UNOPS must stop lying and remove all its fraud-enabling Senior Leadership Team

8 June 2022 – Mukesh Kapila

Finnish Government Director General Titta Maja addresses the UNOPS Executive Board

My previous article described the UNOPS Executive Board briefing on 16th May. It also referenced strong criticisms made by many Member-States who have belatedly recognised the mismanagement, misconduct, and potential fraud at UNOPS. 

Finland was particularly outraged because it was conned into hosting the office of S3i  – the ill-judged UNOPS venture at the centre of the scandal that lost around US $60 million. My article  also quoted Finland’s key questions to which UNOPS’s Acting Executive Director Jens Wandel  responded on 2nd June, to Ms Titta Maja, Director General for Development Policy at the Finnish Ministry for Foreign Affairs.

“When were UNOPS senior leadership informed about the wrong-doings and misconduct? Could you share the records of the UNOPS senior leadership and Engagement Acceptance Committee and other documents?”  

Mr Wendel did not answer the fundamental Finnish government question on when the “UNOPS senior leadership” were informed.  He side-stepped by saying that UNOPS’s Internal Audit and Investigations Group (IAIG) were notified in March 2019 by the UN’s Office of Internal Oversight Services (OIOS) of “a brief anonymous complaint without any evidence”.  

Mr Wandel is being misinformed by his own team, or he is lying.  UNOPS received its first complaint regarding WATO in 2017, the second complaint regarding Worldwide Renewable Energy (WWRE) in 2018 and the third one regarding Sustainable Housing Solutions (SHS) in 2019. As no action was taken by the UNOPS IAIG (directed then by Paul Lucas who is now at the World Bank), the whistleblower went to OIOS in 2019. OIOS staff  took the complaint more seriously, undertook an initial assessment, and recommended a full investigation. However, their boss, Assistant Secretary-General Ben Swanson, decided  to shut down the investigation and “refer the matter back to UNOPS”  i.e., the very people who had failed their duty to examine the original complaints.

Meanwhile, the UNOPS senior leadership ignored this and  proceeded with S3i investments via its oddly-designed ‘special purpose vehicles’. Thus, it is abundantly evident that UNOPS top management were aware of substantial concerns raised several years earlier than what Mr Wandel now claims.

The Finnish government also requested UNOPS to share its records  around  S3i decision-making, but this is ignored by Mr Wandel in his response. What – potentially incriminating – evidence is  hidden in these documents?

Mr Wandel also claims in his letter that the IAIG is “an independent function”. This is disingenuous. UNOPS’s internal compliance functions do not meet recognised international standards, as Mr Wandel has himself admitted when the Board quizzed him. Furthermore,  it has been long recognised  that the IAIG function is appointed by, reports to, and controlled by the Executive Director.

Finland may also note that the same UN  OIOS that initially refused to investigate and then  limited its report only to Mr Vanshelboim is now being invited to Copenhagen to examine UNOPS’s audit and accountability systems. How ‘independent’ and credible will they be? The same concern  applies to the UN’s Office of Legal Affairs charged with the task of recovering the lost money.

“Which date did UNOPS internal audit initiate its investigation on the matter? How does the investigation timeline correspond with the negotiations with Finland? Were the wrong-doings already known by the UNOPS leadership while negotiating with the Finnish government related to the funding to the S3i Helsinki office?

Mr Wandel responds that  an IAIG audit  was proposed in 2020 “to more substantively evaluate S3i investments.”  He explains that  “complaints into WATO/Oceans Generation and Worldwide Renewable Energy/Myra SHS Renewable Energy Srl (an entity owned by the same person as Sustainable Housing Solutions”) led to formal IAIG investigations. In December 2020, the scope of this work widened to include an external forensic audit of SHS affordable housing projects, and a subsequent wider IAIG investigation into all SHS activities commenced in March 2021”.  

Mr Wandel  doesn’t explain why UNOPS commenced the audit exercise only in June 2020 when the alarm was raised much earlier?  He also does not explain why the UNOPS leadership continued to enter commitments with S3i partners that it had started investigating.

Furthermore, Mr Wandel does not say why its audit report has not been published in line with its own information disclosure policy that requires all audit reports to be available on the UNOPS website. Also, why had the vendors under investigation not been  referred to its Vendor Sanctions Committee?

What was the reason why Finland was not informed about these matters and investigations until April this year [2022] despite the obligation to do so in our co-operation agreements?

Mr Wandel acknowledges that the agreement with Finland was signed by UNOPS in May 2020 i.e., before the start of the June 2020 audit exercise. But  UNOPS continued to hide pertinent information from Finland (and other governments) until the potential fraud became widescale media and public knowledge this year.  Mr Wandel could hardly deny such obvious facts and apologises ”for the lack of proactive, timely and transparent information”. 

The person responsible for negotiating with the Finnish government included UNOPS Chief Legal Counsel, James Provenzano, and the person responsible for communicating was Kelley Swift. Both are still employed by UNOPS. Then why does Mr Wandel lie when he says that “as the persons responsible for negotiating and informing the Government of Finland of relevant matters are not available to UNOPS, it would be inappropriate to speculate as to the reasons for them not having  shared the information with you.”  

His response makes no sense when, in the same breath, Mr Wandel also admits that the “previous Executive Office were fully aware of ongoing processes detailed above.”  The Executive Office includes the Senior Leadership Team who regularly met with then Executive Director, Grete Faremo. (See my 16th May article detailing all SLT meetings between  August 2019 and April 2022).   It is fully evident that the SLT were well-informed on all S3i matters  and appear to have deliberately conspired with hiding decision-shaping information from the Finnish government.  

To repeat: Why does Mr Wandel say that “responsible persons are not available” when the SLT members who had their own formal decision/ approval roles are still there: Honore Dainhi, Marianne de la Touche, Nick O’Regan, James Provenzano, Peter Browne?   They are individually and collectively culpable not just for enabling the original mismanagement and fraud around S3i, but also about hiding information around it.

Were the decisions taken by the former Executive Director regarding the WATO initiative based on the advice and recommendations of the senior management team and engagement acceptance committee?

Mr Wandel’s letter ignores this question. Why? Perhaps to protect the SLT members who are still in position, and now part of his own cabinet?  Meanwhile, Finland will recall that today is World Oceans Day,  on which occasion exactly five years ago, the previous UNOPS Executive Director Grete Faremo sang an expensively-made WATO song to an empty UN General Assembly chamber in New York.

The Finnish government’s letter goes on to say that “we emphasise the need to ensure that all involved in the decisions carry their responsibility and are held accountable.”   The Finland representative (speaking also on behalf of Sweden, Norway, Denmark) reiterated this at the Board’s 6th June session. This was also echoed in powerful statements from others, especially by the United States who spoke for 25 other countries  as well as Kenya and several others.

Mr Wandel’s 2nd June letter  is, therefore,  deeply insulting to Finland that had asked reasonable questions but got  prevarications and untruths in response. The matter will not rest there as public and politicians demand full answers, thanks to some fine investigative reporting by Finnish media with English translation here.

How Mr Wandel is handling the UNOPS crisis is baffling. He was initially projected as  UNOPS’s  saviour  thanks to his reputation for personal integrity and expertise in UN reform. He is also refreshingly blunt-spoken and, certainly, he has said the right things at Board meetings. For example, at the Board’s 6th June session. Mr Wandel promised several fundamental changes to rectify the most egregious abuses that accumulated under his predecessor, such as profiteering and excessive reserves, transparency lack, non-independent compliance and oversight arrangements, and full whistle-blower protection. On the face of it, if Mr Wandel is sincere, he deserves to succeed.

But the exchange with Finland shows that how Mr Wandel is going  about his business is troubling.   His most serious vulnerability comes from the flip side of his strengths. He is, at the core, an UN insider – a pillar of the establishment and embedded in its practices and rituals. He appears to be a stranger to boldness. Instead, ingrained in him is the impulse to do the minimum he is pressurised to do, while doing everything to protect the system where he has himself  prospered.  And that may mean hiding the truth or even lying if that would better serve the wider institutional interest. Of course, he is wrong if he does that and, in that sense, Mr Wandel’s values and ethics raise serious concerns.

This is demonstrated in the way he basks in the company of his compromised team – even at Executive Board meetings. He is constantly accompanied there by Chief Legal Counsel James Provenzano who co-designed and gave legal blessing to the original S3i and then approved the dodgy contracts issued under it.  

This is not just bad optics but a serious indictment of the sincerity of Mr Wandel. That is because Mr Provenzano is now in charge of  implementing the recommendations that he had rejected earlier while when he created  his own laws and regulations that derailed UNOPS in such spectacular fashion. As Mr Provenzano  says jauntily in an internal email yesterday:  “Hi all… Jens has asked me to help in accelerating the implementation of all oversight recommendations – UNBOA, IAIG, ACABQ and JIU…. I am looking for a solid analyst who could be available through the summer into the early fall to assist [me].  If you have someone… please let me know. Thanks and best, Jim”.

it appears that Mr Wandel is depending unquestioningly on the same senior UNOPS Senior Leadership Team that brought the agency down. Some of them like Mr Provenzano are his very close associates from before That is a potential conflict-of-interest and risk to Mr Wandel’s personal integrity.  He needs to jettison them by sending all the SLT on administrative leave while getting independent advisors to support him. Otherwise, he is already being dragged down by the coterie who failed  in the first place.

UNOPS has already lost its biggest donors and its reputation among partners is at rock bottom. Its misbehaviours have tainted the whole of the UN system as graphically indicated by Finland suspending all funding to all UN agencies.  Ultimately it is the world’s poor that pay the cost of  the misdeeds of the UNOPS SLT.

Mr Wandel must understand that there is no recovery for the agency without all itsSenior Leadership  Team being held accountable.  Mr Wandel must stop pandering to them and get his reform agenda hijacked by them.  It remains to be seen whether Mr Wandel will clean-up or cover-up at UNOPS as he struggles to nurse this sick organisation.

Published by Mukesh Kapila

See http://www.mukeshkapila.org

73 thoughts on “UNOPS must stop lying and remove all its fraud-enabling Senior Leadership Team

  1. Jens is starting to contradict himself. We were very optimistic but we are starting to believe that he was indeed put on that seat to continue the legacy. UNOPS personnel, it is time to put gear 2 on motion.

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  2. Walk out until SLT are all out, let’s rally! All project funding must be stopped until the fraudsters and abusers are out of UNOPS.

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  3. Mr Wandel, we are committed and dedicated workers! If you don’t act fast enough, donors will stop funding UNOPS. The clock is ticking faster.

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    1. The next scandal in line is the SHF – Sanitation and Hygiene Fund in Geneva – a disturbing cesspool of corruption

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  4. Good summary. In 2021, I had cause to write to Faremo and Provenzano about a potential fraud perpetrated regarding SHS/UNOPS establishing a large affordable housing scheme in Ghana. It took a follow up email 4 months later to respond to me – and that was not from F and P but UNOPS Internal Affairs department in Copenhagen.

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  5. How many NYT articles are needed to wake up Secretary General and Jens Wandel that the same people who were Grete and Vitaly’s lapdogs cannot be trusted to rectify the issues. The entire world is laughing at UNOPS and questioning its existence. Jens let’s lapdogs such as William and Jim to continue to flank him at Board meetings and everywhere. Wake up Jens. Give it a few more days, you will be the next laughing stock, while the same criminals continue on unpunished. UNOPS colleagues, let’s not let these criminals off the hook. Fight until they get fired and arrested one by one or at once.

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    1. Jim P. and Honoré D. are also directly and personally involved in the next scandal in line – the SHF – Sanitation and Hygiene Fund in Geneva – a disturbing cesspool of corruption. Other people involved include of course Grete herself, Paul Lucas, Kathryn Higgs, Kelly Swift, Victoria Campbell, Tina Hansen, and Eiriz Alejo, just to mention a few

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  6. It looks like Mr Wandel was reading a prepared speech by SLT members. Is he joining the club of fabricating stories while keeping the real truth from the Board members?

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    1. We can’t expect Wendel to solve the problem because he has already demonstrated that he’s part of the problem, sits next to the problem, covers up the problem

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  7. Pertinent questions there by Finland and the answers from Jens are not convincing.
    The Board kept retaliating their call for accountability. People responsible for signing off the missing money should go home. Why is Jens not acting? What guidance is he looking for?

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  8. Mr Wandel, we would like to focus on our work which is at the moment not impossible because of the ongoing witchhunting from SLT. By know you should know that the Ethics Office and PCG in UNOPS are there to protect SLT members. Please ACT!

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  9. Really disappointing if Jens is being advised by James who is one of the main culprit in the S3i saga. We need justice for the taxpayers and intended beneficiaries.

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  10. It looks like the more things change, the more they stay the same.
    1. What is Wandel going on about?
    2. When is he going to institute disciplinary actions against all the culprits?
    3. What are his plans to transform PCG and Ethics Office?

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  11. Notwithstanding his illustrious career, Jens is not the right person for this task if some of those concerned and in SLT are his friend – for real fresh air to have a chance to breathe we need a genuine outsider who won’t be swayed by certain individuals and SLT at least temporarily out of the picture.

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    1. Oh good. We can’t wait to read it! Shut down the NY office! US government should not allow a crime ring continue to exist on its precious land.

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    1. Write to SG’s office directly sgcentral@un.org
      Don’t bother with UNOPS internal, you will be fired so fast. Don’t bother with OIOS. They conveniently hand over affairs back to UNOPS. So go straight to SG and go straight to US mission.

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      1. Please tell me how to contact the US mission – not the online form but email addresses of real people. Thanks

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  12. 1. How long will it take the Secretary General to study the IOIS report?
    2. Why is he hiding it from the Board?
    3. How do we expect the Board to exercise its oversight role if UNOPS was and now IOIS is withholding the report?

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  13. The reality is that this is common practice at UNOPS. Several hosted entities to whom UNOPS rents the UN flag as you rightly pointed out have mismanagement issues. Look at the Geneva office, some have been reported in mainstream media. Funds were created without any request coming from member states. How can this be done? How can a fund be called a UN fund when it has no UN affiliation, no request from member states, no HRC or GA resolution requesting the creation of such fund! The job of UNOPS is to help play with the UN rules, finding ways not to apply them, doing fake restructuring and change management processes to promote the friends of the friends. No respect for basic governing body rules. You can get whatever you want. And you will be supported by the top!!!

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  14. Sad that Jens was convinced by James to renegotiate loans payment terms with Kendrick! UNOPS is surely taking member states for a ride.

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  15. Listen, Secretary-General Guterres, you are an accomplice for not prosecuting James Provenzano. You also thought you could get away with Grete Faremo first but then NYT article forced you to ask her to resign. The same thing will happen with James Provenzano. He and his minions should be prosecuted. You lose any credibility that you already don’t have by allowing the criminal organization within UNOPS to continue to “recover”, which basically means to allow them to continue to commit crime. Jim Provenzano gotta be fired. Jens, you are a disgrace for allowing him to ruin your reputation too.

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  16. Hmmm, did we really think it would be so easy, they would roll over and there would be a fresh start? Those of us who have been in the UN and UNOPS for more than 10-15 years, what did we expect? We could not be so naive.

    Of course the system protects its own (as off a certain ranking of course). Jens is a nice guy but he is also a product of the system. Why should he stick his neck out for a couple of month and then hand all over to the next appointed ED?

    @Jim gotta go, do you really think Jens cares about his reputation? If he would, he would be in the wrong job. The UN is dirty and bloody business, a world where the outside rules don’t apply and people get away with almost everything.

    Think about the food for oil scandal, the sexual abuse cases by peace keeping soldiers and many more. What did change? Nothing.

    De-fund UNOPS as some demanded, yeah an option but countless projects would collapse immediately and many more staff and ICA/LICA will lose their jobs.

    Isn’t that the reason why we are so grateful to Mukesh that he provides this forum because we cannot go out into the open without risking our jobs?

    There are already many talks going on in confidential setting how to minimize the damage, how to repair the public image and how to move on. Maybe they will sacrifice Vitally too. Together with Grete is an UNG and an ASG, that should be enough, many think.

    But no one will be touching the underlying root causes of the systematic problems in UNOPS. It is only the donor countries and the Executive Board that could bring change but there are also a lot of political agendas at play.

    Jens has his marching orders or do you really think guys that he can act freely as he may wish to do?

    Here in Copenhagen, we are still whispering in the corridors but the SLT is going back to business as usual.

    And be cautious about “journalist” requests to share information, you don’t know whether the “journalist actually sits in HQ. SLT is becoming more sophisticated in their hunt for revolutionaries.

    Sempre Fi

    J.

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  17. Where is the accountability? The SLT is still in place. Marianne, Honore and James are
    working around the clock to hide as much data as they can.

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  18. We welcome the Board proposal for UNOPS S3i reforms. However, we are very disappointed about how Jens is handling this whole issue. The recent survey to all UNOPS is a joke and has nothing to do with what is happening in the organization.

    If Jens is serious about implementing the proposed reforms, he should start by sending the SLT on administrative leave.

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  19. According to the latest NYT article, Dragan Micic represented UNOPS at the Board meeting. If people don’t know, Dragan is a recovering cancer patient who is a contractor. Bravo to Jim Provenzano and William Axelsson, who is supposed to lead UNOPS work with Executive board and stole Dragan’s job when he was down but now to push poor Dragan onto the hot seat. Shameful is no longer an adequate word to describe them. Ambassador Chris Lu, investigation into these people’s abuse of authority and utter disregard of human rights at UNOPS need to start with these two right here in the New York Office.

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  20. Until a rooten tooth is extracted, one must learn to to chew with caution. The Board proposals are well intended but what we need is accountability. UNOPS personnel are ready to provide all necessary evidence to send the criminals home.
    Honore and Jim are busy manipulating staff to provide false information to Jens.

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  21. The investigations should include millions of dollars paid to CTG by UNOPS every year. The budget are inflated because some of the UNOPS personnel are CTG shareholders.

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  22. Why is the Board focusing on the financial aspect of the rot at UNOPS? The root cause is the abuse of authority by SLT who gave themselves power to make arbitrary decisions. In most cases, they misused their power.

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  23. The ongoing people survey is a waste of time. The questions do not reflect the current events at UNOPS. I encourage UNOPS personnel to boycott it.

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  24. Same old story ! Donors should suspend further disbursement to UNOPS until the proposed reforms are implemented.

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  25. UNOPS is run by emotions. I am only 10 months but I never saw an organization with no respect for human rights. They spent their time gossiping.

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  26. The problem at UNOPS is more than financial management. It stems from abuse of authority and dictatorship. Good luck Jens

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  27. UNOPS personnel send your grievances and all evidence you have to either Finland Mission or US Mission to the UN. So far they have proven to be more effective in dealing with the rot at UNOPS.

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  28. We are told S3i issues are serious but we are not seeing actions taken against who made it possible.

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    1. I see that we are many to raise issues within UNOPS. Because the whole organization is corrupt. It is sad to see that the new DG has not yet taken any action concerning individuals who appear to have abused their functions. The resignation of Grete Faremo and the investigation on Vitaly Vanshelboim cannot be considered as sufficient answer to the problems, given the urgent need to INDEPENDENTLY investigate who else has played a role in the S3I scandals – AND IN OTHER INSTANCES, because we have different stories to tell.

      There can’t be any independent investigation limited to OIOS, so the investigation should be conducted by the only possible independent judicial authorities: national jursidictions of concerned countries. Immunity cannot amount to impunity.

      We should set up an ASSOCIATION OF UNOPS WHISTLEBLOWERS FOR THE PROTECTION OF THE UNITED NATIONS ORGANIZATION (protection from those who want to destroy the UN by making it their personal property). I can help, and if others want to join, together we can make structured requests to the UNSG and to the UNOPS management, the UNOPS/UNDP/UNFPA board, and to UN organs and institutions as relevant, States and other stakeholders including the public.

      We can start from what we learned at UNOPS, not only by proposing necessary reforms but also by actively monitoring what measures will be taken concerning those who should no longer functions they have abused, and on UNOPS whistleblowers protection, and on other reforms that are needed to
      (1) preserve UNOPS for the future, from relapsing into public discredit,
      (2) make its functioning transparent and effective, and regain the trust not only from donors and partners, but the public as a whole – and
      (3) more largely contribute to positive reform within the UN system, in line with the UN Charter and UN norms in the field of human rights, labor rights, justice and other sectors as relevant.

      If anyone is interested just write to adua1896@protonmail.com

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  29. S3i is the tip of iceberg. The organization especially at its Head Quarters is rotten to the core. I see Jens is taking a casual approach to solve the challenges but that will not work because personnel in the field fed up of nepotism, abuse of authority and harassment by regional offices and SLT.

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  30. UNOPS is getting worse day by day. Personnel are overworked because the organization mission is to accumulate profit to share with their friends. Disgusting!

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  31. I used to be very proud of working for UNOPS but with all these manipulation, I am no longer motivated. It is even more harder because we are forced to engage with the people who brought us in this mess.

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  32. We are already start to feel the pinch. We received notices that our contracts will be terminated because EU suspended its funding to UNOPS.

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    1. Lest we forget ‘all animals are equal but others are more equal than others’ animal farm quote. Innocent UNOPS employees will go home. SLT members who cause this scandal will continue to earn their salaries.
      EU projects will be halted and beneficiaries will lose out on the much needed development

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  33. World Bank and Africa Development Bank should commission an investigation on the substandard infrastructure work being implemented by UNOPS in Zimbabwe. Contractors are colluding with UNOPS personnel to use cheap materials so that they can share the profits.

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    1. Wise decision by Finland! I urge all donor countries to do the same. Why is the SG keeping the investigation report to himself?
      ACCOUNTABILITY NOW!

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  34. I pledge to my country United States to stop all funding to UNOPS and demand Secretary-General to lift immunity for those criminals so US government can prosecute them. Trust the people and how much evidence they have gathered over the years against criminal activities that have happened in New York City. Ambasssdor Lu, you are our hope.

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  35. We will leave no stone unturned. We may be slow but surely will get there. Watch this space. Enough is enough

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  36. UNOPS personnel appreciate efforts by Finland, USA and the EU to suspend funding to UNOPS until those who are responsible for this mess are hold to account.
    We have observed that Mr. Wandel is a man of many words but less actions. We are deeply disappointed that he continues to work with the SLT team.

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  37. Secretary-General and Board members, please open your eyes. Mr. Wandel is a life-long friend to Jim Provenzano who is the biggest criminal with a license to set any law he wants at UNOPS. Do you really expect him to do the right thing?

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  38. UNOPS SLT is preoccupied with power and authority, with control of those who oppose their strategy of accumulating of wealth strategy. SAD that Jens is falling in the same trap.

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  39. USA remains the largest shareholder of the World Bank Group. Why is the US not stopping WB board to stop approving projects to be implemented by UNOPS?

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  40. Checkmate : The truth will always triumph and the righteous overcome. Exposing thievery, fraud and abuse of authority is reaching quickly its zenith. Everything the SLT did in secret will be revealed. Watch this space for more.

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  41. US Mission and the Board should conduct an in depth interrogation on all reported cases of misconduct, fraud and abuse of authority, including towards personnel – local and international. Particularly at the HQ location. There are certain expectation when taking on a diplomat job, but what is really hiding in dark corners?

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  42. It is becoming more clear that Wandel does not intend to hold to account those who enabled the disbursement of donors funds to the Kendricks. He was put there to cover up what has been done. The damage to the organization reputation is irreparable.
    We are left with no choice to ensure that donors stop all funding to UNOPS.

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  43. There is no hope in Wandel. We understand he has nothing to lose and he is starting to sound like Ms Faremo. Until the people responsible for S3i mess are hold to account, he should not expect any support from us UNOPS personnel.
    Mr Wandel has been conveniently ignoring all other concerns raised by UNOPS personnel and pretending to be focusing on S3i. Nothing can hide under the sun and we will show him how.

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    1. He has something to lose. He would be naive if he thinks UNOPS personnel will not hold him accountable if he does shit during the 6-month leading the organization.

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  44. UNOPS personnel (sans those criminals who are not charged) are the ones who can truly make a change. Not another Nordic bobble head who have enjoyed a lifetime UN benefits and pension. What is the United States government waiting for? Do we need to write a letter to the White House? Because we will. In the meantime, Secretary-General needs to be reminded by UNOPS personnel on a daily basis that he cannot just turn a blind eye on people’s suffering of abuse on 3rd Avenue and around the world. We will not stop until Jim Provenzano and the other SLT members are disciplined and prosecuted.

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