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The U.N. Development Program (UNDP) said Friday it would stop paying cash for its operations in North Korea and start an independent audit as suspicions arose that its past work resulted in funneling a large sum of money into a regime bent on developing nuclear weapons.

The announcement came after U.N. Secretary-General Ban Ki-moon said he will ask for an urgent investigation into all global activities by U.N. agencies.

Citing documents and letters between U.N. and U.S. officials, the Wall Street Journal reported Friday that Washington believes the UNDP's program in Pyongyang operated in blatant violation of U.N. rules and ended up giving the North a large, steady source of hard currency.

A Jan. 16 letter to the UNDP by U.S. Ambassador Mark Wallace claimed that the cash and resources were given without assurance that they go toward legitimate development activities, the daily said.

The paper said that the precise amount of money supplied is not known, but quoted one source as saying it could be as much as US$100 million. UNDP operations in North Korea cover humanitarian assistance, public health, the environment, agriculture and the economy.

Ban on Friday met with UNDP associate administrator Ad Melkert.

"The secretary-general will call for an urgent, system-wide and external inquiry into all activities done around the globe by the U.N. funds and programs," said his spokesperson, Michele Montas.

In a press conference from the U.N., Melkert said his agency's own auditors had raised concerns about the North Korea program and its management.

As of March 1, the UNDP will end all payments in hard currency to the North Korean government, national partners, local staff and local vendors, he said.

The agency will propose a full, independent audit at next week's UNDP executive board meeting to make sure everyone understands the nature of the work in a country like North Korea, he said.

Pyongyang is under U.N. sanctions imposed after its Oct. 9 nuclear test.

New York, Jan. 19 (Yonhap News)