U.S. probe targets U.N. department

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NEW YORK -- The United Nations confirmed yesterday the U.S. Attorney's Office is investigating suspected wrongdoing in the office that handles procurement for U.N. peacekeeping operations.

In a further blow to the troubled peacekeeping department, a report by the Government Accountability Office (GAO) to be delivered to Congress today describes the procurement office as understaffed, poorly trained and badly lacking the oversight that would uncover corruption, fraud and waste.

Eight senior staff members were suspended with pay earlier this year, after an inquiry by the U.N. inspector general's office uncovered lax management and possible corruption.

Each will be reinstated or disciplined after a U.N. task force investigates nearly 500 procurement-related tips.

"The United Nations currently has an aggressive internal investigation into all aspects of the U.N. global procurement operations," said Undersecretary General for Management Christopher B. Burnham.

"There is also an ongoing investigation by the [U.S. Attorney for the] Southern District [of New York] into the procurement office, and the United Nations is cooperating fully."

The officials involved likely have diplomatic immunity, but Mr. Burnham said U.N. Secretary-General Kofi Annan would lift that protection if authorities request it.

Reports by the GAO will be presented today to the House International Relations Committee, where the United Nations is likely to draw sharp criticism from lawmakers who are exasperated by the Iraq oil-for-food scandal and frustrated by the slow pace of management reforms.

The United States last year contributed about $8 billion to the U.N. regular and peacekeeping budgets, and the Bush administration and lawmakers are intent on improving the international organization's accountability.

"Brazen corruption in procurement shocks the conscience of everyone paying attention," said Rep. Henry J. Hyde, Illinois Republican and chairman of the House International Relations Committee. "The January release of a [U.N. Office of Internal Oversight] peacekeeping procurement report illustrates that corruption has risen to crisis levels."