COUNTRIES NOT PAYING DUES SHOULD NOT BE AWARDED UNITED NATIONS CONTRACTS, FIFTH COMMITTEE IS TOLD
Press Release
GA/AB/3072
COUNTRIES NOT PAYING DUES SHOULD NOT BE AWARDED UNITED NATIONS CONTRACTS, FIFTH COMMITTEE IS TOLD
19960506 Ghana Calls for 'Drastic' Action against Defaulters; 'Waste and Overlap' Also Cited as Cause of Current Financial CrisisDrastic measures such as a ban on the award of contracts to companies from defaulting Member States should be implemented to make them meet their obligations to the United Nations, the Fifth Committee (Administrative and Budgetary) was told this afternoon.
Speaking as the Committee discussed the United Nations financial situation, the representative of Ghana said: "It is glaring that a few of the defaulting States are reaping from the Organization far more than they are giving to it. Those who want contracts from the United Nations must ensure that they are not indebted to the Organization, at least as far as assessed dues are concerned." Waste and overlap in the United Nations system also contributed to the financial crisis, he said. Duplication in procurement activities was an example of an area from which cost savings and staff cuts could be made.
The representative of Bangladesh said that Member States, particularly the major contributors, should pay their dues without conditions.
Canada's representative expressed concern about cross-borrowing from peace-keeping funds to pay for regular budget expenses. The United Kingdom's asked whether it was legal, seeking a statement from the Office of Legal Affairs.
Earlier, Joseph E. Connor, Under-Secretary-General for Administration and Management, forecast a positive $388 million in combined cash balance for the end of the year -- a negative $198 million balance for the General Fund and a positive $586 million peace-keeping balance. The amounts owed to Member States for troops and equipment would drop to $725 million at the end of the year from the $1 billion estimated earlier. But the total of dues outstanding would still be some $2.1 billion.
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Today's meeting heard statements on the funding of the United Nations Office for Verification in El Salvador and on the financing of several peace- keeping operations. The Secretary-General's reports were introduced by Yukio Takasu, United Nations Controller, and those of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) by its Chairman, C.S.M Mselle.
Statements were made by the representatives of Morocco, Algeria, Argentina, China, Mexico, New Zealand, Japan, Uganda and the United States.
The Committee is to meet at 3 p.m., tomorrow, Tuesday, to take action on the estimates on the Office in El Salvador, and to take up the Secretary- General's report on conference-servicing costs for the Conference on Climate Change and the financing of the International Tribunals for the former Yugoslavia and Rwanda.
Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this afternoon to start the second part of its resumed session, which will last four weeks. During the session, the Committee will consider: how to save $104 million from the 1996-1997 budget; the financing of several peace-keeping and related missions and International Tribunals; improving the United Nations financial situation; the budgetary implications of the United Nations Office of Verification in El Salvador; and human resources management.
Today's meeting was expected to take up the United Nations financial situation and the financing of the United Nations Disengagement Observer Force in the Golan Heights (UNDOF), United Nations Interim Force in Lebanon (UNIFIL), United Nations Angola Verification Missions (UNAVEM II and III), United Nations Mission for the Referendum in Western Sahara (MINURSO), United Nations Peace-keeping Force in Cyprus (UNFICYP), United Nations Observer Mission in Georgia (UNOMIG) and United Nations Mission of Observers in Tajikistan (UNMOT). The financing of missions is being annualized as from 1 July.
Financing of Peace-keeping Operations
In his report on financing UNDOF (document A/50/386/Add.1) the Secretary-General asks the General Assembly to appropriate $31.5 million gross ($30.6 million net) for the Force for the 12-month period beginning 1 July 1996, to be assessed at about $2.6 million gross ($2.6 million net) monthly, subject to extensions of the Force by the Security Council. Under the terms of a December 1994 Assembly resolution, a new 12-month financial period, starting 1 July of one year and ending 30 June the following year, will become effective as from 1 July 1996.
He then asks the Assembly to appropriate $16.1 million gross ($15.6 million net) for the Force for 1 December 1995 to 31 May 1996, previously authorized and assessed. Also sought is an appropriation of $2.7 million gross ($2.6 million net) for 1 to 30 June 1996, to be assessed, should the Council extend UNDOF's mandate beyond 31 May.
Some $1.09 billion has been assessed on Member States for the Force since its inception in May 1974 to 31 May 1996, of which about $1.01 billion had been received as of 31 December 1995. At that date, about $4.4 million was due for troop costs.
In its report on the UNDOF (document A/50/694/Add.1), the Advisory Committee on Administrative and Budgetary Questions (ACABQ) recommends that the Assembly appropriate some $16.1 million gross ($15.6 million net), previously authorized and assessed for the period 1 December 1995 to 31 May
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1996. It should then authorize and assess about $2.7 million gross ($2.6 million net) for 1 to 30 June 1996, should the Security Council extend UNDOF's mandate beyond 31 May. For the period 1 July to 30 June 1997, the ACABQ recommends that the Assembly authorize and assess up to $2.6 million gross ($2.6 million net) monthly for the period, should the Council extend the mission beyond 31 May 1996.
In his report on the financing of UNIFIL (document A/50/543/Add.1), the Secretary-General asks the Assembly to appropriate $122.8 million gross ($119.7 million net) for the 12-month period 1 July 1996 to 30 June 1997. It should be assessed at $10.2 million gross (about $10 million net), should the Force be extended further by the Security Council. He also asks the Assembly to appropriate and assess $53.9 million gross ($52.5 million net) for the five-month period 1 February to 30 June. That includes the $32.3 million gross ($31.5 million net) previously assessed.
By the terms of a December 1994 Assembly resolution, a new 12-month financial period, starting 1 July of one year and ending 30 June the following year, will become effective as from 1 July.
According to the Secretary-General, the amounts he seeks for the 12- month period starting next July is 7.4 per cent lower than that for the preceding 12 months. It is mainly due to troop cuts from 5,015 to 4,513 and to an exclusion of the provision for the support account budgeted for the period. The budget will pay for the troops and 487 civilian staff (143 international, 193 local level and 151 general temporary assistance staff).
Due to the delay of some Member States in paying their dues, UNIFIL has been unable to reimburse troop-contributing States on time and in full and $36.8 million is due. A total of $2.55 billion has been assessed since the mission's inception in March 1978 to 31 January 1996. With $2.33 billion paid up as of 31 December 1995, $203.5 million is due.
In its related report on UNIFIL (document A/50/694/Add.1), the ACABQ recommends that the Assembly appropriate and assess $53.9 million gross ($52.5 million net) for the period 1 February to 30 June 1996. For the period 1 July 1996 to 30 June 1997, the ACABQ recommends that the Assembly authorize and assess up to $10.2 million gross ($10 million net) monthly for the mission, should the Force be extended.
In his report on financing UNAVEM III (document A/50/651/Add.3), the Secretary-General asks the Assembly to appropriate and assess a rounded $50 million gross ($47.1 million net) for the mission for the period 9 May to 30 June 1996, subject to an extension of mandate by the Security Council. He then asks the Assembly to appropriate $335.1 million gross ($328.2 million net) for UNAVEM III for 12 months beginning 1 July 1996. It is to be assessed
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at $27.9 million gross ($27.4 million net) monthly, subject to the Council's extension of the operation's mandate.
Another action the Secretary-General seeks of the Assembly is an appropriation of $65.9 million gross ($63.1 million net) for the period 9 August to 31 December 1995, previously authorized and assessed. He also wants it to appropriate $84.7 million gross ($83.2 million net) for the period 9 February to 8 May 1996, based on a previous commitment authority. He asks the Assembly to assess $8.5 million gross ($8.3 million net) for the period 9 February to 8 May 1996, taking into account the $76.2 million gross ($74.9 million net) previously assessed.
In its report on UNAVEM III (document A/50/814/Add.1), the ACABQ recommends a $330.1 million gross appropriation for the period 1 July 1996 to 30 June 1997. It should be assessed at $27.9 million gross monthly, subject to mandate extension. The difference of $5 million is due to the fact that the ACABQ does not approve the Secretary-General's proposal to replace 52 deleted local posts with an equal number of international staff. The $5 million provided for them should be deleted, it adds. The ACABQ approves the Secretary-General's requests for the mission's other mandate periods.
In a report on financing MINURSO (document A/50/655/Add.1), the Secretary-General asks the Assembly to appropriate and assess $5.6 million gross ($5.1 million net) for the mission for the period 1 to 30 June 1996, subject to the Security Council extending MINURSO's mandate beyond its current expiry date of 31 May. He then asks it to appropriate and assess $52.3 million gross ($48.5 million net) for the 12-month period beginning 1 July 1996. It should be assessed at $4.4 million gross ($4 million net) per month, subject to extension of the MINURSO mandate. Also, he asks the Assembly to appropriate $44.7 million gross ($40.8 million net) for MINURSO for the period 1 October 1995 to 31 May 1996, which had previously been authorized and assessed.
Total resources of $240.8 million gross have been made available to MINURSO from its April 1991 inception to 31 May 1996, of which $238.2 million gross has been spent.
Regarding staffing, the Secretary-General states that a review had identified the full-time need for three D-2 posts for Chairman of the Identification Commission, Civilian Police Commissioner and Force Commander. Consequently, the concurrence of the ACABQ was sought for an additional D-2 post. The Secretary-General proposes a total 320 posts.
In its related report on MINURSO (document A/50/939), the ACABQ approves the appropriations and assessments the Secretary-General seeks. The ACABQ writes that it is making the recommendation on the assumption that the mission
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will continue. The Secretary-General should report back to the Assembly, should the Council change the mission's mandate, on down-size or withdraw it. On the posts, the ACABQ states that, as of 31 March, 112 of the authorized posts were vacant, with a vacancy rate of 35 per cent for international civilian staff. Also, only 64 of the 160 authorized civilian police had been deployed as of that date. The ACABQ expresses its belief that the vacancy rate might increase due to the current situation and developments in Western Sahara. The Department of Peace-keeping Operations was expected to send a planning team to the area in mid-April to assess the situation and look at options regarding the mission's possible down-sizing.
The Secretary-General's present report on the financing UNFICYP (document A/50/889) contains the proposed budget of the Force for the 12-month period from 1 July 1996 to 30 June 1997, which amounts to $44.1 million gross ($42.1 million net). This reflects an overall increase of 1.5 per cent in gross terms when compared with the resources approved for the preceding 12- month period. The increase of $646,900 gross results primarily from the conversion of 318 locally employed civilian staff to United Nations local staff and a request for an additional P-3 post. The budget provides for maintaining the Force, consisting of 1,230 contingent personnel and 35 civilian police monitors and supported by 361 civilian staff (43 international and 318 local).
The General Assembly is asked to approve a budgeted amount of $44.1 million gross ($42.1 million net) for the Force's maintenance for the period from 1 July 1996 to 30 June 1997. It is also asked to appropriate and assess $23.6 million gross ($21.5 million net) for the same period, subject to extension of the Force by the Security Council.
From its inception in 1964 until 15 June 1993, the costs of UNFICYP were met by governments providing contingents, by the Government of Cyprus and by voluntary contributions to UNFICYP. In September 1993, the Assembly decided that the Force's costs for the period from 16 June 1993 that were not covered by voluntary contributions should be borne by Member States in accordance with Article 17, paragraph 2 of the Charter.
The report states that full reimbursement for troop costs has been made to troop-contributing States through 31 July 1995. It is estimated that an amount of $6.3 million is due for troop costs for the period ending 31 December 1995. Currently, troops are provided by Argentina (391), Austria (314), Canada (2), Finland (2), Hungary (39), Ireland (30) and the United Kingdom (388).
In its report on UNFICYP (document A/50/899), the ACABQ states that the mission's costs should not exceed $44 million gross for the period from 1 July 1996 to 30 June 1997. It also recommends the appropriation of $23.5 million
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gross ($21.5 million net), representing two thirds of the authorized cost of the Force's maintenance for that 12-month period, to be assessed at the monthly rate of $2 million gross ($1.8 million net), subject to the extension of the Force by the Security Council.
Expressing concern at the increases in the budget estimates for such items as utilities, commercial communications, rental of vehicles and related costs, and air operations for the period 1 July 1996 to 30 June 1997, the ACABQ calls for closer control on expenditure in those areas. On the additional P-3 post requested, it states that it is not convinced that its functions cannot be combined with one of the existing posts. It, therefore, recommends that the staffing resources be reorganized to accommodate those functions. In addition, the ACABQ notes that issues and costs related to terminal benefits for the locally employed civilians who have not been taken over by the United Nations, and to the recognition of prior service for those who have been taken over, should be fully explained in the next performance report and in future budgets.
The ACABQ made a number of recommendations for improving the structure and content of the Secretary-General's report. Referring to UNFICYP's humanitarian functions and its cooperation with the United Nations High Commissioner for Refugees (UNHCR), it states that "it was regrettable that no mention whatsoever has been included in the budget report on this aspect of UNFICYP's activities", even though a military unit comprising from 15 to 25 personnel was involved in such activity.
The Advisory Committee also noted that the high level of outstanding pledges of the $6.4 million voluntary contributions pledged for the period prior to June 1993 were attributable to either former or current troop- contributing countries to UNFICYP. Only $310,500 of the total pledged has been paid. In this connection, the Advisory Committee notes that as at 31 December 1995, the special account established for the period prior to 16 June 1993 had a cash balance of approximately $200,000, whereas obligations in respect of reimbursement to troop contributors amount to some $200 million.
In his report on the financing of UNOMIG (document A/50/731/Add.1), the Secretary-General presents the Mission's budget for the 12-month period from 1 July 1996 to 30 June 1997. The budget, on a full cost basis, amounts to $17.1 million gross ($16.0 million net) and reflects a moderate increase of about $0.4 million gross over the prior 12-month period. It provides for 135 military observers and 139 civilian staff (64 international and 75 local).
The Secretary-General asks the Assembly to appropriate $17.1 million gross ($16.0 million net) for the maintenance of the Observer Mission for the 12-month period from 1 July 1996 to 30 June 1997 and to assess Member States at a monthly rate of $1.4 million gross ($1.3 million net), subject to
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extensions of the Observer Mission by the Security Council. He also requests the Assembly to appropriate $7.6 million gross ($7.1 million net) for the period from 13 January to 30 June 1996. That amount is already authorized and assessed. In addition, the Assembly is asked to credit Member States their respective share in the unencumbered balance of $512,136 gross ($339,846 net) for the period ending 15 May 1995.
In response to previous recommendations of the ACABQ on the lack of banking facilities at UNIMOG's administrative headquarters at Pitsunda, Georgia, the Secretary-General informs that banknotes must be purchased outside the mission area -- in Istanbul -- and travel is required to collect those notes. However, he stresses that efforts are ongoing to develop more secure and cost-effective payment mechanisms, including a reduction in the number and value of transactions that are done in cash, thereby reducing the amount of such transactions but not the frequency of deliveries.
In its report on UNOMIG (document A/50/890), the ACABQ recommends that the Secretary-General's proposals for the appropriation of $7.6 million gross for the period from 13 January to 30 June 1996 be approved. However, for the 12-month period from 1 July 1996 to 30 June 1997, it recommends that the Assembly appropriate the reduced amount of $16.6 million gross to be assessed at a monthly rate of $1.4 million gross, subject to the extension of the Mission by the Security Council. The reduced amount is proposed in view of the ACABQ's recommendations that civilian staff costs be decreased and miscellaneous services remain at previous budgeted levels.
Regarding staff costs, the ACABQ believes that 5 per cent of the turnover factor, rather than zero, would be a more realistic assumption for estimating the Mission's civilian staff costs. The consequential reduction in the cost estimates would be $417,800. On the need for and the dependence on cash transactions, the Advisory Committee states that it would welcome the Secretary-General's efforts to explore ways of paying monthly subsistence allowance in forms that could reduce the need for cash.
Noting that the UNOMIG report is the first budget submission it has reviewed based on the new format for budgets of peace-keeping operations, the Advisory Committee states that the format should be further improved and rationalized. (With the new format the financial period has changed from mandate periods to cover 12 months, beginning 1 July and ending on 30 June.) The ACABQ also notes that the Secretary-General does not report on resource requirements for UNOMIG's special programmes -- humanitarian assistance and human rights -- and recommends that concise information on them, as well as a description of the existing mechanism of coordinating such activities, be included in the UNOMIG budget.
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In other recommendations, the Advisory Committee states that efforts should be made to apply consistently the methodology of preparing the budgets of peace-keeping operations on a full cost basis. Because of a lack of information on voluntary contributions to the Mission, the Advisory Committee reiterates an earlier recommendation that "the Secretary-General develop an improved presentation of voluntary contributions and a description and cost estimates of activities financed from voluntary contributions and other sources".
For the preparation of the UNOMIG's next budget submission, the Advisory Committee recommends that it include information on the estimated value of any contribution to the Mission under the status of the UNOMIG agreement and that any changes in staff entitlements and allowances should be explained in detail. (The latter recommendation was made in reference to an increase in the hazardous duty station allowance from $867 to $902.05 per person per month.) The ACABQ also asks the Secretary-General to provide a detailed description of UNOMIG's information activities. Noting that UNOMIG's budget does not explain significant increases in requirements for several objects of expenditure, such as staff travel, rental of premises and vehicle maintenance, the Advisory Committee recommends that significant deviations (10 per cent and more) from previous budget requirements be explained and justified in the budget submissions for peace-keeping operations.
In a report on the financing of UNMOT (document A/50/749/Add.1), the Secretary-General requests the Assembly to appropriate about $7.3 million gross ($6.8 million net) for the Mission for 1 July 1996 to 30 June 1997. He then asks it to assess that sum at the rate of $608,542 gross ($566,267 net) monthly, subject to Security Council extension of the mission.
The proposed $7.3-million gross budget is $1.3 million gross less than the prorated amounts provided for the period 1 July 1995 to 30 June 1996. It would provide for 44 military observers, 24 international and 35 local staff, and for maintaining 38 United Nations-owned vehicles, one helicopter and one fixed-wing plane. The staffing includes 15 additional posts for strengthening the mission.
Total resources made available to the Mission were $13.4 million gross, since its December 1994 inception to 30 June 1996. As of 9 February, $12.6 million have been assessed on Member States for the period 16 December 1994 to 15 June 1996. They have paid up a rounded $8.3 million, with some $4.4 million due.
In its report on UNMOT (document A/50/933), the ACABQ approves the Secretary-General's proposals for appropriations and assessments. An unencumbered balance of $378,600 gross for the period ending 16 June 1995 should be credited to Member States, it adds.
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Budget Implication of United Nations Office in El Salvador
In a statement of budget implications on draft resolution A/50/L.72 on the Office (document A/C.5/50/59), the Secretary-General says that should the Assembly adopt the draft text, he would find it impossible to implement the mandate and absorb the expenditures without affecting existing programmes and activities. He could implement the mandate "within existing resources" if the Assembly chose the programmes to be curtailed, postponed or terminated. Failing that, an additional appropriation of $1.1 million would be needed for a United Nations political presence in El Salvador from 1 May to 31 December.
He explains that, while trying to find some $104 million in mandated savings from the current budget, it would be impossible for him to absorb more spending without affecting programmes and activities.
The draft resolution would establish a small United Nations Office of Verification which should be financed within existing resources. The Office is to follow up on the implementation of the peace accords in El Salvador through 31 December. The Office would be headed by a D-2-level official. Its staff would consist of 7 international, 6 Professional (1 D-2, 1 P-5 and 4 P-4) and 1 General Service staff; and 3 civilian police, to be supported by 11 local staff. It would cost $1.1 million.
United Nations Financial Situation
A report from the Secretary-General on improving the financial situation (document A/50/666/Add.5) forecasts a combined positive cash position of $388 million. That includes a negative $198 million related to the regular budget and a positive $586 million peace-keeping balance. The sums owed to Member States for troops and equipment are forecast to end the year at $725 million, compared with $1 billion estimated earlier. The new figures are an improvement in the Organization's overall position. Despite that, outstanding dues would total some $2.1 billion, $1.3 billion of which would be owed by one country.
The Secretary-General states that the improvements are due to some recent developments. The approval of the United States budget provides funding for the 1995 regular budget dues and additional peace-keeping appropriations. No action was taken on the regular budget dues for 1996 or for periods before 1995, which remain unpaid. The United Nations could be paid $122 million more for the regular budget and $134 million more for peace-keeping than previously forecast. Of the sums approved for the regular budget, $80 million would be paid if the United States Secretary of State certifies that the United Nations has taken no action to increase funding for any of its programmes without identifying an offsetting cut elsewhere in its budget. The United Nations could receive most of the increased regular budget
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payments in June. About $40 million will be paid in July or thereafter under the same condition.
In early March, the Russian Federation announced that it would pay $400 million to the United Nations in 1996, $275 million more than previously forecast. Of that, the United Nations has received $46 million to pay up Russia's 1996 regular budget dues and $28 million for peace-keeping.
The developments related to the United States and the Russian Federation should add $531 million in aggregate new resources to the 1996 forecasts, with most of it for peace-keeping.
The new forecast for the combined General Fund cash balances at 30 June 1996 is $129 million against a forecast last February of $36 million. The combined General Fund will be empty in August, instead of the end June or early July as originally thought. While it had earlier been forecast that the combined General Fund would have a negative balance of $420 million as of 31 December, the new forecast is a negative balance of $198 million. In addition to what it expected from the United States after the approval of its budget, another $113 million is forecast to be paid by that nation in 1996's last quarter.
As for peace-keeping operations, their cash position is forecast at $586 million at the end of the year. The previous forecast was $340 million. That is due to the $225 million anticipated from the United States in 1996 and to the increase of $275 million in payments expected from Russia. If the United Nations receives those sums it would pay $275 million to Member States for troops and equipment in addition to the $300 million previously forecast. That will lower to $725 million the debt to Member States at the end of the year.
Annexed to the report are lists of countries that have made payments to the United Nations.
Financing of Peace-keeping: UNDOF and UNIFIL
YUKIO TAKASU, United Nations Controller, introduced and reviewed the reports on the two missions in the Middle East. He said the estimates for peace-keeping operations were introduced on an annual basis. The first being presented in that form were UNIFIL and UNDOF.
C.S.M. MSELLE, Chairman of the ACABQ, introduced his committee's reports. The committee had called for improvements in the format and presentation of the reports on estimates of the peace-keeping operations. The relation between mandate and operations, voluntary contributions and other items in the budgets should be made more clear. Missions could be audited
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annually. He reviewed some other suggestions his committee had made to improve both the content and the format of the reports.
HISHAM ELZIMAITY (Egypt) said that the ACABQ's report had been drawn up in March but UNIFIL had been attacked in April. He asked whether the Secretariat had drawn up the estimates of the damage caused by the attack on UNIFIL and how they would be handled and presented.
AMMAR AMARI (Tunisia) associated his delegation with Egypt's views on the 18 April damage to UNIFIL headquarters. He asked whether the costs of the damage had been covered in the Secretary-General's report or whether some estimates would be presented in a future Fifth Committee meeting.
Mr. TAKASU said that the current cost estimates had been prepared early this year, based on situations that could be foreseen at that time. Such additional costs as those for the damages to UNIFIL had not been taken into account. They would be dealt with in the current budget of the mission. If the budget could not absorb the additional requirements, the Secretariat might address them to the ACABQ as unforeseen expenditures. Should that not be enough, it might submit revised estimates to the Assembly. It was premature to say which option would be chosen, as the Secretariat was waiting for a report from the mission.
UNAVEM II and UNAVEM III
MR. TAKASU, United Nations Controller introduced the report on UNAVEM III. He said the non-approval of the 52 international staff would adversely affect the Secretariat's job in UNAVEM III.
MR. MSELLE, Chairman of the ACABQ, introducing his Committee's report on UNAVEM III, said the ACABQ was not fully convinced of the argument that the international posts were necessary to provide support and monitoring for contractual services. It had requested more information on contractual services, which it had not received. Regarding posts for the monitoring of elections, the Advisory Committee would consider if posts would be needed at the relevant time. He expressed concern at the excessive number of posts for monitoring humanitarian activities. He said there was little justification for retaining posts for UNAVEM's own radio since that service was not being performed, he said.
MINURSO
Mr. TAKASU, United Nations Controller, introduced the Secretary- General's report on MINURSO.
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Mr. MSELLE, Chairman of the ACABQ, introduced his Committee's report on UNAVEM III.
HASSANE ZAHID (Morocco) said although the Fifth Committee's main concern was administrative and budgetary, he felt it was necessary to clarify some issues related to responsibility for the impasse in the verification process since December 1995. Referring to a number of reports on MINURSO submitted by the Secretary-General, he said they had informed of the problems faced by the verification process, including the lack of agreement of the two parties. He elaborated on a recent report by the Secretary-General on the issue submitted to the Security Council. He recalled that the conditions for those to be inscribed on the electoral role had also been stated in previous reports of the Secretary-General on the matter and the relevant resolution. Those conditions had been accepted by Morocco, he said, but had been rejected by the other party.
Referring to the three tribal subgroups mentioned in the Secretary- General's report on MINURSO which was before the Fifth Committee, he said the other party had not agreed to participate in the verification process and had blocked it. He reviewed the history of the issue and the response of the Popular Front for the Liberation of Saguia el-Hamra and Rio de Oro (POLISARIO) to it, as well as the reasons for the delays in the verification. He asked the Secretariat to publish a corrigendum to explain the problems being experienced in order to avoid any ambiguity on the issue.
DJAMEL MOKTEFI (Algeria) said that the question of MINURSO was being dealt in the Security Council, which was an appropriate forum for dealing with the mission's political aspects. He reserved further comments on the question.
UNFICYP
Mr. TAKASU introduced and reviewed the Secretary-General's report. Up to June 1993, he said, the mission's costs had been met from voluntary contributions from contingent-providing governments or other Member States. As from 16 June 1993, it was decided that portions of the mission's costs that were not covered by voluntary contributions should be borne through United Nations assessments.
Mr. MSELLE introduced and recommended to the Fifth Committee the ACABQ's reports on UNFICYP, UNOMIG and UNMOT.
CARLOS RIVA (Argentina) said the 1,080 hours for helicopter flights were a maximum number of hours provided for by the United Nations. The cost of each of those hours of flights used for inspection was $831 instead of the $900 reported. The proposed increase in the costs from $986,800 to $1 million
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for the period 1 July 1995 to 30 June 1996 had nothing to do with the night- flying capacities of the helicopters. It was due to the contracting of civilians and the acquisition of insurance for them, as requested by the United Nations. Taking into account the flying hours by Argentinean helicopters, the maximum cost would be $918,000. He pointed out that Argentina was last paid for the helicopters last October. The aircraft were being maintained by a private company that was used to being paid on time and in full.
ZHANG WAN HAI (China) said that nothing had been mentioned about the support account for peace-keeping operations in some parts of the Secretary- General's report. He wanted a clarification on the provisions for the support account in previous UNFICYP budgets. He had the same questions regarding the budget for UNOMIG.
Mr. TAKASU said that, as from July 1996 onwards, the Secretary-General had proposed separate cost estimates for the support account. Therefore, no provisions had been included for the future periods. However, the table in the report had included the support account for that period. An annex in the report had reported on the support account for past periods and the amounts that had been allocated for them.
Mr. ZANG (China) said the support account had been included for the past 12-month period. Some reports had stated clearly that the support account had been included, but the support accounts had not been included in any one of those in the budgets presented by the Secretary-General.
Mr. TAKASU said that, for the future period from 1 July 1996, the Secretary-General had decided not to include the support account for the missions. That action had been explained.
UNOMIG
Mr. TAKASU, United Nations Controller, introduced the Secretary- General's report on UNOMIG. He thanked the Government of Switzerland for its contribution of aircraft to the Mission which would ensure a reduction of costs in the relevant services.
ERICH VILCHEZ ASHER (Nicaragua), Fifth Committee Chairman, said the ACABQ report was self-explanatory.
UNMOT
Mr. TAKASU then introduced the Secretary-General's report on UNMOT.
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Mr. VILCHEZ ASHER (Nicaragua), Committee Chairman, said the ACABQ's report on UNMOT was self-explanatory..
REGINA EMERSON (Portugal), noting the very high costs of peace-keeping operations, and particularly the high costs of the administration of the operations, asked what measures were taken by the Secretariat when personnel handling such large sums of money were found to lack the competence for the required tasks. What was the policy if the staff was temporary.
Mr. TAKASU, United Nations Controller, said the new format of the peace- keeping budgets was part of the reforms taking place in peace-keeping financing. The Organization has experienced a dramatic expansion in the last few years which had cause a lot of stress in the system. However, the Secretariat had made much progress in recent times.
Regarding the competence of staff in procurement and other areas, he said that as a result of the rapid expansion of the missions, the Secretariat had had to resort to hiring staff, including retired staff, and international contractual services. They had instituted a much stricter process for hiring mission personnel and for their training. The Secretariat had also tried to establish a system of accounting for such personnel. He elaborated on the process, and said the Secretariat had tried to adhere to the highest standards of performance and accountability and it would try to maintain those standards.
Statements on United Nations Financial Situation
JOSEPH E. CONNOR, Under-Secretary-General for Administration and Management, said the situation continued to be precarious. The new forecast for combined General Fund cash balances as of 30 June was now $129 million against a forecast in February of $36 million. It was now predicted that the combined General Fund would run out of cash in August, rather than at the end of June or early in July as earlier forecast. The February forecast for the combined General Fund at 31 December was for a negative $420 million. The new forecast was minus $198 million. The anticipated decline in the negative balance was due almost entirely to two factors. The new forecast for 31 December included $122 million in new cash receipts from the United States as a result of that country's recent national legislation. In addition, $113 million was expected to be received from the United States in the last quarter of 1996.
As of 31 December, the peace-keeping cash position was now predicted at $586 million, up from the $340 million originally anticipated. One reason for that was the change in forecast of contributions from the United States. Of the $225 million anticipated from that country in 1996, $134 million related to the recent United States budget law, and $91 million related to expected
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contributions after 30 September. Another factor was the rise of $275 million in dues anticipated from Russia. If those sums were received, he said, the United Nations might pay $275 million to Member States for troops and equipment, in addition to payments of $300 million anticipated in an earlier forecast.
If the payments were made, the debt to Member States would decrease to $725 million at the end of the year. According to the new forecast, there would be a positive $388 million in combined cash balance. That would include a negative $198 million balance for the General Fund and a positive $586 million peace-keeping balance. Amounts owed to Member States for troops and equipment would be $725 million at the end of the year, compared with $1 billion estimated earlier.
He added that even if dues now forecast were collected, they would only mitigate the precarious financial situation of the United Nations, not restore it to financial viability. The combined General Fund would still end 1996 with a negative position of $198 million and outstanding dues contributions would total some $2.1 billion, of which $1.3 billion was owed by one Member State.
MORGAN A. BROWN (Ghana) said he was concerned that the Organization was no closer to finding a solution to its precarious financial crisis. Noting that a number of countries, including some of the largest, were neither paying their contributions nor their arrears, he stressed it was incumbent on all Member States to try to pay up their arrears within a reasonable time-frame. He acknowledged that the problem of non-payment and arrears was a political one which called for political solutions. He hoped that the Secretary-General would call for a Special Session of the General Assembly prior to the opening of its fifty-first session.
It might be time to devise and implement drastic measures against defaulting States, such as the review of the award of contracts, to ensure that any Member States in debt to the Organization did not benefit, he continued. "It is glaring that a few of the defaulting States are reaping from the Organization far more than they are giving to it", he said. "Those who want contracts from the United Nations must ensure that they are not indebted to the Organization, at least as far as assessed dues are concerned."
Other factors contributed to the financial crisis, such as a high degree of wastage and overlap in the United Nations system. Duplication in procurement activities was an example, he said. He made proposals for realizing cost savings and reducing personnel in that area. To deal with the problem of overlapping activities, he said a thorough review of programmes in the United Nations system was necessary to determine which should be retained or dispensed with.
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There was frequently waste during the start-up and liquidation phases of peace-keeping operations, he said. Projections were usually over- or under- estimated, resulting in their concomitant implications. He advised the creation of a small expert body within the Peace-keeping Department to take on the task of assessments and projections. Ghana would be paying its assessed contributions to the regular budget in full in the next few days, he said, and he called on all Member States that had not done so to do the same, since it was the primary way to rescue the Organization.
MARTHA PENA (Mexico) said the report on the financial situation contained no information on recent voluntary contributions to peace-keeping operations, such as the $3 million donated by the South Africa Government on 16 April for peace-keeping operations for the African region. She welcomed the information which had been provided in a press release and asked how it could be included in reports on improving the Organization's financial situation. She also asked Mr. Connor about the implementation of an Assembly resolution on the normalization of the situation in South Africa, which had called on the Secretariat to publish a document on the specific amounts that each Member State claimed under that resolution. She asked when the publication would be issued.
SAM HANSON (Canada) said the United Nations financial problem was due to the non-payment of assessments, and about half of that was owed by the country with the largest assessments. Another half was due to the fact that some countries had been assessed at rates that exceeded their capacities to pay. That matter should be resolved in due course. While the situation was better, it was still far from good. A regular budget deficit of almost $200 million was being projected for the end of the year. More should be done to pay up. He expressed concern about cross-borrowing from peace-keeping funds to pay for regular budget expenses. The borrowing was permitted by Assembly resolutions which had stated that it should be allowed when there were no outstanding dues against which funds were to be borrowed.
DENISE ALMAO (New Zealand) asked whether the proposed reimbursement of $50 million to Member States would be made or delayed beyond May.
SYED RAFIQUL ALOM (Bangladesh) thanked the United States and the Russian Federation for their roles in reversing the financial trends of the Organization. Member States should pay their dues on time and in full. The major contributors should do so without conditions. The payment of dues was a legal obligation and Member States should pay them once they were assessed. Payment should not be attached to pre-conditions. He asked whether there was any scope for the payment of dues to be legally linked to pre-conditions.
FUMIAKI TOYA (Japan) welcomed the favourable developments in the cash position due to the actions of the United States and the Russian Federation.
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The United States should pay its dues without any pre-conditions. Japan did not have an approved budget yet but was ready to pay the remaining portions of its assessments after its parliament approved Japan's national budget.
PATRICIA HOLLAND (United Kingdom) expressed concern about the continued practice of cross-borrowing. While it was possible in accounting terms, she wanted to know whether it was legal. The Legal Office should advise the Committee on the matter.
NESTAR ODAGO-JALOMAYO (Uganda) said recent financial contributions received by the Organization should be reflected in reports, so that the Committee would know the sources of those contributions. Referring to a recent news report in the New York Times regarding contributions from United States citizens, he asked if the report was true and how the money was being treated. Was it being credited to United States debt or was it being regarded as extrabudgetary resources? he asked.
Mr. CONNOR, Under-Secretary-General for Administration and Management, responding to Mexico's question on South Africa's contribution, said it had been included in the aggregate adjustment of the forecast. It would be "memorialized in the more detailed monthly report". Responding to the United Kingdom and Canada, he agreed that cross-borrowing was bad, but, he said the alternative was worse. However, he would ensure that the Legal Office responded to their concerns.
The Secretariat had reimbursed the troop contributors in the amount of $50 million, he continued. Upon receipt of money expected by June, he would reimburse further. United States citizens continued to send in contributions; there were several thousand such contributions that came from families and their pets which amounted to about $11,000. The flow was continuing. The contributions had not been credited against the United States assessments but had been put into a reserve fund from which the Orgnaization could borrow. He added that it would not be possible to credit the amounts against the United States debt according to the Organization's rules and regulations. Answering another question, he said United States national legislation required the Secretary of States to certify relevant programme action carried out by the Secretariat, prior to the United States Government disbursing its contributions. The Organizaiton had no control over that situation.
Ms. PENA (Mexico) asked for clarification on the document Mr. Connor had referred to in responding to her query. The document should be a breakdowm of the amounts each Member State denied as claims up to 23 June 1994, when they agreed to forgive South Africa's past debt. As far as she knew, such a list had not been published. The document referred to by Mr. Connor was not the one she had inquired about.
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Mr. TAKASU, United Nations Controller, responding to the representative of Mexico, said the data on the amounts Member States would forgo in agreeing to debt forgiveness for South Africa had taken time because of the need to account for adjustments of all the scale of assesments for the period being covered. That data had now been compiled and the information would be put into one table to be presented to Member States in a few days.
Ms. PENA (Mexico) said the Secretariat had made a commitment to publish that information on 15 December 1995. Enough time had passed. If it were not published in the near future, she would raise the issue again.
United Nations Office in El Salvador
On the United Nation Office in El Salvador, Mr. MSELLE said that the ACABQ believed that the amount sought by the Secretary-General would not be required in its entirety, and that economies could be realized. The ACABQ noted that the provision of $8,400 had been sought for travel to and from El Salvador. Of that, $4,400 was for four visits to the county by the Secretary- General's envoy and another $4,000 for other staff. The ACABQ felt that the amount sought for travel might be in excess of actual requirements. Regarding rent, the ACABQ had asked the Secretary-General to seek contributions from the host government.
He said the Secretary-General had been asked to carry out the activities of the proposed Office within existing resources, taking into account the fact that he would submit proposals to absorb those costs in the 1996-1997 budget to the Assembly, through the ACABQ, no later than 15 May. The Fifth Committee should inform the Assembly to interpret "within existing resources" to mean that the Secretary-General should commit the required amount and that eventual additional appropriations that might be needed should be considered in the context of the first performance report for the 1996-1997 biennium.
LINDA SHENWICK (United States) asked whether the $98 million the Secretary-General had claimed to have saved from the 1996-1997 budget might be regarded as non-budgeted items rather than as savings. The United States would be amenable to the same course of action that had been taken on the estimates for the United Nations Human Rights Verification Mission in Guatemala (MINUGUA) and International Civilian Mission to Haiti (MICIVIH). The Secretary-General could be authorized to commit some funds, pending his report through the ACABQ.
Mr. TAKASU said that when the Secretary-General presented the 1996-1997 budget, it was compared to that of the previous biennium. The difference between the 1994-1995 and the 1996-1997 budgets was about $98 million. That amount had been cited in the statement of programme budget implications to explain what the Secretary-General had been doing to the budget. The sum represented savings from efficiency gains. Some of the costs of the missions being discussed had been provided for, in order to cover some months in the biennium. * *** *