Thursday, September 5, 2019

UN’s Independent Audit Advisory Committee pushes back UN Pension Board, 5 September 2019




The UN’s  Independent Audit Advisory Committee (IACC) isn’t playing along with the UN Pension Board’s attempt to discredit the UN internal auditors as a ploy to disregard and circumvent General Assembly directives.

UN Pension Board members and the UN retiree representative organization, FAFICS, were so incensed about the OIOS governance audit (A/73/341) called for by General Assembly resolution A/RES/73/274, that they not only roundly rejected its findings and recommendations in Rome in 2018, but also pushed to discredit the internal auditors (UN Office of Internal Oversight Services, OIOS) and report them to the UN’s Independent Audit Advisory Committee for alleged unprofessionalism -- “flawed and unprofessional” is the language contained in the Board’s report (page 72, para. 345).  

In a subsequent annex to the governance audit, OIOS roundly refuted the Board’s allegations. It's difficult to recall a UN document where the words "This statement is not true" appear once, let alone several times, as is the case with OIOS responses to the Board's comments on the governance audit. https://unpension.blogspot.com/2019/09/un-internal-auditors-oios-response-to.html

UN internal auditors (OIOS) response to the UN Pension Board, 5 September 2019









































Monday, August 26, 2019

UN Pension Fund Secretariat's leadership tries to union-bust to thwart General Assembly reforms, 26 August 2019




The Fund Secretariat management is, not surprisingly, unhappy about the report of the UN participant representatives to their 85,000 constituents about the Board's annual meeting in Nairobi last month, including various governance issues that pose serious risks to the health of the Fund, such as this about the backlog in pension payments (link to report below):

“It would appear from our estimates that around 4,000 beneficiaries have not been paid at all, with the funds owed to them at risk of being forfeited as deadlines pass.” 

Apparently the Fund Secretariat management has a new tactic -- attempted union-busting -- in its longstanding efforts to discredit the UN participant representatives, who are the duly elected representatives of 85,000 active staff of the UN and its funds and programs.

The Fund Secretariat has long under-reported the extent of the backlog, and currently claims that no backlog exists, contrary to informed analyses of the actual backlog. The new Entitlements Chief, Bernie Sheehan, has dived headlong into the fray, sharply disputing the reported backlog and claiming that staff under his supervision are upset about the report.

In addition, the Fund Secretariat  has reportedly unleashed its new communications officer (Serge Gas, brought over from IAEA by the Acting CEO, as her Special Assistant  and placed on a P5 post that was twice not approved by the UN General Assembly) presumably to promote the Fund Secretariat's false narrative.

For her part, the Staff UN president, Patricia Nemeth, refused to allow the UN participant representative's report to be published on her union's broadcast system and is blocking its publication on iSeek, the UN internal Intranet.

Why? She reportedly says she doesn’t believe the UN participant representatives’ reports of physical threats and intimidation at the Board meeting.  It’s offensive language, she says, unbecoming in tone. She exhorts them to instead, focus on “substance”.

What the UN Staff Union president seems to fail to understand that nothing is more anathema to substance than when participants in any fora are bullied and subjected to false pretexts to block their active participation, as was the case for the UN participant representatives, who are duly elected and accountable to their 85,000 constituents.

Wittingly or unwittingly joining forces with Fund Secretariat managers, Nemeth claims (in a Staff Union Broadcast today) that Fund staff deem the UN participants’ report as criticism and are thus disappointed, “despite the fact that they diligently come to work every day to make a difference”.

She either fails to recognize and doesn’t wish to, that the real “disgruntled” Fund staff are Fund Secretariat managers who dislike information going out about their ongoing dysfunction and will apparently stop at nothing to discredit its source.

The UN participant representatives have been consistent and diligent in their support of the hardworking staff of the Pension Fund whom they have noted time and again, are doing the best they can under the Fund Secretariat’s incompetent leadership.

The UN Staff Union president needs to wake up to the fact that by allowing herself to be weaponized by the Fund Secretariat leadership she’s jeopardizing the health of the UN Staff Union, while failing in her own responsibilities and obstructing the ability of others to serve the interests of their constituents.

Most important, the reforms contained in General Assembly resolution A/RES/73/274 stemmed from mismanagement and conflicts of interest by the Fund Secretariat under its former CEO, Sergio Arvizu. He’s gone, but his coterie, along with the culture  of dysfunction that he fostered remains intact, and has led the Pension Board in discrediting the governance audit (A/73/341) and foot-dragging on reforms.


The Fund Secretariat management must recognize that General Assembly reforms will not be thwarted by manipulation, circumvention, or by its new tactic of attempted union-busting.


Monday, August 19, 2019

UN Pension Fund: Staff Representatives Report Threats and Intimidation at Pension Board meeting, August 19, 2019

August 19, 2019

REPORT ON THIS YEAR'S PENSION BOARD MEETING: THREATS AND INTIMIDATION, UNPAID RETIREES, RISING COSTS, NEW LEADERSHIP, CHANGES TO INVESTMENT POLICY
Dear Colleagues
You may have read on social media about the chaos, physical threats and intimidation that marked last month’s annual meeting of the Pension Fund’s Board at the UN compound in Nairobi. As your elected staff pension committee representatives and members of the Board, we would like to share with you a full account of the meeting. Please note that while the Fund is actuarially in balance (0.1 percent unfunded), it faces significant governance and legal risks that can negatively impact its sustainability, putting it in a delicate position. Further, based on our own analysis we are unfortunately unable to assign credibility to the performance data published by the Fund.
(Version française en bas)
- The Fund is beset by governance and legal risks
This year’s session was sadly marred by shouting, banging on tables, intimidatory comments, and a physical threat by the Chair of the Board to remove one of your representatives from the room “involuntarily”. The Board also collaborated in illegally suspending another of your representatives from the meeting. One of your representatives was illegally barred from voting. Two of your representatives were illegally prevented from taking part in segments of the session, despite the UN Appeals Tribunal having three times ruled such acts contrary to the Fund’s regulations. Taken together this prevented us from effectively defending your interests and created an atmosphere of physical insecurity within a UN facility. Additionally the Board’s report to the General Assembly omits some of our interventions and misrepresents certain decisions, and is therefore not a true reflection of the Board’s proceedings, raising important issues of integrity.
Underlying this behaviour is a fear by Board members from certain small specialized agencies that sensible and much-needed reforms from a General Assembly-backed governance review that we pushed for, would reduce their voting weights in line with their organizations’ declining population weights and financial contributions to the Fund. Currently the agencies represent one-third of participants but have retained two-thirds of the votes. Your representatives are therefore outvoted on issues that matter to you, such as legal compliance, promptness of payments and sustainability.
It should be noted that as part of this governance review the Board rejected requests by the General Assembly, and for which we had made proposals, to assign greater voting weight to the UN, to make use of its executive committee, known as the Standing Committee, for dealing with urgent issues that require decisions between annual Board meetings, and to give retirees the right to elect their representatives to the Board. We nevertheless made sure our proposals were mentioned in the report. The Board did approve a proposal for terms of reference for Board members whereby they are now expected to have a knowledge of the Fund’s rules, which is welcome. However, we continue to have concerns about attempts to block transparency about the Board’s proceedings and decisions, and the intimidation we continue to face in communicating with you, our electors.

Tuesday, July 30, 2019

UN Pension Board meeting marred by physical threats and intimidation, July 30, 2019




The UN Pension Board’s communiqué of its 66th session in Nairobi that ended on 26 July 2019 (link below) contains a status report by the Representative of the Secretary-General for Investments, and very little else of substance. 

Nor is there mention of unprecedented levels of physical threats and intimidation, as well as shouting, jeering, and banging on tables, aimed at duly elected UN participant representatives. But it has much to say about establishing a Code of Conduct and related enforcement that's apparently urgently required for self-regulation. 


This communiqué follows the tactic of previous Board messages in its false implication that investment performance exists in a vacuum with no reference to, let alone dependence on, effective governance.

“The long-term financial stability of the Fund was reconfirmed,” crows Acting CEO Janice Dunn Lee – none of whose responsibilities include investments -- before she leaps to reinforce the fiction that “there is no backlog of entitlement cases”.

Thursday, July 25, 2019

UN Pension Board: Some throwing eggs; others breaking them. Hoping for constructive results, July 25, 2019




The UN Pension Board's 66th session in Nairobi, 22 to 26 July, is almost over.

While we'll find out soon enough what its members have done with the sweeping GA reforms contained in resolution A/RES/73,/274, there have been some disquieting signs for some time.

An example was the Board's obvious flouting of the GA’s directive regarding the composition of its Governance Working Group that has been considering several of the proposed reforms for presentation to the Board.

The dysfunction in the Fund Secretariat, currently under Acting CEO Janice Dunn Lee, will be on full display with what's reportedly deliberate and massive misrepresentation of the backlog in pension payments, and a proposed decapitation of the Geneva office for reasons reportedly not based in fact.

The Board will hear from the Representative of the Secretary-General for Investments who’s reportedly shaking up the Office of Investment Management (OIM) and in the process encountering opposition from some staff who apparently don’t share parts of his vision for the OIM.

Major items on the Board’s agenda

As a main item on the Board’s plate is the GA directive in paragraph 14 of its resolution A/RES/73/274, which states that the “Pension Board established a working group, which should adhere to the tripartite structure of the Board, to consider…” issues including “(b) The composition and size of the Board, including the role of retiree representatives and the modalities for directly electing retiree representatives to the Board.”

Saturday, July 6, 2019

Update: UN Pension Fund: Toxicity and resistance to change in management culture, July 8, 2019


This article was first published on 6 July 2019 and updated on 8 July 2019.

Acting Chief Executive Officer of the Fund Secretariat, Janice Dunn Lee, moves to decapitate the Geneva office by transferring two of three senior posts to New York, continues the practice of misrepresenting the extent of the backlog in pension payments, goes along to get along with the Pension Board in its pushback against General Assembly reforms,  and refuses to meet with Fund staff representatives at the departmental level.

While this article mainly focuses on dysfunction in the Fund Secretariat, there is disconcerting information about the Office of Investment Management (OIM) under the leadership of Representative of the Secretary-General, Sudhir Rajkumar, who took up his duties in January 2018. 

Update: Since first publishing this article on 6 July, additional, and contradictory, information of the situation in the OIM has come to light. This precludes an objective account of reports that include insufficient transparency in investment reporting and the sidelining of some senior investment officers, among other concerns. There will be more on this as the situation clarifies.

The “Rules-are-like-guidelines” Acting CEO

As reported on 11 January 2019 (link 1), Dunn Lee, who had taken up her post only days before,   announced in her first meeting with  Fund staff representatives that “rules are like guidelines”. Since then, she’s reportedly repeated several variations on the theme, signaling, in the minds of many, that things were not about to get better,  and possibly worse. 

Taking cues from former CEO Sergio Arvizu's playbook, and employing former Acting CEO Paul Dooley as her adviser, Dunn Lee continues to decline to meet with staff representatives at the departmental level on matters concerning Fund staff.

Pushing back against reforms

In her role as Acting Secretary of the Pension Board, Dunn Lee appears to be collaborating with the  Board leadership’s foot-dragging on corrective actions and reforms made by the General Assembly in resolution A/RES/73/274 (link 2) in response to the comprehensive governance audit by the UN Office of Internal Oversight Services (OIOS), A/73/341 (link 3). This follows the Board’s rejection of the OIOS governance audit’s findings and recommendations at its July 2018 annual meeting, and its attempt to discredit OIOS auditors (links 4 and 5).