The Wall Street Journal presents an op-ed and more detailed article by Melanie Kirkpatrick on another “oil-for-food” program, which involves direct cash payments to North Korean dictator, Kim Jong Il. (subscription)

This is one more giant black mark against the Kofi Annan U.N. that may go down in history as one of the most corrupt in United Nations history. While Annan lives in Switzerland and Benon Sevan was indicted on charges of bribery and conspiracy to commit wire fraud in the oil-for-food scam the beat of corruption continues at Turtle Bay.

The United Nations Development Program in North Korea lacks oversight as Ms. Kirkpatrick explains:

The UNDP’s program in the Democratic People’s Republic “has for years operated in blatant violation of U.N. rules, served as a steady and large source of hard currency and other resources for the DPRK government with minimal or no assurance that UNDP funds and resources are utilized for legitimate development activities,” states Ambassador Mark Wallace of the U.S. Mission to the U.N.

….documents suggest it has run at least to the tens of millions of dollars since 1998 and one source says it could be upward of $100 million.

….plenty of evidence of willful blindness on the part of the UNDP, which let myriad rules be broken and allowed itself to become a large source of hard currency for the regime. Nor did it bring these irregularities to the attention of its governing body, the 36-member executive board.

The UNDP program dates back to 1998 when the Clinton administration was appeasing the North Korean regime and being deceived at the same time. While Kim tests weapons, refuses access to weapons inspectors, and dances around Security Council Resolution 1718, which restricts trade in anything having to do with North Korea’s nuclear or missile programs. Record keeping for the program is poor with very little oversight, typically run like a cash entitlement.

An audit by any reputable accounting firm would demonstrate serious record keeping problems and prompt at least a temporary halt to the program. Apparently purchase orders are not used and North Korea is on a “cash basis” system, which makes fraud detection very difficult but certainly flunks Generally Accepted Accounting Principles (GAAP).

“In the absence of real audits and site visits it is impossible for UNDP to verify whether or not any of the funds paid to the DPRK for supposed use in UNDP programs have actually been used for bona fide development purposes or if the DPRK has converted such funds for its own illicit purposes.”

Under U.S. pressure the UNDP now says it will stop transferring hard currency to the Kim Jong Il regime. This is too little too late. Fast action is required and more stonewalling should not be tolerated. Greenbacks for Kim Jong Il translates into U.S. cash for missiles, while North Korean civilians continue to starve.