Pubdate: Sun, 29 Jul 2001
Source: Observer, The (UK)
Copyright: 2001 The Observer
Contact:  http://www.observer.co.uk/
Details: http://www.mapinc.org/media/315
Author: Hugh O'Shaughnessy
Bookmark: http://www.mapinc.org/corrupt.htm (Corruption)

UN DRUG AGENCY FIASCO EXPOSED

New Evidence Questions Competence Of Vienna Hq's Italian Director

Evidence of gross mismanagement and possible corruption at the Vienna 
headquarters of the United Nations agency fighting drug crime has been 
obtained by The Observer .

It casts further doubt on the competence of the agency's executive 
director, Pino Arlacchi, a former Italian senator who made his name 
fighting the Mafia. His contract will not be renewed when it expires in 
February.

Arlacchi has already been bitterly criticised for his leadership of the 
agency, where staff morale is at rock bottom. But with the change of 
governments in the US and Italy he has lost key allies and funding.

The Bush and Berlusconi administrations are unlikely to maintain their 
countries' subsidies to the agency and the Dutch government has already cut 
its contribution.

There have been a number of searching inquiries into the UN Office of Drug 
Control and Crime Prevention as well as criticism of Arlacchi's 
intimidating style and of abortive programmes mounted by the agency.

His fate was sealed last month when UN Secretary-General Kofi Annan 
circulated a blistering report on the agency by the Office of Internal 
Oversight Service.

He added his own statement, which said: 'The Secretary-General takes note 
of its findings and concurs with its recommendations and notes that 
measures are being taken to correct the issues addressed in the review.'

The report, prepared in February, recalled among other things the collapse 
last year of a $250 million, 10-year plan to eradicate drugs from 
Afghanistan drawn up with the collaboration of the Taliban. But the funds 
dried up and it was closed down without staff being told. A similar fiasco 
was reported in Pakistan.

Then there was the organisation of a military force to crack down on the 
drug trade in central Asia. In Tajikistan in 1991, the agency set up what 
the report called 'a well-trained, mobile and armed entity (whose staff is 
salaried at a level considerably higher than the national one)'. But again 
the money ran out.

Another instance of mismanagement came with what has come to be known as 
the 'boat project'. The initial idea, the report said, was that the agency 
should sponsor a solo round-the-world voyage on a 90-year-old wooden boat 
to 'raise awareness' of the agency's activities.

The captain was supposed to sail into ports and persuade young people to 
keep off drugs. It did not make it round the world.

The report concluded that mechanisms for co-ordinating and overseeing 
programmes and assessing their impact were not functioning, there was 
insufficient consulation, delays and a lack of accountability and clear 
lines of command that 'paralysed decision-making'.

New evidence in The Observer's possession from agency insiders suggests 
examples of waste and lack of proper accounting for the agency's assets, 
although there is no evidence that Arlacchi knew of these. They include:

* The $100,000 refurbishment of a senior official's office, done twice 
because the first attempt was found to be unsatisfactory;

* The purchase of a new Mercedes 300 at a cost of $100,000 to replace a 
two-year-old Audi 80;

* The purchase of several large television sets, satellite dishes and 
valuable Chinese vases, none of which can be found;

* The purchase of 20 portable phones, including two satellite phones and 
faxes which far exceeded the needs of the office in question;

* The ordering of 'a substantive quantity' of one official's own books (for 
which it is believed he received a royalty) to give out as gifts;

* A contract with a PR firm without any bidding process for the UN General 
Assembly's Special Session on Drugs at a cost of $400,000.
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