As President-elect Barack Obama assembles his economic team to cope with the worsening financial markets, another problem looms for team members. The new White House may find itself footing the bill for the multibillion-dollar renovation of U.N. headquarters in Manhattan and an expansion of the U.N.'s security force.
Under its agreement with the U.N. as host country, the United States bears the ultimate responsibility for the safety and security of the world organization inside its borders.
Newsmax has learned that the United Nations has been experiencing accelerating budget problems despite Secretary-General Ban Ki-moon's efforts to stem the growing red ink.
Ban recently told reporters that he ordered all departments to cut their budgets by 2 percent as a response to the growing credit squeeze. The U.N. rank and file hastened to respond that the secretary-general does not have the power to cut budgets arbitrarily, as that falls under the prview of several General Assembly committees. They have yet to act. Strong resistance is expected, especially within the U.N. staff .
U.N. Renovation Costs Balloon
Meanwhile, the six-year renovation project began with much fanfare in May.
Originally projected to cost $1.8 billion, play now is more than $200 million beyond its expected costs, and the overruns are likely to get much worse.
Recently, the U.N. was hit with an unanticipated bill "exceeding $10 million," says one U.N. veteran.
The contractor, Skanska USA, was forced to install fireproof doors temporarily throughout U.N. headquarters during renovation work. The New York Fire Department reportedly insisted on the measure as a precaution during the reconstruction.
The U.N. thought the bill would be no more than $2 million, but the final tab was more than five times greater, a U.N. official said.
