The World Is In Financial Chaos & The UN Wants Billions
“After
careful thought and consideration, this blog feels that the United
States should take advantage of a position that doesn’t seem to have
much support in political circles - GET THE HELL OUT OF THE UN AND GET
THE UN THE HELL OUT OF THE UNITED STATES.”
By Dell Hill
If
I had to guess, I’d guess that 99.9% of my readers will not even bother
to read this post. That’s OK. I understand. I didn’t read it
word-for-word either! Thankfully, I learned to speed-read many years
ago and that allows me to scan a long piece of writing (or book) and get
the gist of what it says without having to destroy my vision reading
all of the associated junk.
This
piece says: Fox News reported on the UN plans to spend many millions
of dollars on its physical property in New York and Geneva and the UN
complains that the story is full of errors. Fox News replied that it
wasn’t. End of story.
If you decide not to read it; at least scroll to the bottom because the old man who publishes this blog has a suggestion.
United Nations Building in New York City.
“Almost three weeks after Fox News published a story regarding the United Nations’
new building ambitions in New York City and Geneva, the spokesman for
U.N. Secretary General, Martin Nesirky, wrote to object to “errors” in
the story, titled “U.N.’s $2 Billion Building Binge: Getting Worse While
It Lobbies for $3 Billion More.”
CLICK HERE FOR THE ORIGINAL STORY
The full text of Nesirky’s letter, received Nov. 23, is published below, followed by a reply from Fox News.
21 November 2011
Dear Mr. Russell:
I
wanted to correct some errors that appeared in your 3 November article
on FoxNews.com, entitled, “U.N.’s $2 Billion Building Binge: Getting
Worse While It Lobbies for $3 Billion More.”
In
this article, you wrote that the cost estimate for the renovation of
the UN Headquarters has climbed by “roughly 225%.” This is not correct.
It
is also not correct that, as stated in the article, the Board of
Auditors “foresaw at least another $227 million in cost increases for
the current headquarters renovation.” There is no such number in the
Report of the Board of Auditors on the Capital Master Plan for the year
ended 31 December 2010.
In
2006 the General Assembly approved a budget of $1.867 billion for the
renovation of the UN Headquarters. According to the latest progress
report on the implementation of the Capital Master Plan, as of May 2011
the projected cost for the renovation, as approved by the General
Assembly in 2006 and updated in 2007, is less than 4% ($74 million) over
the approved Capital Master Plan budget, taking account of commitments
for donations and the funds for security enhancements.
Before
its approval in 2006 the Capital Master Plan had been under discussion
by the General Assembly since 2000 with many different scopes of work,
different schedules and different needs for swing space.
In
your article, you had used as your baseline not the budget that was
approved by the General Assembly, but an earlier estimate of $875
million for one option that was published in 2000 in the
Secretary-General’s first report on the Capital Master Plan. In this
report, the Secretary-General made it clear that he did not recommend
that option. Its rental costs only included 50% of the staff. In
addition, this almost 12 year old estimate, of course, does not reflect
how 9/11 changed the security requirements and therefore the scope of
the renovation of the UN Headquarters. After 9/11, for example, it
became necessary to harden the building envelope and to accommodate the
key UN Headquarters functions within the compound during the entire
renovation, thus creating the need for the temporary North Lawn
Building. None of those costs were included in any estimate in 2000.
You
had also mentioned associated costs in connection with the CMP. These
costs, estimated at $146.8 million, cover items that have been approved
by the General Assembly but were not part of the original scope and
budget of the CMP. They include expenses for a new permanent broadcast
facility, additional staffing during the CMP to manage, clean and
maintain several swing space buildings, additional security resources
during construction, and new furniture for parts of the renovated
facilities.
Furthermore, the UN is not “lobbying”, as it says in the article, for $3 billion for new buildings.
As
requested by the General Assembly, the Secretary-General has submitted a
feasibility study on the UN Headquarters accommodation needs. By 2023
the leases for the UN offices in the DC-1 and DC-2 buildings will
expire. The UN therefore is exploring various options on how to meet its
long term office space needs in its Host City.
In
2009, the General Assembly requested that the Secretary General report
on the outcome of a conceptual architectural and engineering study for
the renovation of the 75 years old Palais des Nations in Geneva,
including estimated overall costs and project timeline.
The
study was presented to the GA this year, and establishes several key
performance objectives of the Geneva renovation project, known as the
Strategic Heritage Plan, including: compliance with prevailing health,
safety and accessibility codes; updating the building exterior and
electromechanical systems so as to reduce energy consumption; upgrading
and expanding information and communications network, broadcast
facilities and congress systems; preventing irreversible damage; and
ensuring business and operational continuity.
You
incorrectly stated that the facilities “must also accommodate more
staff,” and elsewhere in the article referred to “UN….urban sprawl.” In
fact, one of the many positive effects of the renovation of the Palais
des Nations would be the optimization of existing interior space, which
would enable roughly 700 staff currently housed in rental buildings
outside to consolidate within the complex, without adding any additional
area to the existing facility.
I hope and trust that the correct information will now be published on the FoxNews web site.
Sincerely,
Martin Nesirky
Spokesperson for the Secretary-General
Fox News’ reply:
The
U.N. spokesman’s objection to Fox News’ story on the U.N. building boom
is misleading in a number of ways. The first is it obscures the reality
that revisions, expansions and delays in getting to the final version
of its Capital Master plan, a process that began in 2000 and extended
through 2006, were a major reason for the spiraling cost of this ongoing
renovation, while a sustained construction boom in New York City was
putting dramatic upward pressure on all building costs.
The
U.N. spokesman treats the formal end of that costly process in 2006 as
the beginning of the building’s budgetary journey, rather than the
culmination of sustained budget creep. In fact, widespread concern about
the escalating costs of the proposed renovation were a major focus of
U.S. congressional hearings in 2005, a year before the spokesman
implies there was any budget to be concerned about.
In
2000, the process started when U.N. Secretary General presented three
initial options to the U.N. General Assembly as part of “a proposed
course of action by the Secretary General.” The $875 million figure
cited by Fox News is described in the Secretary General’s report as the
“cheapest” option for the building renovation -- the lowest possible
renovation cost.
The
current $2 billion cost cited in U.N. documents -- which does not
include many costs that U.N. auditors and oversight bodies fear are
still coming -- is 228.57 percent higher than the “cheapest” cost, which
Fox News rounded down to 225 percent.
The
“cheapest” cost of the building renovation at that time was already $89
million cheaper than the option backed in the same document by the
secretary general.
The
secretary general did not pick the cheapest plan because, his report
stated, it would involve moving 50 percent of the staff into temporary
offices while it took place, which would be too disruptive, and would
add greater costs for additional rented meeting space, extra travel, and
services to the public. Those costs were never specified. The option
backed by the secretary general involved moving out 33 percent of the
U.N. staff over six years rather than three. As the same table mentioned
by the spokesman shows, this led to an $11 million saving on temporary
“swing” space -- and a $64 million hike in the cost of the renovation.
CLICK HERE FOR THE TABLE MENTIONED BY THE SPOKESMAN
But
all of those options, even the “cheapest” ones were not as cheap as
they could have been. They all contained new facilities that went beyond
the original renovation concept. As the document containing the table
of estimated costs states (in paragraph 45), “it became readily apparent
to the Secretariat that its [the renovation’s] implementation would
provide the Organization with a unique opportunity to make certain
improvements to the Headquarters facilities.”
The
$74 million cost of those “recommended additions and improvements” was
included in all options of the secretary general’s proposed plan. But
they are shown in the table describing the options as separate, to
emphasize they were add-ons.
In
other words, even the “cheapest” renovation plan presented by the
secretary general had already taken a price hike based on a “unique
opportunity” that wasn’t included in the original idea of the
renovation.
CLICK HERE FOR THE FULL DOCUMENT
The
spokesman’s reference to the impact of 9/11 on the building cost is
equally misleading. In the secretary general’s report on the Capital
Master Plan for 2002 -- submitted 11 months after 9/11 -- the total
“baseline” increase in costs due to security, detailed in paragraph 15
(a), was $55 million. The so-called “hardening” of the Headquarters
curtain wall was not considered a security issue and was only deemed a
potential “refurbishment.”
An
additional $75 million in backup power systems was considered
“optional,” as was $30 million in security upgrades that was deemed to
be likely the responsibility of the U.S. government. (In fact, in
February 2011, Fox News reported that the U.S. contributed $100 million
over and above its contributions to the renovation for, among other
things, most of those security upgrades mentioned in the 2002 report --
none of them included in the U.N. renovation budget.)
Many
more paragraphs in the 2002 report were devoted to adding new
conference rooms, public spaces and space for “concerts, lectures and
special events,” as well as upgraded technology, none of which were
featured in the original estimated renovation cost. In a follow-up
analysis by the U.N.’s key budget advisory committee in October 11,
2002, these non-security amenities were estimated to cost an additional
$80 million, but the oversight committee had to specifically ask to find
that out.
Nor
was keeping the “key U.N. Headquarters functions within the compound
during the entire renovation” considered in the secretary general’s
August 2002 report as a security issue. Indeed, construction of the
U.N.’s current temporary North Lawn building, mentioned by the
spokesman, was rejected in paragraph 45 of the report as “not considered
as either an appropriate or feasible alternative.” Evidently,
circumstances changed, but not in connection with 9/11.
CLICK HERE FOR THE 2002 REPORT
The
$146.8 million in “associated costs” that the U.N. spokesman mentions
in his letter are, in fact, part of the $227 million in additional cost
overruns cited by Fox News as foreseen by the auditors in their most
recent report.
The
spokesman correctly notes, as the U.N.’s auditors did, that these costs
were not originally included in the renovation budget. But for at least
the past two consecutive years, the U.N. General Assembly has passed
resolutions mandating that they be “absorbed” in that budget.
The
U.N.’s independent auditors, in their most recent report, declare
flatly that “the Office of the Capital Master Plan has no capacity to
absorb the associated costs (some $146 million) within its budget.” The
auditors conclude that the Assembly’s mandate “ is no longer a realistic
request without reductions in the scope of the plan or an increase in
the cost overrun already reported by the project.” (emphasis added)
Nonetheless,
the U.N.’s renovation planners have determinedly kept the “associated
costs” outside of their current budget—and thus out of their estimates
of cost over-runs-- by noting instead that they were not originally
included in the budget, and discussing them in a different section of
their reports.
To
see what the auditors meant by “an increase in the cost over-run,” Fox
News did what the U.N.’s building planners avoid doing, and added the
$146.8 million in “associated costs” discussed by the auditors in their
warning about additional cost overruns to the $79 million over-run
already agreed to be in existence, as cited on page 7 of the auditor’s
report. The rounded-off sum cited in the story should have been $226
million rather than $227 million; Fox News regrets the arithmetical
error.
The
U.N. spokesman objects to Fox News’ use of the term “lobbying” for new
buildings. Nonetheless, the same report he cites concludes that “with
United Nations Development Corporation leases expiring and an estimated
continued 1.1 percent staff growth, it is an advantageous time for the
United Nations to plan its approach to its future space needs and to
continue the vision of the Organization.”
The
U.N. spokesman has complained that Fox News was incorrect in saying
that the proposed renovation of the U.N.’s Geneva headquarters building
“must also accommodate more staff,” and then lauds the proposed project
by saying that one of attractive features is that it “would enable
roughly 700 staff currently housed in rental buildings outside to
consolidate within the complex, without adding any additional area to
the existing facility.”
What
the complete sentence in the Fox News story said was: “Meantime, its
[the U.N.’s] badly aging facilities in Geneva -- some of them 70 years
old -- must also accommodate more staff, though the U.N. hopes to do
more there through re-jigging its antiquated existing spaces.”
The difference in wording does not seem to be an inaccuracy.
The
U.N. spokesman, however, joins that observation with a phrase taken
from much earlier in the Fox News story referring to “U.N. urban
sprawl.” In proper context, it is clear that the urban sprawl phrase
refers most specifically to U.N. operations in New York City, where, as
the story says, “the world organization has already spread across large
swaths of eastern midtown well beyond its 18-acre campus.”
To
buttress that statement, the story quotes a U.N. study, declaring that
“The Organization occupies most of the desirable and acceptable
commercial properties within the vicinity of the Secretariat compound.”
That
document, a report by the United Nations Secretary General, is entitled
“Feasibility study on the United Nations Headquarters accommodation
needs 2014-2034,” and was published on Sept. 9, 2011. The quoted
statement is in paragraph 10, on page 6.
George Russell is executive editor of Fox News and can be found on Twitter@GeorgeRussell.
And
a hearty welcome to those of you who just wore out your scroll wheel
getting down to this far more important portion of the post!
After
careful thought and consideration, this blog feels that the United
States should take advantage of a position that doesn’t seem to have
much support in political circles - GET THE HELL OUT OF THE UN AND GET
THE UN THE HELL OUT OF THE UNITED STATES.
We
are broke. $15 Trillion broke. We can NOT afford to continue lining
the pockets of corrupt UN officials and, quite frankly, find that the UN
is a spineless, do-nothing organization controlled by filthy rich
billionaires who have their mind set on a “world government”.
We
should “retire” from the UN and the UN should pack up and go
elsewhere....We don’t care where because we aren’t going with you.
Let’s see how well you function without billions of our tax dollars.
These actions should take place at your earliest possible opportunity....like NOW.
That is all.
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