VZCZCXYZ0032
PP RUEHWEB

DE RUCNDT #1344 1922019
ZNR UUUUU ZZH
P 112019Z JUL 06
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC PRIORITY 9570
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY

UNCLAS USUN NEW YORK 001344 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC ASIG KUNR UNGA
SUBJECT: UN OVERSIGHT: CONFLICT OF INTEREST INVESTIGATION 
IN PENSION FUND 
 
 
¶1.  SUMMARY: This report, which was requested by USUN under 
the provision that allows Member States to obtain copies of 
OIOS reports, details the findings of an OIOS investigation 
launched in response to the allegations of two UN Joint Staff 
Pension Fund staff members that procurement irregularities 
occurred in information technology services, including 
conflicts of interest and waste of resources. The 
investigation found multiple instances of procedural 
violation in procurement by several UNJSPF staff members, and 
while the investigation concluded that it did not constitute 
a conflict of interest, they did say that the situation 
created the appearance of a conflict of interest which has 
been damaging to the organization. END SUMMARY. 
 
¶2.  Instances of procedural violation included a failure to 
hold competitive bidding for multiple information technology 
contracts, instead awarding direct contracts to a consultant 
company. On occasions where competitive bidding was held, 
this consultant company again was awarded multiple contracts, 
through irregular processes lacking transparency. 
 
¶3.  UNJSPF staff justified the awarding of contracts through 
non-competitive bidding processes as due, initially, to time 
constraints, and after the initial contracts were awarded, to 
the desire not to lose money and time in the transitioning 
process to another company once the consultant company had 
begun work. As a result, contracts were often extended. 
 
¶4.  A previous working relationship between the Pension Fund 
Information System officer and the president of the 
consultant company was not communicated to the Procurement 
Department. This pension fund officer was highly involved in 
the recommendation, evaluation, bidding and documentation 
processes for the consultant company,s work for the UNJSPF, 
and though he/she was not found to receive any personal 
financial gain from the contracts, the perception of 
favoritism led to mistrust by staff members, and a perception 
of conflict of interest. 
 
¶5.  This situation went unchecked due to many procedural 
violations by other staff members, including a failure to 
independently obtain information on the consultant company 
before accepting the information system officer,s 
recommendations, a failure to compare their fees to those of 
similar companies, and allowing the extension of several 
contracts beyond their original mandate, again without a 
competitive bidding process. 
 
¶6.  UNJSPF management questioned the motives of the two staff 
members who made the accusations, stating that these 
individuals had personal interests against the management 
motivating their complaints, including pending appeals 
against management, or beliefs they had previously been 
treated unfairly. 
 
¶7.  CONCLUSION: While no conflict of interest was found 
between the IMSS Officer and the consultant company, multiple 
procedural violations by several staff members regarding the 
awarding of information technology contracts to this company 
has caused the perception of a conflict of interest. As a 
result, the OIOS has called for the consultant company to not 
be offered more work for the UNJSPF, for action against many 
UNJSPF staff for violating procedure, for intervention by the 
OHRM staff to ensure fairness in future decision-making, and 
finally, for preventing situations which both lead to a 
conflict of interest, or the perception of a conflict of 
interest. 
 
¶8.  COMMENTS: Despite the OIOS, finding that no actual 
conflict of interest took place, the consequences of the 
perception of conflict of interest are nevertheless serious; 
it is thus important that the accountability measures 
recommended in the report be fully implemented. END COMMENTS. 
BOLTON