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U.S. Financial Involvement in Renovation of U.N. Headquarters

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U.S. Financial Involvement in Renovation of U.N. Headquarters S. Hrg. 109–497 U.S. FINANCIAL INVOLVEMENT IN RENOVATION OF U.N. HEADQUARTERS HEARING BEFORE THE FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION, AND INTERNATIONAL SECURITY SUBCOMMITTEE OF THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED NINTH CONGRESS FIRST SESSION JULY 21, 2005 Printed for the use of the Committee on Homeland Security and Governmental Affairs ( VerDate 0ct 09 2002 08:57 Jul 28, 2006 Jkt 023164 PO 00000 Frm 00001 Fmt 6011 Sfmt 6011 C:\DOCS\23164.TXT SAFFAIRS PsN: PAT U.S. FINANCIAL INVOLVEMENT IN RENOVATION OF U.N. HEADQUARTERS VerDate 0ct 09 2002 08:57 Jul 28, 2006 Jkt 023164 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 C:\DOCS\23164.TXT SAFFAIRS PsN: PAT S. Hrg. 109–497 U.S. FINANCIAL INVOLVEMENT IN RENOVATION OF U.N. HEADQUARTERS HEARING BEFORE THE FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION, AND INTERNATIONAL SECURITY SUBCOMMITTEE OF THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED NINTH CONGRESS FIRST SESSION JULY 21, 2005 Printed for the use of the Committee on Homeland Security and Governmental Affairs ( U.S. GOVERNMENT PRINTING OFFICE 23–164 PDF WASHINGTON : 2006 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 08:57 Jul 28, 2006 Jkt 023164 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 C:\DOCS\23164.TXT SAFFAIRS PsN: PAT COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS SUSAN M. COLLINS, Maine, Chairman TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan NORM COLEMAN, Minnesota DANIEL K. AKAKA, Hawaii TOM COBURN, Oklahoma THOMAS R. CARPER, Delaware LINCOLN D. CHAFEE, Rhode Island MARK DAYTON, Minnesota ROBERT F. BENNETT, Utah FRANK LAUTENBERG, New Jersey PETE V. DOMENICI, New Mexico MARK PRYOR, Arkansas JOHN W. WARNER, Virginia MICHAEL D. BOPP, Staff Director and Chief Counsel JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Chief Counsel TRINA D. TYRER, Chief Clerk FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION, AND INTERNATIONAL SECURITY SUBCOMMITTEE TOM COBURN, Oklahoma, Chairman TED STEVENS, Alaska THOMAS CARPER, Delaware GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan LINCOLN D. CHAFEE, Rhode Island DANIEL K. AKAKA, Hawaii ROBERT F. BENNETT, Utah MARK DAYTON, Minnesota PETE V. DOMENICI, New Mexico FRANK LAUTENBERG, New Jersey JOHN W. WARNER, Virginia MARK PRYOR, Arkansas KATY FRENCH, Staff Director SHEILA MURPHY, Minority Staff Director JOHN KILVINGTON, Minority Deputy Staff Director LIZ SCRANTON, Chief Clerk (II) VerDate 0ct 09 2002 08:57 Jul 28, 2006 Jkt 023164 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 C:\DOCS\23164.TXT SAFFAIRS PsN: PAT C O N T E N T S Opening statements: Page Senator Coburn ................................................................................................. 1 Senator Dayton ................................................................................................. 4 Prepared statement: Senator Carper ................................................................................................. 43 WITNESSES THURSDAY, JULY 21, 2005 Hon. James Inhofe, a U.S. Senator from the State of Oklahoma ........................ 5 Hon. Jeff Sessions, a U.S. Senator from the State of Alabama ........................... 6 Christopher B. Burnham, Under Secretary General Department of Manage- ment, United Nations .......................................................................................... 8 Anne W. Patterson, Deputy Permanent Representative of the United States to the United Nations, U.S. Department of State ............................................. 20 Martin J. Golden, New York State Senator .......................................................... 29 Donald J. Trump, Chairman and President, the Trump Corporation ................. 31 ALPHABETICAL LIST OF WITNESSES Burnham, Christopher B.: Testimony .......................................................................................................... 8 Prepared statement with attachments ........................................................... 59 Golden, Martin J.: Testimony .......................................................................................................... 29 Prepared statement .......................................................................................... 312 Inhofe, Hon. James: Testimony .......................................................................................................... 5 Prepared statement .......................................................................................... 46 Patterson, Anne W.: Testimony .......................................................................................................... 20 Prepared statement with attachments ........................................................... 243 Sessions, Hon. Jeff: Testimony .......................................................................................................... 6 Trump, Donald J.: Testimony .......................................................................................................... 31 Prepared statement with attachments ........................................................... 315 APPENDIX Chart submitted by Senator Coburn entitled ‘‘United Nations Headquarters Renovation’’ ........................................................................................................... 45 Questions and responses for the Record from: Mr. Burnham .................................................................................................... 72 Ms. Patterson .................................................................................................... 250 (III) VerDate 0ct 09 2002 08:57 Jul 28, 2006 Jkt 023164 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 C:\DOCS\23164.TXT SAFFAIRS PsN: PAT VerDate 0ct 09 2002 08:57 Jul 28, 2006 Jkt 023164 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 C:\DOCS\23164.TXT SAFFAIRS PsN: PAT U.S. FINANCIAL INVOLVEMENT IN RENOVATION OF U.N. HEADQUARTERS THURSDAY, JULY 21, 2005 U.S. SENATE, SUBCOMMITTEE ON FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION AND INTERNATIONAL SECURITY, OF THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Washington, DC. The Committee met, pursuant to notice, at 2:34 p.m., in room SD–562, Dirksen Senate Office Building, Hon. Tom Coburn, Chair- man of the Subcommittee, presiding. Present: Senators Coburn and Dayton. OPENING STATEMENT OF SENATOR COBURN Senator COBURN. The Federal Financial Oversight Committee will come to order. The topic of this hearing is one that many are interested in. There is not a debate on whether or not there needs to be struc- tural repair and reform and remodeling of the U.N. headquarters. This is not intended to be a hearing where we take advantages of the weakness in operation that are noticed and recognized, and the problems inherent in some of the management difficulties, but rather the purpose of the hearing is to look at the Federal tax- payers, who are going to pay a large portion of this over the next 30 years, are getting value for the dollars. The American people are quite generous. It is the obligation of the U.S. Congress and this Subcommittee, Federal Financial Management in particular, to re- view and to look at the costs associated with our participation in this organization. In 1952, the United Nations complex cost $65 million to build. In today’s currency that is a little less than $500 million. Today, the U.N. occupies seven buildings located in downtown Manhattan, New York, spanning over 2.6 million square feet and housing office space for thousands of employees. It is anticipated that the renovation would include the remod- eling of the General Assembly, the Conference Building, the Li- brary and 39 floors of the U.N. Secretariat. To renovate the com- plex, the U.N. is asking the American taxpayers to provide a loan in the sum of $1.2 billion. Over the life of that loan that will come to over $600 million in cost to the American taxpayer. The purpose of this hearing is to examine that price-tag and de- termine if the loan would meet the standards that this Sub- committee demands of all Federal expenditures: Accountability, (1) VerDate 0ct 09 2002 08:57 Jul 28, 2006 Jkt 023164 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 C:\DOCS\23164.TXT SAFFAIRS PsN: PAT 2 transparency, fair and open competition, spending discipline, and priority-setting. U.S. commitment to the U.N. is already more than most people realize—$3.8 billion just this last year. That is almost a million dollars for every U.N. staffer occupying the Manhattan head- quarters. Americans are a generous people, but when a recent Luntz poll in July 2005 asked a random sample of Americans how they felt about this loan, 69 percent opposed it, and over half of the respondents strongly opposed it. Americans expect Congress to look closely at major expenditures like this, and that is what this Subcommittee is about. This is our 10th hearing on Federal spending in this Congress, and we take oversight very seriously. We are committed to accountability at all levels of the Federal Government and all levels in which this gov- ernment is involved. The first principle of accountability is transparency. I would like to talk about transparency at the U.N. for a moment. Unlike our Federal agencies, the U.N. rarely makes any of its internal audits public.
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