How did the idea to reduce poverty, etc. by UNDP (United Nations Development Programme) change onto profit-making (i.e., the idea to invest $4.7B donors’ money into investment portfolios)? (See page # 159 of UNDP 2017 Financial Statements). Or why did UNDP pay $5M to13 officers and pay generous salary and benefits to 600 employees, but then hired third parties to perform its key Program, the $4.3B Development Program? (See Page 149). More so, why did UNDP allocate a significant portion of the program ($2.0B) to individuals, but allocated a minuscule amount to companies? (See page # 153).
By J. Yanqui Zaza, Contributing Writer
Were these professional individuals or connected consultants? Did government have a say in hiring consultants? Were some of the contractors urban landlords who usually inflate cost of housing leased to consultants? Sadly, why does the United Nations add 65% of the based salary to the original salary, resulting into excessive salary? Let us look at an example:
Personnel salary: Based Salary- $64,000 Plus (Post Adjustment $64,000 X 65% =$42,000)
Total salary: $106,048- (Based salary $64,000 plus Post Adjustment $42,000)
Fast forward to the idea of UNDP using donors’ funds to make profit. Is it prudent for UNDP to invest donors’ $4B in firms on Wall Street (i.e., the gambling industry) when healthcare centers lack medicine, equipment, materials, etc., schooled-aged children are not in school, income inequality is increasing, etc.? Certainly, it is a good idea, even for religious institutions, to invest idle cash and generate income. However, UNDP should not invest donations at the expense of fighting poverty, education, etc.
Was it possible for UNDP to make profit and at the same fulfill its mission? I think so. In fact, the issue is not about investing donors’ $4B into risky portfolios. Rather, has UNDP failed its 1965 mission, to reduce poverty, increase stability and promote prosperity, is the real issue? Or has it joined the World Bank that collected $1.7 trillion income from lending money from poor countries and/or has joined other institutions that pay excessive salaries as shown below?
Are the excessive payments undermining the mission of UNDP? UNDP does not share that view. Therefore, it regularly includes an evaluation section within its Audited Financial Statements. For instance, on page # 44 through page # 77 of its 2017 Audited Financial statements, UNDP listed (1) Board Recommendations; (2) UNDP Responses; and (3) Board Assessments.
Let us review the key mission of UNDP (i.e., the $4.3B “Development Programs”) as per the schedule and determine if UNDP spent the $4.3B on shelter, food, clinic, education, etc.
The numbers are self-explanatory. UNDP transferred $1.9B to individuals and companies to perform services and paid $989M for programs and supplies. Did UNDP use the $989M to build clinics, bridges, low-income housing units, farm to market roads or agricultural activities? The records do not disclose that UNDP paid or accrued expense for any of these activities that would have provided and enhance education, shelter, and food. So, is it possible for mankind to escape poverty if there is inadequate funding to finance shelter, education and food?
The “Human Development Department of the UN said no. The Administrator of the “Human Development, Achim Steiner stated that too many people are not emancipating from poverty. In the “Human Development” 2018 Annual Report, Steiner stated that UNDP “…is failing its mission…many people have little prospect for a better future. Lacking hope, purpose or dignity, they watch from society’s sidelines as they see others pull ahead to ever greater prosperity. Far too often gender, ethnicity or parents’ wealth still determines a person’s place in society,” he added.
Criticism against UNDP, USAID, etc., continued even after the United Nations selected former President of the United States William J. Clinton as the Chair of the Haitian Recovery Operation in 2010. The global charities gave over $3B in response to the 7.0 Earthquake that killed 200,000 Haitians, destroyed 100,000 properties, etc. Sadly, Haitians have little to show for the $3B donations, Critics complained. This is because UNDP, USAID, etc., funneled the money through friendly companies, they added.
Liberians thank UNDP for countless donations such as the April 22, 2020 $10,000 worth of supplies donated to fight the Coronavirus. However, some Liberians have mixed views on the efforts of UNDP toward sustaining peace and stability in Liberia. For instance, had UNDP addressed the underlying problems (poverty, education, shelter) in Liberia, the April 14, 1979 (Rights and Rice) rally and the April 12, 1980 Coup might not have occurred.
Also, why is UNDP silent on the findings that multinational corporations transfer about $60B out of Africa every year, depriving Africa of the revenue needed to build schools, clinic, grow food, etc.? In 2014 Mr. Thabo Mbeki, former President of South Africa and his African Union Committee on Illicit Financial Flow from Africa, reported that multinational corporations are responsible for 95% of the $60B that is transferred from Africa every year. In fact, Liberia was one of the seven countries that the investigators investigated. Also, UNDP is silent on the findings of Moore Stephens Audit Firm, which reported that former President Ellen Johnson Sirleaf Administration awarded 66 fraudulent concessionary agreements to investors.
Further, if corruption undermines the efforts to reduce poverty, why is UNDP silent on the L$16B money saga and the decision by President George Weah not to disclose the sources used to build his 48 real estate properties?
UNDP can begin to encourage President George Weah to fight corruption and it also can take some of these measures, which might help in reducing poverty:
1) UNDP should encourage the W/B not be an owner and at the same time a creditor of Liberia’s state-owned entities. This is because chief executives of the W/B will demand maximum profits at the expense of taxpayers: Page # 74 through page # 93 of the Pro-Poor Agenda for Development and Prosperity (PAPD) indicate that W/B’s subsidiary called International Finance Company (IFC) will own shares in Liberia’s state-owned entities and W/B’s subsidiary called International Bank for Reconstruction and Development (IBRD) will give loans to state-owned entities.
2) Liberia should add gold deposits to its cash reserves: Adding gold deposits to Liberia’s Net International Foreign Exchange Reserves will reduce the government’s debt.
3) Correct the Denominator Liberian officials determine to compute debt to Gross Domestic Product (GDP) ratio/revenue deficit percentage: Encourage Liberian officials to provide schedule to explain how Liberia’s debt ratio to GDP dropped from 35% in June of 2017 to 26% in June of 2018. How did the authorities compute $3B as Nominal GDP in 2018(i.e., which was the denominator), when Real GDP was $1B and Liberia’s inflationary rate was around 26% in 2018, for instance?
b) Post adjustment
For example, if your annual base salary is US$ 64,000 and the post adjustment multiplier for your duty station is 65.7%, your salary will be calculated based on the following: