The audit conducted by the Office of Audit and Investigations of the United Nations Development Programme (UNDP) at the UNDP Azerbaijan Representation has revealed serious legal and financial violations, APA's analysis shows.
$754,570 in grants to 23 NGOs without registration
The Office of Audit and Investigations found that the Representation grossly violated both UNDP's principles of transparency regarding grants and Azerbaijani legislation. The document was also published on the UNDP website as part of the UN's commitments to transparency.
The audit revealed that in 2023, the UNDP Azerbaijan Representation provided $754,570 in grants for 29 projects to 23 non-governmental organizations (NGOs) in the country. The Azerbaijan Representation transferred the grant funds to private accounts by directly signing contracts with LLCs established by these NGOs or with individuals employed by the NGOs. These grants were later used for various purposes.
The issue lies in the fact that none of these grants were state-registered in accordance with Azerbaijani legislation. In other words, they were used as illegal funds. The report document does not disclose the names of the NGOs or LLCs that received the grants.
Another $2.6 million fraud?
The report document also mentions that in 2023, the UNDP Azerbaijan Representation allocated $1.3 million for "capacity building of NGOs" and $1.3 million for expanding the anti-landmine program in Azerbaijan. Once again, there is no information about the NGOs or their LLCs that received the grants in the document.
It is interesting, what conclusions the main partners of the UNDP Azerbaijan Representation, such as the British government, the European Union, and the Green Climate Fund, have drawn from this audit?
It has also been revealed that the Representation has aimed to raise $90 million from various sources for its activities in 2021–2025. However, the audit has predicted a $30 million deficit here. Interestingly, the Representation's expenses have increased year by year. This could signal serious corruption.
During January-December 2023, the Representation spent $15.2 million on development activities, which is 12% more compared to the previous period.
Which local NGOs and LLCs have received grants from UNDP?
APA has managed to learn from its private sources that the names of those NGOs and LLCs are already known to Azerbaijani state authorities. According to the information, comprehensive investigations have begun regarding the NGOs and LLCs involved with these unregistered grants.
The UNDP Office of Audit and Investigations has assessed its Representation's such management of grants in Azerbaijan as "critically negative," viewing it as a factor that undermines UNDP's reputation. It was also revealed that during an audit conducted in 2019, the Office of Audit and Investigations recommended that the Azerbaijan Representation take legal action regarding grants. However, the Azerbaijan Representation has disregarded this recommendation as well.
The audit report also draws attention to the point regarding the risks that would be caused by transferring funds to NGOs through third parties in violation of the provisions of national legislation: "Grant financing was provided to NGOs without government approval. The national law on grants in the country stipulates that all grant and service contracts with NGOs funded by international sources must be registered by the relevant national authority."
The Office of Audit and Investigations believes that such grant management, due to unclear lines in the reports and fiduciary responsibility, could lead to fraud and the loss of development funds, as well as reputation risks due to the disbursement of financial resources without government approval, as required by the country's national laws.
The audit report also notes that there has been a lack of transparent and strict oversight in the implementation of projects. Inadequate monitoring of project activities has led to weaknesses in accountability and the failure to take corrective actions promptly.
According to Azerbaijan's Law "On Grant" contracts (decisions) regarding grants received by recipients of the Republic of Azerbaijan must be submitted to the relevant executive authority for registration. Based on the Decree of the President of Azerbaijan "on the implementation of the Law of the Republic of Azerbaijan "On Grant," grant contracts related to commercial entities and public legal entities must be submitted by donors to the Ministry of Economy for registration, while grant contracts related to religious organizations must be submitted to the State Committee on Work with Religious Organizations. Grant contracts related to NGOs, as well as municipalities and individuals, should be submitted to the Ministry of Justice.
UNDP does not consider Shusha a part of Azerbaijan’s territory?
APA's analysis revealed that the UNDP Azerbaijan Representation was the only international organization to refuse to visit Shusha city during an international conference held on August 27, 2022, which focused on the restoration and reconstruction of Azerbaijan's liberated territories, landmine clearance, the use of urban development potential in the post-conflict period, and opportunities for international cooperation. This refusal by the UNDP representative in Azerbaijan to visit Shusha, amidst the participation of the diplomatic corps and representatives of UN organizations operating in the country, was a clear disrespect for Azerbaijan's territorial integrity and sovereignty.
Training for women for AZN 156.000
UNDP has been establishing Women's Resource Centers in Azerbaijan in recent years. Our research shows that these centers are also one of the corruption projects. It is not clear to anyone what these centers are doing. APA has obtained information from private sources that a while ago, although state agencies wanted to inspect the UNDP Women's Resource Center in Baku to get acquainted with its activities, the director of the Center closed the doors and said that UNDP would not allow them to enter.
The points about women in the UNDP Audit and Research Office report are striking in this regard. The audit team themselves were shocked to find that a $92,000 (!) grant project was allegedly “implemented” to provide basic training to a group of war-affected women. It is interesting to note what this training, worth AZN 156,000, is about, and who these women are? The document does not disclose this either.
Has anything changed in the activities of the UNDP?
The suspicious activities of foreign donors in Azerbaijan are not new. Even on January 7, 2025, Azerbaijani President Ilham Aliyev drew special attention to the issue of illegal grants in an interview with local media. President Aliyev said that all twinning programs with the European Union have been suspended: “All legal grants from the European Union have been frozen. There are also some that are partially illegal, mainly money is brought here across the border through Georgia, again through the henchmen of Soros structures, but not as before, and our law enforcement agencies are monitoring all this. But the reason why we refused legal grants is that they were aimed at creating our own platforms in our territory, mainly aimed at the future, mainly at young people. Unfortunately, we see some representatives of Azerbaijani youth taking the path of betrayal, open betrayal, cooperation with Armenianism - this is the result of brainwashing through the so-called grant programs funded by NED (the American “National Endowment for Democracy”) and EED (“European Endowment for Democracy”). Even here you see how cloning is happening, the names are the same, only one has the words “National”, the other “European”.
These notes also show that the healthy social environment prevailing in Azerbaijan is of serious concern to a number of circles. UNDP can also be added to this. The facts that have emerged make these questions relevant: if these grant projects are not intended for any specific mission, then why are they not officially registered and transparently legalized? Why does the Azerbaijani representation continue to work “in its own way” when even the UNDP headquarters recommends this? And after all this, who in the UNDP Representation in Azerbaijan will be punished and how?
APA will send a request to the UNDP Azerbaijan Office to obtain a list of local NGOs and LLCs that have received millions of dollars in grants.
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