FIFTH COMMITTEE RECOMMENDS MEMBERSHIP OF WORLD TOURISM ORGANIZATION IN UN JOINT PENSION FUND

14 December 1995

Press Release
GA/AB/3056

FIFTH COMMITTEE RECOMMENDS MEMBERSHIP OF WORLD TOURISM ORGANIZATION IN UN JOINT PENSION FUND

19951214 Considers Reports on Human Resources, Internal Oversight, Funding for Missions to Haiti, Rwanda, Guatemala, Regional Institutes

The World Tourism organization would become a member of the United Nations Joint Staff Pension Fund as of 1 January 1996 if the General Assembly adopts a draft decision approved this afternoon by the Fifth Committee (Administrative and Budgetary).

Before the Committee took the action, it heard from the Secretary of the Pension Fund, Raymond Gieri, who said the World Tourism Organization's staff rules would conform with the common system when it joined the Fund.

Speaking on human resources management, the representative of Qatar stressed the importance of equitable geographical representation in recruiting United Nations staff. The Secretariat should ensure the employment of nationals of underrepresented and unrepresented States by sending missions to those countries and through examinations. Developing countries' nationals were not sufficiently represented at the Organization's highest levels.

The President of the Secretariat Staff Union, Mohammed Oummih, said his colleagues were committed to an impartial and professional internal justice system, as stated in earlier reports on the matter prepared in March and June. However, the Union could not support the Secretary-General's most recent report since staff had not been consulted and it contained "backtracking, changes and omissions". The Union endorsed the Advisory Committee on Administrative and Budgetary Questions (ACABQ)'s recommendations.

The Union could no longer support the new performance appraisal system (PAS) due to unilateral changes proposed by the Administration on the selection of the management review committee and its role in individual ratings, on the rebuttal panels and the right to appeal the outcome of those panels, he said.

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There should be no delay in implementing the Secretary-General's internal justice reform proposals, Joseph E. Connor, Under-Secretary-General for Administration and Management, said as he introduced the Secretary- General's reports. They would enhance earlier resolution of disputes before they became formal litigations, professionalize the membership of appeals and disciplinary boards and provide a cost-effective and simple justice system that eliminated hidden costs.

"The [United Nations Administrative] Tribunal thinks the Secretary- General's reform goes too far, the ACABQ believes that one third of a correction is enough for now; the staff believe that the Secretary-General's reform had not gone far enough", Mr. Connor summed up.

The representatives of Japan, United States, Spain, Cuba, New Zealand, the Republic of Korea, Belgium and Portugal also spoke on the human resources management.

The Chairman of the ACABQ, C.S.M. Mselle, introduced his Committee's report.

The Director of the Staff Administration, Compensation and Classification Division and a Deputy to the Assistant Secretary-General for Human Resources Management (OHRM), Angela King, introduced three reports on human resources.

Regarding the Office of Internal Oversight Services (OIOS), Egypt's representative expressed concern over the establishment of an appointment and promotion panel in the Office, saying that that did not fall under provisions for the operational independence of the Office. There was no clear equitable geographical distribution, particularly at the Office's senior levels.

Canada's representative, also speaking for Australia and New Zealand, said the Office's priorities should remain oversight in such high-risk areas as peace-keeping, humanitarian activities and procurement. Stressing the importance of the prompt adoption of internal control standards in deterring corruption, fraud and mismanagement, he said United Nations managers should be aware that internal control should not be left only to oversight services. They should be held responsible for their actions.

The Russian Federation and Cuba also spoke on the Office.

The Under-Secretary-General for the Office, Karl Th. Paschke, responded to Member States.

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Under the agenda item on the proposed 1996-1997 budget, the Committee considered reports from the Secretary-General on the International Commission of Inquiry on Rwanda, the International Civilian Mission to Haiti (MICIVIH), United Nations Human Rights Verification Mission in Guatemala (MINUGUA) and on regular budget funding for regional institutes and centres.

Speaking on the regional institutes, the United States representative said the funding provisions for those not under direct United Nations supervision should be dropped from its budget.

Since those institutes played very important roles, their financing from the 1996-1997 budget should be supported, Congo's representative said. Uganda, Egypt, and Cuba also supported the institutes' continued funding.

The United States, Norway, Spain, Mexico and Colombia spoke on the missions to the Caribbean and Central America. The United States also spoke on the Commission of Inquiry on Rwanda.

The United Kingdom's representative asked for early drafts of the legislation that enabled the United Nations to borrow from peace-keeping accounts to cover the regular budget.

The next meeting of the Committee will be announced in the Journal.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to conclude discussions on the Office of Internal Oversight Services (OIOS) and consider human resources management and the admission of the World Tourism Organization into the United Nations Joint Staff Pension Fund. Under the item on the 1994-1995 United Nations budget, the Committee would consider revised estimates related to the International Commission of Inquiry in Rwanda.

Under the agenda item on the proposed 1996-1997 budget, the Assembly would discuss revised estimates related to the International Civilian Mission to Haiti (MICIVIH), to the United Nations Human Rights Verification Mission in Guatemala (MINUGUA) and to a proposed post of special adviser to the Secretary-General. The Committee would also consider the funding of regional institutes from the regular budget, the Integrated Management Information System (IMIS) project and the conditions of service for officials of the International Civil Service Commission (ICSC) and the Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ). In considering administrative and budgetary aspects of funding peace-keeping operations, the Committee would examine a mock-up budget for such operations.

Oversight Office

A note by the Secretary-General transmits the report of (OIOS) on its audit of the United Nations access control system project (document A/50/791), which states that while the audit showed a financial loss when the project failed, it does not establish responsibility for it.

The total costs incurred in the entire project were about $1.6 million. As certain components, worth about $250,000 could have been used for other purposes, the project's non-implementation made the United Nations lose some $1.3 million.

According to the report, the United Nations access control system was undertaken under a contract between the United Nations and Westinghouse Electric Corporation (WEC) on 16 March 1992 to design, supply and implement an electronic security and card access control system. The system was completed, tested and accepted by the United Nations on 26 May 1993. However, its activation was delayed for more than a year. In September 1994, it was announced that the system would not be used and would be dismantled. The Department of Administration and Management reviewed the project and concluded that the system could not function efficiently as originally specified; the procedures and resources required to operate and maintain it were not realistic. In a 14 June 1994 note to the Under-Secretary-General for Administration and Management, the Assistant Secretary-General for Conference and Support Services said that the system would not meet the Organization's security concerns and it was not in its best interests to activate it.

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The audit by the Oversight Office revealed management deficiencies, weaknesses in internal controls and flaws in procurement, according to the report. The project lacked adequate planning, with no feasibility study being undertaken to determine its viability and cost-effectiveness. Budgetary controls were not completely respected. Deficiencies in procurement did not allow a fair and competitive bidding procedure. There were weaknesses in selecting the supplier to install and implement the system. The award of the contract to WEC was not based on commonly applied criteria. The WEC lacked experience in this specific type of project.

According to the report another firm, NDC Automation, Inc. (NDC), which had bid for the project, had world-wide experience in installing hands-free access control systems. Its proposed system met the United Nations requirements without any need for subcontracting. The WEC's final proposal was $1.3 million, including maintenance costs of $135,000, whereas NDC's proposal was $1.6 million, including maintenance costs of $52,175. The price difference was due to differences in specifications. While WEC's did not fully comply with United Nations specifications, NDC did in every detail. It had even offered a simpler system at a lower cost.

The Office recommends that the United Nations should develop standard project management guidelines that will provide appropriate controls in order to help ensure that complex projects will be properly planned and implemented. They should include a mandatory feasibility study among the detailed elements of the development process. Needs assessment should be done before goods and services are acquired. The Organization should establish guidelines to improve bidding procedures that include specific criteria for determining the eligibility of contractors.

In its attached response to the audit report, the Department of Administration and Management states that United Nations regulations and rules, particularly those for procurement, were respected throughout the process. The project, at inception, was driven by a sense of urgency to provide an additional measure of security. However, at the time it was formulated, inadequate attention was given to assessing how much added security the planned system would afford and its operational feasibility on a daily basis. While the project was being implemented, changes in the assignment of key personnel led to a lack of continuity in project management, including oversight by senior management.

On the selection of the contractor, the Department says the two finalists, WEC and NDC, were both deemed to have had adequate expertise and technological support for their systems. For the final selection of the vendor, a systems requirement criteria evaluation matrix was developed and used. Thus, the Department disagrees that the selection of the vendor was not based on commonly applied criteria.

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The Committee also had before it notes of the Secretary-General that transmit a report of the Office of Inspections and Investigations, 1993-1994 (document A/49/449); a report from OIOS on the practices of the Centre for Human Rights (document A/49/892); and the comments of the Joint Inspection Unit (JIU) on final reports produced by the Oversight Office (document A/50/459/Add.1). Other reports are those the Office wrote on the regional commissions in Africa, Western Asia and Europe (document A/49/891). Other reports relate to the Oversight Office's activities for the period 15 November 1994 to 30 June 1995 (document A/50/459) and the Field Administration and Logistics Division of the Department of Peace-keeping Operations (document A/49/959). (For background, see Press Release GA/AB/3045, of 21 November.)

Human Resources Management

On human resources management, the Committee had before it six reports of the Secretary-General -- three are on reform of the Secretariat's internal justice system, one each on the composition of the Secretariat, list of Secretarial staff, and on amendments to the Staff Rules. Also before the Committee were a note submitted by the Secretary-General on behalf of the members of the Administrative Committee on Coordination (ACC) concerning privileges and immunities of United Nations officials; a note by the Secretary-General transmitting the comments of the Administrative Tribunal and the Staff Union of the Secretariat on the internal justice system; and the ACABQ report on the system.

The annual report of the Secretary-General on the composition of the Secretariat (document A/C.5/50/3) is intended to facilitate an assessment of the distribution of United Nations Secretariat by nationality, sex, grade and type of appointment. The total number of staff of the Organization as of 30 June 1995 was 34,481, of whom 14,380 were assigned to the Secretariat of the United Nations and 20,101 to the secretariats of subsidiary organs. A total of 10,055 posts are financed from the regular budget and 24,426 posts financed from extrabudgetary sources.

The report states that a number of posts in the Secretariat are subject to geographical distribution -- a system of desirable ranges used as a guideline for estimating the comparative representation of the nationals of each Member State. The system is based on three factors: membership, contribution and population. The number of staff subject to geographical distribution is currently 2,515. Among staff excluded from the principle of geographical distribution, are those occupying posts with special language requirements, in the Field Service and locally recruited staff related to General Service categories.

The ranges are compared with the number of nationals in posts subject to geographical distribution to determine whether Member States are unrepresented, underrepresented, within range, and overrepresented. As of

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30 June 1995, there were 25 unrepresented Member States, as compared with 28 on 30 June 1994. National examinations have been or would be held to reduce the number of unrepresented States and underrepresented States.

The report states that efforts continue in order to increase the participation of women particularly at the senior policy level and in decision-making posts to an overall participation rate of 35 per cent by 1995, as called for by the Assembly. As of 30 June 1995, the number of women in geographical posts was 857 or 34.1 per cent --- increased from 29.2 per cent as at 30 June 1991. The percentage of women in language posts has grown from 30.5 per cent to 35.3 per cent over the same period.

Appointments to posts subject to geographical distribution from 1 July 1994 and 30 June 1995 included those of 54 candidates from 20 countries who were successful in national competitive examinations for posts at the Associate Officer (P-2) and Second Officer (P-3) levels. During that period, 60 women were appointed to posts subject to geographical distribution representing 44.4 per cent of the 135 appointments made. Women from developing countries accounted for 25 appointments or 41.7 per cent of the 60 appointments of women made during the reporting period.

The list of staff in the Secretariat (document A/C.5/50/L.2) shows by office, department and organizational element, the name, functional title, nationality and grade of all staff members holding an appointment of one year or more as at 30 June 1995.

The Secretary-General's report on amendments to the staff rules (document A/C.5/50/32), consolidates prior amendments and provides new amendments to the 100 and 200 series of the Staff Rules. (The 100 series is applicable to staff members appointed by the Secretary-General, except technical assistance project personnel and staff members engaged for conferences and other short-term contracts. The 200 series is applicable to project personnel appointed by the Secretary-General for service with technical assistance projects.) In the new amendments to both series, the Staff Rules on education grant and home leave are amended to implement Assembly resolutions which decided that the repatriation grant and other expatriate benefits should be limited to staff who both work and reside in a country other than their home country.

Amendments to the 100 series Staff Rule on Appointment and Promotion Board are made to clarify that the Board does not make recommendations regarding appointments and promotion of candidates who are successful in a competitive examination. The Staff Rule on service and conduct reports is amended to implement a request by the Assembly that the Performance Appraisal System apply to all staff, including those at the Under-Secretary-General level. For the 200 series, amendments are made to the Staff Rules on insurance and the first day for pay purposes. The texts of all the amendments for both series are reproduced in the annex to the report.

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The Secretary-General's note on respect for the privileges and immunities of officials of the United Nations and the specialized agencies and related organizations (document A/C.5/50/3) states that during the period 1 July 1994 to 30 June 1995 and through the preparation of the report, 14 civilian staff members belonging to different organizations lost their lives. That figure excludes military personnel in peace-keeping operations. There have also been numerous instances of harassment, kidnapping, vehicle hijackings and attacks on United Nations personnel.

Over the past two years, the report states, there had been a decrease in the number of staff members arrested or detained. However, that trend has now been reversed by the aggravated situation existing in Rwanda, where numerous locally recruited staff members have been detained. A number of initiatives have been taken both at the local level by the Secretary-General's Special Representative and by the United Nations Resident Coordinator, as well as by other senior officials visiting Rwanda, to bring to the attention of Rwandan authorities the unresolved questions relating to these cases. In addition, a legal representative has been sent to Kigali to discuss the cases with the Rwandan authorities.

Regarding the existing restrictions imposed by the United States authorities on private travel of United Nations staff members and their dependants who are nationals of particular countries, the Secretary-General maintains the position that such restrictions applied solely on the basis of nationality are discriminatory. Annexed to the report is a consolidated list of staff members under arrest and detention or missing.

Two of the Secretary-General's reports on the reform of the internal justice system were prepared for the Assembly's forty-ninth session (documents A/C.5/49/13, of November 1994, and A/C.5/49/60/Add.1 and Add.2/Corr.1 of March and June 1995). The recommendations and their financial implications, contained in the reports, were subsequently amended in the Secretary-General's consolidated report of September 1995 (document A/C.5/50/2), to take into account suggestions made by the United Nations Administrative Tribunal on the legal aspects of the reform and to incorporate new provisions agreed on after consultation with the staff (document A/C.5/50/2/Add.1).

The Secretary-General states that the proposed reform is an integral part of the vast effort now under way to rationalize the Organization's management and to make it more responsive to the needs of Member States, programme management and staff members. The proposed reform intended to enhance earlier reconciliation and resolution of disputes before they develop into formal litigation; to professionalize the membership of appeals and disciplinary boards and to provide them with the means to dispose of cases in a more expeditious yet fair manner; and to provide a cost-effective and simple justice system, with the elimination of hidden costs.

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In addition to the training of managers in communication skills and dispute resolution, the Secretary-General proposes to set up ombudsman panels at all major duty stations, under the direction of a coordinator, and to deal with disagreements, grievances and discrimination issues raised informally by staff members. Should the Assembly approve the panels, the coordinator would be appointed in early 1996 and would organize and train the members of all ombudsman panels. The coordinator would be appointed at the Principal Officer level (D-1) and an amount of $41,300 would be required in 1996-1997 for his travel costs for the setting up of the panels.

The Secretary-General also proposes the appointment of two administrative review officers at the Senior Officer (P-5) and First Officer (P-4) levels, operating independently within the Office of the Under- Secretary-General for Administration and Management. Those officers will review administrative decisions at an early stage of the appeals process and to provide advice on decisions to be taken on recommendations received from advisory bodies in appeals and disciplinary cases. In that connection, Staff Rule 111.2 (a) would have to be amended to provide a two-month review period for cases in New York and a three-month review period for all other cases.

To professionalize the justice system, the Secretary-General proposes the appointment of a legal officer to the panel of Counsel which represents staff members, the report states. In addition, the Secretary-General recommends the replacement of the voluntary Joint Appeals Board by an arbitration board of independent professionals, to gradually introduce optional binding arbitration. The Assembly would have to approve the change and authorize revisions in the staff regulation 111.2.

The arbitration board's 10-article draft statute, annexed to the report, allows for two secretariats: in New York and Geneva, each headed by a full- time chairperson and alternate chairperson, respectively. The board will comprise a total of 10 externally recruited arbitrators, no two of whom may be from the same Member State. It will be serviced on a part-time basis by two members and two alternate members, as needed. All appointments will be made by the Secretary-General after consultation with the staff. The Board is expected to hold 10 one-week sessions in New York and six one-week sessions in Geneva. The time allocation is proposed on the basis of an annual workload of over 100 cases. In 1994, 124 cases were filed.

The Secretary-General also proposes a disciplinary board to replace the present Joint Disciplinary Committee. The 10-article draft statute for the disciplinary board, also annexed to the report, provides for that body to be set up in New York and in Geneva, under the chairmanship of the chairperson and alternate chairperson of the arbitration board. The other members of the Board will be staff members. Draft changes are required to the Staff Rules 110.4 to 110.7, to replace the relevant provisions on the structure and procedure of the disciplinary body.

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Overall, the additional requirements of the Secretary-General's proposals for 1996 and 1997 amount to $1.5 million, $523,700 more than the proposed budget. Of the total revised estimates, $587,900 is for five new posts; $519,700 is for compensation for the chairman and the alternative chairman of the arbitration board and $106,000 for the other Board members; and $325,900 for travel and subsistence.

The increase is attributable to the fact that some of the costs included in the proposed programme budget were inadvertently estimated for one year instead of two and that, initially it was envisaged that the alternate chairperson would serve on a part-time basis rather than on a full-time basis. The increase would be sought from the contingency fund.

In his note (document A/C.5/50/2/Add.1), transmitting the comments of the United Nations Administrative Tribunal and the Staff Union, the Secretary- General says he regrets that the Secretariat Staff Union does not support the proposed reform of the internal justice system in its present form. He emphasizes that his report is fully consistent with all the agreements reached with the staff throughout the consultation process on the reform -- agreements he has endorsed -- such as the participation of the staff in the selection process for the arbitrators and the coordinator of the ombudsman panels. Over the past four years, he has received from the Joint Appeals Board advice of uneven quality, which was not readily acceptable and required in each case an in-depth review to determine whether each recommendation was supported by evidence and conformed to the relevant legal principles, rules and policies.

In its comments contained in an annex to the note, the Administrative Tribunal states that the Secretary-General's consolidated report has the effect of condemning severely the performance of the Appeals Board. It would appear that a number of the matters related to the operation of the Board might be solved through the adoption of appropriate rules concerning potential conflicts or bias, and through reform of the system of selection of Board members.

According to the Tribunal, the statistics cited in the Secretary- General's report creates the impression that the Board has been performing very poorly, and this appears to be one of the principal reasons put forward for replacing it with an arbitration board. Without an in-depth analysis, it would be very difficult to arrive at a valid judgement concerning the quality of the Board's work.

On the financial aspects of the proposed reforms, the Administrative Tribunal states that it is doubtful whether the part-time members of the New York arbitration board would be able to deal with an estimated annual case- load of 90 in two five-week sessions. Time requirements indicate that the arbitration board is likely to be significantly more expensive than has been estimated by the Secretary-General.

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In its comments, contained in another annex to the Secretary-General's note, the Staff Union states that the Secretary-General's report was not provided to the staff before publication, "even though the document is riddled with references to its support". The staff's research indicates that the majority of recommendations rejected by the Secretary-General are upheld by the Tribunal. The Union stressed that over the past two years, the Secretary- General accepted the recommendations of the Joint Appeals Board in 99.5 per cent of the cases when the Board supported the decision of the Administration. His confidence in the Board dropped dramatically in cases where the Board supported the appellant. It adds that the crisis in the justice system appears to be the inability of management to be accountable for incorrect or improper decisions.

The Staff Union points out that as long as the proposed arbitrators are recruited and paid by the United Nations Secretariat, every precaution should be taken to ensure that they are truly independent. For that reason, the selection process must be a joint one. A detailed selection process by a joint staff-management panel for the ombudsman coordinator, chairperson, alternate chairperson and members of the arbitration board, which was agreed to by staff and management, has been suppressed in the document. The Union also expresses concern about the proposal to add only one person to the office of the coordinator of the panel of counsel. The Staff Union is committed to reforms. Deletion of fundamental components of due process, such as adequate representation and agreement on the arbitrators, alters fundamentally the proposal. The Staff Union concludes that if the Secretary-General's consolidated report remains in its present form, it does not have the support of the staff.

In its related report, the ACABQ (document A/50/7/Add.8) recommends acceptance of the proposed two posts of administrative review officers. The Committee further recommends that the office be accorded operational independence to ensure objectivity and efficiency. Regarding the remuneration of the arbitration board, the Advisory Committee points out that the remuneration packages proposed by the Secretary-General are unlike any existing pay arrangements and the rationale is unclear. It is not clear about the projected staff requirements for the board in New York and Geneva, since no mention is made of secretariat and other services in the Secretary- General's financial summary.

There are still issues to be addressed with regard to the proposal for an arbitration board. The report states, adding that more work should be done before its creation is further considered by the Assembly. The Advisory Committee also recommends that the establishment of a disciplinary board should be reconsidered when the establishment of an arbitration board is considered. The Committee agrees that resources should be provided for the training of members of the panel of counsel. The financial implications of

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the ACABQ recommendations would amount to $629,200 in the proposed 1996-1997 - - $587,900 for new posts and $41,300 for the travel of the coordinator.

Admission of Tourism Organization to Pension Fund

A note by the Secretary-General transmits another from the Secretary of the United Nations Joint Staff Pension Board on the admission of the World Tourism Organization to the Pension Fund (document A/C.5/50/34), which states that the Board's Standing Committee had agreed that the Fifth Committee could recommend the agency's admission as from 1 January 1996.

Revised Estimates on Commission of Inquiry in Rwanda

The Secretary-General's report on the revised estimates on Commission of Inquiry in Rwanda (document A/C.5/50/27) states that an additional appropriation of $688,600 net will arise in the proposed 1996-1997 budget section on peace-keeping and special missions. Additional requirements of $392,100 net will be reported in the context of the second performance report for the 1994-1995 biennium under a General Assembly resolution on unforeseen and extraordinary expenditures.

The Commission was set up by the Security Council last September to, among other things, collect information and investigate reports on the sale or supply of arms and related matériel to former Rwandan Government forces in violation of relevant Council resolutions. It would also investigate allegations that such forces were getting military training to destabilize Rwanda and to identify parties aiding the illegal acquisition of arms by the former Rwandan government forces. To be based in Nairobi, the Commission will comprise six persons, including legal, military and police experts. It will be chaired by a United Nations staff at the level of Director (D-2) appointed by the Secretary-General. The other five members will be made available by governments, which will pay their salaries. Travel and subsistence allowance in the area of operation would be borne by the United Nations. The Commission will be supported by one military observer, eight international staff and six local level staff.

In its related report on the Commission (document A/50/7/Add.4), the ACABQ states that the Assembly should consider additional appropriations of not more than $688,600. The additional spending needs of $419,200 gross or $392,100 net for the period 1 November to 31 December 1995 should be considered in the context of the second performance report for the 1994-1995 biennium.

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Proposed 1996-1997 Budget

The Secretary-General's report on revised estimates on the United Nations participation in MICIVIH (document A/C.5/50/25) states that $2.3 million net in additional appropriations would be required in the proposed 1996-1997 budget. The amount would be allotted to the budget's section on peace-keeping and special missions to pay for the 1996 portion of the extension of MICIVIH mandate from 7 July 1995 to 7 February 1996 granted by the General Assembly. It would relate to the salaries and common staff costs of 115 international staff, consisting of 98 professional and above, 10 General Service and seven Field Service staff.

The 7 July to 31 December 1995 portion of the extension would require $11.5 million net, which have been dealt with in relation to the 1994-1995 biennium.

In its related report on MICIVIH (document A/50/7/Add.5), the ACABQ recommends about $2 million after suggesting cuts from estimates for United Nations Volunteers, the rental and maintenance of vehicles and from communications costs.

The Secretary-General's report on the revised estimates related to MINUGUA (document A/C.5/50/26) states that an additional appropriation of $7.3 million would be needed for MINUGUA's activities from 1 January to 31 March 1996. A significant part of the amount would pay for salaries and common staff costs, personal service contracts and mission subsistence allowances. The sum would arise in the 1996-1997 proposed budget's section for peace- keeping and special missions.

In the report, the Secretary-General recommends that he be authorized to commit about $2.4 million monthly to pay for MINUGUA's recurring costs, should the General Assembly extend the mission's mandate beyond 31 March 1996. Its activities are of an extraordinary nature and should continue to be treated outside the procedures related to the contingency fund.

The MINUGUA was established in September 1994 to verify compliance with human rights agreements in Guatemala. A total of $10.1 million was appropriated by the General Assembly last December, including a complement of 113 international and 135 local level staff. An Agreement was signed in March 1995 on Identity and Rights of Indigenous Peoples between the Government of Guatemala and the Unidad Revolucionaria Nacional Guatemalteca (URNG). The parties' decision that the Mission verify aspects of the Agreement relating the rights of such peoples required an expansion of MINUGUA's existing mandate. The activities arising and the growing number of human rights cases brought to the Mission's attention require a reinforcement by 14 international staff, 10 local level posts and 34 additional volunteers.

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In a report on MINUGUA (document A/50/7/Add.9), the ACABQ states that an additional appropriation of $7.1 million would be required for the period from 1 January to 31 March 1996. It also recommends that the Secretary-General be authorized to commit no more than $2.3 million monthly for MINUGUA, should the Assembly extend the mandate beyond 31 March 1996.

The Secretary-General's report on the revised estimates for the budget section on overall policy-making, direction and coordination (document A/C.5/50/40) states that $352,200 additional appropriation would be needed to establish an Under-Secretary-General post on a temporary basis in 1996. The additional costs would be accommodated in the contingency fund to be established for 1996-1997.

The Under-Secretary-General post is for a special adviser to the Secretary-General for the biennium 1996-1997. The adviser will monitor and bring to the Secretary-General's attention policy issues related to providing overall secretariat support to the General Assembly and its Main Committees and guiding and coordinating the implementation of its decisions. He will be called upon to help strengthen linkages between the Organization's political, humanitarian and social work and provide policy support to global conferences and relevant aspects of the work of the Economic and Social Council.

The Secretary-General's report on funding of regional institutes from the United Nations regular budget (document A/C.5/50/33) states that eight regional institutes or centres receive resources from that budget. These are the Latin American and Caribbean Institute for Economic and Social Planning (ILPES), Latin American Demographic Centre (CELADE), Latin American Centre for Economic and Social Documentation (CLADES), African Institute for Economic Development and Planning (IDEP), United Nations Regional Centre for Peace and Disarmament in Africa, United Nations Regional Centre for Peace, Disarmament and Development in Latin America and the Caribbean and the United Nations Regional Centre for Peace and Disarmament in Asia and the Pacific.

According to the Secretary-General, a common trend can be discerned regarding them. Initially, they were to be run without seeking regular budget funding, except for the centres for peace and disarmament and CLADES, which started with voluntary contributions, supplemented by regular budget funding. After their establishment, the institutes ran into financial trouble due to their inability to attract voluntary contributions. Eventually, on the initiative of intergovernmental organs, the General Assembly agreed to provide resources from the regular budget primarily for posts.

Meanwhile, a policy whereby regional institutes should be funded from the regular budget has not been elaborated by the Assembly. The Secretary- General has not, on his own initiative, proposed the funding of regional institutes from the regular budget. As a rule, activities to be funded from the regular budget should be undertaken by the Secretariat and not be

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entrusted to bodies outside the Secretariat. Such centres should be created only if there is a viable source of financing outside the regular budget. Provision of regular budget funds, should continue in 1996-1997.

The Secretary-General's seventh progress report on the IMIS project (document A/C.5/50/35) states that the project aims to help improve the Secretariat's efficiency in its administrative and financial functioning by enforcing consistent processing procedures and improving quality and timeliness of financial and personnel data.

The budget for the project in 1996 and 1997 is estimated at some $12 million and the maintenance budget, $7.6 million. The biennium will mark the transition from the development to the maintenance phase of the system. The development team will be replaced by a maintenance unit that will work with various areas of the Departments of Administration and Management and of Peace-keeping Operations and offices away from Headquarters.

The purpose of the system, the first phase of which was approved by the General Assembly in December 1988, is to develop an integrated system to process and report on administrative actions at major duty stations. The main areas the system covers are personnel management, post management, accounting, purchasing, travel, payroll and budget execution.

Release 1, a segment of the System concerning personnel processing, was implemented in September 1993, and stabilized by early 1995. As of October, more than 7,800 active staff were administered through IMIS, located at about 70 duty stations. Release 2, on staff entitlements, was successfully implemented on 1 April. Release 3, which covers finance, procurement, property control, and travel, will be implemented by mid-January 1996. Release 4, concerning payroll, has been rescheduled for the last quarter of 1996.

The Secretary-General's report on the conditions of service of non- Secretariat officials serving the Assembly (document A/C.5/50/12) is meant to help the current Assembly session in its quinquennial review of those conditions for the Chairman and Vice-Chairman of the ICSC and of the Chairman of the ACABQ. In a 1990 review, the Assembly decided that, effective 1 January 1991, their annual net compensation would be $112,875, with an additional special allowance of $8,000 for the ACABQ and ICSC Chairmen. The Secretary-General recommends that it should remain at the level the Assembly set in 1990, subject to some annual inflation-related adjustments. Accordingly, the officials' compensation would increase to about $128,023. The special allowance of the Chairmen of ACABQ and ICSC should remain unchanged. The Secretary-General does not propose any change in the manner of applying other conditions of service such as the education grant.

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According to the report, the pensionable remuneration of the ACABQ and ICSC Chairmen remains at $140,000 per annum and $130,000 for the ICSC Vice- Chairman, as established by the Assembly in 1990. By the terms of a previous Assembly resolution and the $128,023 projected compensation level as at 1 January 1996, the corresponding pensionable remuneration would be $164,900 for the two Chairmen and $153,100 for the Vice-Chairman.

Estimated additional requirements of $112,000 would arise in 1996-1997 if the Assembly approves the suggestions on the conditions of service. Therefore, additional appropriations would be needed in the 1996-1997 budget: $37,400 under section 1, on overall policy-making, direction and coordination, and $74,600 under section 27, on jointly financed administrative activities. The requirements under the jointly financed activities would be offset by a $53,400 increase in reimbursement by other organizations to the United Nations of their share of ICSC costs.

Mock-up Budget for Peace-keeping Operations

Also before the Committee was a note by the Secretary-General submitting a mock-up budget for a single peace-keeping operation (document A/50/319). The mock-up budget includes a mission's political mandate, operational needs, status of assessed contributions, the management of funds and cost estimates for mandate periods. Other items included are staffing requirements, actions required of the Assembly, which is usually on the allocation of funds for a mission.

In a related report on the mock-up budget (document A/50/798), the ACABQ welcomes efforts to modify and rationalize the format of peace-keeping budgets. The United Nations Controller had stated that the Secretariat had started preparing peace-keeping budgets for the financial period starting on 1 July 1996, on the basis of the format proposed in the mock-up budget.

According to the ACABQ, the links between a mission's political mandate and its operational needs should be established and explained. The mock-up budget should specify any support to be provided to United Nations peace- keeping operations by regional organizations. Resource requirements should be justified, not merely described.

Statements on Oversight Office

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) said that activities related to internal oversight had grown. That was very important because the main purpose of OIOS should be to achieve efficiency in implementing programmes mandated by the General Assembly. The reports and recommendations submitted

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by the Office should be analyzed by the various intergovernmental bodies. The Assembly should guide how those reports were analyzed.

She said she shared the opinion of the Under-Secretary-General of the Office on the need to improve its linkages with programme managers to ensure the effective implementation of activities assigned to it. It was a cause for concern that the Secretariat was trying to set up other structures, such as the efficiency board, which would have duties that overlapped those of the Office. If that was done, the Assembly would have to choose between accepting the establishment of the discriminatory board and the addition of resources for the Oversight Office. The mandate of the Office should be strictly adhered to and it should not duplicate the sphere of influence of other oversight bodies. The resolution to be adopted on the question should reconfirm issues related to its areas of competence. The powers and functions of other offices should not be given short shrift. It was surprising that the Secretary-General would give the Office power related to the hiring of staff and the termination of contracts. She asked why he had decided to make such a move.

She said the comments of the JIU on the Office's final reports were useful. It was regrettable that the Unit could not comment on all aspects of the reports because it did not have access to some records. There was a need for the Unit to get the reports of the Office early enough to enable it to submit its own comments. She supported the views that the General Assembly should consider only those reports that had been commented on by the JIU, unless delays in doing so could be attributed to the Unit. The excessive use of outside expertise was another cause of concern.

SAM HANSON (Canada), on behalf of Australia, New Zealand and Canada, expressed support for the scope of the work of the Oversight Office, and welcomed the frank and robust manner in which that Office was addressing its mandate. Deficiencies and weaknesses in the Organization were being clearly reported and sound recommendations were being made. The Office's priorities should continue to be on such high-risk areas as peace-keeping, humanitarian and related activities and procurement.

Stressing the importance of the prompt adoption of internal control standards which would aim at promoting better management and at deterring corruption, waste, fraud and mismanagement, he said United Nations managers should be aware that an effective internal control system was a managerial responsibility which could not be left only to oversight services. In addition, management should be accountable, face criticism and be held responsible for their actions and decisions. It was also the managers' responsibility to request the generation, on a regular basis, of data and analytical information on implementation and results achieved. He welcomed the establishment of general guidelines for the establishment of such managerial functions, including the development of performance indicators.

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Referring to the role of the JIU, the Board of Auditors and the Oversight Office, he said problems of coordination of oversight activities in the Organization should be rectified promptly. In light of the fact that audits of various peace-keeping operations by the Oversight Office had identified a myriad of financial and management deficiencies, it was important for the Office to emphasize the audit of the start-up phase of such missions, especially following "the spectacle of the United Nations Transitional Authority in Cambodia liquidation". Its observations on procurement were a cause for concern, as that was an important area, involving considerable sums of money. The Office should continue to monitor actively progress in procurement reform. He welcomed the intention of the United Nations to pursue court action to punish violators and to recover its assets, as a deterrent to future violators. The Assembly should be regularly kept abreast of the cost savings and recoveries resulting from actions of the Office.

KARL PASCHKE, Under-Secretary-General for Internal Oversight Services, welcomed the Member States' intense scrutiny of reports of the Office. Such visible attention was the best leverage that could be provided to that Office in order to improve the acceptance of its recommendations throughout the Organization. The actual changes recommended had to be executed by the responsible department heads and unit chiefs. They would be more inclined to do so if they saw the watchful eyes of Member States focused on them.

Responding to specific comments and questions from delegations, he said much more had to be done in the Organization to ferret out waste and inefficiency. No amount of mismanagement and fraudulent activity could ever be justified or tolerated. A report on a budget prototype for peace-keeping operations had been submitted to the ACABQ for its review. There had been some significant changes in the management culture after only one year. Two evaluation reports on the start-up phase of peace-keeping operations had highlighted some weak areas, such as a lack of institutional memory which he hoped to redress. Learning from experience should be a normal part of the Organization's management culture.

The Office hoped to encourage a more demand-driven approach to management in the economic and social sectors, he said. There should be less emphasis on general studies; greater emphasis should be placed on services from United Nations data bases tailored to the needs of individual countries and other users. Promoting changes in the way the United Nations was managed would be the major task of the newly established Management Consulting Section of the Office, which was expected to be fully operational in early 1996. Building a system of internal controls was the responsibility of every manager. Three areas in which control should be introduced were documentation and records; separation of duties and responsibilities in reviewing transactions; and access to and accountability for resources. A formal set of internal controls standards would raise the awareness of managers for such

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basic principles of sound management and would contribute to strengthening their accountability.

In addition to identifying losses and initiating recovery action, the Office had tried to develop recommendations on the means of improving the system to preclude the recurrence of losses or at least to make their recurrence less probable, he continued. Whenever the Office felt that losses were due to the violation of regulations and rules or to the negligence of officials involved, it urged management to initiate disciplinary action and to seek recovery of funds from the individuals responsible. The Office had established a monitoring system which allowed it to closely follow up on actions taken by the Administration.

On the Centre for Human Rights, he said he had just been informed of the results of the external consultant's work aimed at restructuring the Centre. There seemed to be a new spirit among the Centre's management and staff. The idea that a thorough restructuring and a fresh start were needed to enable the Centre to face the challenges of a fast-changing human rights environment finally seemed to have taken hold. What was now just a blueprint would have to be translated into reality. Responding to a question raised today, he said inspection could be defined as a snapshot of weaknesses in the management of a unit; an investigation would look at wrongdoings in the Organization. Management was the focus of the Office's work.

Statements on Human Resources Management

JOSEPH E. CONNOR, Under-Secretary-General for Administration and Management, introduced some of the reports on the reform of the internal justice system. He said the Secretary-General had observed that the current internal justice system had been set up many years ago for a few thousand staff and a few cases a year. Now, the system had to deal with some 14,800 staff and a heftier workload such as about 108 appeals yearly. The new system would seek more informal resolution of disputes, a more professional and expeditious appeal and disciplinary machinery, and a much simpler and cost- effective justice system. The cornerstone of the proposed reform was professionalising the legal process, which would substitute arbitrators for the hundreds of volunteers who had up till the present served on the Joint Appeals Board. The proposed arbitration and the disciplinary boards would also be chaired by experienced professionals.

He said the ACABQ recommendation that more work should be carried out before the creation of an arbitration board was further considered by the Assembly, would postpone the very core of reform to an undetermined future. The reform parts the ACABQ had endorsed, such as training, the creation of a post of coordinator for the new ombudsman panels, and of new posts for the administrative review function and for the panel of counsel, were only part of

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an integrated programme developed by the Secretary-General. Such a partial approach would be marginally effective. It would not address the root cause of the problem: the voluntary nature of serving in the present justice system. It would not work. The system was slow, inefficient and extremely costly. The Administration would honour its agreement that staff would play an active role in selecting arbitrators and the coordinator of the ombudsman panels.

The deletion of Article 11 of the Statute of the Tribunal -- pertaining to the review of its judgements -- had been recommended to the Assembly by the Sixth Committee (Legal) at the insistence of Member States and was not part of the Secretary-General's reform proposals. If the article was deleted, the Tribunal would be the final instance of appeals. That would encourage staff to cooperate with the Administration to establish a fair, efficient and professional system. If the ACABQ recommendations were accepted, no action would be taken in the foreseeable future to deal with the failed Joint Appeals Board system. Introducing the measures endorsed and recommended by the ACABQ would not simplify the appeals process; it would only become more cumbersome and costly. The expenditure required for the piecemeal reform it had recommended would hardly be justified in the current financial crisis. The anticipated results of such a reluctant reform could only be marginal since they would neither professionalize the system nor make it more efficient. There should be no delay in implementing the Secretary-General's reform proposals.

"The Tribunal thinks the Secretary-General's reform goes too far, the ACABQ believes that one third of a correction is enough for now; the staff believe that the Secretary-General's reform had not gone far enough", Mr. Connor summed up.

C.S.M. MSELLE, ACABQ Chairman, introducing the Advisory Committee's report, said he would not make a long statement in response to Mr. Connor as the Advisory Committee's report had been clear.

ANGELA KING, Deputy to the Assistant Secretary-General for Human Resources Management, introduced the following reports of the Secretary- General: composition of the Secretariat; list of staff of the United Nations; and respect for the privileges and immunities of officials of the United Nations and the specialized agencies and related organizations.

She said of the 135 appointments made as at 30 June, 40 per cent were candidates from developing countries. Forty-five per cent of the total number of appointments were women. Among staff recruited from developing countries, almost half were women. Significant improvements had been made in the levels of representation of women in the Secretariat, both in posts subject to geographical distribution and in posts at the Principal Officer (D-1) level and above.

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The office of Human Resources Management was ready to respond to further queries from delegates on the subject of staff-management consultations on the definition of "reasonable time" for staff representational activities. In addition to the 14 staff members who were listed in the Secretary-General's note, four additional United Nations staff members had been killed -- one each in Angola, Nigeria, Bosnia and Herzegovina, and Somalia. None of the assailants involved in those cases had been identified or brought to justice. Expressing concern for officials who had been arrested and detained, she said the situation of national staff belonging to United Nations organizations in Rwanda continued to be precarious.

FAHD MOHD YOUSEF KAFOOD (Qatar) said it was important to strengthen the management of the Organization's human resources. He welcomed the efforts of the Secretariat and the Assembly's resolutions to improve those resources. Improvements were expected in the recruitment of the best candidates, in ensuring a gender balance and in the evaluation of staff performance. The safety and security of staff members should be assured. He underlined the importance of equitable geographical representation and the need to ensure representation of underrepresented and unrepresented States, the majority of which were developing countries.

Developing countries were not sufficiently represented at the highest levels of the Organization, he continued. Equitable geographical representation was in the interest of all States and especially for unrepresented and underrepresented States. The Secretariat should send missions to those countries to ensure the recruitment of candidates at the appropriate levels. Examinations should be also be held for potential candidates in unrepresented and underrepresented States. The developing countries should have their fair share among staff posts in the Organization.

HIDEKI GODA (Japan) said due to the shortage of time he reserved the right to make further comments on the matter later. Japan basically supported the purpose of the reforms of the justice system and the measures proposed by the Secretary-General. It was regrettable that the ACABQ review and recommendations were preliminary.

He welcomed the amendment to staff rules to make national competitive examinations the sole means for appointment to Assistant Officer (P-1) and Associate Officer (P-2) and for some Second Officer (P-3) posts. The response of the Assistant Secretary-General for Human Resources Management (OHRM) on the suspension of permanent appointments and probationary appointments showed he had underestimated the feelings of Member States. Member States were not looking for compromise: the suspension should be rescinded. More information should be provided on the issue of promotions from the General Service to Professional category and promotions in other levels.

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VIRGINIA GRAHAM (United States) wanted clarification on whether the agenda item would be deferred to the resumed session.

The Committee Chairman, ERICH VILCHEZ ASHER (Nicaragua), said that the Committee was considering whether to postpone the matter to the resumed session.

Ms. GRAHAM (United States) said that the Bureau of the Committee had not decided to refer the matter to the Sixth Committee (Legal). She objected to any move to refer the matter to that Committee.

The Chairman, Mr. VILCHEZ ASHER (Nicaragua), said other delegations had expressed reservations on considering the matter without it being first discussed by the Sixth Committee.

RAFAEL MUNOZ (Spain) said the European Union could not accept a postponement of the issue to the resumed session as long as it had not made a statement on it.

The CHAIRMAN said the item would be considered in the Committee's Sunday meeting.

Ms. RODRIGUEZ ABASCAL (Cuba) said that she had noted the decision of the Bureau to the effect that consultation would continue on the issue. Cuba believed that the reforms of the justice system should be discussed in the Sixth Committee. That Committee should express its view on the matter. No decisions could be taken until the Sixth Committee had considered the issue.

DENISE ALMAO (New Zealand) said the Sixth Committee met only in the regular sessions of the General Assembly and, if the Fifth Committee waited for it, it would not take action until the spring of 1997. She supported Japan's statement on the suspension of permanent appointments and on promotions.

SOONG CHUL SHIN (Republic of Korea) expressed support for Japan's and New Zealand's views on the suspension of permanent and probationary appointments.

ADRIEN TEIRLINCK (Belgium) said several issues were being opened for discussions when the Committee was facing time constraints. Informal consultations should be held on items on which action was necessary; the others should be deferred.

The CHAIRMAN said that was what he was trying to achieve.

REGINA EMERSON (Portugal) said informal consultations might help resolve the matter relating to justice reforms. Referring to the statement by Ms.

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King on staff representation, she said the Committee should be informed on what "reasonable time" meant.

MOHAMED OUMMIH, President of the New York Staff Union, said he hoped that the Fifth Committee would take account of the views of the staff in its deliberations. The staff was in favour of an open, impartial, professional and fair system of internal justice. The staff was not resistant to change and remained committed to agreed reform in the reports prepared in March and June this year on the reform of the internal justice system. The Secretary-

General's more recent report could not be supported; the ACABQ recommendations could be endorsed. The Secretary-General's report had not been shared with the staff and contained "backtracking, changes and omissions".

On the planned introduction of a new performance appraisal system, he said the management had made changes unilaterally on the composition and selection of the management review committee and its role in individual ratings; and on the fate of the rebuttal panels.

It had also made changes to the right to appeal the rebuttal panels' outcome. Staff representatives had previously agreed on a system which contained checks and balances. With the proposed alterations, they could no longer support the introduction of a system that did not treat supervisor and supervisee equally nor guarantee the one-to one continual dialogue between them. The Staff Union had requested the Secretary-General's authorization to file an action before the Administrative Tribunal regarding what the staff representatives considered violations of the agreements reached in good faith between staff and management.

Noting that the staff-management consultative process had resumed in November following its suspension in September, he stressed the need for staff representatives to have access to the information needed to ensure improved consultation, including staffing tables. Staff representation must be reaffirmed as an official function and staff representatives should be considered as interlocutors for the Administration, "not an enemy to silence". They should not be treated as an obstacle by the new management culture and should be afforded facilities to perform their functions.

He urged Member States to ratify the Convention on the safety of United Nations and associated personnel so that it would become international law. There was a need to end "back-door recruitment" on 11-month contracts because of the negative impact of that practice on career development of staff. It was depressing to hear that while staff were being threatened with the loss of jobs, retirees were having their contracts extended on missions. Immediate action was needed on that issue by the Administration.

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He cited a number of problems faced by staff during the current financial crisis, such as the retroactive suspension of the granting of career appointments, the impact of austerity measures imposed in September, the break down in staff management relations, the deterioration of the conditions of work of the General Service and related categories, and the non- competitiveness of salaries for the professional category. Those problems coupled with defamatory press campaign against the Organization and its staff had led to extraordinary meetings of staff in New York and elsewhere and a protest rally in Geneva. If that trend continued, no one would be able to predict what was next, he added.

Action on Tourism Organization

RAYMOND GIERI, Secretary of the Pension Fund, said the World Tourism Organization's staff rules would conform with the common system when it joined the Pension Fund. The Tourism Organization's application had been supported by its Member States and its staff.

At the instance of its Chairman, the Fifth Committee approved a draft decision that would have the General Assembly decide to admit the World Tourism Organization into the United Nations Joint Staff Pension Fund, effective from 1 January 1996.

Statements on 1994-1995 Budget

YUKIO TAKASU, United Nations Controller, introduced the Secretary- General's report on the Commission of Inquiry in Rwanda, highlighting some of its contents.

Mr. MSELLE introduced the ACABQ's report.

EDWARD KELLER (United States) said he endorsed the recommendation of the ACABQ on the Secretary-General's proposal that the matter be considered while approving the 1996-1997 budget. The need for an additional P-2 was not clear, the ACABQ had noted. The provisions for hospitality had seemed excessive as the ACABQ had also pointed out. Therefore, the question should be handled in a procedure proposed by the ACABQ.

Statements on Proposed 1996-1997 Budget

Mr. TAKASU introduced the Secretary-General's report on the MICIVIH.

Mr. MSELLE introduced the ACABQ's comments and observations.

Mr. KELLER (United States) said that the 1994-1995 budget had provided close to $50 million for such missions. Provisions should be made for them

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for the future, too. The United States would prefer to take up final consideration of the item in the context of the overall 1996-1997 budget.

The Committee CHAIRMAN said that the Committee would handle the matter that way.

Mr. TAKASU, United Nations Controller, introduced the Secretary- General's report on the MINUGUA.

Mr. MSELLE introduced the ACABQ's comments and observations.

Mr. KELLER (United States) said that the mission had been given funding until the end of 1995, running at about $1.5 million monthly. The proposed budget for 1996-1997 did not make provisions for 1996. That was an error; the budget should have provided funding for the extended mandate of the mission. The error was serious as MINUGUA was valuable. The United States would support the funding for the mission as recommended by the ACABQ.

KJERSTI RODSMOEN (Norway) said her country had been encouraging the peace process in Guatemala and appreciated the work of the United Nations there. She supported the Secretary-General's proposal for financing for the first quarter of 1996. While preferring the Secretary-General's proposals, she did not have strong objections to the cuts suggested by the ACABQ.

Mr. MUNOZ (Spain) said he supported what Norway had said. He supported the ACABQ's proposal on the matter.

MARTA PENA (Mexico) endorsed the comments of Spain and Norway, members of the Group of Friends on Guatemala. She did not oppose considering the issues raised in informal consultations.

AURELIO IRAGORRI (Colombia) said he hoped that the meeting would adopt the recommendations.

Mr TAKASU, the United Nations Controller, said an important principle for preparing the budget was the strict interpretation and adherence to legislative mandates. In the case of MINUGUA's mandate the Assembly had not taken a decision to extend that mandate beyond this year. Such a decision could not be taken by the Secretary-General.

Funding of Regional Institutes

Mr TAKASU, the United Nations Controller, introduced the Secretary- General's report on the funding of regional institutes.

Mr. MSELLE, the ACABQ's Chairman, introduced the Advisory Committee's report on the matter.

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Mr. KELLER (United States) said the reports clearly showed a lack of consistent policy in funding regional institutes. Referring to the Secretary- General's report, he said he could not accept that such funding should continue for the next biennium (1996-1997). Such conclusions were not supported by the report. He requested information on funding of the institutes from grants and on subsidies for them in the current biennium (1994-1995). The Committee needed to identify the problems of such centres and institutes. He stressed that the funding of all institutes and centres not under the direct supervision of the United Nations should be dropped from the regular budget.

DAVID ETUKET (Uganda) said he valued the contributions of the various institutes which benefitted from the regular budget and supported regular budget financing for them. The Secretary-General had indicated the possibility that the regional disarmament institutes would be closed because of the financial crisis. He asked for consistency in the decisions made and the intended action on those institutes.

DESIRE NKOUNKOU (Congo) said the institutes played a very important role and their financing should be supported from the regular budget for the 1996- 1997 biennium.

Mr. EL ZIMAITY (Egypt) supported the continued financing of the institutes in the next biennium. The Committee could not adopt a decision to stop their financing from January 1996. Therefore, they should be supported for the next year.

NORMA GOICOCHEA ESTENOZ (Cuba) expressed full support for the continued financing of the institutes.

Mr. TAKASU, the United Nations Controller, responding to Uganda, said that the First Committee had requested the Secretary-General to explore alternative financing for regional disarmament institutes. He added that the current level of the regular budget funding was essential to support the institutes.

Mr. ETUKET (Uganda) said the First Committee's resolution on the matter mandated the Secretary-General to finance those institutes from the regular budget. They should continue to be supported in the 1996-1997 biennium.

Other Matters

NICK THORNE (United Kingdom) expressed concern that the Secretariat continued to borrow from peace-keeping operations to fund the regular budget. The practice was allowed in the resolutions on the Working Capital Fund. Early drafts of such a resolution should be provided to Member States before it was approved.

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Mr. TAKASU, United Nations Controller, said that the Assembly approved resolutions on such related matters as the Working Capital Fund when it approved the regular budget. Early versions of the drafts on the matter would be provided to Member States.

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