPRK, including staffing and foreign currency arrangements not in line with worldwide practice.  UNDP notes that:

– The Executive Board knew of UNDP’s staffing practices in DPRK, which date back 27 years
– Similar staffing and foreign currency practices were followed by all UN agencies, international NGOs and foreign diplomatic missions in DPRK, including past and current members of UNDP’s Executive Board
– UNDP was not able to follow worldwide practice, but no UNDP regulations or rules were broken
– Following requests by some Board members, UNDP notified DPRK that it was changing its staffing and currency practices.  The proposed changes were formally endorsed by the Executive Board in January 2007
– UNDP suspended operations in the country on 2 March 2007 when DPRK failed to meet the operational changes endorsed and mandated by the Board.
– UNDP took the lead in asking the DPRK government to conform to international practice before the Board’s decision  

The report highlights areas in which UNDP rules or procedures could be strengthened.  UNDP is committed to addressing these areas.

UNDP will be transmitting a formal management response to the ACABQ shortly.  UNDP would welcome a continuation of the audit process, including a visit by the UNBOA to DPRK.  UNDP looks forward to the final audit report.

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N. Korea’s food situation not as bad as expected: agricultural scholar

Tuesday, June 5th, 2007

Yonhap
7/6/2005

North Korea’s food situation is stabilizing and is not as bad as expected in rural areas, a South Korean agricultural scholar who just returned from Pyongyang said Tuesday.

In an interview with Yonhap News Agency, Kwon Tae-jin, senior scholar of the state-run Korea Rural Economic Institute, said, “The peak of food shortage usually comes in June, but I didn’t feel it probably because North Korea released food rations.”

Kwon visited Pyongyang, Chongju in North Pyongan Province, Hamhung in South Hamgyong Province and Paechon in South Hwanghae Province, along with officials of World Vision, an international relief agency, May 25-31.

In March, North Korean officials indicated that North Korea faced a shortfall of 1 million metric tons of food and asked the World Food Program (WFP) to expand its assistance.

Jean-Pierre DeMargerie, head of the WFP’s office in North Korea, said that the situation is not as bad as it was in the 1990s when about one million North Koreans are estimated to have died of hunger, but the food situation has again “started to deteriorate because of June and August flooding of critical cropland and major reductions in WFP and bilateral food assistance.”

Kwon said North Korea would have little difficulty planting rice seedlings this year as reservoirs are full of water in most plains, and tractors and rice-planting machines can work at full capacity.

“In some areas the food situation might be worsening, but agricultural production has stabilized. They seem to be focusing on diversifying their sources of income by planting some cash crops,” he said.

A weak harvest in 2006, disastrous summer flooding and a 75 percent fall in donor assistance dealt severe blows to the impoverished nation, according to WFP officials.

South Korea resumed shipments of fertilizer and emergency aid to the North, but it plans to withhold rice aid as an inducement for North Korea to fulfill its promise to shut down its main nuclear reactor as part of the landmark February 13 agreement.

South Korea suspended its food and fertilizer aid to North Korea after the North conducted missile tests in July. Resumption of the aid was blocked due to the North’s nuclear bomb test in October.

According to a recent think tank report, North Korea could run short of up to one third of the food it needs this year if South Korea and other countries withhold aid.

Data from the WFP and South Korea’s Unification Ministry show that the North will need between 5.24 million tons and 6.47 million tons of food this year. Depending on the weather, the availability of fertilizer and other factors, the communist state may only be able to produce 4.3 million tons of food by itself, the report said.

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How To Beat an Audit

Monday, June 4th, 2007

Wall Street Journal
6/4/2007

North Korea will not extend “cooperation” to any U.N. review.

The case of U.N. hard currency for Kim Jong Il took its latest turn Friday with the release of the much-awaited audit on United Nations operations in North Korea. The investigation confirms and elaborates on irregularities in United Nations Development Program’s activities in North Korea, first reported on these pages in January. It fails, however, to examine the central question of this scandal: Whether U.S. cash in North Korea was diverted from its intended recipients and instead used to prop up Kim’s totalitarian regime?

Let us stipulate that any investigation having to do with North Korea is bound to have its share of, shall we say, frustrations. Just ask the U.S. State Department, which, nearly two months after the first nuclear-disarmament deadline, still can’t get Pyongyang to live up to the initial round of its commitments no matter how many times it sweetens the deal.

The first thing to know about the U.N. probe is that it was an internal affair–conducted by the organization’s own Board of Auditors, a monitoring group that in U.N. doublespeak is said to conduct “external” inquiries. The second salient point is that it was conducted entirely in New York City. The longest journey the auditors undertook was to cross First Avenue from the U.N. Secretariat to the offices of the UNDP. To their credit, they tried to go to North Korea but were rebuffed.

In refusing to let the auditors into North Korea, Kim Jong Il displayed his disrespect for Secretary-General Ban Ki Moon. The Board of Auditors had asked Mr. Ban’s office to intercede on its behalf with help on travel arrangements. “In an email dated 11 April 2007,” the audit report reads, “the Board was informed that on 20 March 2007, the Deputy Permanent Representative of DPRK [North Korea] advised [Mr. Ban’s chief of staff] that his government was not going to extend any cooperation to UNDP’s audit.”

Even given the limited scope of their investigations, however, the auditors were able to confirm the massive irregularities in the UNDP’s operations in North Korea. The auditors also found violations at three other agencies–Unicef, the U.N. Population Fund and the U.N. Office for Project Services. The infractions covered three areas:

Staffing: In violation of U.N. rules, local staffers were hand-picked by the North Korean government and allowed to work in “general service” jobs that, for example, allowed them access to the UNDP checkbook and other sensitive documents. Salaries were paid in euros directly to the government, and the auditors could not confirm whether the staffers actually received their pay.

Foreign-currency transactions: Also in violation of regulations, U.N. agencies in North Korea made large-scale disbursements in foreign currency, including payments for salaries, allowances and rent. The auditors could not verify controls over the disbursements. UNDP, Unicef and the U.N. Population Fund spent a total of $72.5 million on programs between 2002 and 2006, though the auditors caution that “the information supplied was not verified and no source documents were examined.”

Program oversight: Visits to U.N. projects, while permitted, were controlled by the North Korean government. Authorization took a week, and government officials accompanied the U.N. inspectors. Most revealing of all, it’s unclear whether the inspectors were international officials or the North Korean government officials on loan to the U.N. organizations whose first loyalty, it’s safe to say, would have been to Pyongyang.

UNDP says it provided evidence to the auditors of 38 field visits during 2002-2006. According to the auditors’ report, UNDP had a total of 172 projects over that five-year period. Do the arithmetic and it seems that only one in five UNDP projects was visited annually. Some “oversight”–especially if the inspectors were government factotums.

The auditors say that this is a “preliminary review.” That’s an understatement. Most glaringly, they failed to investigate the broader role UNDP is said to have had as a kind of money manager for other U.N. programs and, possibly, for countries sending aid to the North. UNDP is trumpeting the auditors’ finding that it spent only an average of $2.6 million a year during 2002-2006. But if it was making disbursements on behalf of other entities, the actual sums under its control–which presumably were subject to the same shoddy financial controls criticized by the auditors–could be far higher.

The UNDP suspended operations in North Korea in March when Pyongyang refused to abide by conditions laid down by the UNDP executive board after the irregularities came to light (but years after the UNDP itself knew but ignored them). To the extent that it sheds light on the corruption, the just-released audit is a useful exercise. But there’s a long way to go before we get to the bottom of the Cash for Kim scandal.

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Russia Belatedly Joins in Sanctions against N.Korea

Friday, June 1st, 2007

Chosun Ilbo
6/1/2007

According to Russia’s Itar Tass news agency on Wednesday, Russian President Vladimir Putin has signed a decree imposing sanctions on North Korea in compliance with a UN Security Council resolution in the wake of Pyongyang’s nuclear test last October.

The presidential decree applies a full weapons embargo against North Korea in pursuance of UN Security Council Resolution 1718. All Russian government agencies and enterprises will be banned from exporting to North Korea tanks, fighter jets, warships, heavy artillery pieces, missiles, and missile launchers, as well as materials that can be used for nuclear weapons development.

In addition, North Korean officials involved in development programs for weapons of mass destruction including nuclear weapons are banned from entering Russia. Shipments of luxury goods to North Korea are also banned.

The measure will likely have no tangible effects, however, given that the current annual trade volume between Russia and North Korea is only about $200 million.

The decree comes as North Korea continues to delay implementing the conditions of the Feb. 13 nuclear disarmament agreement. The decree may put pressure on North Korea to follow the agreement.

After the UN approved the sanctions against North Korea in October last year, Russian government agencies had consultations amongst themselves and coordinated with the Russian parliament. Putin finally signed the sanctions decree on Sunday.

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China’s grain exports to N. Korea remain flat in Jan.-April

Friday, June 1st, 2007

Kyodo (Hat Tip DPRK Studies)
6/1/2007

China, North Korea’s major food supplier, exported roughly the same amount of grain to the country in the first four months of the year as it did a year earlier, according to recently released Chinese customs figures.

China’s January-April exports of maize, rice and wheat flour to the country totaled 55,446 tons, up 0.6 percent from the same period in 2006, according to the figures.

When compared to 2005, exports were down 66.7 percent.

The World Food Program warned earlier this year that the food shortage in North Korea is worsening.

While North Korea has faced a chronic food shortage, the shortfall had been made up in the past by multilateral aid channeled through the WFP as well as bilateral shipments from countries such as China and South Korea.

But external food aid has gone down recently, leaving the North with a huge food deficit.

China does not explicitly reveal its food assistance to North Korea, and analysts rely on export figures to assess the amount of aid Beijing gives Pyongyang.

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More Help Needed to Improve NK’s Public Health

Wednesday, May 23rd, 2007

Korea Times
Lee Jin-woo
5/23/2007

A middle-aged American doctor who grew up in South Korea has stressed that it’s time to move on to helping North Korea with public health issues.

“North Korea’s food situation is at least better. We need to move on to public health issues including rebuilding the North’s nine provincial and 200 county hospitals,” John A. Linton of Yonsei University’s Severance Hospital in Seoul told The Korea Times in an interview on Monday. The 47-year-old doctor heads the hospital’s international health care center.

Linton, who is well-known for his Korean name Yin Yo-han and thick South Jeolla Province accent, proposed a three-stage medical support program for North Korea from the South Korean government.

“Number one, we need to help them with a vaccination program, which should be followed by supplies of diagnostic equipment,” he said. “The final stage should be an exchange of doctors between the two Koreas.”

He said North Korean doctors need basic diagnostic equipment _ ultrasound and x-ray machines, and clinical pathology supplies _ as well as more operating theaters.

“You have to have a healthy population in the North, for them to survive and become competitive enough to receive economic finance and business opportunities.”

He hoped that large-scale medical support to the North on a regular basis would be discussed during ministerial talks between the two Koreas in the near future.

“Nobody can argue with health care,” he said. “North Korea has been an enemy, but now at the same time they are brothers. Even if they are an enemy, you must help them.”

Linton, who visited the North 17 times between 1997 and 2003 to help eradicate tuberculosis in the Stalinist state, said it should be South Korea, not the United Nations or the World Health Organization (WHO), that needs to take the lead in helping the North.

“You have to be very, very careful with the U.N. and WHO. They treat the two Koreas as two separate countries differently,” he said. “Eventually policy should be looking towards unification. South Koreans should take the lead.”

Asked whether he is a big fan of South Korea’s engagement policy toward Pyongyang, dubbed the `Sunshine policy,’ he said he supports it wholeheartedly. Linton, however, emphasized the need to guarantee transparency in the process.

“We should not encourage some of the North Korean leadership as middle management is very corrupt. We should not reward corrupt people there. That’s not for us that’s for North Korea.”

His dedication toward helping the North was initiated by his mother, who worked to eradicate tuberculosis in Suncheon in South Jeolla Province for some 40 years. She decided to donate ambulances to North Korea in 1997.

“When we got there in Pyongyang, we suddenly received a special request from North Korea asking for assistance treating TB throughout the whole country,” he said. “We visited the entire country while helping them fight TB.”

In his autobiography published last year, Linton recalled his unforgettable experiences as an interpreter during the bloody Kwangju pro-democracy movement in May 1980.

He served as a translator to people who occupied the provincial capital against the then military regime led by former President Chun Doo-hwan.

“Immediately following this experience, I was labeled as an insurgent ,” he said. “The American embassy in Seoul asked me to leave Korea, just for translating for three to four hours for reporters.”

He said his experience in Kwangju changed his personal life and made him understand what injustice is and how dangerous newspapers are.

He said such a great sacrifice should never ever happen again on the Korean Peninsula.

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NKorea food crisis complicated by politics: WFP

Tuesday, May 22nd, 2007

AFP
Philippe Agret
5/21/2007

After being ravaged by famine in the 1990s, North Korea again faces serious food shortages, with a UN official based here saying that politics are making things worse.

On the road from the capital Pyongyang to Kaesong in the south, every hill lot is developed for agriculture, with all farm work done by hand.

But only 17 percent of the land in North Korea is arable, one of the lowest ratios in the world, according to the UN’s World Food Programme (WFP).

“North Korea is suffering a chronic food shortage due to structural problems and limited food imports and food aid,” said Jean-Pierre de Margerie, the WFP’s representative in the communist state.

He lamented the international community’s lack of commitment to North Korea amid the deadlock in six-nation talks on disarming Pyongyang, and what some consider to be “hidden sanctions” linking a large part of aid to politics.

“There is no evidence that holding back food or humanitarian aid destined to civilian populations would have an impact on the government or its behaviour,” he said.

North Korea’s worst period came from 1995 to 1999 when drought, flooding and the disappearance of Soviet aid led to a famine that killed between 800,000 and two million people, according to independent estimates.

The scars of the famine still run deep, with a 2004 United Nations study finding that 37 percent of North Korean children suffered chronic malnutrition.

Some experts use the term “7, 8, 9, 10” — as an adult, a seven-year-old born during the famine will be eight kilograms (18 pounds) lighter, stand nine inches (23 centimeters) shorter and live 10 years less than a South Korean of the same age.

The groups most at risk are young children and women who are pregnant or breastfeeding.

After a record harvest in 2005, 2006 was “very difficult” due to heavy floods in the summer and a dramatic drop in food aid and food imports; 2007 could also be dire, de Margerie warned.

Amid the international furore over Pyongyang’s nuclear and missile tests last year, China reduced its aid by half and        South Korea temporarily halted shipments.

Seoul has since resumed fertiliser aid and promised to provide 400,000 tons of rice to North Korea starting in late May.

But the food aid is linked to political conditions, such as Pyongyang shutting its nuclear reactor in line with a multilateral disarmament deal reached in February.

The impoverished country faces a shortfall of one million tons of food this year, or 20 percent of its needs, according to the WFP and the UN’s Food and Agriculture Organisation.

Up to one third of North Korea’s 23 million people may need assistance ahead of the next harvest, warns the WFP.

So is there a danger of another famine?

“No, not yet,” said de Margerie. “But if the trend continues, pockets of severe malnutrition could develop.”

In Pyongyang, not everyone is pessimistic as there is a lack of reliable agricultural data. Some observers say the problems lie in the distribution system and access to food, rather than in actual production.

North Korea’s leaders — whose ruling motto is “juche,” or self-reliance — say they have made food security their priority, but Pyongyang has nonetheless relied on foreign help.

The WFP has collected two billion dollars in 10 years, supplying four million tons of food between 1995 and 2005 that assisted one-third of North Korea in its biggest operation at the time.

Since 2001, multilateral aid from the WFP has been gradually replaced by assistance from China and South Korea. While bilateral aid goes to the government and may be distributed to the elite, the WFP says it closely monitors its aid so that it reaches those most in need.

This year, donor countries have promised only 12,000 tons of food.

The WFP has received only 20 percent of the financing for its programme up to March 2008, assisting three percent of the population, or 600,000 people, instead of the initial objective of reaching nearly two million North Koreans.

De Margerie says he hopes the international community will set aside political concerns to focus on the human tragedy unfolding in North Korea.

“You only see negative images of North Korea. But it has a human face,” he stressed.

“An eight-month-old child or pregnant woman does not engage in politics. It’s the most vulnerable in the civilian population who pay the price.”

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Kim Jong Il Gets the Gifts, and All North Korea Ends Up Paying

Wednesday, May 16th, 2007

Bloomberg
Bradley Martin
5/16/2007

For decades, tourists visiting North Korea have been brought to a 200-room, 70,000-square-meter palace completed in 1978 that displays presents to Kim Il Sung, the “Great Leader,” who died in 1994.

Starting with Joseph Stalin’s 1945 gift of a bulletproof railway carriage, the items include a stuffed bird from American evangelist Billy Graham and a piece of the Berlin Wall donated by a German writer.

These days most visiting foreign dignitaries bring gifts for Kim’s eldest son and successor, Kim Jong Il, 65. The junior Kim’s loot is housed in a 20,000-square-meter (215,278-square- foot) annex that was completed in 1996 — a time when a famine was starving tens of thousands of North Koreans.

Why would the country have spent vast sums on four-ton bronze doors and polished marble floors? “Our people couldn’t display all these precious gifts in a poor palace,” says tour guide Hong Myong Gun. “So we built this palace with our best.”

The gifts in the windowless “International Friendship Exhibition” at Mt. Myohyang, a two-hour drive north of the capital, Pyongyang, range from the trivial to the grandiose.

Cable News Network founder Ted Turner donated paperweights with the CNN logo. A tribal chief in Nigeria offered a throne featuring carved lions, with matching crown and walking stick. Romanian communist dictator Nicolae Ceausescu brought the stuffed head of a bear he had hunted and killed.

Giving and Receiving

In Asia, the protocol of gift-giving has been well established since Chinese emperors began expecting visitors to bear tribute. The Chinese know how to give as well as to receive: Pride of place in the exhibit goes to one of their presents, a life-sized wax figure of Kim Il Sung standing on a three-dimensional representation of a lake shore.

Reverent music, calculated to induce bowing, plays in the background of the posthumous gift, the final exhibit viewed by visitors to the hall.

The elder Kim’s title of President for Eternity makes him the world’s only dead head of state, and Hong says he continues to receive gifts. As of last year, his presents numbered 221,411.

“No other president could draw so many presents, so our people live in pride,” she says. “Except for this place, where can you see such a sight?”

The annex for Kim Jong Il, whose titles include secretary general of the Workers’ Party and chairman of the Military Commission, houses 55,423 additional presents, Hong says. As with his father’s gifts, most of them were never used but were immediately donated to the exhibition.

A Dynasty Sedan

Some highlights in the annex: a 1998 luxury sedan from the founder of South Korea’s Hyundai group — the model named, appropriately enough, Dynasty — and two roomfuls of carved, gilded furniture from South Korea’s Ace Bed Co.

From time to time, groups of uniformed soldiers troop past to see the gifts. A high percentage of them are five feet tall or shorter. In the 1990s, North Korea reduced the minimum height for military service to 148 centimeters (4 foot 9 inches) from 150 centimeters and the minimum weight to 43 kilograms (95 pounds) from 48 kilograms, according to South Korea’s National Intelligence Service.

A 2004 World Food Program nutritional survey found that 37 percent of North Korean children suffered chronic malnutrition. The state “bears central responsibility” for the shrinking of North Koreans, says Marcus Noland of Washington’s Peterson Institute for International Economics, co-author of a new book about the famine.

Freeing Up Foreign Exchange

“As aid began arriving, the North Koreans cut commercial food imports, freeing up foreign exchange,” Noland said in an e-mail exchange.

The saved money was used to purchase surplus military aircraft from Kazakhstan and to build monuments “to the recently departed Great Leader Kim Il Sung and his son,” Noland says. If the regime had maintained the rate of commercial food imports during the 1990s, using aid as a supplement instead of a substitute, he says, “the famine could have been avoided.”

Noland estimates the death toll at 600,000 to 1 million; others have said as many as 4 million people may have died.

Tour guide Hong, 27, places the blame elsewhere. “From 1993 to 2000 our people suffered from countless natural disasters and also from other pressure in the economic field owing to the U.S. aggressors,” she says, referring to sanctions. Even during such hardships, she says, constructing the annex with the best materials was “the greatest desire of our people.”

As she speaks, there is a brief power blackout, a frequent occurrence in the energy-short country. When the lights come back on, Hong continues.

“Our people are very grateful because the Great Leader Kim Jong Il sent all the gifts here for the people to look at freely,” she says. “It was our duty to preserve them and show them to the new generation.”

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Audit report on UNDP to be presented to U.N. general meeting

Friday, May 11th, 2007

Yonhap
5/11/2007

An external audit report on United Nations activities in North Korea will be presented to a general meeting of the United Nations next week, a Washington-based radio station reported Friday.

Citing an informed source, Radio Free Asia said that an audit report is being made of the relevant documents and information without the inspectors visiting the communist country. The audit of all U.N. operations in North Korea began in March amid U.S. allegations that U.N. aid money was being diverted to the North’s regime.

The U.N. Development Program (UNDP) said it has completed the process of wrapping up all of its operations in North Korea, and its two remaining staff members were supposed to leave Pyongyang last week.

The agency suspended operations on March 1 because North Korea failed to meet conditions set by its executive board following suspicions that the aid money might be diverted for illicit purposes, including the development of nuclear weapons. It withdrew seven of its nine international staff in mid-March.

U.N. Secretary-General Ban Ki-moon ordered an external audit of all U.N. operations in North Korea that began on March 12.

The UNDP’s office equipment and materials are currently being safeguarded by the World Food Programme in Pyongyang and will be available to the auditors, officials from the international body said.

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North Korea Time

Thursday, May 3rd, 2007

Wall Street Journal Editorial
5/3/2007
Page A16

It’s been two and a half weeks since the 60-day deadline passed on April 14 for North Korea to comply with the first part of the nuclear accord reached in February. That includes shutting down the Yongbyong nuclear reactor, letting in U.N. inspectors and providing a list of all nuclear programs. But so far no word from Pyongyang, and nothing from Beijing or Washington either. President Bush and Secretary of State Condoleezza Rice both recently claimed their “patience” is not “endless,” contrary to all available evidence.

Meanwhile, another North Korean deadline has been allowed to lapse. On January 19, United Nations Secretary-General Ban Ki Moon ordered an “external inquiry” into all U.N. programs in North Korea, including the United Nations Development Fund, Unicef, the World Food Program and the U.N. Population Fund. Mr. Ban’s announcement followed our report on irregularities in UNDP programs in North Korea and U.S. concerns that tens of millions of dollars in hard currency were funneled to dictator Kim Jong Il.

Mr. Ban imposed a 90-day deadline for the audit, but it appears to be lost somewhere in the U.N. bureaucracy. The auditors spent two weeks in March at UNDP headquarters in New York interviewing staff and looking at the books, but they have yet to set foot in North Korea, much less file a report. Oh — and the “independent” and “external” audit Mr. Ban ordered is being conducted by the U.N.’s own Board of Auditors, consisting of a team from South Africa, France and the Philippines.

We had a challenge gathering even these details. The Board of Auditors refuses to talk to the press. The UNDP understandably feels it lacks standing to comment on an investigation of itself. And Mr. Ban’s press office can’t seem to get the facts straight, first telling us the auditors were in Korea and then informing us they weren’t. You’d think someone at the U.N. would show more interest in explaining one of the boss’s priorities to the public.

It will be interesting to see how Kim Jong Il responds if the auditors get around to asking for visas. The dictator recently told the last two UNDP officials left in Pyongyang to get out. The UNDP suspended operations there in March, after our reports and after the Kim government refused to let aid officials visit the projects they fund.

Mr. Ban is staying mum on the missed U.N. deadline. But on the evidence so far, Kim can be forgiven if he concludes that the world isn’t serious about enforcing any of its deadlines concerning North Korea.

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