Former UN official ordered to repay $58.8 million lost in deals

A former United Nations (U.N.) official was ordered this week to pay $58.8 million back that was previously lost in deals he made.

On Wednesday, a three-judge panel from the United Nations Dispute Tribunal ruled that evidence “clearly and convincingly” demonstrated that Vitaly Vanshelboim’s actions resulted in “massive financial losses” for the U.N. Office for Project Services (UNOPS). The agency, which specializes in infrastructure, procurement, and project management, brought the case against Vanshelboim.

The Geneva-based tribunal announced last week that Vanshelboim had orchestrated several financial agreements between the U.N. office and British businessman David Kendrick. The deals centered on renewable energy, sustainable housing and ocean conservation projects.

The tribunal also found that Vanshelboim had entered into undisclosed private arrangements with Kendrick and his businesses dating back to 2017. These undisclosed deals allowed Vanshelboim to secure financial and material benefits for himself and his family, amounting to at least $3.1 million.

U.N. spokesman Stephane Dujarric said that Secretary-General Antonio Guterres “is pleased by this judgment.”

“The U.N. continues to pursue recovery of the funds through other avenues,” Guterres said. “We are fully committed to ensuring criminal accountability for crimes that may involve U.N. personnel.”

Vanshelboim’s attorney, George Irving, confirmed via email to The Associated Press on Wednesday that his client is appealing the tribunal’s decision but declined to provide further comment.

Emails to three companies linked to Kendrick, according to the tribunal, went unanswered, and his former lawyers in London confirmed he is no longer a client. No additional contact information for Kendrick was available.

The ruling was first reported by The New York Times this week.

Vanshelboim, a Ukrainian national and former assistant secretary-general, held roles as UNOPS deputy executive director and head of its sustainable infrastructure impact investments program. He was dismissed in January 2023 after an internal investigation.

UNOPS’ failed investments, which resulted in millions of dollars in losses, came to light in 2022 through media reports. The revelations led to the resignation of Grete Faremo, a former Norwegian justice and public security minister, who had been serving as the head of the Copenhagen-based agency.

The Dispute Tribunal’s ruling addressed Vanshelboim’s appeal of his dismissal, which included a penalty of 12 months’ salary and an order to repay over $63.6 million in losses stemming from the deals. His U.N. pension has been withheld until the full amount is recovered.

The judges determined that Vanshelboim’s undisclosed financial ties to Kendrick amounted to “blatant misconduct,” ruling that he “committed fraud against the organization.” They noted that he led the U.N. into multiple business ventures with Kendrick’s companies while secretly engaging in unauthorized outside activities.

This article includes reporting from The Associated Press.