The sudden departure of the UN staff pension fund’s head of investment office to a firm contracted by the organisation has triggered concerns over potential violations of UN employment rules.
On 25 June, a notice appeared on the United Nations Joint Staff Pension Fund’s (UNJSPF) website announcing that the head of its office of investment management (OIM), Pedro Guazo, was stepping down as of 15 August, praising “his exemplary service, unwavering integrity, and visionary leadership”. The same day, the US-based Northern Trust Asset Management – the fund’s master record keeper – issued a press release naming Guazo as its new head of international and responsible investing, starting in August.
The UN's original announcement was quietly taken down that day, only to be reissued three weeks later with a much drier statement, indicating that Guazo had already left his post the day before. The timing and nature of his departure have raised eyebrows among staff. UN rules require a cooling-off period of one year before former employees may join vendors or contractors with whom they were involved in procurement matters during the previous three years.
Laura Johnson, executive secretary of the UN Staff Union in Geneva, alleges Guazo’s appointment while still in his UN role constitutes a “clear breach of the rules”. Northern Trust has been listed as the UN Pension Fund’s official master record keeper in documents dating as far back as 2018. While it isn’t clear whether Guazo interacted directly with Northern Trust, his senior role would typically entail oversight of key contracts.
Neither Guazo, Northern Trust nor the fund’s board respond to repeated requests for comment.
Staff unions have called on the secretary general, António Guterres, who appointed Guazo, to investigate the context of his departure. “We're hoping that this is being investigated within the UN, and also have questions about whether the vendor, Northern Trust, will also be investigated and held to account if found to have breached the conditions of its contract with the UN,” said Johnson. She added that the staff union was told that the UN was “looking into it”, but was not given any more details about the timeline and the scope of the inquiry.
When asked whether an investigation was underway, the deputy spokesperson of the UN secretary general, Farhan Aziz Haq, declined to comment “on internal individual personnel matters”. More broadly, he said “potential concerns regarding compliance with UN staff regulations, rules and policies are assessed in accordance with the organisation’s regulatory framework”, and that any vendor conduct is reviewed in accordance with the contract and under procurement procedures and policies. He did not address potential repercussions for violations.
Sanctions for breaching post-employment restrictions, according to UN documents, can include barring, suspending or terminating a vendor contract. For staff, the violation is recorded in their official file along with a recommendation against future employment by the UN.
Read more here: https://genevasolutions.news/sustainable-business-finance/un-staff-pension-fund-investment-chief-s-move-to-contractor-sparks-ethics-concern
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