UN program makes major changes for N.Korea aid
Source: Reuters
By Evelyn Leopold UNITED NATIONS, Jan 25 (Reuters) - The U.N. Development Program, under attack by the United States, decided on Thursday to revamp its operation in North Korea and make sure Pyongyang does not hire staff for its program. In practice, this means suspending by March eight of its 20-odd projects that need North Korean staff. But hiring them without government help will be difficult since there is no private labor market in the communist country. The changes were approved by UNDP's 36-member executive board. The board, which includes North Korea and the United States, also called for a new audit and delayed any new programs for North Korea until it was complete and UNDP put forward proposals in March. Ad Melkert, the deputy UNDP administrator, earlier announced the agency would end cash payments to the North Korean government and local suppliers. Instead everyone would be paid in won, the local currency. But hard currency would still be spent in North Korea in exchanging money at the country's central bank. Mark Wallace, the U.S. envoy for U.N. financial management, accused UNDP earlier this month of violating rules by hiring North Korean government officials to carry out its work and by paying salaries in cash through the government. He demanded an outside audit and voiced concerns that funds had been used by North Korea for "its own illicit purposes." In turn, North Korea accused the United States and Japan of being politically motivated in rejecting a UNDP program that had been approved in September and was aimed at improving the life of ordinary citizens. But its envoy, Jang Chun Sik, said he accepted the board's decision but would reject any aid "with political conditions." "The United States has been actively mobilizing its mass media to distort" the programs that have been operating since 1979," Jang said. He told the board it was "ridiculous" to even imply that the monies had been used for nuclear programs. AWAIT AUDIT UNDP's projects in North Korea, mainly training for food management and other tasks, cost about $4 million although it has spend less than that annually. The suspension of projects, as of March 1, amount to about $1.7 million, officials said. UNDP's annual budget is close to $5 billion, much of it from voluntary contributions. UNDP has some 16 North Koreans and four international staff. The agency said North Korea handled just $337,000 of UNDP funds over two years. The World Food Program and UNICEF, the U.N. Children's Fund, both headed by Americans, operate under similar restrictions in North Korea and have said they have no plans to change their methods. "We're pleased with the approach that the UNDP administrator has laid out," acting U.S. Ambassador Alejandro Wolff told reporters. "In the meantime, until we get the results of that audit and the program is reviewed, we would defer approval of the new program for" North Korea. He said the United States had withheld UNDP funds for North Korea. Japan's representative, Kofi Tsuruoka, said that North Korea's rejection of Security Council resolutions to halt its nuclear arms program should disqualify it for any U.N. funds except those of "a humanitarian nature directly delivered to the people." "It is unthinkable for the United Nations to reward the authorities of such a member state by providing it with funds," he told the board meeting. But Russia, as well as Cuba, warned of letting politics determine a neutral program. Russian envoy Dmitry Maksimychev told the board meeting the North Korean situation was an "undesirable example of politicization and is an example of selective treatment of one of the country programs."
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