Leaked Minutes Show UN Knew of 20% Loss in Myanmar 2 Weeks Prior to $300 Million Request
By Matthew Russell Lee
Inner City Press
July 28, 2008
UNITED NATIONS, July 28 -- While UN humanitarian officials John Holmes and Dan Baker have belated admitted currency exchange losses of up to 25% to Myanmar's government, an internal UN document obtained by Inner City Press shows that the UN knew as early at June 26 of a "very serious 20% loss on foreign exchange... changing US Dollars to Foreign Exchange Certificates [FEC] then to local currency, Kyats."
This appears in the internal "Notes for the Record" of an "Emergency Task Force Teleconference" call involving top officials in Yangon, Bangkok and Rome, available here. But on July 10, the UN's humanitarian coordinator for Myanmar Dan Baker answered Inner City Press' questions by stating there were no significant losses to the government. Video here, from Minute 46:20.
The troubling implications of the June 26 "Notes for the Record" are not limited to Mr. Baker. Fully two weeks after the "very serious 20% loss on foreign exchange" was acknowledged in writing by the UN, an appeal for an additional $300 million was launched at the UN in New York, with no disclosure at all about the losses.
The preparation of this request for additional funding is noted in the June 26 minutes, which also discuss such matters as the "messaging" and talking points for the UN's phase-out of helicopter flights to the Delta. The minutes have it that the government urged that rice be bought outside of the country -- the UN, it should be noted, preferred to buy it in-country, putting in question Dan Baker's claim that foreign exchange losses were minimized by making purchases outside of Myanmar.
Long after Inner City Press requested basic information about how much money the UN has exchanged into undervalued FECs, OCHA's Dawn Blalock on the morning of July 28 responded that "on the dollar issue, the UN [Country Team] in Myanmar is working on that and should have figure by the end of the week and Mr. Holmes will address the issue today after the noon briefing." It shouldn't take this long to get financial information. But Mr. Holmes will be asked about it, and about the June 26 minutes, at the July 28 UN noon briefing.
