“At a minimum, we believe that UNOPS leadership missed clear warning signals, failed to provide necessary oversight, and took unacceptable risks with funds,” Mr. Lu tweeted, using the acronym for the Office for Project Services.
An official statement from Mr. Guterres on Sunday said he had accepted the resignation of Grete Faremo, a former minister of Norway and the executive director of the agency, who personally approved the loans. Ms. Faremo had entrusted tens of millions of dollars to a British businessman, David Kendrick, after meeting him at a party in New York City in 2015. Ms. Faremo’s agency also gave a $3 million grant to a group run by Mr. Kendrick’s 22-year-old daughter, Daisy, to raise awareness about threats to the world’s oceans.
Ms. Faremo, in a letter sent to her staff early on Sunday morning and obtained by The Times, offered a different account of her resignation. She said she had submitted her resignation on Friday because “without knowing the full story, it happened on my watch.”
“I acknowledge my responsibility and have decided to step down,” she said.
Ms. Faremo appeared to blame her deputy, Vitaly Vanshelboim, who was placed on administrative leave in December as the U.N. investigated the transactions. After mentioning the investigation and Mr. Vanshelboim, Ms. Faremo said that “a shocking breach of trust hurts, and it has shaken the organization profoundly.”
But the senior U.N. official, who asked not to be named because he was not authorized to speak on the record, said Ms. Faremo was told to resign. Mr. Guterres, the official said, decided to act swiftly after the Times article ran in an attempt to restore the trust of donor countries in the organization.