Urbin Report

Thursday, October 20, 2005

Meanwhile at the UN...

Former Federal Reserve Chairman Paul A. Volcker says that the US and its Allies should link the UN budget to reforms.

The United States and its allies should threaten to cut the budget of the United Nations if it fails to end corruption and adopt badly needed reforms, the man who led the probe into the U.N. oil-for-food scandal said yesterday.

Former Federal Reserve Chairman Paul A. Volcker told a Senate Foreign Relations Committee hearing that he opposed a unilateral U.S. withholding of U.N. dues, but that a "de facto alliance" of nations demanding reform could cut through the world body's "culture of inaction."

The message, he said, should be: "Look, if the organization isn't ready to reform itself, that has budgetary implications."

The Iraq oil-for-food program has proven to be the biggest financial scandal in U.N. history, tarnishing the reputation of Secretary-General Kofi Annan and other top U.N. officials and fueling calls for a complete overhaul of the body's internal oversight and personnel practices.