EXECUTIVE DIRECTOR, WARNING OF WORSENING FINANCIAL SITUATION, URGES GOVERNMENTS TO RECONSIDER UNDCP FUNDING
Press Release
SOC/NAR/731
EXECUTIVE DIRECTOR, WARNING OF WORSENING FINANCIAL SITUATION, URGES GOVERNMENTS TO RECONSIDER UNDCP FUNDING
19960426 Draft Introduced on New System of Financing Programme; Annual Report, Study on Compliance with 1988 UN Drug Convention Introduced(Reproduced as received from UN Information Service.)
VIENNA, 19 April -- The serious financial problems faced by the United Nations International Drug Control Programme (UNDCP), far from improving, had been worsening, its Executive Director, Giorgio Giacomelli, told the Commission on Narcotic Drugs this morning. There could be no real sense of "ownership" of the Programme as long as most member States positioned themselves as recipient countries, leaving 90 per cent of voluntary contributions for the fund to come from seven countries and the European Union and 50 per cent of general-purpose income to come from three governments only.
The alarming developments on the financial front contrasted starkly with the high priority given by member States to international drug control and their stated confidence in the work of the UNDCP, Mr. Giacomelli said. If the Commission was to fulfil its mission as the governing body, all its members should become shareholders of the Programme. Enabling the Programme to carry out its mandate in a sustainable manner required governments to reconsider the way it was financed. It needed to be able to rely on a broader-based sense of "ownership" by member States providing the required critical mass of general-purpose resources. If the proposal contained in a non-paper was acted upon, that would redress the dichotomy between the ambitious nature of an expanding mandate for the UNDCP and the insecure nature of its financing.
Following that statement, the Chairman of the Commission, Helmut Butke (Germany), introduced a draft resolution on a new system of financing the Programme's activities. Under that text, the Commission would endorse the Executive Director's proposal for a broader-based financing system through contributions from at least 50 countries, each contributing approximately $300,000 in additional general-purpose funds annually; and invite member States to consider contributing a portion of the value of confiscated drug-related proceeds to the UNDCP Fund.
Also this morning, the President of the International Narcotics Control Board (INCB), Oskar Schroeder, introduced the 1995 annual report of the Board, as well as its report on the implementation of article 12 of the 1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, relating to the control of precursors and other chemical substances used in the illicit manufacture of drugs.
Following the statement by the Executive Director, made in the context of the Commission's consideration of the item on "Administrative and budgetary matters: medium-term plan", the representatives of 11 countries spoke. They were: Morocco, Germany, Japan, Italy, Mexico, United States, India, Netherlands, Spain, Sudan and Iran. Bertrand Juppin de Fondaumière, Deputy Executive Director and Director of the Division for Treaty Implementation and Support Services, described the measures proposed by the UNDCP secretariat to achieve mandatory cost-cutting targets totalling $940,800.
In other action this morning, the Commission elected, by acclamation, Pavel Jajtner (Czech Republic) as Rapporteur. The other officers of the Commission were elected at the first meeting on 16 April.
Administrative and Budgetary Matters: Medium-Term Plan
GIORGIO GIACOMELLI, Executive Director of the UNDCP, introduced the item on administrative and budgetary matters: medium-term plan. Reporting to the Commission on the serious financial problems faced by the Programme, he said that far from improving, the situation had worsened. The Programme had not received financing that was consistent with what it was being asked to achieve. The regular budget resources available to it had been cut, the Fund balance which it inherited would soon be depleted and general-purpose funds required to support core functions had decreased substantially. Regular budget cuts had impacted on the substantive work of the Programme and affected its capacity to fulfil its core mandates. Painful downsizing had taken a toll. Unless the restrictions were lifted, the UNDCP would not be able to strengthen its expert capacity in the control of precursors and psychotropic substances. The Programme would have to find voluntary contributors.
Over 50 per cent of the general-purpose income was contributed by three governments only. If that trend continued, he said, the UNDCP might not have sufficient resources to cover the basic requirements of headquarters and the infrastructure costs for its field operations. The reduction of general- purpose resources limited the Programme's flexibility in addressing new priority concerns. The high-level priority expressed by governments had yet to be matched by a commensurate availability of resources to allow the UNDCP to live up to expectations. The availability of solidly based general funds was a precondition for the Programme to carry out its mandated activities.
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While the quantitative dimension of the funding might be cause for concern, he was most preoccupied by the qualitative aspects of the contributions to the UNDCP Fund. Seven governments and the European Commission had provided 90 per cent of the total voluntary contributions for the 1996-1997 biennium. "There cannot be a real sense of 'ownership' of the Programme when most of the member States position themselves exclusively as recipient countries", he declared. Neither should a handful of donors bear the brunt of the financial burden for international drug control.
Governments must reconsider the way the Programme was financed. The UNDCP needed to be able to rely on a broader-based sense of ownership by member States providing the required critical mass of general-purpose resources. A non-paper distributed at the session contained a concrete proposal which was minimalistic in financial terms. If acted upon, that proposal would ensure a broader collective empowerment of member States in their relations with the Programme. At the same time, it would redress the dichotomy between the ambitious nature of an expanding mandate and the insecure nature of its financing.
The Commission Chairman, HELMUT BUTKE (Germany), then introduced a draft resolution on a new system of financing activities of the UNDCP. He called for a consensus on the draft, saying its purpose was not to create any binding figures of funding or establish amounts of voluntary contributions.
By the draft, the Commission would endorse the Executive Director's proposal for an enhanced, broader-based financing system through contributions from at least 50 countries, each contributing approximately $300,000 in additional general-purpose funds annually. It would invite Member States to consider contributing a portion of the value of confiscated drug-related proceeds to the UNDCP Fund.
Also by the text, the Commission would express appreciation to those countries which had already responded to the Executive Director's appeal for additional general-purpose funding and urge an early response from all other States, intergovernmental and non-governmental organizations, in particular those States which had not already met the level of general-purpose contributions of $300,000. The Commission would also decide to consider measures to implement the proposed concept of ownership of the Programme.
ABDERRAHIM BENMOUSSA (Morocco) reaffirmed his Government's support for the UNDCP's role within the United Nations system, and agreed that greater resources for the Programme were vital. Delegations should examine the draft resolution just introduced, with a view to sponsoring it, and Morocco wished to be listed as its first co-sponsor. He said he was pleased that other members had supported, in their interventions, his suggestion that frozen assets confiscated from drug-related activities should be used in the fight against the drug scourge and to help fund the UNDCP.
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ALFRED PROTZ (Germany) agreed with the Executive Director that the major donors were "bearing the brunt" of UNDCP funding. Those donor countries should not be the first to pledge further funds because the donor base needed to be expanded rather than deepened. The present situation of so few donors created an unhealthy dependence of the UNDCP upon a few countries.
TADANORI INOMATA (Japan) said he was deeply concerned about UNDCP's general funding situation. Current arrangements dictated that the planning, coordination, research and evaluation of projects be funded from general- purpose resources, and the UNDCP had complied. Yet, some countries had earmarked their contributions for specific projects without donating to the general fund. That had created an inequitable situation with regard to the funding of projects. That situation required serious thought and discussion during the session. He called for suggestions on how to address the matter, and offered the services of his delegation to assist in the task.
He insisted that the bulk of the Japanese contribution, which would grow to $ 6.7 million this year, would not be specifically earmarked. His Government would follow that policy and urged others to do likewise.
ALBERTO INDELICATO (Italy) said he agreed with measures to strengthen the UNDCP and its financial base. His country was a strong supporter of the Programme and a major donor. All countries should be proud to participate in the effort to support its activities.
SERGIO GONZALEZ GALVEZ (Mexico) said he would support the draft resolution. He appreciated the different options and was particularly interested in the one whereby some portion of confiscated proceeds would be considered as a means of UNDCP contribution. His Government could not commit to a contribution of $300,000 but would increase its funding to the Programme.
KATHLEEN PALA (United States) said she supported the objectives outlined in the non-paper, specifically the recommendation that governments should pledge $300,000 each for core activities. She urged all States to provide the additional contribution, and she also supported the draft resolution. M.R. SIVARAMAN (India) called for a review of the programmes and activities of the UNDCP, saying they should be more people-oriented.
J.G.S.T.M. VAN HELLENBERG HUBAR (Netherlands) said he was especially struck by the Executive Director's reference to the lack of a real sense of "ownership" of the Programme by member States. His Government had already announced that it would contribute more to the UNDCP. He expressed reservations about a paragraph of the draft resolution by which the Commission would invite States to consider contributing a portion of the value of confiscated drug-related proceeds to the UNDCP Fund.
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BERTRAND JUPPIN DE FONDAUMIERE, Deputy Executive Director and Director of the Division for Treaty Implementation and Support Services of the UNDCP, said that when the General Assembly adopted the budget for the 1996-1997 biennium, it had included a mandatory rate for all posts. The overall costing of the 6.4 per cent reduction amounted to $64 million. In addition, the Assembly had requested savings of $100 million to be made on efficiency gains -- $154 million less than what was costed. The UNDCP's share totalled $940,800. There would be no programmatic implications from the cuts, although the UNDCP secretariat would have to freeze one General Service post for 24 months. To raise the vacancy rate, it would also have to freeze a fraction of the Professional posts. Those cuts would not reach the $940,800 target, however. It had been proposed that travel should be cut, that three ad hoc working groups be deferred and also that consultancy fees be reduced.
Even with those measures, it was still not possible to reach the $940,800 figure. The UNDCP would, therefore, be forced to freeze one Professional post and to maintain eight other posts vacant for varying degrees of time, yielding a savings of $324,000. By involving three other General Service posts, the $940,800 target would be achieved.
Among other measures, he continued, the secretariat had proposed that the questionnaire on demand reduction be delayed and that the manual on techniques of rapid assessment be deferred. There would be delays in implementing the mandate on psychotropic substances. Cutting travel meant that the secretariat would not be able to service the subsidiary bodies as in the past. It would try, nevertheless, to maintain as many subsidiary bodies as possible. The secretariat was further reviewing various actions that could be taken to improve efficiency. There should be a review of the governing structure of the UNDCP. Such a study would have to start within the context of the efficiency review. Under the 1996-1997 budget, it would not be possible to service all of the meetings scheduled.
Mr. INOMATA (Japan) asked if contingency funds could be used. He recalled that the Secretary-General had stated that he could not accommodate members' requests to undertake new mandates within existing resources. There were, however, no prohibitions to using contingency funds.
Some provisions of the draft resolution introduced would have financial and budgetary implications, he pointed out. The relevant statements should be prepared. Resolutions with resource implications should be forceful enough to request that the necessary resources be allocated to the programmes. What had happened to the two posts allocated to the INCB? he asked. The Board was a treaty body and the United Nations had a mandatory obligation to finance it. He also asked how the secretariat could continue to work if the Heads of National Drug Law Enforcement Agencies (HONLEA) bodies did not meet.
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JOSE ANTONIO DE YTURRIAGA BARBERAN (Spain) supported the comments of the Executive Director. States had a growing responsibility to the Programme and if they wanted the mandates to be carried through, they would have to provide the necessary means. He agreed with the document on financing and the principle of ownership of the UNDCP, with all States taking an active part. Ownership should be open to all States, even those that did not contribute a specific amount.
The search for new funds should involve States that were not yet contributors, and there should be greater participation by States who benefited from UNDCP programmes. He noted that it was much easier to get financial authorities and parliaments to give more aid when there was a specific project. Projects should not be arbitrary but should fit into the plan put forth by the UNDCP.
Mr. FONDAUMIERE, Deputy Executive Director and Director of the Division for Treaty Implementation and Support Services of the UNDCP, informed the Commission that the approval of programmes and tasks with budget implications should be accompanied by an associated report outlining funding sources.
MAHGOUB HASSAN SAAD (Sudan) called for technical, legal and financial support to developing countries from bodies mandated to counter drug abuse. The technical commitment of States should be examined with a view to reconsidering the share of contributions accorded to the poorest countries. Regional issues should be accorded greater importance and there should be more UNDCP regional offices.
GHODRATOLLAH ASSADI (Iran) shared the Executive Director's concerns regarding the financial situation of the Programme. If current trends continued, UNDCP activities would undergo substantial cuts. In evaluating contributions to the international fight against drugs, countries should not overlook money spent at the national level. Iran was used by drug traffickers as a transit country, and, accordingly, the Government spent substantial amounts of money internally to prevent the drugs reaching Western countries. Nevertheless, Iran would be willing to consider contributing to proposed projects and would be particularly interested in a crop substitution project in Afghanistan.
Mr. VAN HELLENBERG HUBAR (Netherlands) agreed with Japan that draft decisions having financial obligations should not be adopted without an accompanying document detailing the funding sources.
INCB Report
OSKAR SCHROEDER, President of the INCB, introduced that body's annual report, noting that it was supplemented by two publications on the licit production, manufacture, trade and consumption of narcotic drugs and
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psychotropic substances. This year, he said, the report highlighted the impact that measures against money laundering could have in combating drug trafficking. International trafficking in narcotic drugs and psychotropic substances had proven to be an extremely lucrative "business" for its kingpin and organizers. Large amounts of capital were generated, and the profits derived from such illegal activities were very often either integrated into the legal economy or were used in corrupt and criminal ways that enhanced illegal activities, including terrorism and illegal trade in arms.
The Board was concerned that the international community had not taken concrete steps to effectively coordinate the fight against money laundering worldwide. It proposed that work be undertaken on a framework that would harmonize measures taken against the proceeds of crime, in particular drug trafficking. At the same time, the report depicted trends showing that governments were more determined to fight against drug abuse and trafficking. It warned that trafficking had become more intense, and that drug cartels were adapting their strategies and reacting rapidly to actions taken by the international community.
Particular focus was placed in the report, he said, on the sharp and controversial increase in the use of methylphenidate, better known under the trade name "Ritalin", in the treatment of Attention Deficit Disorder; the abuse of synthetic drugs, in particular "ecstasy" and "ice"; the diversion of psychotropic substances and the illicit traffic and diversion of acetic anhydride. The mass media in some countries had given publicity to views glamorizing the recreational use of some psychotropic substances, including ecstasy. Such views created false perceptions and undermined drug abuse prevention efforts. He urged governments to work with the media to counter such dangerous publicity.
He called attention to those countries, including Canada and New Zealand, that did not yet control international trade in all substances in Schedules III and IV of the 1971 Convention on Psychotropic Substances and did not report to the Board on exports and imports. The INCB had repeatedly reminded those governments of their failure to comply with the relevant treaty obligations and of the imminent risk involved, because traffickers could exploit such a situation. He urged the governments concerned to act expeditiously to close the serious gap in the control in the international trade of those substances.
The INCB President turned next to the Board's report on implementation of article 12 of the 1988 Convention relating to the control of precursors and other chemicals used in the illicit manufacture of drugs. He said the 1995 report examined how the recommendations made by the Board last year had been implemented by governments, and highlighted some of the major diversions and attempted diversions of precursors that had been identified as a result. It described how an increasing number of governments in exporting, importing and
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transit countries and territories had followed up on the INCB recommendations and had introduced stricter controls.
According to the report, large quantities of substances listed in Tables I and II of the 1988 Convention had been stopped or seized. The successes outlined in the report showed that the measures employed had contributed to combating illicit trafficking, with the methods and routes of diversion used by traffickers becoming visible for the first time. Two major trends had emerged: traffickers had targeted new countries and established new routes to obtain or ship precursors; and alternate precursors were being used in illicit manufacture. They confirmed that traffickers responded quickly to strengthened controls by exploiting vulnerable points in the international control system.
The Board reiterated its proposal for a minimum set of controls that should be applied by all governments to prevent diversions, he said. It also requested governments to control intermediaries in the same way as other operators handling or using precursors. Further efforts were required by all governments to establish appropriate systems of information sharing.
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