Probe faults ex-UN watchdog chief on favoritism

UNITED NATIONS, June 1 (Reuters) The former head of a UN watchdog agency showed favoritism in appointing or promoting two employees, but was not involved in graft or sexual improprieties, a UN-commissioned report found.

The report, released yesterday, said Dileep Nair, a Singaporean who retired a year ago, had ''predetermined'' the outcome of the selection process in two personnel cases.

But it found no evidence he was was involved in receiving any payments or ''improper sexual behavior'' as the UN Staff Union had charged. Nair has denied all allegations.

The investigation was particularly sensitive because Nair headed the Office of Internal Oversight Services, responsible for probing out corruption and mismanagement.

The union in February 2005 had requested that Secretary-General Kofi Annan establish an independent investigation into Nair's actions. Annan named Jerome Ackerman, once a long-serving American member of a UN administrative tribunal, and his former law partner, John Vanderstar.

Nair denied all charges but the report made clear the investigators had trouble obtaining e-mails and other materials from him and his department. The report also faulted the UN Staff Union for not backing up claims of sexual misconduct.

Annan said in a statement that no further action would be taken and the matter was closed. The report said it could not decide other allegations on promotions because internal UN investigations were pending.

Nair, who reviewed the report, said in a letter, ''I am confident anyone reading these comments will realise the thinly veiled self-serving nature of the allegations and wonder what the fuss has been all about.'' Nair was also faulted in an investigation last year into corruption in the defunct oil-for-food program in Iraq. A report by Paul Volcker, a former US Federal Reserve chairman, accused Nair of using money from the program to pay a staff member not directly working for the Iraq operation.

Inga-Britt Ahlenius, a Swede, has replaced Nair as undersecretary-general for internal oversight services.

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