“ChatGPT is an artificial-intelligence chatbot developed by OpenAI and launched in November 2022. It is built on top of OpenAI’s GPT-3.5 and GPT-4 families of large language models and has been fine-tuned using both supervised and reinforcement learning techniques” (Wikipedia).
UN Bribery and Money Laundering Networks
Since 2015 a number of bribery and money laundering networks were identified by the U.S. Department of Justice operating at the United Nations, resulting in arrests and criminal trials. In one case, an appeal reached the U.S. Supreme Court. Here is what ChatGPT has to say about convicted bad actors in these networks.
On the Patrick Ho network:
“Title: The Patrick Ho Bribery Network at the United Nations: An In-depth Analysis
Introduction:
The Patrick Ho bribery network at the United Nations (UN) represents a complex web of corruption and illicit activities that operated within the realm of international diplomacy. Led by Patrick Ho, a former Hong Kong government official and the head of a prominent non-profit organization, the network aimed to influence UN officials and advance the interests of specific individuals and entities. This essay delves into the inner workings of the network and provides an ordered list of key actors involved.
I. Background of Patrick Ho and the Bribery Network:
Patrick Ho, the former Secretary for Home Affairs of Hong Kong, rose to prominence as the Deputy Chairman and Secretary-General of the China Energy Fund Committee (CEFC), a non-profit organization with strong ties to the Chinese government. The CEFC presented itself as a platform for international cooperation and development but, in reality, served as a conduit for Patrick Ho’s corrupt activities.
II. The Modus Operandi of the Bribery Network:
The Patrick Ho bribery network employed various tactics to achieve its objectives. These tactics typically involved bribery, money laundering, and the provision of illicit financial benefits to UN officials and other influential individuals. The following steps outline the modus operandi:
Identification of Targets: The network strategically targeted UN officials who held significant decision-making power or influence over key issues. This included officials from countries of interest to the network’s objectives.
Establishing Relationships: Through intermediaries and personal connections, the network established relationships with the targeted UN officials. These relationships often involved exploiting personal or professional vulnerabilities, such as financial difficulties or the promise of career advancement.
Offering Bribes and Illicit Financial Benefits: The network would offer bribes, kickbacks, or other illicit financial benefits to the targeted UN officials. These benefits could include cash payments, luxury goods, travel expenses, or even shares in lucrative business ventures.
Influencing Decision-making: Once the network successfully established a relationship with a UN official, it would seek to influence the official’s decision-making processes. This could involve swaying votes, advocating for specific policies, or providing confidential information to advance the network’s interests.
Concealing Illicit Transactions: The bribery network employed sophisticated money laundering techniques to conceal the illicit origins and transfers of funds. These techniques included the use of shell companies, offshore bank accounts, and complex financial transactions across multiple jurisdictions.
III. Key Bad Actors in the Patrick Ho Bribery Network:
Patrick Ho: As the mastermind behind the network, Patrick Ho orchestrated its operations and served as the primary point of contact for UN officials. He utilized his position at the CEFC and his personal connections to facilitate bribery and exert influence within the UN system.
CEFC China Energy Company Limited: The CEFC, under Patrick Ho’s leadership, played a central role in funding the network’s activities. The company provided financial resources and logistical support for bribery schemes, enabling Ho to carry out his illicit operations effectively.
Intermediaries and Facilitators: The network relied on a network of intermediaries and facilitators to establish connections with targeted UN officials. These individuals acted as liaisons, coordinating meetings, arranging payments, and maintaining communication channels between the network and its targets.
Corrupt UN Officials: The bribery network involved several UN officials who willingly participated in illicit activities in exchange for personal gain. These officials abused their positions of trust, compromising the integrity and impartiality of the UN system.
IV. Investigation, Arrest, and Legal Consequences:
In 2017, Patrick Ho was arrested in the United States on charges of bribery and money laundering related to his activities within the UN. Following an extensive investigation, evidence of the network’s operations …”
On the Ng Lap Seng network:
“Title: The Ng Lap Seng Bribery Network at the United Nations: An In-depth Analysis
Introduction:
The Ng Lap Seng bribery network at the United Nations (UN) represents a far-reaching scheme of corruption and illicit activities aimed at influencing UN officials and advancing personal interests. Led by Ng Lap Seng, a wealthy Chinese billionaire and philanthropist, the network operated within the complex realm of international diplomacy. This essay provides a comprehensive examination of the inner workings of the network and presents an ordered list of key actors involved.
I. Background of Ng Lap Seng and the Bribery Network:
Ng Lap Seng, a prominent figure in the business world, amassed significant wealth through his ventures in real estate and international trade. As the Chairman of Sun Kian Ip Group, he sought to leverage his financial resources and influence to advance his personal agenda within the UN.
II. The Modus Operandi of the Bribery Network:
The Ng Lap Seng bribery network employed a range of tactics to achieve its objectives, including bribery, money laundering, and the provision of illicit financial benefits. The following steps outline the modus operandi:
Identifying Targeted UN Officials: The network strategically identified UN officials who held key decision-making positions or had influence over critical matters. These officials were often from countries or departments of interest to the network.
Establishing Relationships and Exploiting Vulnerabilities: Through intermediaries, personal connections, and various social engagements, the network sought to establish relationships with the targeted UN officials. They exploited personal or professional vulnerabilities, such as financial difficulties, to gain their cooperation.
Offering Bribery and Financial Benefits: The network would offer bribes, kickbacks, or other illicit financial benefits to the targeted UN officials. These benefits could range from cash payments, luxury gifts, expensive trips, to investment opportunities in lucrative business ventures.
Influencing Decision-making and Policy: Once a relationship was established, the network sought to influence the decision-making processes and policies within the UN. This involved manipulating votes, advocating for specific agendas, and providing insider information to further their own interests.
Concealing Illicit Transactions: The bribery network employed sophisticated money laundering techniques to conceal the origins and transfers of illicit funds. This included the use of shell companies, offshore bank accounts, complex financial transactions, and networks of intermediaries to obscure the paper trail.
III. Key Bad Actors in the Ng Lap Seng Bribery Network:
Ng Lap Seng: As the mastermind of the bribery network, Ng Lap Seng orchestrated its operations and provided the necessary financial resources. He utilized his wealth, connections, and philanthropic endeavors to establish influence within the UN and carry out his corrupt activities.
Jeff Yin: Jeff Yin, a business associate of Ng Lap Seng, acted as a key facilitator within the network. He helped establish relationships with targeted UN officials, coordinated meetings and payments, and played a crucial role in executing bribery schemes on behalf of Ng Lap Seng.
John Ashe: John Ashe, a former President of the UN General Assembly, played a central role in the bribery network. He accepted bribes from Ng Lap Seng and his associates in exchange for advancing their interests within the UN. Ashe abused his position of power to manipulate decision-making processes and facilitate corruption.
Francis Lorenzo: Francis Lorenzo, the Deputy Permanent Representative of the Dominican Republic to the UN, was another key actor within the network. He acted as an intermediary, facilitating bribes and providing assistance in influencing UN officials. Lorenzo used his diplomatic status to further the network’s agenda.
Sheri Yan: Sheri Yan, the CEO of Global Sustainability Foundation (GSF), played a significant role in the bribery network. GSF acted …”
On New York-based South-South News (funded and founded by Ng Lap Seng):
“Title: The Role of South-South News in Facilitating Ng Lap Seng’s Bribery and Money Laundering Network
Introduction:
South-South News, a news service founded by Ng Lap Seng in 2010, served as a crucial tool in facilitating his bribery and money laundering network within the United Nations (UN) and beyond. This essay explores the ways in which South-South News was utilized to advance Ng Lap Seng’s illicit activities, including bribery schemes and the concealment of funds.
I. Establishing Credibility and Influence:
Ng Lap Seng’s Vision: Ng Lap Seng envisioned South-South News as a platform to promote cooperation and development among countries in the Global South. By presenting it as a reputable news service, he aimed to establish credibility and gain influence within the international community.
Garnering Access to UN Officials: South-South News positioned itself as an organization dedicated to reporting on UN affairs, allowing Ng Lap Seng and his associates to gain proximity to UN officials. They leveraged the news service to foster relationships, identify potential targets, and exploit vulnerabilities for their bribery schemes.
II. Manipulating News Coverage:
Shaping the Narrative: Ng Lap Seng and his network utilized South-South News to shape the narrative surrounding certain issues and individuals within the UN. By controlling the content and tone of news articles, they aimed to influence public opinion and sway decision-making processes in their favor.
Positive Coverage for Targeted Officials: South-South News provided favorable coverage to targeted UN officials who were part of Ng Lap Seng’s bribery network. This positive portrayal aimed to enhance their reputation, deflect suspicion, and maintain their cooperation in furthering Ng Lap Seng’s interests.
III. Channeling Bribery Funds:
Concealing Illicit Transactions: South-South News acted as a conduit for channeling bribery funds and facilitating money laundering activities. Ng Lap Seng and his associates used the news service’s financial infrastructure to transfer funds discreetly and obscure the origins of illicit transactions.
Payments Disguised as Media Services: Bribe payments were often disguised as legitimate media services, such as advertising or sponsorships, provided by South-South News. By issuing invoices and receipts for these services, the network could legitimize the movement of funds and create a semblance of a genuine business transaction.
IV. Expanding the Network’s Reach:
Extending Influence Beyond the UN: South-South News allowed Ng Lap Seng’s bribery network to extend its influence beyond the UN. The news service provided a platform for networking and establishing connections with government officials, business leaders, and influential individuals from various countries, thereby expanding the network’s reach and potential for corruption.
Securing Political Support: Ng Lap Seng strategically utilized South-South News to secure political support for his initiatives. By showcasing favorable coverage and highlighting the accomplishments of politicians sympathetic to his cause, he aimed to garner political backing and protect his network’s operations from scrutiny.
V. Legal Consequences and Exposure:
Arrest and Investigation: Ng Lap Seng’s involvement with South-South News and its role in facilitating corruption came under scrutiny, leading to his arrest in 2015. Authorities launched investigations into the network’s operations, exposing the extent of bribery, money laundering, and illicit activities conducted through the news service.
Legal Accountability: Ng Lap Seng and his associates were prosecuted for their involvement in bribery and money laundering. The exposure of South-South News as a tool for facilitating corruption contributed to the legal consequences faced by the individuals involved in Ng Lap Seng’s network.
Conclusion:
South-South News, founded by Ng Lap Seng, played a pivotal role in facilitating his bribery and money … “
“We will be asking: is bribery business as usual at the UN?”, US Attorney Preet Bharara, October 2015
Disrupted!! Issue 6 of Southern Innovator never came about and here is the story of why. One part of the story is very positive and inspiring; the other part is disappointing and frustrating (though always a risk when working in the international realm).
First, the disappointing and frustrating part. We had been working with the UNOSSC (the funder of Southern Innovator) on a scale-up plan which would provide the funds for the brand to better chronicle the global South innovator culture of the 21st century. We had not anticipated various individuals involved with the UNOSSC not only acting in bad faith, but actually being involved with a multinational network to bribe UN officials and launder money into the United States, as was exposed during arrests by US authorities in late 2015 in New York (home of the UNOSSC and the UN’s headquarters). As we found out, gradually, through media coverage and court trial testimonies and confessions under oath by co-conspirators following the arrests, there was a fundamental conflict of interest between the work we were doing and the UNOSSC’s funding relationship with an entity that had its own news agency working out of the United Nations, South-South News. South-South News was established and funded by an Interpol Watch List individual, flagged up as a person not to do business with because of his involvement with human and sex trafficking and international criminal networks. South-South News’ executives pushed for the building of a new “Geneva of Asia” for the UN in Macau, which would also host the UNOSSC’s annual Global South-South Development Expo (GSSD Expo). As confessed by the executives of South-South News, the news agency was established to facilitate bribes to UN officials and launder money into the United States – violating the Foreign Corrupt Practices Act (FCPA). This bribery and corruption case led to the UNOSSC’s budget being suspended pending two internal UN audits.
For the first time, setting a legal precedent, an FCPA case involving bribery and money laundering at the United Nations went all the way to the U.S. Supreme Court. Wrongly, many senior UN officials believe their diplomatic status affords them immunity to legal prosecution, especially under the FCPA. However, this case was a successful enforcement of the FCPA, appealed all the way to the U.S. Supreme Court. The question remains: will future FCPA enforcement actions at the international level test the protection of ‘diplomatic immunity’?
“The FCPA is explicit in defining ‘foreign official’ to include ‘any officer or employee . . . of a public international organization.’ The FCPA defines a public international organization as an organization designated by Executive Order pursuant to Section 1 of the International Organizations Immunities Act (22 U.S.C. § 288) or by Executive order of the President. This includes any ‘public international organization in which the US participates pursuant to any treaty or under the authority of any Act of Congress authorizing such participation or making an appropriation for such participation.’ (22 U.S.C. § 288). For instance, The UN was declared a public international organization by Executive Order 9698 in 1946.”
Books covering the 2015 United Nations SDGs bribery scandal: ONU: La Grande Imposture, Organized Crime and Corruption Across Borders, New Humanitarianism and the Crisis of Charity: Good Intensions on the Road to Help, Historical Dictionary of Chinese Intelligence.
“What a tremendous magazine your team has produced! It’s a terrific tour de force of what is interesting, cutting edge and relevant in the global mobile/ICT space… Really looking forward to what you produce in issues #2 and #3. This is great, engaging, relevant and topical stuff.” Rose Shuman, Founder & CEO, Open Mind and Question Box
And now the positive and inspiring part: Southern Innovator evolved from the e-newsletter Development Challenges, South-South Solutions, first launched in 2006 (and we came on board to research and write stories in 2007). Much has happened since, including the Global Financial Crisis, and the global financial system re-boot that occurred afterwords. Both the e-newsletter and the magazine Southern Innovator fall into the category of ‘crisis media’: media used to bring together a response where the old methods and methodologies no longer work and something has caused system failure. Back in 2007, there was little discussion in the media about the global South, innovation, innovators, social entrepreneurship, and the mobile and information technology revolution occurring in the global South. Both the e-newsletter and the magazine identified a global 21st-century innovator culture that was unique since it was being fuelled by the rapid adoption of mobile and information technologies, often in places with high levels of poverty and turmoil.
According to the Final evaluation of the performance of the United Nations Office for South-South Cooperation under its strategic framework, 2014-2017, in light of the adoption of the 2030 Agenda for Sustainable Development, prepared by Marcia Brewster, Consultant for the United Nations Office for South-South Cooperation (UNOSSC):
“The reviewer observed that, although the Policy and UN Coordination Unit had produced all of the reports requested by intergovernmental bodies, especially for the High-level Committee, it had not been able to produce many of the publications (evidence-based analytical reports) that had previously been within its purview. Such publications included Southern Innovator magazine and the monthly e-newsletter “Development Challenges, South-South Solutions”. In the case of Southern Innovator, one issue (No. 5 on waste and recycling) was published during the four-year period of the framework but did not have wide online distribution, and issue No. 6 was awaiting funds for publication. The e-newsletter was last issued in July 2014 even though the reviewer found it a good way to communicate with focal points at the national and inter-agency levels. In fact, the shortage of funds for those knowledge products was the main reason that they had ceased being produced during the evaluation period.”
“With respect to the analytical reports previously produced by the Office, such as Southern Innovator, they have not been produced in recent years owing to lack of funding.”
From the beginning, the e-newsletter and magazine were about changing perspectives and inspiring action. And so they have. Rather than say so in my words, I shall offer the words of others as we received them:
“Great economic and business reporting! Very helpful for us.”Africa Renewal, Africa Section, Strategic Communications Division, United Nations Department of Public Information
“I just went over your June newsletter. It’s very well done and far reaching. Congratulations!” Violette Ruppanner, Director, 3D -> Trade – Human Rights – Equitable Economy, Geneva, Switzerland
“Just to let you know I enjoyed the newsletter a lot – it was interesting to learn about things going on that I would never otherwise find out about, and also the listing of future conferences and events proved very useful.” IanSanderson, Deloitte, Geneva, Switzerland
“Congratulations on another great newsletter that’s packed with fascinating information! I really enjoy getting it each month.” Whitney Harrelson, Making Cents, Washington D.C.
Blogger Taline Haytayan from Brighton, England, found a case study on story telling in the South particularly interesting: “I came across this interesting article entitled ‘The South Has a Good Story to Tell’, which talks about storytelling in developing countries, and its use as a critical tool for passing on history, while teaching morals and ethics – so I would like to share it here with you. It’s a nice surprise to see that this article appears in UNDP’s South to South Cooperation unit newsletter. It gives an overview of storytelling in a number of countries, such as the movement of urban storytellers in Colombia, inspired by Italo Calvino; tale-spinners in Argentina; the halakis, or storytelling sages, of Morocco; and digital storytelling by women in South Africa.” (http://talinita.blogspot.com/2008/05/south-has-good-story-to-tell.html)
“A few weeks ago, David South, Development consultant and author of UNDPs Development Challenges, South-South Solutions Newsletter, came by the betterplace office to take a look at our work. When I asked him how he had come about betterplace.org, he answered: he found me on twitter! So much for the twitter-scepticts.” Joana Breidenbach, betterplace.org, Berlin, Germany (http://blog.betterplace.org/en/2009/09/15/690/)
“This is a WONDERFUL site. I read–and at least bookmarked to read again–your stories with the photo of the homeless gentleman “will write HTML code for food,” and of the young African girl who was hungry, and how they are predicting (and it seems inevitable) famine an a high voltage bolt in the poverty percentages. … your writing is phenomenal–the few stories that I have seen are actually SUPERIOR in their professional, technical, and relevant accounts. Their VERY interesting, and I unfortunately have not seen other sources of news lately (other than from my school’s library database, and old Public Broadcasting documentaries). God has blessed your works, and I am thankfully blessed by them!” Sincerely, J. (Au) Whi, (from NowPublic site)
“Many thanks for sending me a copy of your interesting work. I read just one article in Spanish thus far but found it well written and useful. For us here in Colombia, it will be most useful having regular access to your publication and, of course, I am pleased that the articles are in Spanish as well as French and English. I hope that one day I might invite you to take a closer look at the Arranque Automático operation in Colombia and perhaps invite you to do a write-up on the technique and its ample theoretical foundations.” David Cuanespero Boriol, Colombia
“What a tremendous magazine your team has produced! It’s a terrific tour de force of what is interesting, cutting edge and relevant in the global mobile/ICT space… Really looking forward to what you produce in issues #2 and #3. This is great, engaging, relevant and topical stuff.” Rose Shuman, Founder & CEO, Open Mind and Question Box
“Question Box was featured in Southern Innovator, a new publication of UNDP that profiles some of the most innovative ideas coming out of the global South. We were pleased to see many friends in the sector profiled as well, such as Ushahidi, Medic Mobile, and TxtEagle. Take a look at the magazine, as it is a great primer on ICT and mobile innovation from around the globe.” Question Box News.
“Looks great. Congratulations. It’s Brill’s Content for the 21st century!” Conan Tobias, Managing Editor, Canadian Business
What they are saying about SI on Twitter: From @CapacityPlus Nice job RT @ActevisCGroup: RT @UNDP: Great looking informative @SouthSouth1 mag on South-South Innovation; @UNDP Great looking informative @SouthSouth1 mag on South-South Innovation; @JeannineLemaireGraphically beautiful & informative @UNDP Southern Innovator mag on South-South Innov.
“Beautiful, inspiring magazine from UNDP on South-South innovation. Heart is pumping adrenaline and admiration just reading it”
“Thank you David – Your insight into the issues facing us a[s] [a] “global Village” is made real in the detail of your article – 10 out of 10 from the moladi team.” Moladi, South Africa (http://www.moladi.net/index.htm)
“The magazine looks fantastic, great content and a beautiful design!”
“Btw, I really enjoyed reading them, impressive work & a great resource. Looking forward to Issue 6. My best wishes to you & your team at SI.”
“… great magazine, nice design.”
2014 proved a significant year for our work, as Southern Innovator is cited in various strategy documents as a resource contributing to a shift in funding priorities at the United Nations and other international development funders, and the adoption of South-South innovation as a key part of the UN’s work. The e-newsletter and magazine are also cited in many papers and books and are clearly contributing to a better understanding of the 21st-century global South innovator culture.
By 2015, Southern Innovator was still drawing praise for its timely resources on South-South innovation and innovators:
“@SouthSouth1 is one of the best sources out there for news and info on #solutions to #SouthSouth challenges.” Adam Rogers, Assistant Director, Regional Representative, Europe, United Nations Office for South-South Cooperation (UNOSSC)
“We will be asking: is bribery business as usual at the UN?”, US Attorney Preet Bharara, October 2015
“If proven, today’s charges will confirm that the cancer of corruption that plagues too many local and state governments infects the United Nations as well.”, US Attorney Preet Bharara, October 2015
“Corruption at any level of government undermines the rule of law and cannot be tolerated. But corruption is especially corrosive when it occurs at an international body like the United Nations. By paying bribes to two U.N. ambassadors to advance his interest in obtaining formal support for the Macau conference center project, Ng Lap Seng tried to manipulate the functions of the United Nations. The sentence handed down today demonstrates that those who engage in corruption will pay a heavy price and serves as a reminder that no one stands above the law.”, Acting Assistant General John P. Cronan, May 2018
“It is important to send a message, to the people at the UN itself and to other institutions in this country, that perverting the decision-making or attempting to pervert the decision-making through bribes will not be tolerated.”, US District Judge Vernon Broderick, May 2018
It first came to light in 2015. Arrests by the FBI (Federal Bureau of Investigation) in New York – steps away from the headquarters of the United Nations – began a journey of discovery that led to a remarkable story of global order and power upended. Since World War II one country alone reigned supreme over the global economy and the rules and norms that underpinned it: the United States.
In this brief taster, I will flesh out what I have learned to date, framing it in the context of the post-WWII global order.
“Oh, what a tangled web we weave, when first we practice to deceive!” (Sir Walter Scott, 1808)
It is a story that has it all: the gambling sin-bin of Macau, human and sex trafficking, bribery, corruption, money laundering, spies, and, if they are to be believed, naive UN officials hiding behind their laissez-passer passports who knew nothing about all of this but were happy to take the money for a five-star conference and a trip to China (and a free iPad). How the UN ended up in this quagmire leaves many puzzled and perplexed. Then there is a so-called “21st century” media service that really is a “conduit” for bribery and money laundering (and possibly fake news), and who to this day is still reporting from the United Nations.
May 2018 saw the ending of one chapter in the ongoing corruption saga surrounding the executives of South-South News and their alleged bribery and money laundering conduit targeting the United Nations (UN). On 11 May 2018 Ng Lap Seng was sentenced to 4 years in prison for being the ring leader of an elaborate, multi-year, multinational scheme to bribe UN officials and launder money into the United States.
The US Attorney for the Southern District of New York at the time, Preet Bharara, released a flowchart showing how the alleged bribery scheme targeting the United Nations worked. A series of court trials followed for the various co-conspirators, including senior executives and board members for South-South News, culminating in the 27 July 2017 conviction of the alleged ring leader of the scheme, Macau casino billionaire Ng Lap Seng, on six counts “for his role in a scheme to bribe United Nations ambassadors to obtain support to build a conference center in Macau that would host, among other events, the annual United Nations Global South-South Development Expo“. He used the news service South-South News as a “conduit for bribery and money laundering” at the United Nations, according to the FBI, something admitted to by various co-conspirators in court and under oath.
“The United Nations’ internal investigations office has uncovered serious lapses and due-diligence failures in the world body’s interaction with organizations tied to an alleged bribery scheme involving a former UN General Assembly president.
The 21-page confidential report by the UN Office of Internal Oversight Services’ (OIOS), reviewed by Reuters, outlines the results of an audit ordered by Secretary General Ban Ki-moon in response to charges against John Ashe, General Assembly president in 2013-2014, and six other people. …
It noted “important deficiencies” in the way United Nations and its staff interacted with non-governmental organizations (NGOs) and oversees UN employees.
It is the biggest financial corruption crisis to rock the United Nations since the Oil-for-Food scandalhit the world body during the tenure of Ban’s predecessor Kofi Annan.”
Source: The Wall Street Journal, Nov. 23, 2018. “Bribery Trial Spotlights China’s ‘Belt and Road’: Justice Department prosecutes pitchman for company key to Beijing’s global program”.
Network 3
Network More?
(Sources: Department of Justice, Federal Bureau of Investigation, Supreme Court of the United States)
Chapter Four: I Spy with My Little Eye
Chapter Five: America’s “Bitch” or China’s “Partner”?
“From pirates singing Ricky Martin to mob hits carried out with samurai swords, Bertil Lintner offers a fascinating look at organized crime in the Asia Pacific. Both Western and Asian pundits assert that shady deals are an Asian way of life. Some argue that corruption and illicit business ventures – gambling, prostitution, drug trafficking, gun running, oil smuggling – are entrenched parts of the Asian value system. Yet many Asian leaders maintain that their cities are safer than Sydney, Amsterdam, New York, and Los Angeles. Making use of expertise gained from twenty years of living in Asia, Lintner exposes the role crime plays in the countries of the Far East. In Blood Brothers , he takes you inside the criminal fraternities of Asia, examining these networks and their past histories in order to answer one question: How are civil societies all over the world to be protected from the worst excesses of increasingly globalised mobsters?”
“Corruption is a globalising phenomenon. Not only is it rapidly expanding globally but, more significantly, its causes, its means and forms of perpetration and its effects are more and more rooted in the many developments of globalisation. The Panama Papers, the FIFA scandals and the Petrobras case in Brazil are just a few examples of the rapid and alarming globalisation of corrupt practices in recent years. The lack of empirical evidence on corrupt schemes and a still imperfect dialogue between different disciplinary areas and between academic and practitioners hinder our knowledge of corruption as a global phenomenon and slow down the adoption of appropriate policy responses.”
“This introductory chapter summarizes the book’s argument. It explains that U.S.-China competition is over regional and global order, outlines what Chinese-led order might look like, explores why grand strategy matters and how to study it, and discusses competing views of whether China has a grand strategy. It argues that China has sought to displace America from regional and global order through three sequential “strategies of displacement” pursued at the military, political, and economic levels. The first of these strategies sought to blunt American order regionally, the second sought to build Chinese order regionally, and the third — a strategy of expansion — now seeks to do both globally. The introduction explains that shifts in China’s strategy are profoundly shaped by key events that change its perception of American power.“
“Au terme d’un long travail d’investigation, la journaliste Pauline Liétar en dévoile les pratiques hallucinantes… et courantes : les soutiens politiques s’achètent, les gaspillages sont légion.”
“The first comprehensive collection of its kind, this handbook addresses the problem of knowledge production in criminology, redressing the global imbalance with an original focus on the Global South. Issues of vital criminological research and policy significance abound in the Global South, with important implications for South/North relations as well as global security and justice. In a world of high speed communication technologies and fluid national borders, empire building has shifted from colonising territories to colonising knowledge. The authors of this volume question whose voices, experiences, and theories are reflected in the discipline, and argue that diversity of discourse is more important now than ever before. Approaching the subject from a range of historical, theoretical, and social perspectives, this collection promotes the Global South not only as a space for the production of knowledge, but crucially, as a source of innovative research and theory on crime and justice. Wide-ranging in scope and authoritative in theory, this study will appeal to scholars, activists, policy-makers, and students from a wide range of social science disciplines from both the Global North and South, including criminal justice, human rights, and penology.”
What is the FCPA? “The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. (“FCPA”), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.”
The Docket
“As to §666, the Second Circuit held that the statutory term “organization” covers not only private organizations, but also quasi-sovereign public international bodies like the UN …”
Navigating the Foreign Corrupt Practices Act: The Increasing Cost of Overseas Bribery
“… corrupt payments to officers and employees of public international organizations are prohibited by the FCPA’s anti-bribery provisions. Public international organizations covered by the FCPA include, among others: the United Nations, International Monetary Fund, World Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development,Inter-American Development Bank,International Maritime Organizations, International Bank for Reconstruction and Development, International Finance Corporation, Multilateral Investment Guarantee Organization,Organization for African Unity,and the Organization of American States.” (Navigating the Foreign Corrupt Practices Act: The Increasing Cost of Overseas Bribery by Robert C. Blume and J. Taylor McConkie)
Instead of looking outward, perhaps the United Nations should look more inward as several Foreign Corrupt Practices Act enforcement actions … have involved U.N. officials or U.N. programs.”
One said the ruling might be “the tip of the iceberg” that heralds more individuals challenging FCPA enforcement.
We rarely get appellate court rulings on the scope of the FCPA, so the case spurred numerous headlines. One said the ruling might be “the tip of the iceberg” that heralds more individuals challenging FCPA enforcement.
For corporate compliance officers running entire programs, however, the case is just more of the same blizzard you’ve been enduring for years – trying to find a steady path forward.
The case itself, U.S. v. Ng Lap Seng, is straightforward. A Chinese national, David Ng, was a wealthy real estate developer in Macau. In the early 2010s he bribed two United Nations officials by giving them sham consulting contracts worth hundreds of thousands of dollars, in exchange for them trying to convince other U.N. officials to declare one of Ng’s convention centers the permanent home for a lucrative annual development conference.
Eventually the scheme unraveled, and in 2017 a jury convicted Ng in federal district court of violating the FCPA.
Ng appealed. He argued that any bribery prosecution must meet the high standards of an “official act” as spelled out in McDonnell v. U.S. — a U.S. Supreme Court ruling from 2016 that addresses cases of domestic bribery of U.S. government officials. Ng wanted that same standard to apply to FCPA cases involving bribery of foreign government officials.
Um, no. The 2nd Circuit Court of Appeals ruled against Ng on Aug. 9, noting that the text of the FCPA defines the quid pro quo of bribery much more expansively than other parts of U.S. law that address domestic bribery. Therefore, the narrow standards of McDonnell don’t apply for FCPA prosecution.”
How to Report Corruption and Bribery at UNDP (United Nations Development Programme)
The Office of Audit and Investigations (OAI) “provides UNDP with effective independent and objective internal oversight that is designed to improve the effectiveness and efficiency of UNDP’s operations in achieving its development goals and objectives through the provision of internal audit and related advisory services, and investigation services.”
“We will be asking: is bribery business as usual at the UN?”, US Attorney Preet Bharara, October 2015
“If proven, today’s charges will confirm that the cancer of corruption that plagues too many local and state governments infects the United Nations as well.”, US Attorney Preet Bharara, October 2015
“Corruption at any level of government undermines the rule of law and cannot be tolerated. But corruption is especially corrosive when it occurs at an international body like the United Nations. By paying bribes to two U.N. ambassadors to advance his interest in obtaining formal support for the Macau conference center project, Ng Lap Seng tried to manipulate the functions of the United Nations. The sentence handed down today demonstrates that those who engage in corruption will pay a heavy price and serves as a reminder that no one stands above the law.”, Acting Assistant General John P. Cronan, May 2018
“It is important to send a message, to the people at the UN itself and to other institutions in this country, that perverting the decision-making or attempting to pervert the decision-making through bribes will not be tolerated.”, US District Judge Vernon Broderick, May 2018
It is a story that has it all: the gambling sin-bin of Macau, human and sex trafficking, bribery, corruption, money laundering, spies, and, if they are to be believed, naive UN officials hiding behind their laissez-passer passports who knew nothing about all of this but were happy to take the money for a five-star conference and a trip to China (and a free iPad). How the UN ended up in this quagmire leaves many puzzled and perplexed. Then there is a so-called “21st century” media service that really is a “conduit” for bribery and money laundering (and possibly fake news), and who to this day is still reporting from the United Nations.
High-Level Multi-Stakeholders Strategy Forum 25-26 August 2015, Grand Hyatt Hotel, Macau, China.
May 2018 saw the ending of one chapter in the ongoing corruption saga surrounding the executives of South-South News and their alleged bribery and money laundering conduit targeting the United Nations (UN). On 11 May 2018 Ng Lap Seng was sentenced to 4 years in prison for being the ring leader of an elaborate, multi-year, multinational scheme to bribe UN officials and launder money into the United States.
The US Attorney for the Southern District of New York at the time, Preet Bharara, released a flowchart showing how the alleged bribery scheme targeting the United Nations worked. A series of court trials followed for the various co-conspirators, including senior executives and board members for South-South News, culminating in the 27 July 2017 conviction of the alleged ring leader of the scheme, Macau casino billionaire Ng Lap Seng, on six counts “for his role in a scheme to bribe United Nations ambassadors to obtain support to build a conference center in Macau that would host, among other events, the annual United Nations Global South-South Development Expo“. He used the news service South-South News as a “conduit for bribery and money laundering” at the United Nations, according to the FBI, something admitted to by various co-conspirators in court and under oath.
Logo for New York-based, Ng Lap Seng-funded “South-South News”. The logo mimics the UN’s logo, deploying the laurel wreath used in the UN’s logo and in its centre, the world map. As disclosed by the FBI and the US Department of Justice, this was meant to deceive people into believing South-South News had an official association with the United Nations. As the FBI stated in 2015, South-South News was a “conduit” for bribery and money laundering at the United Nations. Ng Lap Seng had repeatedly tried to bribe the highest levels of the US Government in the 1990s, before successfully bribing the highest levels of the United Nations. Ng Lap Seng was on an Interpol Watch List and was called a “kingpin of the international slave prostitution trade” in a report.
“Corruption at any level of government undermines the rule of law and cannot be tolerated. But corruption is especially corrosive when it occurs at an international body like the United Nations. By paying bribes to two U.N. ambassadors to advance his interest in obtaining formal support for the Macau conference center project, Ng Lap Seng tried to manipulate the functions of the United Nations. The sentence handed down today demonstrates that those who engage in corruption will pay a heavy price and serves as a reminder that no one stands above the law.”, Acting Assistant General John P. Cronan, May 2018In March 2015 UNOSSC Director Yiping Zhou signed a cooperation agreement with the Sun Kian Ip Group of Macau to “set up a multi-partner trust fund to promote the cause of South-South Cooperation” (https://usanewsonline.com/2015/03/07/south-south-cooperation-and-chinese-sun-kian-ip-group-signs-cooperation-agreement/). In April 2015 UNOSSC Deputy Director Inyang Ebong-Harstrup met with the Chairman of the Sun Kian Ip Group, Ng Lap Seng, in Macau (https://www.wsj.com/articles/u-n-team-had-cleared-group-at-center-of-bribery-case-1444432560).
The “21st century” media service South-South News (which still exists) was founded in 2010 by Ng Lap Seng and Ambassador Francis Lorenzo with US $12 million.
Source: OFFSHORE LEAKS DATABASE by The International Consortium of Investigative Journalists.
According to the FBI, Seng did this with the objective of bribing UN officials, laundering money into the United States – bringing US $4.5 million into the US in cash over a period of two years – and lobbying for the building of a new UN facility in Macau for the annual Global South-South Development Expo (GSSD Expo) – a “Geneva of Asia”. The new facility would cost US $3 billion and be built by Ng Lap Seng’s construction company.
One of the co-conspirators in the scheme was former UN General Assembly President John Ashe. He died due to a weightlifting accident a day before he had to testify in a New York court room.
“One of his associates, Ng Lap Seng of the Macau-based San Kin Yip company, has since been identified as the financier of Charlie Trie, who in turn has been indicted in US courts for his involvement in the donor scandal. Both Ng and Wo are allegedly close to local Triads as well as mainland Chinese commercial interests.”
“Cyber-security experts have unveiled one of the biggest computer hacking campaigns to date, releasing a list of 72 organisations whose networks were attacked over a five-year period. Victims include the UN and several governments.
REUTERS – Security experts have discovered the biggest series of cyber attacks to date, involving the infiltration of the networks of 72 organizations including the United Nations, governments and companies around the world. …
In the case of the United Nations, the hackers broke into the computer system of its secretariat in Geneva in 2008, hid there for nearly two years, and quietly combed through reams of secret data, according to McAfee.”
The South-South Awards were attended by Francis Lorenzo, President of South-South News, Yiping Zhou, Director of the UNDP Special Unit for South-South Cooperation, and H.E. Amb. John Ashe, President of the High Level Committee on South-South Cooperation (13 Sept. 2012).
November
“Adam Rogers, Coordinator of the World Alliance of Cities Against Poverty, accepts an award from Yiping Zhou, Director of the UN Office for South-South Cooperation, for WACAP’s ‘Special contribution'”. (Vienna, November 26, 2012)
2013
November
From left to right: Achim Steiner, Head of UNEP, John Ashe, President of the UN General Assembly, Yiping Zhou, Director, UNOSSC.
From left to right: John Ashe, President of the UN General Assembly, Achim Steiner, Head of UNEP, Yiping Zhou, Director of UNOSSC. In 2015 John Ashe was arrested by the FBI and “charged with tax fraud for failure to report or pay income taxes on the over $1 million he received in bribes in 2013 and 2014.” In 2006, the U.S. Senate Committee on Homeland Security and Governmental Affairs heard testimony alleging the awarding of a prize to the Secretary-General secured the post of Head of UNEP. In 2016, a UNDP audit rated the UNOSSC headed by Yiping Zhou “unsatisfactory”. In November 2013 “More than $450 million was pledged between investors, green businesses, governments and other parties at the 2013 Global South-South Development Expo as hundreds of participants exchanged Southern-grown ideas, solutions and technologies throughout the week-long event.” announced jointly by Ashe, Steiner and Zhou in Nairobi, Kenya.
Diplomatic cables released by Wikileaks claimed that the casino and hospitality sector accounted for over 50% of Macau’s GDP but that, “its phenomenal success is based on a formula that facilitates if not encourages money laundering.”
UN General Assembly (UNGA) President John Ashe was arrested by the FBI in New York in 2015 and “charged with tax fraud for failure to report or pay income taxes on the over $1 million he received in bribes in 2013 and 2014.”
BanglaTimes: “South-South Cooperation and Chinese Sun Kian Ip Group signs cooperation agreement
Bapsnews: UN South-South Cooperation signed an agreement here yesterday with the Sun Kian Ip Group, a Macao-based Chinese business conglomerate to set up a multi-partner trust fund to promote the cause of South-South Cooperation.
Permanent Representative of Bangladesh to the United Nations and President of the High-level Committee on South-South Cooperation Dr. A. K. Abdul Momen, UN Secretary General’s Envoy and Director of the UN Office for South-South Cooperation Mr. Yiping Zhou and Chairman of the Sun Kian Ip Group Mr. Ng Lap Seng signed the agreement.
According to the agreement, the Sun Kian Ip Group will contribute five million US dollars for three consecutive years to the UN multi-partner trust fund that will be set up by the UN Office for South-South Cooperation.
South-South cooperation is a broad framework for collaboration among countries of the South in the political, economic, social, cultural, environmental and technical domains. Through the bilateral, regional and sub-regional cooperation efforts, the developing countries share knowledge, skills, expertise and resources to meet their development goals.
Bangladesh, as the present President of the UN High Level Committee on South-South Cooperation, is hosting a high level ministerial meeting on South-South and Triangular Cooperation in Dhaka from 17-18 May 2015. The basic objective of the Dhaka meeting is to have a brainstorming session both from the South and the North on South-South and Triangular cooperation to articulate resource mobilization issues to help implement the post-2015 development agenda in the South.
While discussing with Dr. A. K. Abdul Momen during agreement signing, Mr. Ng Lap Seng, also a member of the National Committee of the Chinese People’s Consultative Committee, has expressed his eagerness to invest in Bangladesh in housing, road and bridge construction projects under PPP program.”
“Macau, SAR, China: 25 August – A High-level Multi-stakeholders Strategy Forum on South-South cooperation for sustainable development got off to a strong start Tuesday, with more than 200 delegates, from 50+ countries. The two-day Forum began with an opening ceremony featuring distinguished and powerful champions of South-South cooperation.
“We have seen a substantial global reduction in the number of poor people living in extreme poverty,” said Prime Minister Roosevelt Skerrit, of Dominica. “However, despite these gains, much more needs to be done. I wholeheartedly believe the path toward the kind of sustainable solutions we need lies through increase global support for south-south cooperation.”
United Nations Secretary-General Ban Ki-moon in his message to the Forum, said, “It is clear that every country of the South has something of value to bring to the table, and that South-South and triangular cooperation will be crucial to ensuring the achievement of the sustainable development goals, shared prosperity and a life of dignity for all, where no one is left behind.”
This Strategy Forum is a timely opportunity to “review, consolidate, and enhance existing instruments and institutional arrangements,” said Ambassador Denis Antoine of Grenada, on behalf of Sam Kutesa of Uganda, President of the 69th Session of the UN General Assembly. “We need to build a more self-sustaining global South-South support architecture that addresses global and regional challenges. As we seek to strengthen support for existing initiatives, it is important to ensure that they are inclusive and their benefits and impacts are equitable.”
Under the leadership of Ambassador Abul Kalam Abdul Momen of Bangladesh, President of the General Assembly High-level Committee on South-South Cooperation, participants reviewed and strategically aligned existing instruments and innovative new approaches with diverse institutional partnerships and networks toward building an institutional alliance of the Global South to address global and regional challenges.
Despite the strong performance of many developing countries, progress across the South has been uneven. Extreme poverty, rampant inequality, malnutrition and vulnerability to climate and weather-related shocks persist.
According to the Multidimensional Poverty Index launched by UNDP this year, 2.2 billion people still live in abject of poverty. About 1.4 billion people, the majority of whom live in the Global South, still have no reliable electricity, 900 million do not have access to clean water and 2.6 billion do not have adequate sanitation.
The High-level Multi-stakeholders Strategy Forum aims to share experiences, perspectives and practical approaches to supporting the Global South to develop its own long-term vision for South-South cooperation and a global institutional arrangement as envisioned by the South Summits.
The outcome of the Forum will comprise a meaningful contribution toward the implementation of the emerging Post-2015 sustainable development goals (SDGs).
The Strategy Forum will also serve as an immediate follow-up to the High-level Meeting on South-South and Triangular Cooperation in the Post-2015 Development Agenda: Financing for Development in the South and Technology Transfer which was held from 17-18 May 2015, in Dhaka, Bangladesh.
Contact information
For more information including a complete list of speakers: http://www.unossc.org/ Media Contacts: Adam Rogers, UNOSSC Geneva: adam.rogers@undp.org, mobile +41 79 849 0679; or Mithre J. Sandrasagra, UNOSSC New York: mithre.sandrasagra@undp.org, mobile +1 646 391 7834″
“US authorities charged a former president of the United Nations General Assembly, a billionaire Macao real estate developer and four others on Tuesday for engaging in a wide-ranging corruption scheme.
John Ashe, a former UN ambassador from Antigua and Barbuda who was general assembly president from 2013 to 2014, was accused in a complaint filed in federal court in New York of taking more than $1.3 million in bribes from businessmen, including developer Ng Lap Seng.”
“The United Nations said Wednesday its office promoting cooperation between developing countries is reviewing a USD1.5 million donation from a foundation controlled by a Macau billionaire who has been linked to an alleged bribery case involving former U.N. General Assembly president John Ashe.
U.N. spokesman Stephane Dujarric said the United Nations Office for South-South Cooperation is undertaking “a very close review” of its relationship with the Sun Kian IP Group Foundation, whose leader Ng Lap Seng has been charged with lying about plans for $4.5 million brought into the United States over several years aboard private jets. Dujarric said the office will look “as deeply as possible into the money, where it went and what it was used for.”
Ashe, a former U.N. ambassador from Antigua and Barbuda who served in the largely ceremonial post as head of the 193-nation assembly from September 2013 to September 2014, faces tax fraud charges in what authorities call a conspiracy with five others including Ng.
The Office for South-South Cooperation said in a statement to The Associated Press late Wednesday that “all elements” of the foundation’s partnership with the office “are currently under review.” It said the $1.5 million, together with support from national governments, U.N. agencies, non-governmental organizations and foundations, was used to organize conferences on South-South cooperation in Bangladesh in May 2015 and in Macau in August 2015.
In addition, the office said the money is being used to support preparations for a ministerial-level South-South Conference on Science and Technology and a summit of the Group of 77 developing countries on South-South Cooperation to be held in 2016. It said money is also going to support the World Alliance of Cities Against Poverty and for a South-South technology exchange.
“The disbursement of funding on these initiatives was carried out in full compliance with U.N. standards and guidelines,” the office said. “All disbursed funds were tracked and accounted for, and there is no evidence that any funds received… were misdirected or misappropriated.”
Dujarric responded to a question asking what the United Nations is doing right now in terms of launching a separate investigation saying “we are continuing to study the complaint.” Edith M. Lederer, AP”
“PARTNER DENIES KNOWLEDGE OF CENTER
William Kuan Vai Lam, a business partner to Ng Lap Seng, has denied any knowledge of the reported “South-South” U.N. –sponsored conference center project in Macau. Kuan, a member of the board of directors of the SKY group, attended a phone-in-program on TDM’s Chinese-language radio channel, and said that the group’s projects would be unaffected by Ng’s arrest. “I have never heard whether or not Macau is going to have a new conference center. Is it likely that a [U.N.] conference center will be built in Macau just because of some work [someone] supposedly did for the United Nations?” Kuan asked. He then went on to explain that Ng’s son, Ng Kei Nin, is the company’s board chairman, and therefore the SKY group is unaffected by the case and detention, especially since the elder Ng “has not directly participated in the company’s operations for the past few years.””
“A federal investigation has begun regarding allegations that Ng Lap Seng bribed U.N. officials. The allegations are part of a larger investigation into bribery by Chinese individuals. Under the investigation, former United Nations General Assembly President John Ashe was arrested.
Mr Ashe is being accused of accepting more than USD1 million in bribes from Ng Lap Seng and other businesspeople. Prosecutors say Ashe accepted payoffs from developer Ng and an associate to help convince the international body to build a multibillion-dollar conference center in Macau.
In a separate scheme, Ashe took bribes to promote Chinese business in Antigua. Ashe also served as the Caribbean country’s representative to the UN. As part of the alleged scheme, the promoters paid to have Antigua’s prime minister flown to the U.S. to accept an award, prosecutors said.
The investigation is being led by the office of Preet Bharara, a U.S. attorney based in Manhattan, along with the FBI.
Ng Lap Seng, who also goes by the name David Ng, is the chairman of the Sun Kian Ip Group, a privately held company largely based in Macau (where it is building the large-scale residential development Windsor Arch) that has a foundation arm in New York City. Mr Ng is also a member of the Chinese People’s Political Consultative Conference (CPPCC) as well as a member of Macau’s Economic Development Committee. According to Bloomberg, he has a personal net worth of about USD1.8 billion.
Both individually and through his foundation (the Sun Kian Ip Group Foundation), Ng Lap Seng has worked with the United Nations Office for South-South Cooperation, an official arm of the U.N. that focuses on partnerships among developing countries.
In August, the U.N. department sponsored a forum on “South-South Cooperation for Sustainable Development” in Macau. More than 200 delegates from 50 countries took part in the event, where the majority argued for the creation of a permanent south-south office in Macau. According to a Wall Street Journal report, public documents, property records and website domain records “show a network of connections between Mr Ng’s foundation and other organizations focused on the developing world as well as the U.N.” It also revealed that based on a search of public records, Mr Ng’s foundation is not registered with major foundation databases, nor does it appear to have public tax filings.
Alex Spiro, a lawyer for Ng, said that his team’s legal stance is that his client has “committed no crime”. Another lawyer for Ng, Kevin Tung, claimed last week that he was not aware of any connection between Mr Ng’s current case and the U.N.
Ng, a 68-year-old Macau real estate developer and billionaire, was detained in New York in September after he failed to comply with U.S. prosecutors in their questions pertaining to an overseas bribery investigation.
He has been held, along with his assistant Jeff C. Yin, in a Manhattan federal jail since their arrest on Sept. 19 on suspicion of lying about the intentions of using the USD4.5 million brought into the U.S. between July 2013 and September 2015. Ng declared that the money was for buying art, antiques or real estate, or would be used for gambling. Ng and his assistant have each been charged with one count of conspiracy. Ng’s name came to light earlier this year as part of a lawsuit against Sheldon Adelson, the 82-year-old billionaire and chairman of Las Vegas Sands Corp. Adelson claimed not to know Ng, and to have had no dealings with him. MDT/Agencies
UN CONNECTIONS DELETED ON WEBSITE
The Sun Kian Ip Group Foundation website was established in August. Last week, the WSJ contacted the person whose email account registered Ng Lap Seng’s foundation’s website and asked about the arrest. After the contact was made, the website began to erase text, contact information and photographs of foundation events featuring U.N. officials. The website designer Christian Batres told the WSJ he had taken pages down while “all this stuff is going on” because he hadn’t communicated with Mr Ng about the best way to proceed.
NG’S WOULD BE LEGACY: A UN CENTER IN MACAU
According to court documents, Ashe used his position to push the U.N. to promote a conference center in Macau being developed by Ng. The UN Macau Conference Center was to be Ng’s legacy and would function as a sort of satellite operation for the world body, according to prosecutors. Some of the bribe money was allegedly used to pay for Ashe’s family vacation and to construct a basketball court at his home in Dobbs Ferry, New York. He opened two bank accounts to receive the funds and then underreported his income by more than USD1.2 million, officials said. The businesspeople flew Ashe, his wife and their two children first-class to New Orleans and put the family up in an $850-a-night hotel room. In all, six people, including another diplomat, Francis Lorenzo from the Dominican Republic, were ensnared in the probe.”
“UNITED NATIONS – Secretary-General Ban Ki-moon ordered an audit Thursday of two foundations whose leaders are linked to an alleged bribery case involving former U.N. General Assembly president John Ashe.
One foundation donated over $1.5 million to the U.N. office promoting cooperation between developing countries and the other’s mission is to support new U.N. development goals.
U.N. spokesman Stephane Dujarric announced the audit of the Sun Kian IP Group Foundation headed by Macau billionaire Ng Lap Seng and the Global Sustainability Foundation whose Chinese-born CEO Sheri Yan served as adviser to Ashe.
A U.S. prosecutor charged Tuesday that Ashe accepted over $1 million in bribes from Ng and other businesspeople including Yan to pave the way for lucrative investments.”
“Ng is charged with paying $500,000 in bribes to former United Nations diplomat John W. Ashe, primarily to get him to push for the construction of a “multibillion dollar” U.N. expo center in Macau for the benefit of Ng’s Sun Kian Ip Group.”
“Statements and briefs filed by the prosecutors indicate Ng’s financial activities in the U.S. surged this year in the weeks before and after an Aug. 25-26 U.N. conference in Macau at which some 200 delegates endorsed the construction of a “South-South Expo” center in the city.”
“Ashe played a prominent role at the Macau meeting both as chairman of the U.N. South-South Steering Committee for Sustainable Development and as co-chairman of Ng’s Sun Kian Ip Group Foundation, which sponsored the event.”
“Francis Lorenzo, who has been charged with acting as a middleman for Ng’s alleged bribes, played a similar range of roles at the Macau meeting. He was there as executive president of the South-South steering committee and the International Organization for South-South Cooperation, president of the Sun Kian Ip Group Foundation and deputy U.N. ambassador for the Dominican Republic. Around 20 U.N. ambassadors attended the meeting.”
“The Sun Kian Ip Group Foundation donated $1.5 million to the U.N. Office for South-South Cooperation to help finance the Macau meeting and another one held in Dhaka in May; the foundation earlier this year offered the U.N. office a further $13.5 million but U.N. officials have said that will not be accepted as the organization has launched multiple reviews of its ties to the foundation following the arrests of Ng and Ashe.”
“Local billionaire Ng Lap Seng made use of five non-government organisations (NGOs) which are all affiliated to his real estate investment firm Sun Kian Ip Group to interact with six departments of the United Nations in various ways – such as sponsoring their events and funding staff travel – discloses the latest published internal audit report by the Office of Internal Oversight Service (OIOS) of the United Nations (UN).
The internal audit report, which was undertaken at the request of the Secretary-General of the UN and was released over the weekend, presents evidence that the local businessman’s attempts to curry favour with the UN could date back to 2008, when one of his NGOs was listed as a participant in the organisation’s Global Compact initiative.
According to OIOS, the five NGOs that Ng was using to interact with UN bodies are the Global Sustainability Foundation, International Organisation for South-South Co-operation, World Harmony Foundation, South-South News and Sun Kian Ip Group Foundation.”
“The UN audit body stated in the report that Sun Kian Ip Group had offered iPads to all participants for a co-sponsored event titled ‘High Level Multi Stakeholder Strategy Forum on South-South and Triangular Co-operation’ in the Special Administrative Region last August.
The local developer contributed US$1.5 million (MOP12 million) to the United Nations Development Programme (UNDP) for the event, which was attended by a number of UN Secretariat staff, OIOS said.
The report reads that the proffered iPads all had 64GB capacity and were engraved with the logo of the organisers on the back.
‘They received the iPads at the registration desk upon arrival, where they were informed that the forum was a ‘paperless event’; all documents relating to its meetings or presentations had been pre-loaded in the device for their use,’ OIOS wrote, adding that ‘there was no attempt by the organisers to take back the iPads’ when the event was concluded.
According to the audit department, three UN staff members who attended the forum only handed over the devices after the commencement of the audit. In particular, one from the Global Compact Office stated to the audit body that he kept the iPad for himself.”
“The UN audit also found that Ng’s self-owned news outlet South-South News had funded travel for a staff member of the UN Department for General Assembly and Conference Management for two seminars in Hong Kong and Macau last April and August, respectively. The two seminars were both on the topic of ‘South-South Co-operation’.
Another staff member of the United Nations Human Settlements Programme (UN-Habitat) was funded by the news company to participate in a high-level meeting in Hong Kong in April 2012. The audit report stated that the UN-Habitat later signed a memorandum with South-South News as a media partner for co-operation on the ‘World Urban Campaign’ in July 2012.
South-South News had actually been accorded media accreditation and provided office space in the UN secretariat by the UN Department of Public Information since 2010, the report claimed.”
“Recent leaks from the Panama Papers have disclosed that such a company of the local businessman was established in the British Virgin Islands in May 2010, indicating the news outlet had sponsored UN events on at least three occasions.”
“In the report, OIOS highly criticised the lack of due diligence checks by UN departments in selecting their partners, allowing the organisation to be involved with parties ‘whose interests may be at odds with those of the UN’.
‘Various resolutions of the General Assembly have recognised the importance of developing partnerships with the private sectors, NGOs and civil society… However, engaging in partnerships requires that a robust due diligence process is established and consistently applied to ensure that the attendant risks are mitigated,’ the audit body said.
‘The above instances of non-compliance with due diligence requirements exposed the organisation to the risk that it could get involved with external parties whose interests may be at odds with those of the United Nations – particularly its integrity, independence and impartiality,’ it concluded.”
“Ng Lap Seng, Macau businessman charged by US authorities with bribing former United Nations leaders – Owned a BVI firm that ran South-South News, which had been granted the right to be stationed in the UN headquarters despite its lack of journalistic track record.”
“Internal controls, government and risk-management processes either not established or not functioning well, audit of Office for South-South Cooperation found.”
“In the report, OIOS highly criticised the lack of due diligence checks by UN departments in selecting their partners, allowing the organisation to be involved with parties ‘whose interests may be at odds with those of the UN’.
‘Various resolutions of the General Assembly have recognised the importance of developing partnerships with the private sectors, NGOs and civil society… However, engaging in partnerships requires that a robust due diligence process is established and consistently applied to ensure that the attendant risks are mitigated,’ the audit body said.
‘The above instances of non-compliance with due diligence requirements exposed the organisation to the risk that it could get involved with external parties whose interests may be at odds with those of the United Nations – particularly its integrity, independence and impartiality,’ it concluded.”
The Audit makes 16 recommendations with the objective of improving UNOSSC’s effectiveness in the areas of: governance; programme and project activities; and operations. Among the recommendations are that UNOSSC should ‘work with UNDP and other partners on clarifying its accountability and reporting lines.’
UNOSSC has initiated this dialogue in line with the management action plan outlined in the Audit. Based on two of the recommendations, UNDP has taken steps to strengthen its oversight of UNOSSC, pertaining specifically to human resources and assessment processes. Both these recommendations have been implemented in line with the management action plan outlined in the Audit. As a member of the International Aid Transparency Initiative (IATI), UNDP takes performance effectiveness, accountability and transparency issues with utmost seriousness and will continue to ensure the highest standards are met in these areas.”
Statement Concerning the United Nations Office for South-South Cooperation (UNOSSC), May 5, 2016.
“The initial reports said the cause of death was a heart attack. But later reports said it was “traumatic asphyxia with laryngeal cartilage fractures” after dropping a barbell on his neck, according to the Westchester County Medical Examiner’s office.
When I first heard the news that Ashe had died, I thought about the stress of uncertainty in his life. He was facing a two count indictment on tax evasion charges, followed by guilty pleas of other conspirators.
The DOJ was reportedly contemplating a superseding indictment based on those guilty pleas.
Pressure was building.
Perhaps Ashe was also working on a plea deal that might have been set at the status hearing on June 27.
Meanwhile the court had to appoint an attorney for Ashe. His former lawyer hadn’t been paid and asked to be dismissed. The judge appointed a new lawyer under the Criminal Justice Act.
“DHARAMSALA, July 8: United States has raised suspicion over China’s alleged involvement in bribing a news outlet focused on United Nations to push positive stories about China.
Chinese officials were involved in developing South-South News, a New York-based English language media outfit focused on the U.N. and development issues, according to court papers filed by federal prosecutors in Manhattan, reports Reuters.com July 7.
Prosecutors have claimed Macau billionaire real estate developer Ng Lap Seng, the founder of South-South News has funneled a portion of $500,000 in bribes he paid to former U.N. General Assembly President John Ashe, the report adds.”
“The former head of the Global Sustainability Foundation has been jailed after admitting passing bribes to a former UN General Assembly president. …
“Sheri Yan, Global Sustainability Foundation’s former chief executive, was sentenced on Friday by US District Judge Vernon Broderick in Manhattan after pleading guilty in January to passing bribes to John Ashe, the former General Assembly president.
Broderick, who also fined her $US12,500 ($A16,650) and ordered her to forfeit $US300,000, said that because of her crimes, “there was substantial damage done to the UN itself and the image of the UN“.
“There’s no question this crime was a serious offence,” he said.”
US District Judge Vernon Broderick: “there was substantial damage done to the UN itself and the image of the UN”.
“Lorenzo testified Ng paid him up to $50,000 monthly to push the ambitious multibillion-dollar project along and funneled another $300,000 to former U.N. General Assembly President John Ashe, who was charged in the case before he died last year in an accident at home.
Over several days, Assistant U.S. Attorney Douglas Zolkind elicited from Lorenzo an unsavory depiction of the ease with which Lorenzo and Ashe accepted and sometimes solicited tens of thousands of dollars to supplement modest salaries as ambassadors.
Within months of meeting Ng in late 2009, Lorenzo testified, he agreed to supplement his $72,000 salary at the U.N. with $20,000 a month as president of Ng’s new not-for-profit, South South News.
“Did you have any experience in media or in news reporting?” Zolkind asked.
Ng Lap Seng, a Chinese billionaire who wanted to build a U.N. facility in China that would be as big as the one in New York, was convicted of bribery, conspiracy and money laundering charges on Thursday.
“She said the 69-year-old Ng paid millions of dollars to two U.N. ambassadors over a five-year period to clear away red tape so he could build a conference center in Macau that would be the “Geneva of Asia,” where tens of thousands of people would spend money at his hotel, a marina, a condominium complex, a heliport and a shopping center.
Echenberg said it was a project that would bring Ng and his family “fame and more fortune.”
“Brick by brick, bribe by bribe, the defendant built the path that he thought would build his legacy,” she said.”
“The political endeavours of Macau tycoon Ng Lap Seng over the years have seen his business empire grow across the continents, but at the ultimate price – behind bars.”
“The trial evidence showed that Ng bribed Ambassador Ashe and Ambassador Lorenzo (together, the “Ambassadors”) in exchange for their agreement to use their official positions to advance Ng’s interest in obtaining formal UN support for the Macau Conference Center. As the evidence demonstrated at trial, Ng paid the Ambassadors in a variety of forms. For example, Ng appointed Ambassador Lorenzo as the President of South-South News, a New York-based organization — funded by Ng — which described itself as a media platform dedicated to advancing the implementation of the UN’s Millennium Development Goals, a set of philanthropic goals. Ng provided bribe payments to Ambassador Lorenzo through South-South News by transmitting payments from Macau to a company in the Dominican Republic affiliated with Ambassador Lorenzo’s brother (the “Dominican Company”). Through South-South News, Ng also made payments to Ambassador Ashe, including to Ambassador Ashe’s wife, who was paid in her capacity as a “consultant” to South-South News, and to an account that Ambassador Ashe had established, purportedly to raise money for his role as President of UNGA.”
“Finally, the S5 Indictment alleged that because of Ng’s bribes, “UNOSSC did not hold a UNOSSC Expo in 2015. Instead, UNOSSC held a ‘forum’ in Macau, China, co-hosted by a foundation in the name of the Macau Real Estate Development Company, in or about late August 2015.”
“The Government identified two specific acts that the Ambassadors obtained from other UN officials: (1) a letter of support for the Macau Conference Center signed by Yiping Zhou (“Zhou”), the then-Director of UNOSSC (together with other letters of support signed by Zhou, the “UNOSSC Support Letters”); and (2) a pro bono agreement with the UNOSSC that identified a foundation associated with Ng’s company as being involved in the next UNOSSC Expo (the “Pro Bono Agreement”). (Id. at 6-7.) Specifically, the Government stated:
In an effort to further [Ng’s] objectives—and to avoid losing the payments that they had been receiving from [Ng]—the Ambassadors pressured and advised other UN officials and diplomats to support the Macau Conference Center. In particular, the defendant wanted the support of UNOSSC, which was the UN office principally responsible for matters involving south-south cooperation, and which ran the annual UNOSSC Expo that the defendant wanted to relocate permanently to the Macau Conference Center. For example, in or about late 2013 and early 2014, the Ambassadors, acting in their official capacities, caused the then-director of UNOSSC to sign a letter expressing his office’s support for the Macau Conference Center. [Ng] used this letter—like he used the revised UN Document—to demonstrate that the Macau Conference Center project had the UN’s support.”
“The defense claims that it “learned for the first time that the government contended that the UNOSSC materials [the UNOSSC Support Letters and the Pro Bono Agreement] and Mr. Yiping Zhou were part of the bribery allegations during the [Government’s] opening statement.”
Former UNOSSC Director Yiping Zhou is pictured left, beside former Deputy Director Inyang Ebong-Harstrup.
“Charming and gregarious, Sheri Yan was once known for hosting soirees around the world where diplomats mingled with millionaire business executives and socialites. But her life changed forever in October 2015, when she was arrested by FBI agents in New York and accused of bribing the former president of the United Nations General Assembly, John Ashe.”
“In 2012, the woman who had left China almost two decades earlier was preparing to launch her own organisation to help the UN reduce global poverty and aid development.
The Global Sustainability Foundation would, according to Yan’s pitch, be backed by ‘political leaders, successful business people, and members of the world’s best-known families.’”
“When Ng set up his UN-affiliated NGO South-South News, the FBI again found evidence that the Communist Party was influencing the organisation and determining the agenda it would push as it hosted conferences and published news stories.”
“In August 2013, South South News, a U.N.-accredited nonprofit bankrolled by Macau casino tycoon Ng Lap Seng, began depositing $20,000 each month into Ashe’s bank account. Ng was already on the radar of U.S. authorities: In the 1990s, Senate investigators identified him as the likely conduit of hundreds of thousands of dollars in illegal donations to the Democratic National Committee and 1996 Clinton re-election campaign.”
“Now almost two decades later, Ng was using South-South News, a small New York-based media outlet that covered development and U.N.-related news, as a front to pay Ashe to get his support for a project to build a U.N. conference center in Macau, according to U.S. prosecutors. In addition to enhancing China’s power and prestige, the establishment of a U.N. conference center in Macau would present China with significant intelligence-gathering and recruitment opportunities, said one former senior U.S. intelligence official.”
“The center never materialized, but court filings say that Ng was secretly being investigated as part of a counter-espionage probe of a suspected Chinese spy, and business associate of Ng’s, named Qin Fei; Ng paid to renovate Qin’s $10 million mansion on New York’s Long Island. The mansion was being converted into a conference center for South-South News, Ng’s U.N. nonprofit, said Ng’s lawyer, Hugh Mo, who denies his client had any connection with Chinese intelligence (though Qin, Mo said, was being wiretapped under the Foreign Intelligence Surveillance Act).”
“Yan, like Ng Lap Seng, created her own U.N. nonprofit, the Global Sustainability Foundation. And like South-South News, it also received U.N. accreditation and championed the U.N’s millennium goals, an ambitious set of voluntary, country-by-country targets aimed at reducing global poverty. Yan also arranged for bribes to Ashe to benefit three other Chinese businessmen, say U.S. court documents.”
2019
March
Monday, March 25, 2019: Patrick Ho, Former Head Of Organization Backed By Chinese Energy Conglomerate, Sentenced To 3 Years In Prison For International Bribery And Money Laundering Offenses.In September 2015 (the year the SDGs were launched) Patrick Ho donated a US $1 million “UN-CEFC Energy Grant” to We Care Solar.
“If there are no consequences for the [UN] agencies for failures like these … there will be more breaches.”
“About this investigation: While researching cybersecurity last November, we came across a confidential report about the UN. Networks and databases had been severely compromised – and almost no one we spoke to had heard about it. This article about that attack adds to The New Humanitarian’s previous coverage on humanitarian data. We look at how the UN got hacked and how it handled this breach, raising questions about the UN’s responsibilities in data protection and its diplomatic privileges.“
“Below is a complete list of renowned speakers at the Conference:
• Hj Mohd Rashid HASNON, Deputy Speaker of Parliament of Malaysia • Miwa KATO, Director of Operations in UNODC Headquarters Former UN Women Regional Director of Asia Pacific • Yiping ZHOU, Special Envoy and Special Advisor of the World Women Organization, Former Director of the United Nations Office of South-South Cooperation (UNOSSC), Former Special Envoy of the United Nations Secretary-General for South-South Cooperation”
“Law360 (March 17, 2021, 9:06 PM EDT) — A jailed Chinese real estate developer’s compassionate release over COVID-19 concerns will go ahead after a Manhattan federal judge on Wednesday rejected a last minute objection from prosecutors, who cited the defendant’s initial refusal to be vaccinated last month.
Ng Lap Seng’s four-year-sentence for allegedly bribing United Nations officials will be cut short after all following U.S. District Judge Vernon S. Broderick’s decision not to reverse his Monday order granting release. However, the 72-year-old Ng will remain in custody until he receives his second vaccine dose next week, the judge ruled.
“There’s a certain level of humanity in this situation I’ve decided to exercise and not put Mr. Ng through that sort of whipsaw effect,” the judge said at a telephone conference Wednesday afternoon. “This is a unique situation.”
Prosecutors raised the alarm Tuesday that Ng declined to be vaccinated in early February before changing his mind a few weeks later, arguing that Ng’s behavior “substantially diminishes any otherwise-applicable basis to be considered for early release in light of the pandemic.”
“Ng Lap Seng, a bribery convict who was granted early release from the U.S. prison, was confirmed to return to Macau on April 21 Wednesday, a source who wishes to stay anonymous told the Times.
The Times has contacted the Police Force today (Friday) and waiting for their confirmation about Ng’s current whereabouts.
Considering that Ng has returned to Macau from the U.S., he ought to have observed the mandatory quarantine in one of the designated facilities in Macau for 21 days, and self-health management measures for at least 7 days.
“He was chatting all the time, laughing and complaining all at the same time,” a guest, who had checked into the same quarantine hotel with Ng, revealed the matters to the Times.
Earlier on March 18 (Macau time), a U.S. District Judge Vernon Broderick mandated a permission for Ng to be early released from prison on compassionate grounds due to his deteriorating health.”
“SIDS have also shown critical leadership in the creation of the UN’s Sustainable Development Goals (SDGs).
“In 2014, SIDS helped lead the negotiations, ultimately creating what is known as the SAMOA Pathway, a blueprint to ensure priorities of SIDS were reflected in the final 17 SDGs.
“Before that, John William Ashe skillfully set the stage for the SDGs by working with larger countries to create a process for the SDGs that truly had global buy in.”
“China’s top anti-corruption watchdogs recently released a new anti-bribery Guideline designed to focus on multi-national corporations and individuals that pay bribes in China, as opposed to bribe recipients, the Chinese Communist Party’s traditional focus.”
“Recent decisions also highlight the DOJ’s global reach and the array of federal statutes at its disposal to prosecute bribery occurring entirely abroad. In particular, in United States v. Ng Lap Seng, the same court affirmed the FCPA conviction of a Chinese national and real estate developer for bribes paid to two United Nations ambassadors to induce the U.N. to use his convention center in Macau to host an annual U.N. convention.13”
“Le bureau de la Cooperation Sud-Sud l’a trouve tres ‘humble, tres heureux d’organiser une reunion et d’etre plus proche de l’ONU’, declare Inyang Ebong-Harstrup, une des membres de l’equipe.”
“… a group of Chinese citizens, belonging to the Tiger Head clan, at whose summit was Zhou Yiping.”
One Nation Under Blackmail – Vol. 2: The Sordid Union Between Intelligence and Organized Crime that Gave Rise to Jeffrey Epstein Vol. 2 · Volume 2 by Whitney Alyse Webb , 2022
“Spies and Lies by Alex Joske is a groundbreaking exposé of elite influence operations by China’s little-known Ministry of State Security. Revealing for the first time how the Chinese Communist Party has tasked its spies to deceive the world, it challenges the conventional account of China’s past, present and future.
Mere years ago, Western governments chose to cooperate with China in the hope that it would liberalize, setting aside concerns about human rights abuses, expansionism and espionage. But the axiom of China’s ‘peaceful rise’ has been fundamentally challenged by the Chinese Communist Party’s authoritarian behavior under Xi Jinping.
“On the basis of its audit results, OAI assigns an overall rating for the business unit audited. OAI uses four rating categories: “satisfactory”; “partially satisfactory/some improvement needed”; partially satisfactory/major improvement needed; and “unsatisfactory”. A definition of each audit rating is available below.”
Audit Ratings – Definition
“A rating of “satisfactory” means that the assessed governance arrangements, risk management practices and controls were adequately established and functioning well. Issues identified by the audit, if any, are unlikely to affect the achievement of the objectives of the audited entity/area.
A rating of “partially satisfactory/some improvement needed” means that the assessed governance arrangements, risk management practices and controls were generally established and functioning, but need some improvement. Issues identified by the audit do not significantly affect the achievement of the objectives of the audited entity/area.
A rating of “partially satisfactory/major improvement needed” means that the assessed governance arrangements, risk management practices and controls were established and functioning, but need major improvement. Issues identified by the audit could significantly affect the achievement of the objectives of the audited entity/area.
A rating of “unsatisfactory” means that the assessed governance arrangements, risk management practices and controls were either not adequately established or not functioning well. Issues identified by the audit could seriously compromise the achievement of the objectives of the audited entity/area.”
How to Report Corruption and Bribery at UNDP (United Nations Development Programme)
The Office of Audit and Investigations (OAI) “provides UNDP with effective independent and objective internal oversight that is designed to improve the effectiveness and efficiency of UNDP’s operations in achieving its development goals and objectives through the provision of internal audit and related advisory services, and investigation services.”
They can be directly emailed here: reportmisconduct@undp.org
Espionage: The practice of spying or use of spies, typically by governments to obtain political and military information.
FCPA: The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. (“FCPA”), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.
Sustainable Development Goals (SDGs): The Division for Sustainable Development Goals (DSDG) seeks to provide leadership and catalyse action in promoting and coordinating implementation of internationally agreed development goals, including the seventeen Sustainable Development Goals (SDGs).
UN: The United Nations is an international organization founded in 1945. It is currently made up of 193 Member States. The mission and work of the United Nations are guided by the purposes and principles contained in its founding Charter.
UNDP: United Nations Development Programme. On the ground in about 170 countries and territories, UNDP works to eradicate poverty while protecting the planet.
UN Global Compact: A call to companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals.
UN General Assembly: The General Assembly is one of the six main organs of the United Nations, the only one in which all Member States have equal representation: one nation, one vote. All 193 Member States of the United Nations are represented in this unique forum to discuss and work together on a wide array of international issues covered by the UN Charter, such as development, peace and security, international law, etc.
UNOSSC: United Nations Office for South-South Cooperation (formerly the Special Unit for South-South Cooperation). The United Nations Office for South-South Cooperation (UNOSSC) is a knowledge hub providing advisory and consulting services to all stakeholders on South-South and triangular cooperation. It enables developing countries to effectively face their development challenges and harness opportunities to address them.
Note: This blog post provides a summary of the unfolding corruption case that targeted the United Nations from 2010 and was revealed in 2015 by US authorities. It is offered as a resource for those interested in the role played by corruption in international development and international institutions, or who are interested in case law and the application of the Foreign Corrupt Practices Act. If anything, the case stands as a brazen act of criminality and corruption, and, with South-South News still based out of the United Nations and still functioning as a news service, maybe proof the UN has a long way to go to walk the talk on fighting corruption.
In future blog posts we will explore what the ongoing trials have revealed about this case and the United Nations and what lessons can be learned.
Update and Summary as of February 2020 | ‘2015 United Nations Bribery Scandal’
“We will be asking: is bribery business as usual at the UN?”, US Attorney Preet Bharara, October 2015
In autumn 2015 arrests by the FBI (Federal Bureau of Investigation) in New York (home of the United Nations headquarters) unveiled a multinational, multi-year scheme to launder money into the US and bribe United Nations (UN) officials, in particular to support the building of a new UN “Geneva of Asia” in Macau, China for the GSSD Expo (Global South-South Development Expo), an annual gathering organised by the UNOSSC (United Nations Office for South-South Cooperation).
“Corruption at any level of government undermines the rule of law and cannot be tolerated. But corruption is especially corrosive when it occurs at an international body like the United Nations. By paying bribes to two U.N. ambassadors to advance his interest in obtaining formal support for the Macau conference center project, Ng Lap Seng tried to manipulate the functions of the United Nations. The sentence handed down today demonstrates that those who engage in corruption will pay a heavy price and serves as a reminder that no one stands above the law.”, Acting Assistant General John P. Cronan, May 2018
The US Attorney for the Southern District of New York at the time, Preet Bharara, released a flowchart showing how the alleged bribery and money laundering scheme targeting the United Nations worked. A series of court trials followed (2015-2018) for the various co-conspirators, including senior executives and board members for South-South News (see below), culminating in the 27 July 2017 conviction of the ring leader of the scheme, Macau casino billionaire Ng Lap Seng, on six counts “for his role in a scheme to bribe United Nations ambassadors to obtain support to build a conference center in Macau that would host, among other events, the annual United Nations Global South-South Development Expo“. He used the news service South-South News as a “conduit for bribery and money laundering” at the United Nations, according to the FBI, something admitted to by various co-conspirators in court and under oath. On 11 May 2018 Ng Lap Seng was sentenced to 4 years in prison.
Two NGOs plus the office of the President of the United Nations General Assembly (UNGA) were used by the co-conspirators to perpetrate the scheme, according to court records and the Department of Justice (DOJ):
1) South-South News: According to the United States Department of Justice, the executives of New York-based South-South News used the “21st century media platform dedicated to covering the stories of global development from the United Nations, governments, the private sector, and civil society” as a “conduit” for bribery and money laundering at the United Nations. South-South News executives were arrested in autumn 2015, along with former UN General Assembly President John Ashe (who was charged with “Filing False Income Tax Returns”). South-South News (which still exists) was founded in 2010 by Ng Lap Seng and Ambassador Francis Lorenzo with US $12 million. According to the FBI, Seng did this with the objective of bribing UN officials, laundering money into the United States – bringing US $4.5 million into the US in cash over a period of two years – and lobbying for the building of a new UN facility in Macau for the annual Global South-South Development Expo (GSSD Expo) – a “Geneva of Asia”. The new facility would cost US $3 billion and be built by Ng Lap Seng’s construction company.
“The Government identified two specific acts that the Ambassadors obtained from other UN officials: (1) a letter of support for the Macau Conference Center signed by Yiping Zhou (“Zhou”), the then-Director of UNOSSC (together with other letters of support signed by Zhou, the “UNOSSC Support Letters”);”
“At various points during the trial, the Government presented evidence that the Ambassadors used their influence over Zhou to obtain the UNOSSC Support Letters and the Pro Bono Agreement. (See, e.g., Tr. 665:4-676:23, 764:10-766:25, 1217:18-1227:16, 1314:11-1316:23, 1345:14-1350:25.) During closing arguments, the Government argued, among other things, that Ng paid bribes to obtain the UNOSSC Support Letters and the Pro Bono Agreement. (See, e.g., Tr. 3934:18-23.) At no point during trial did defense counsel object to the UNOSSC Support Letters or the Pro Bono Agreement or to the Government’s reliance on those documents as evidence of official acts, nor did defense counsel request an adjournment to attempt to call Zhou or anyone else affiliated with the UNOSSC to testify.” (UNITED STATES OF AMERICA, v. NG LAP SENG, et al., United States District Court, S.D. New York. May 9, 2018.)
Executives of South-South News. Launched 2010.
2) Global Sustainability Foundation (GSDF): According to the United States Department of Justice, the executives of the Global Sustainability Foundation, whose mandate was “dedicated to supporting the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs)”, were arrested and charged “for paying more than $800,000 in bribes to John W. Ashe (“Ashe”), the late former Permanent Representative of Antigua and Barbuda (“Antigua”) to the United Nations (“UN”) and 68th President of the UN General Assembly. [Sheri] Yan pled guilty in January 2016, and was sentenced today by U.S. District Judge Vernon S. Broderick.”
U.S. Attorney Bharara stated: “As she admitted in court at her guilty plea, Shiwei [Sheri] Yan bribed the President of the UN General Assembly with hundreds of thousands of dollars to further private business interests. For her role in corrupting the United Nations, Yan will serve time in a federal prison.”
Sheri (Shiwei) Yan’s husband is Roger Uren, a former ASIO (Australian Security Intelligence Organisation) employee. Australia is part of the ‘Five Eyes’ intelligence sharing alliance, along with the United States, the UK, Canada and New Zealand.
UNGA President John Ashe said at the GSDF launch in 2014, “the Foundation is being launched at the ‘sunset of the MDGs era,’ and as the SDGs era approaches. He noted the difficulty in moving from eight goals and 18 targets as under the MDGs, to the 17 goals and 169 proposed for the SDGs, and said this is where the GSDF has an important role to play.”
Executives of the Global Sustainable Development Foundation (GSDF). Launched 2014 (one year before the UN’s launch of the Sustainable Development Goals in 2015, of which UNGA President John Ashe was a key negotiator).
South-South News Executives, Co-conspirators and Charges
Ng Lap Seng, Macau casino owner and founder and funder of South-South News: On 11 May 2018 Ng Lap Seng was sentenced to 4 years in prison for being the ring leader of an elaborate, multi-year, multinational scheme to bribe UN officials and launder money into the United States.
Francis Lorenzo, Deputy Permanent Representative to the UN for the Dominican Republic and co-founder of South-South News: Bribery. Admitted to his role in the bribery scheme but was spared prison because of his cooperation in providing testimony. He was ordered to do community service and to pay US $243,965 in restitution.
Global Sustainability Foundation (GSDF) Executives and Charges
Shiwei (Sheri) Yan, Founder, Vice Chair and CEO for the Global Sustainability Foundation (GSF) (http://sdg.iisd.org/news/global-sustainable-development-foundation-launched-at-un/), whose purpose was “dedicated to supporting the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs)”: Conspiracy to Commit Bribery. Sentenced to 20 months in prison.
Heidi Hong Park (Piao), Finance Director for the GSF: Conspiracy to Commit Bribery.
John Ashe, President of UNGA 68 and Honorary Chairman of GSDF: Filing False Income Tax Returns.
The SDG Knowledge Hub posted an “Editor’s Note” in 2018 stating “In October 2015, Sheri Yan, John Ashe and several other individuals were charged in connection with a multi-year scheme to pay bribes to Ashe. The payments were delivered in part in relation to Ashe’s role as Honorary Chairman of GSDF. In July 2016, Sheri Yan was sentenced in Manhattan federal court to 20 months in prison for paying more than $800,000 in bribes to Ashe. Ashe died before he was sentenced in the case.”
President of the UN General Assembly and Charges
John W. Ashe, President of UN General Assembly: Filing False Income Tax Returns
Macau: World Centre for Money Laundering, Sex Trafficking (Sources: UNODC and US Department of State)
According to the UNODC’s (United Nations Office on Drugs and Crime) Regional Representative Jeremy Douglas, “Macau has for a long time been seen as a place to launder money and for organized crime to do business, and while times and methods have changed it still [is] unfortunately seen this way by many,” he told Macau Business.
The money comes from drugs, counterfeit goods and medicines, people-smuggling, trafficking of wildlife and timber, and sex trafficking.
According to the United States Department of State Trafficking in Persons Report 2019, Macau is a centre for sex trafficking.
Ng Lap Seng’s Sun Kian Ip Group was barred from the UN’s Global Compact, according to The Wall Street Journal, and Seng was flagged up as a person not to do business with, including by Interpol, “The International Criminal Police Organization”. Despite this track record and multiple warning signs, both South-South News and the United Nations took money from Ng Lap Seng.
Ng Lap Seng, in a 2010 assessment by International Risk Ltd., was found to be “characterized in the media as a ‘Macau Crime Lord’ and kingpin of the international slave prostitution trade”. He is associated with the Wo On Lok triad (a triad believed by police to be heavily involved in global sex trafficking) (https://www.wsj.com/articles/SB888439204883313500).
Globalization in Mongolia: Cultural Evidence from the UB Post by Mei-hua Lan found Mongolia’s UB Post newspaper had numerous reports on the trafficking of women to work as prostitutes in Macau’s casinos, including against their will. Why senior UN officials Yiping Zhou, Inyang Ebong-Harstrup and Adam Rogers would be so interested in collaborating with a known sex trafficker has never been publicly disclosed by the United Nations. It does, however, seem to clash with the UN’s overall mandate and stated policies.
UNOSSC
In 2015 the United Nations Office for South-South Cooperation (UNOSSC) was headed by Director Yiping Zhou and Deputy Director Inyang Ebong-Harstrup. In 2016 an audit conducted by UNDP’s Office of Audit and Investigation (OAI) found it “unsatisfactory” – the lowest rating – “A rating of ‘unsatisfactory’ means that the assessed governance arrangements, risk management practices and controls were either not adequately established or not functioning well. Issues identified by the audit could seriously compromise the achievement of the objectives of the audited entity/area.” (https://www.undp.org/content/undp/en/home/presscenter/pressreleases/2016/05/05/statement-concerning-the-united-nations-office-for-south-south-cooperation.html).
The complexities of UN-associated media outlets receiving funding from wealthy benefactors is not isolated to South-South News. Is it okay to use UN themed or associated news services to launder money into the United States and/or to donate illegally obtained funds from the countries of the global South? Whilst US authorities do not think so (thus the many court cases and prosecutions), the UN itself has not been leading on exposing these activities. In fact, the UN continues to pump out messaging on anti-corruption and ethics in development when these activities are both unethical and illegal and occuring in its name and on its premises.
“Late in 2014, just over a month before its financial relationship with the United Nations was set to expire, the humanitarian news agency IRIN found a new benefactor.
The Hong Kong-based Jynwel Charitable Foundation seemed to appear out of thin air. It did so in the form of its founder and director, Jho Taek Low, a young Malaysian financier and member of Prime Minister Najib Razak’s inner circle. Low joined U.N. officials and IRIN’s management team at a U.N. press conference to announce a gift that would secure IRIN’s future: $25 million from Jynwel to the news agency, to be delivered to IRIN over 15 years. The donation allowed the well-regarded news outlet, whose future had been in doubt, to spin off from the U.N. and relaunch as an independent, nonprofit organization.
Known for hosting lavish parties, buying luxury real estate and collecting expensive works of art, Low, through the Jynwel Charitable Foundation, has reoriented his public image around global development’s social calendar and attracted attention as an emerging-market donor and partner to high-profile development groups.
Low’s foundation sponsored the Social Good Summit in 2014 and 2015 and has given away millions of dollars, including to the United Nations Foundation, Panthera — which works to save big cats — and Keep A Child Alive, the AIDS-fighting organization co-founded by pop star Alicia Keys.”
“DHARAMSALA, July 8: United States has raised suspicion over China’s alleged involvement in bribing a news outlet focused on United Nations to push positive stories about China.
Chinese officials were involved in developing South-South News, a New York-based English language media outfit focused on the U.N. and development issues, according to court papers filed by federal prosecutors in Manhattan, reports Reuters.com July 7.
Prosecutors have claimed Macau billionaire real estate developer Ng Lap Seng, the founder of South-South News has funneled a portion of $500,000 in bribes he paid to former U.N. General Assembly President John Ashe, the report adds.”
“The U.S. returned to Malaysia another $300 million that was recovered as part of the Justice Department’s forfeiture lawsuits targeting assets that fugitive financier Low Taek Jho and his associates bought with funds allegedly stolen from the country’s 1MDB investment fund.
With the latest repatriation, the U.S. has sent $600 million back to Malaysia as part of the continuing effort to seize and liquidate the assets, including real estate, business investments, art work and jewelry, that Low, commonly known as Jho Low, his family and his cronies acquired with the money they are accused of siphoning from the state fund after it was set up in 2009.”
“People suspected of acting as foreign agents have sought the assistance of U.S. lawyers — and in some cases, the same lawyer who has represented top Trump administration officials during the course of the Russian inquiry.
The big picture: The phenomenon underscores the web of lobbying, money and court cases that have resulted from the Chinese government’s efforts to influence U.S. decision-making.
Context: The U.S. government has been pursuing more investigations into Chinese government-directed operations to influence politics and institutions.
Driving the news: Hawaii-based consultant Nickie Mali Lum Davis recently pleaded guilty to illegally lobbying the Trump administration on behalf of the Chinese government.
Background: There’s a bit of family history here. Lum Davis’s parents, Gene and Nora Lum, pleaded guilty in 1997 to an illegal campaign fundraising scheme that benefited Democrats.
A 1998 Senate report identified a Macao billionaire named Ng Lap Seng as the source of hundreds of thousands of dollars that were illegally channeled to the Democratic National Convention as part of the same scandal. U.S. officials suspected at the time that Ng had “high-level” Chinese government connections and was “protected.”
In 2017, Ng was convicted in connection with a bribery and influence case at the United Nations. U.S. officials suspected that Ng’s main contact with Chinese intelligence was through a Chinese national named Qin Fei.
Abbe Lowell, a high-powered lawyer known for representing Jared Kushner and Ivanka Trump during the Russia inquiry, represented both Lum Davis in her recent case and also Qin Fei amid the UN bribery investigation.”
What is the FCPA? “The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. (“FCPA”), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.”
The Docket
Navigating the Foreign Corrupt Practices Act: The Increasing Cost of Overseas Bribery
“… corrupt payments to officers and employees of public international organizations are prohibited by the FCPA’s anti-bribery provisions. Public international organizations covered by the FCPA include, among others: the United Nations, International Monetary Fund, World Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development,Inter-American Development Bank,International Maritime Organizations, International Bank for Reconstruction and Development, International Finance Corporation, Multilateral Investment Guarantee Organization,Organization for African Unity,and the Organization of American States.” (Navigating the Foreign Corrupt Practices Act: The Increasing Cost of Overseas Bribery by Robert C. Blume and J. Taylor McConkie)
Instead of looking outward, perhaps the United Nations should look more inward as several Foreign Corrupt Practices Act enforcement actions … have involved U.N. officials or U.N. programs.”
One said the ruling might be “the tip of the iceberg” that heralds more individuals challenging FCPA enforcement.
We rarely get appellate court rulings on the scope of the FCPA, so the case spurred numerous headlines. One said the ruling might be “the tip of the iceberg” that heralds more individuals challenging FCPA enforcement.
For corporate compliance officers running entire programs, however, the case is just more of the same blizzard you’ve been enduring for years – trying to find a steady path forward.
The case itself, U.S. v. Ng Lap Seng, is straightforward. A Chinese national, David Ng, was a wealthy real estate developer in Macau. In the early 2010s he bribed two United Nations officials by giving them sham consulting contracts worth hundreds of thousands of dollars, in exchange for them trying to convince other U.N. officials to declare one of Ng’s convention centers the permanent home for a lucrative annual development conference.
Eventually the scheme unraveled, and in 2017 a jury convicted Ng in federal district court of violating the FCPA.
Ng appealed. He argued that any bribery prosecution must meet the high standards of an “official act” as spelled out in McDonnell v. U.S. — a U.S. Supreme Court ruling from 2016 that addresses cases of domestic bribery of U.S. government officials. Ng wanted that same standard to apply to FCPA cases involving bribery of foreign government officials.
Um, no. The 2nd Circuit Court of Appeals ruled against Ng on Aug. 9, noting that the text of the FCPA defines the quid pro quo of bribery much more expansively than other parts of U.S. law that address domestic bribery. Therefore, the narrow standards of McDonnell don’t apply for FCPA prosecution.”
How to Report Corruption and Bribery at UNDP (United Nations Development Programme)
The Office of Audit and Investigations (OAI) “provides UNDP with effective independent and objective internal oversight that is designed to improve the effectiveness and efficiency of UNDP’s operations in achieving its development goals and objectives through the provision of internal audit and related advisory services, and investigation services.”
Explore what this bribery and money laundering network means for global order and the hegemony of the post-WWII American international settlement (Bretton Woods institutions etc.) here: ‘Jacked! | The Taking of the American Order
There is a fascinating cyber security back story to this story as well. We now live in the surveillance age and any criminal activity will be accompanied by a digital cyber trail. Read more here on the ongoing cyber security breaches at the United Nations and what this means for data protection and event shaping by bad actors: What is the UN doing with your data?
UNOSSC Director Yiping Zhou retires. 
David South Consulting 
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