US embassy cable - 05PARIS7742

UNCLAS PARIS 007742 
 
SIPDIS 
 
FROM USMISSION TO UNESCO 
FOR IO/T 
 
E.O.: 12958: N/A 
TAGS: AMGT, EFIN, IZ, FR, UNESCO 
SUBJECT:  USUNESCO: DIRECTOR GENERAL BRIEFS ON UNESCO'S 
ROLE IN OIL FOR PEACE PROGRAM 
 
1.  Summary.  On Tuesday 8 November, the Director- 
General convened an information meeting on UNESCO's 
participation in the Oil-for-Food Program (OFFP).  The 
meeting, which was originally requested by the British 
Delegation during the 172nd Executive Board in 
September, was intended to review the results of the 
Volcker Commission's report and UNESCO's role in the 
scandal.  The DG presented an upbeat picture of 
UNESCO's accomplishments in Iraq and reported that 
"only" .52% of the dollars 120 million entrusted to 
UNESCO had been misspent.  He also reviewed the 
recommendations on oversight contained in the Volcker 
report and steps taken to implement them.  The director 
of UNESCO's Office of Internal Oversight also responded 
to questions.  End summary. 
 
2.  In prepared remarks, the DG reviewed UNESCO's role 
in Iraq.  He reported that among numerous 
accomplishments, the organization had helped rebuild 
153 schools, 11 technical institutes and 3 
universities, mostly in the northern part of the 
country.  The DG also pointed out that he reorganized 
the management of the program when he took office in 
2000 and noted that UNESCO had returned dollars 774,000 
of unused funds.  What he could not answer was what 
happened in the program between 1995 and 2000 when 
there was no internal oversight of the program at 
UNESCO. 
 
3.  The Director General also discussed the lessons 
learned and the management recommendations already 
taken.  Among these lessons has been: 1) the need for 
better coordination between technical agencies; 2) the 
need to use staff with experience and technical 
knowledge; and 3) the need for improved internal 
oversight. 
 
4.  During a question and answer session, John Parsons, 
UNESCO's Director of Internal Oversight insisted that 
there has been good oversight since 2000 but was unable 
to say what happened between 1995-2000.  The Iraqi 
ambassador also indicated his concern about this "black 
hole."  (Note:  in a subsequent private conversation 
with the Charge, the Iraqi ambassador expressed his 
general dissatisfaction with the meeting and the 
answers.) 
 
5.  The UK is particularly focused on this issue.  Not 
only did they request this meeting, but they also 
raised numerous questions about the reforms that have 
been implemented.  During the information session, the 
UK deputy expressed concern that UNESCO may pick and 
choose among the recommendations in the Volcker report. 
The UK ambassador also raised this issue in a November 
10 meeting of the Geneva Group where it was felt that 
many of the Volcker recommendation's were already 
within the Geneva Group mandate. 
 
6.  Comment:  Given the extent of corruption in the Oil 
for Food Program and the lack of oversight at UNESCO 
for five years, it is hard to believe that "only" .52% 
was misspent.  While we have no way to verify that 
figure independently we can make sure UNESCO continues 
to implement management reforms across the board.  KOSS