Financial Crime World

UNDP Accused of Supporting Company with Suspected Terrorist Links

UNDP’s Alleged Support for Dalsan Remittance Company Raises Concerns

The United Nations Development Programme (UNDP) is facing criticism for its alleged support to a Somali remittance company, Dalsan, which has suspected links to terrorist organizations. The company was co-founded by the former spokesman of Al-Ittihad al-Islamiya (AIAI), an organization listed as a terrorist group by the US and UN.

Whistleblower’s Allegations

According to Dr. Ahmed, a whistleblower who worked for the UNDP in Somalia, the agency provided critical support to Dalsan from 2003 to 2005, including:

  • Releasing frozen funds
  • Helping senior officials obtain visas and travel documents
  • Nominating the company’s UK managing director to lead the Somali Financial Services Association (SFSA) Europe

Dr. Ahmed claims that this support may have helped Dalsan flout international regulations and commit a major fraud that resulted in hundreds of Somali migrants and remittance recipients losing an estimated $30 million.

UNDP’s Response

Despite Dr. Ahmed bringing forward his allegations in 2006, the UNDP’s investigations unit allegedly failed to conduct a thorough investigation. Instead, he was transferred out of the country and denied a mobilization payment and residency visa. The whistleblower also alleges that the agency’s Ethics Office failed to provide adequate protection, citing flaws in the agency’s whistleblower policy.

Government Accountability Project’s Response

Anne Walden, Executive Director of the Government Accountability Project, has called on the UNDP to take immediate action to investigate Dr. Ahmed’s case and protect him from further retaliation. She stated:

“This is a clear case of retaliation against a whistleblower who was trying to expose wrongdoing. The United Nations must show that it will not tolerate retaliation against whistleblowers who bring forward allegations of wrongdoing.”

Criticism of UNDP

The UNDP has been criticized for its handling of the situation, with some accusing the agency of turning a blind eye to wrongdoing and threatening to cancel the remittance program due to its own mistakes.

Dr. Ahmed’s case is one of the first to test UNDP’s new whistleblower protection policy, which offers substantially less protection than the original policy issued by former Secretary-General Kofi Annan.

Call for Action

The Government Accountability Project is calling on the UNDP to urgently investigate Dr. Ahmed’s case and end the intense retaliation against him. They urge the agency to demonstrate its commitment to accountability and show that it will not tolerate retaliation against whistleblowers who bring forward allegations of wrongdoing.

Conclusion

The alleged support by the UNDP for Dalsan remittance company raises serious concerns about the agency’s handling of sensitive information and its commitment to transparency and accountability. The Government Accountability Project urges the UNDP to take immediate action to investigate Dr. Ahmed’s case and protect him from further retaliation.