GUIDANCE REQUEST: UN RESPONDS TO AMBASSADOR

UNCLAS USUN NEW YORK 000297

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: AORC KUNR UNGA
SUBJECT: GUIDANCE REQUEST: UN RESPONDS TO AMBASSADOR
WALLACE REGARDING THE STATUS OF UN VENDORS RAISED IN THE
VLADIMIR KUZNETSOV TRIAL

REF: BRUCE RASHKOW/DAVID SULLIVAN EMAIL - 3/15/07


1. GUIDANCE REQUEST:The UN responded on March 28 to
Ambassador Mark Wallace's March 15 letter to them regarding
the status of the UN vendors that government witness and
former UN procurement officer Alexander Yakovlev asserted in
sworn testimony he assisted with the preparation of their UN
procurement bids in exchange for money payment. The full
text of the UN response letter is listed in para. 2. USUN
appreciates Department's views on how to respond to the
letter. END GUIDANCE REQUEST.


2. Begin Letter Text:

Dear Mr. Ambassador,

I refer to your letter of 15 March 2007 regarding the recent
trail of Mr. Vladimir Kuznetsov. Your letter raises a number
of concerns about the possibility of favourable treatment
given to vendors in obtaining UN contracts which would be in
contravention to the UN rules. We agree with you that the UN
must maintain the highest principles of ethics and fairness
when awarding contracts for UN projects and we are doing
everything we can to ensure that this is the case.

In response to your specific concerns regarding the status of
vendors identified in the above-mentioned trial, kindly be
advised that actions have already been taken. Cogim S.P.A.
and Avicos Insurance Company have been removed from the UN
vendor database. Corimec Italiana S.P.A., Volga-Dnepr
Airlines and its subsidiary, Volga-Dnepr (Ireland) Ltd. have
all been suspended from the UN vendor database. SGS
Nederland B.V. was exonerated by the Volcker Commission and
noted that a private individual, Yves Pintore had acted
inappropriately, but was not connected, nor in the employment
of SGS Nederland B.V. SGS is still maintained in the UN
vendor database. Finally, we would like to point out that
ICT is not a registered vendor with the United Nations.

Please note that the United Nations reiterates that it will
strictly enforce a zero tolerance concerning unethical,
unprofessional or fraudulent behaviour for UN vendors.

Please accept, Excellency, the assurances of my highest
consideration.

I remain,
Dear Mr. Ambassador

Your Sincerely,

(Signed)

Warren Sach
Officer-in-Charge
Department of Management



WOLFF