NEW AGENDA FOR AFRICA SHOULD INCLUDE FINANCE, TECHNOLOGY, DEBT SOLUTION FIFTH COMMITTEE TOLD

11 November 1996

Press Release
GA/AB/3112

NEW AGENDA FOR AFRICA SHOULD INCLUDE FINANCE, TECHNOLOGY, DEBT SOLUTION FIFTH COMMITTEE TOLD

19961111 Committee Continues Consideration of Medium-Term Plan Programmes; Crime Prevention, Drug Control, Human Rights Focus of Discussion

The implementation of the United Nations New Agenda for the Development of Africa in the 1990s during the period 1998-2001 should highlight the need for financial resource mobilization, the transfer of technology and for solutions to Africa's external debt, the Fifth Committee (Administrative and Budgetary) was told this afternoon, as it discussed the programmes in the medium-term plan for that period.

The trends towards globalization and interdependence made it normal for Africa to expect partnership from the rest of the world, said the representative of Cameroon, as he spoke on behalf of the African Group of States on programme 6 -- Africa: New Agenda for Development. "No nation, no matter how powerful and rich or developed, could afford to entertain the illusions of comfort and isolated security by treating with contempt the plight of any nation or continent," he said. "As we say in Africa, a child who says the mother cannot sleep should not also be expected to sleep."

The Committee this afternoon discussed programme 12 on Crime Prevention and Criminal Justice, programme 13 on International Drug Control and programme 19 on Human Rights. It also heard statements on the reports of the Board of Auditors, the reports of the Office of Internal Oversight Services, and human resources management.

The representative of Ireland, also speaking for the European Union and other States on the medium-term plan, said that the objectives in programme 19, on human rights, derived from the United Nations Charter, the 1993 Vienna Declaration and Programme of Action and other human rights instruments. The programme should be adopted unchanged by the General Assembly, and the Centre for Human Rights should be provided with the means to function adequately.

Statements on the medium-term plan were also made by the representatives of Mexico, Bangladesh, Cuba, Egypt, Japan, Costa Rica, Colombia, (for the Non- Aligned Movement), Bolivia, (on behalf of the Rio Group), Malaysia and Ecuador.

Speaking earlier in the meeting on the reports of the Board of Auditors, the representative of the Russian Federation said that the number of consultants hired by the Organization should be cut drastically and the geographical base from which they were selected broadened. "The number of staff engaged in special services should be dozens, rather than hundreds," he said, adding that the Secretariat should report biennially on their recruitment, with details on their length of service, salaries and nationality.

Under human resources management, largely procedural statements on whether or not to invite United Nations staff representatives to the Fifth Committee were made by the representatives of Cuba, Germany, Panama, Egypt, Canada, United States, Algeria and Syria.

The Assistant Secretary-General for Human Resources Management, Denis Halliday, responded to questions the Committee members had raised during the debate.

The reports of Office of Internal Oversight Services were introduced by Under-Secretary-General Karl Theodore Paschke. The Vice-Chairman of the Joint Inspection Unit (JIU), Khalil Issa Othman, introduced the Unit's comments on the Oversight reports.

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Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to take up the reports of the Secretary-General on the work of the Office of Internal Oversight Services. It is also scheduled to conclude its general discussions on the proposed 1998-2001 medium-term plan and continue debating financial statements and reports of the Board of Auditors.

Reports on Internal Oversight

A note by the Secretary-General transmits a report of the Office of Internal Oversight Services on the audit of procurements handled by the Contracts and Procurement Service of the Department for Development Support and Management Services (document A/50/945). In the report, the Office says it expects the Department to strengthen the planning and control of the procurement process and thereby enhance the integrity of the process, diversify better the sources of procurement and improve cost-effectiveness. There is also a need to reorganize the Department's Contracts and Procurement Service due to the decline in its workload. The Secretary-General agrees with the recommendations.

An audit of procurements handled by the Procurement Service was carried out in 1995, the report says. The audit covered a sample check of 26 procurement actions involving $5.8 million, each involving at least $20,000, thereby requiring formal bidding. The audit's main objectives were to assess compliance with financial rules and to determine whether procurements were made economically and efficiently. The audit findings and recommendations were reported to the Department. In response, the management has taken or initiated the corrections recommended.

Financial rules demand that all bids should be publicly opened at the same time and place and recorded immediately, according to the report. While the rule implies that sealed bids should be received, the audit team found that in 13 out of 26 cases reviewed, the requirements of sealed bids and public opening of bids were either not communicated to vendors or not observed. There was frequent use of facsimile-transmitted bids, which could compromise the confidentiality of the bidding process and encourage malpractice. The audit team recommended that the practice of receiving facsimile bids should be stopped until the security and confidentiality of the bids could be fully assured.

The report states that the relevant Policies and Procedures Handbook calls for efforts to draw up specifications that are either generic or "neutral" since the requirements for competitive bidding cannot be met if the specifications point towards one supplier. But, the audit found, in nearly one half of the cases, technical specifications were either restrictive or pointed towards one source. That made it extremely difficult to have a real

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competitive bidding process. The team recommended that the Procurement Service ensure that the specifications its technical advisers drew up are generic. It also recommended an independent scrutiny of the technical advisers' recommendations and that any complaints about specifications should be examined by the Procurement Service objectively. Management agreed.

General Assembly resolution 2688 (XXV) of 11 December 1970, the report says, stated that the principle of equitable geographical distribution should be observed in procuring equipment and supplies. But the audit team noted that in 12 cases reviewed, invitations to bid were not issued to vendors from developing nations. The team found no significant effort to attain geographical distribution in procurements. It then recommended that efforts be made to identify potential vendors in the developing countries and to increase there presentation of vendors from those countries in bidding and awarding contracts. The management assured that it would set up and monitor a system to include firms from developing countries in its international procurement cases wherever possible. Noting four instances where late bids were considered fully, the audit team recommends that the acceptance of late bids be stopped immediately, according to the report. Undue familiarity with prospective vendors should be discouraged in order to project a proper image of the procurement staff. Management said it had acted on the recommendation on bid openings and late bids.

A note by the Secretary-General transmits the report of the Office on the investigation of alleged misappropriation of United Nations assets at the United Nations Gift Centre (document A/50/1004). According to the report, the review by the Investigations Section of the Oversight Office into the Centre was conducted following a report that mismanagement by the General Manager had led to the misappropriation of United Nations assets at the Centre and in the drop of its profits. The review covered the period between 1 January 1992 and 30 June 1994.

The United Nations, which owns the capital, assets and revenues of the Gift Centre, in 1986 entered into a labour contract with Ogden Allied Building and Airport Services, Inc. for the provision of personnel for the Centre, according to the report. The contract with Ogden, signed on 5 March 1994, covered the period 1 October 1993 to 14 February 1995. After the contract expired on 14 February 1995, it was renewed on a monthly basis pending further review of the Centre's operations by the Commercial Activities Service, Office of Conference and Support Services, which has been responsible for the Centre since May 1993. Prior to that date, the responsibility rested with the Purchase and Transportation Service. The Centre's personnel are employed by Ogden, not the United Nations. However, an administrative officer from the Commercial Activities Service oversees the Centre's operations.

The report says that, due to inadequate or non-existent documentation of Gift Centre activities managed by Ogden, it was not possible to confirm

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whether assets had been misappropriated. But the United Nations has allowed deviations from its financial rules and sound retail management practices by failing to monitor Ogden's management.

The findings raise questions about the Centre Manager's ability to implement the simplest of controls, according to the report. They indicate that the General Manager did not abide by the United Nations financial rules or written procedures, and regularly overrode the few controls established. Serious doubts were created regarding the General Manager's competence and good faith to continue in that position. The investigation also indicates a lack of supervision of the Centre on the part of the Commercial Activities Service.

Among the findings was a lack of correlation between gross receipts and the cost of sales, says the report. Initial analysis showed that there had been a drop in receipts during the last two bienniums (1990-1991 and 1992-1993) of 12 per cent and 15 per cent, respectively. There was also a slide in net income over the same bienniums of 11 per cent and 58 per cent, respectively. The cost of sales reported in the United Nations financial statement for 1992-1993 should have yielded gross receipts of about $8 million, whereas actual receipts totalled $6 million. The Chief of the Commercial Activities Service disagreed with the estimate.

The audit team also found irregularities in the review of purchase orders, the absence of a buying plan, failures of internal control for handling cash, and lack of supervision by the Commercial Activities Service, according to the report. The team recommended the replacement of the Centre's General Manager, adherence to procedures established in the Centre's procedures manual, the formalization of a buying plan, an enhancement of cash controls, and increased supervision by the Commercial Activities Service.

In response, the Chief of the Commercial Activities Service has told the Oversight Office that the majority of the recommendations have been implemented, except for the replacement of the General Manager. The Chief told the Office that he lacks evidence, even with the report's findings, which he could present to Ogden and ask it to replace the General Manager.

A note by the Secretary-General transmits a report of the Office on the management audit of electronic mail at the United Nations Secretariat (document A/50/1005). In his note, the Secretary-General agrees that attention should be given to the management of electronic mail in order to maximize its contribution to greater efficiency and economies within the Organization.

According to the report, the electronic mail (e-mail) audit focused on management's practices related to its development and implementation. Electronic mail has since its 1993 inception been used to improve horizontal

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and vertical communications throughout the United Nations system. It has become an essential form of communication for management and staff at the Secretariat, regional commissions and major peace-keeping missions. Along with the Internet, electronic mail reaches to government missions, outside agencies and millions of subscribers throughout the world. With such reliance placed on e-mail services, the system's availability, reliability and timeliness have become critical.

The audit team recommended, among other things, that since e-mail was used by management to discuss sensitive topics, security should also be considered an objective, the report states. It noted some shortcomings concerning security and expressed concern that passwords could be breached and messages intercepted and/or altered. The Secretariat should ensure that security standards are maintained. The Office of Conference and Support Services agrees with the recommendation, stating that they would comply as much as feasible with the security standards set by the Electronic Services Division Security Chief.

A note by the Secretary-General transmits the report of the Office on the management audit of United Nations global cargo and motor vehicle insurance programmes (document A/51/302), which recommends that a task force be established under the leadership of the Office of Programme Planning, Budget and Accounts to develop formal policy guidelines for insuring United Nations shipments. Once developed, the policy guidelines should be incorporated into the Field Administration Manual. It also recommended establishing clear lines of responsibility for insurance matters at United Nations Headquarters and peace-keeping missions, improving the procedures and work flow for arranging insurance and filing claims, and exploring self-insurance as an alternative to commercial insurance coverage. The recommendations are meant to ensure that United Nations cargo shipments are insured efficiently and coherently.

Further, the Office recommended that the Department of Peace-keeping Operations and the Insurance, Claims and Compensation Section of the Office of Programme Planning, Budget and Accounts should improve the monitoring of vehicle fleets and the reporting of fleet data to the insurance broker, the report goes on. The Secretary-General agrees with the recommendations.

The report summarizes the management audit of two types United Nations insurance policies that are relevant to peace-keeping. They are the global cargo insurance policy, which insures United Nations shipments worth more than $100 million annually, and the global third-party vehicle liability insurance policy, which covers third-party liability for about 20,000 United Nations-owned and military contingent-owned vehicles worldwide.

Among the audit's major findings under the global cargo insurance policy were that neither the Department of Administration and Management nor the

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Department of Peace-keeping Operations had established formal policy guidelines on what types of United Nations shipments should be insured. As a result, decisions on insuring shipments of peace-keeping assets between missions were taken on ad hoc bases. The audit noted that, from December 1993 through the beginning of 1995, assets worth more than $135 million were shipped from the United Nations Operation in Somalia (UNOSOM II) to various other missions and to the United Nations Logistics Base in Brindisi, Italy. They were not insured.

The audit also found, according to the report, that there were no clear lines of responsibility and accountability in the Department of Peace-keeping Operations for insurance decisions. Neither were there formal procedures for arranging insurance coverage or making insurance claims. The condition of cargo had often not been properly recorded before and after shipment.

Self-insurance, which could be a cost-effective option for United Nations shipments, had not been seriously considered by the Organization, the report adds. The auditors observed that while many governments and large organizations have chosen to self-insure or not to insure cargo shipments rather than buy a commercial insurance policy, that was not true of the United Nations. The audit noted that, from 1990 to 1994, the United Nations paid $7.9 million in premiums under the cargo insurance programme, while losses were about $4 million (a 51 per cent loss ratio, excluding the administrative costs for the insurer). That indicates that self-insurance could have been a cost-effective alternative for United Nations shipments. One reason why self-insurance was not considered practical was that high losses could potentially occur in the event of a major disaster, for example, the sinking of a ship. In that regard, the audit noted that the insured value of United Nations shipments between 1990 and 1994 exceeded $700 million.

The Oversight Office agrees that the value of shipments insured is a critical factor in any decision to self-insure, the report states. But the potential impact of losses on United Nations finances could be reduced by establishing an insurance reserve fund. Furthermore, the United Nations could consider partial self-insurance by purchasing excess loss coverage, whereby the Organization would accept liability up to a certain amount and the insurer would pay losses exceeding that limit.

Turning to the global motor vehicle insurance policy, the report states that changes in the sizes of vehicle fleets in peace-keeping missions were often not reported to the broker, leading to over- and under-payments of premiums. The monitoring of vehicle movements between missions was inadequate and there was duplicate coverage on peace-keeping vehicles. It also noted that high losses were experienced by the United Nations Peace Forces in the former Yugoslavia (UNPF). Statistics show that 71 per cent of all claims and 80 per cent of total losses during the policy period 1994-1995 occurred in the UNPF, whose vehicle fleet represented only about 32 per cent of the total

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vehicles insured under the global motor vehicle insurance policy. Similarly, 69 per cent of all claims and 64 per cent of the total losses occurred in the UNPF during the policy period 1993-1994, while at that time the mission's vehicle fleet represented less than 25 per cent of the overall United Nations fleet.

In its review of the management structure in the civilian staff component of the UNPF, transmitted in a note by the Secretary-General (document A/51/305), the Office concludes that the management of the UNPF would have been more effective and could have saved significant resources if its management structure had been more appropriate. Frequent expansions and changes in the UNPF mandate made the establishment of adequate internal controls even more important. Better internal control systems would have contributed to more efficient operations within the UNPF. They would have enabled the administration to manage the resources of the Organization more effectively and to ensure greater value for money.

The Office concludes that future peace-keeping missions should establish, at an early stage, appropriate management structures with proper internal controls to ensure efficient management. In a reply to the Office's audit report, the Department of Peace-keeping Operations showed that the UNPF had taken several steps to improve its operations. The steps are incorporated into the report.

The Office recommends sound planning and the creation of stronger management capacities at peace-keeping missions. The appointment of qualified officials as Chief Administrative Officer and for other functions is essential and should be supported by United Nations Headquarters. The monitoring and documenting of internal control systems and procedures should be developed to help future missions achieve their objectives.

A note by the Secretary-General transmits the second annual report of the Office (document A/51/432), covering the period 1 July 1995 to 30 June. Commenting generally on the Office, the Under-Secretary-General for Internal Oversight Services, Karl Theodore Paschke, says: "My overall assessment after 20 months in office is that the creation of the Office of Internal Oversight Services is one of the most meaningful initiatives taken by the General Assembly in the context of United Nations reform."

During the year, the Office identified and recommended cost savings of $18.7 million and actually helped to save and recover about $15.8 million, states the report. The savings include budget cuts of $6.7 million in 1996- 1997 in conformity with the Office's recommendations, the prevention of excessive or unjustified expenditure of some $4 million, and another $4 million from the recovery or prevention of overpayment. Since October 1994, the Office has made 4,042 audit recommendations on compliance

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with rules, economic use of resources, the protection of assets and on internal control. The average implementation rate was 61 per cent.

While the 1995 report identified three areas of priority for oversight -- peace-keeping, humanitarian work and procurement -- this year's report treats the problem of establishing new bodies as a priority matter, since the beginning of new operations and organizations is always risk-prone.

Under peace-keeping, the Office states that a Lessons Learned Unit was set up in the Department of Peace-keeping Operations in April 1995 in response to the Office's recommendations. Useful end-of-mission assessments have been completed on the Mozambique and Somalia operations and reviews have been drafted on most aspects of the Cambodia mission. The Unit is a first step along the road to institutional arrangements in the United Nations that will permit it to make efficient use in new missions of the lessons of past experience.

Among the findings in peace-keeping was a lack of guidance to the field personnel of the UNPF about preparations for the transfer of authority, the report states. As a result, inventories of the United Nations-owned equipment worth over $35 million were transferred to the North Atlantic Treaty Organization (NATO) Implementation Force (IFOR) without proper accounting when the action was taken. There was also a lack of internal control over nearly $60 million in reimbursements to troop-contributing States for certain equipment. The Office made recommendations to recover $185,000 in reimbursements that had been based on fraudulent claims. Further, the valuation of contingent-owned equipment for which depreciation expenses and reimbursement for losses are expected to exceed $720 million should be more closely monitored. The UNPF bought about 650 generators valued at $7.2 million that were either not used or sent to other missions.

In the United Nations Mission in Haiti (UNMIH), avoidable delays in establishing ration and service contracts cost the Organization $12.4 million, the report goes on. The United Nations Mission of Observers in Tajikistan (UNMOT) made overpayments of about $400,000 between January and August 1995. The United Nations Iraq-Kuwait Observation Mission (UNIKOM) identified overpayments of mission subsistence allowances estimated at $844,000, which are being recovered.

In setting up new bodies, the Office says, the United Nations faces recurring problems of organization and finance. Time pressure, lack of experience, inadequate planning, delayed or insufficient delegation of authority or late availability of resources are factors leading to severe efficiency losses at the initial phase of operations. For example, a first review of the administrative aspects of the International Criminal Tribunal for Rwanda at Arusha revealed, among others, the following: the recruitment of investigators should be sped up; the quality of interpreters and

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translators was deficient; and the Tribunal's administration lacked the expertise for effectively managing its construction programme. While remedial action has been promptly taken and savings of about $3.2 million effected in the proposed building of court premises, emerging administrative problems will require additional reviews.

The report summarizes the work of the Office's five divisions: which deal with audit and management consulting, investigation, inspection and monitoring and evaluation. For example, the audit division identified almost $12 million in potential recoveries and savings. Almost $9 million in savings and recoveries were realized from actions recommended by the division during this and prior reporting periods. It opened 131 audit assignments and 2,105 recommendations.

As for the investigation division, the Oversight Office states that the section received 205 complaints: 107 from the Americas; 50 in Europe; 36 in Africa; 9 in Asia; and 3 in the Middle East. The complaints ranged from matters affecting a few staff to those on the Organization's policies. Nineteen people used the facility, which allowed reports to be made anonymously, representing less than 10 per cent of all complaints received.

The Secretary-General endorses the recommendations contained in another report of the Office, on the investigation of the United Nations Access Control System (document A/51/467). Among the recommendations were that the United Nations should immediately establish a security working group of professionals from government agencies to evaluate current physical security with a view to identifying the Organization's deficiencies and needs. That is an especially important issue, considering the recent wave of terrorist attacks worldwide and the vulnerability of United Nations Headquarters.

The Office, according to the report, reiterated a recommendation that the Organization demand feasibility studies before it undertakes projects involving new technology or when it lacked in-house expertise on a project. It also reiterated that management should ensure that the interests of the United Nations are safeguarded in all contracts. Contract terms on the performance of contractors should be standardized and included in all relevant contracts. Senior management should ensure that an experienced manager is assigned to each project and that a chain of command is established and adhered to.

The report states that significant problems had been noted regarding the project from its inception to the point when the United Nations decided not to implement it, after spending $1.5 million on the access control system. The Under-Secretary-General for Internal Oversight Services directed the Office's Investigations Section to review the System to see whether it could find that any current staff members had violated United Nations regulations in connection with the project. Specifically, the Section was asked to determine

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whether the project had been properly planned, if the contract had been awarded in accordance with regulations and whether the project was properly managed.

Investigators reviewed documents and interviewed past and current staff and managers of the Organization, as well as those of the contractor, the Westinghouse Electric Company, the report goes on. With the passage of time and the fading of memories, the Investigations Section had to rely on documents. Six persons who no longer work for the United Nations but were involved in the project either refused or were unavailable for interviews. The investigation concluded that responsibility for the Organization's financial loss could not be attributed to the acts of any particular employee individually or collectively.

The report states that the contract award did not violate any rules and regulations. However, the absence of rules specifically governing the award of contracts by requests for proposals creates the potential for misunderstanding and manipulation. The most serious failure in the process was the absence of clear management over the life of the contract. The contract of the consultant managing the project was terminated in mid-project. The Director of the Buildings and Commercial Services Division, who had initiated the project, was transferred; five Under-Secretaries-General were appointed during the contract period, each with a different concept for and involvement with the project, resulting in management being shuffled between staff and departments.

Turning to why the project was not activated, the report includes the view that management decided to drop an unpopular project because of concerns, among others, about the use of turnstiles. When the project was planned, the Chief of Protocol stated that delegates would object to going through turnstiles. Also, with the need for access cards for 10,000 permanent delegates, 10,000 staff and up to 7,000 temporary General Assembly personnel, Westinghouse's delivery schedule was less than adequate. The Staff Union raised health issues and concerns about the Security and Safety Service being able to know when everyone entered and left the premises.

A note by the Secretary-General transmits a report of the Office, on investigations into the seminars of the Special Committee on the Situation with regard to the Implementation of the Declaration on the Granting of Independence to Colonial Countries and Peoples (document A/51/486). The Office says that the seminars seem to waste United Nations resources. The appearance of a waste of resources should be considered and explained publicly. However, the report adds that the Office found no evidence of a violation of the Organization's rules and regulations. Moreover, the Special Committee has the authority of the General Assembly and the budget authorization to hold seminars in 1996-1997. The Office agreed with the position of the Department

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of Political Affairs that the Special Committee should question the need to hold the seminars, given the current financial crisis. It joined the Department in asking the Special Committee to reconsider holding the Pacific Regional Seminar at Port Moresby, Papua New Guinea, from 12 to 14 June. The Under-Secretary-General for Political Affairs told the Oversight Office that he had repeatedly asked the Special Committee's Chairman and bureau to consider cancelling the seminar. His suggestion was rejected by the Committee, some of whose members questioned the legitimacy of the Secretariat making such requests. The seminar was held at a cost of $135,900.

The report is the result of an inquiry the Office conducted after receiving information that the Special Committee may have misused United Nations funds meant for a seminar in Trinidad and Tobago in July 1995. It found that the funds had been spent according to relevant rules and regulations and that the seminar had been authorized by the Assembly. As questions continued to be raised regarding the seminars, the Under-Secretary-General for Political Affairs asked his Internal Oversight counterpart to review them.

The Office reviewed the Special Committee's expenditures for the seminars, according to the report. The review examined the purpose, costs and results of the five seminars held since 1990: 9-11 May 1990, Port Vila, Vanuatu; 19-21 June 1990, Bridgetown,Barbados; 17-19 June 1992, Saint George's, Grenada; 8-10 June 1993, Port Moresby, Papua New Guinea; and 3-5 July 1995, Port of Spain, Trinidad and Tobago. It could not ascertain the benefits derived from them even though they were held in accordance with the purposes of the United Nations Charter. The seminars are held in the Caribbean and Pacific regions, close to the affected Non-Self-Governing Territories. Although 17 Territories have been concerned by those seminars, six attended the June 1996 seminar; five attended in June 1992; and only four took part in each of the other four seminars. Recent participation, which has never exceeded 30 per cent, was 38 percent at last June's seminar. The level of participation could not be explained by funding limitations since the Organization pays for their travel expenses. Further, the report adds, it is hard to see a need for the annual seminars since the same matters are discussed year after year. Many of the recommendations made at the five seminars were identical.

The report states that the Office estimates the total costs of the five seminars at some $625,000. Regarding last June's Port Moresby seminar, the Office says that its $135,900 cost includes travel expenses, rent and hospitality, and miscellaneous expenses. The Organization paid for the participation of four Special Committee members, five representatives from Non-Self-Governing Territories, six special guests and five representatives from non-governmental organizations. The average cost per participant was $6,795.

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Statements on Reports of Board of Auditors

NIKOLAI LOZINSKI (Russian Federation) said that the Board of Auditors' report had dwelt extensively on the issue of procurement, where huge sums of money were spent annually. The current Secretariat policies in procurement were far from perfect, particularly the practice of approving contracts on an ex-post-facto basis. The number of such contracts should be brought to a minimum and they should be granted only on an exceptional basis. The Board's report had shown that the need for suppliers from as wide a geographical base as possible had not been taken into account in awarding contracts. Numerous examples of violations of letters-of-assist provisions and overvalued equipment purchase contracts for peace-keeping missions confirmed the need for urgent procurement reform. The recommendations of the Board and the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on the issue should be taken into account.

He supported the comments of the ACABQ on the use of consultants. The Russian Federation had repeatedly pointed out that the practice of hiring consultants to work for the United Nations should be reviewed seriously, primarily to reduce its scale drastically down to exclusive cases and to broaden the geographical base, transparency and objectiveness of who was selected. The number of staff engaged in special services should be dozens, rather than hundreds. Their real geographical distribution should be carefully examined. Continuing, he said he supported the recommendation of the ACABQ that the Secretariat submit biennial reports on the recruitment and use of consultants, indicating their numbers, duration of service, salaries and nationality. He expressed concern about the qualified opinion made by the Board on the financial statements of four organizations and shared the views of the ACABQ on the matter. The process of selecting, implementing and executing partners for the organizations should be improved and the reporting process streamlined. The trend of expenditures exceeding real income in a number of organizations was also disturbing.

Statements on the Reports of the Internal Oversight Office

KARL-THEODORE PASCKE, Under-Secretary-General for Internal Oversight Services, introduced the reports of his office. The $18.7 million savings the Office had identified should be regarded as a very conservative estimate. He said that the shortage of travel funds had hampered the work of the Office, which also needed additional personnel to handle current and new case.

KHALIL ISSA OTHMAN, Vice-Chairman of the Joint Inspection Unit (JIU), introduced his Unit's report, (document A/51/30 and Corr. 1) which contained comments on some of the Oversight Office's documents. While some of the work of the Oversight Office coincided with that of the JIU, duplication would be avoided.

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The JIU report covers such matters as procurement, electronic mail, the United Nations Gift Centre, global cargo and the civilian staff component of the United Nations Peace Forces. On the report of the Office regarding procurement handled by the Department for Development Support and Management Services, the JIU was of the opinion, in its report, that full and unconditional implementation of the Oversight Office report's recommendations would help establish a general environment that supported a transparent competitive contracting and procurement system.

Regarding the management audit of electronic mail, the JIU shared the Oversight Office's calls for security in the system, since e-mail was used by management to discuss sensitive topics. The JIU then suggested, in its report, that security arrangements be enhanced to help avoid breakdowns of the system resulting from misuse by unauthorized persons.

Turning to the Oversight Office report on alleged misappropriation of United Nations assets at the United Nations Gift Centre, the JIU, in its report, saw the Oversight Office's report as a valuable contribution to the proper assessment of the broader issue of "outsourcing" of United Nations functions or activities. The decrease in profit at the Centre had appropriately been identified as the result of incorrect management practices and misconduct of personnel provided by the subcontractor to which the operation of the Gift Centre had been outsourced. The Oversight Office's report highlighted the risks involved in the outsourcing of activities without sufficient control and supervision by the Organization. The Unit might make further comments on the particular issues dealt with in the Office's investigation, in the forthcoming report of the JIU on outsourcing in the United Nations system.

On the audit on the global cargo and motor vehicle insurance, the report of the Unit supported the recommendations contained in the Oversight report and asked the General Assembly to approve them. Nevertheless, the Inspectors recommended that the issue of insurance policies be taken within the Administrative Committee on Coordination (ACC) with a view to exploring the possibilities of having common, system-wide practices and procedures, including common insurance programmes.

As for the Oversight Office's review of the management structure in the civilian staff component of the United Nations Peace Forces, the JIU supported all the recommendations contained in the Oversight report. Nevertheless, the Inspectors felt that the question of the handling of contracts by the peace- keeping managers should be further reviewed, especially whether all contracts and procurements were subjected to national and international biddings.

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Statements on Proposed Medium-term Plan -- Programme 11 (Human Settlements)

Mr. TAKASU, United Nations Controller, introduced the revised programme, which had taken into account the plan of action of Habitat II. The Secretariat had done its best to respond to the recommendations of the Committee for Programme and Coordination (CPC).

(As recommended by the CPC, programme 11 was revised [document A/51/6 (Prog. 11]/Rev.1]. The programme now contains the following four subprogrammes: 11.1 -- Shelter and social services; 11.2 -- Urban management; 11.3 -- Environment and infrastructure; and 11.4 -- Assessment and monitoring.

The overall orientation of the programme has also been revised to read: to promote the implementation of the Habitat Agenda, the global plan of action resulting from the second United Nations Conference on Human Settlements [Habitat II], held at Istanbul in June 1996. The goals of the Habitat agenda are adequate shelter for all and sustainable human settlements development in an urbanizing world. The objectives of each subprogramme are also contained in the revision.)

PATRICK KELLY (Ireland), speaking for the European Union, as well as Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Malta, Poland, Romania, Slovenia, and Norway, expressed the hope that the revised text on the programme, requested by the CPC, would be consistent with the outcome and implementation of Habitat II. He would study the revised text very closely to see whether it accorded with the CPC's request.

MARTHA PENA (Mexico) said since the revised text was only available on Friday, she would like to request time to study the document. She asked that consideration of the programme remain open until her delegation could review it. She welcomed the Secretariat's efforts to revise the programme and expressed the hope that it reflected the consensus reached at Habitat II.

SYED ALOM (Bangladesh) welcomed the revised text and agreed with the request by other delegations that consideration of the programme remain open. However, as long as the revised document reflected the spirit of Habitat II, there should not be a problem to proceed with the revised text.

DULCE BUERGO RODRIGUEZ (Cuba) agreed that Committee members should be given time to consider the revised programme. They should also await the comments of the Second Committee (Economic and Financial), since that programme fell within its competence.

Acting Chairman, KLAUS STEIN (Germany), informed the Committee that the revised programme 11 (trade and development) was also available. He added

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that Thursday would be the last day for consideration of the medium-term plan informal meetings.

Ms. PENA (Mexico), clarifying her request, asked that the debate on programme 11 also remain open.

The Acting Chairman, Mr. STEIN (Germany) clarifying his statement, said Thursday was scheduled to be the last day for discussion of all programmes.

Statements on Programme 12 (Crime Prevention and Criminal Justice

PATRICK KELLY (Ireland), speaking for the European Union, as well as Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Malta, Poland, Romania, Slovenia, and Norway spoke on programmes 12 and 13, on international drug control. He expressed full support for the proposed programme of work for the Crime Prevention and Criminal Justice Division outlined in programme 12. The Commission on Crime Prevention and Criminal Justice, in particular, should focus on the overall objectives of the programme as set out by resolution 1/1 of 1992, on strategic management by the Commission.

Operationally, he called for greater coordination between programmes 12 and 13, particularly to check money laundering. The Crime Prevention and Criminal Justice Division should strengthen its cooperation in the fight against money laundering with the United Nations International Drug Control Programme and the Commission on Narcotic Drugs. Improved cooperation might lead to a consideration of whether they should create a joint unit to deal with money laundering activities. A particular priority of the Crime Division must be to achieve further progress in effectively implementing the Naples Political Declaration and Global Action Plan against organized transnational crime. The definition of such crimes must include the commercial sexual exploitation of children and the trafficking in women and girls.

Regarding programme 13, the Union regarded the fight against drugs a major priority of its internal and international action, he said. The efforts of the United Nations International Drug Control Programme in coordinating anti-drug activities were crucial in achieving the Union's goals. It was important to employ an integrated approach, dealing with drug production, trafficking and demand reduction.

AMR NOUR (Eygpt), speaking on programmes 12 and 13, said he supported the CPC's recommendations, the remarks by the Group of 77 and China, as well as those of the Third Committee (Social, Humanitarian and Cultural) on those programmes.

Ms. PENA (Mexico) said she endorsed the CPC's recommendations on the programme and asked that they be included in the draft resolution on the programme. She expressed concern at the informal presentation of the document

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that had been circulated to Committee members that contained the statements of delegations on the programmes within the competence of the Third Committee. The replies from all the Main Committees should be treated equally and be presented as official documents. They should also be presented in the Organization's official languages.

Ms. BUERGO RODRIGUEZ (Cuba) said she attached great important to the programmes and supported the conclusions and recommendations of the CPC. She said the documents that had been submitted to the Fifth Committee from the various Main Committees were not acceptable, as all they did was put together and submit individual statements from various delegations. The documents could not regarded as official.

HIDEKI GODA (Japan) said he supported the recommendations and conclusions of the CPC.

NAZARETH INCERA (Costa Rica) supported the recommendations of the CPC

Statement on Programme 13 -- International Drug Control

Ms. PENA (Mexico) said her delegation agreed with the conclusions and recommendations of the CPC, which should be included in a draft resolution on the issue and serve as a basis for consensus.

Statements on Programme 19 (Human Rights)

AURELIO IRAGORRI (Colombia), speaking for the Non-Aligned Movement, said that the Movement welcomed the fact that the right to development had been included in programme 19 as part of subprogramme 19.1 -- Right to development, research and analysis. However, subprogramme 19.1 also included such activities as research and analysis. A separate subprogramme should be devoted exclusively to the right to development. Before the issue was considered further, the Secretariat should explain the structure of subprogramme 19.1 and the amount of resources to be devoted to the right to development, as opposed to what would be allocated for the other activities.

He said certain subparagraphs in 19.3 -- Advisory services, technical cooperation, support to human rights fact-finding procedures and field activities -- should be redrafted. Peace-keeping operations should be run exclusively along the lines set by the Charter. While there should be coordination between human rights and peace-keeping activities, such coordination should not lead to a misunderstanding as to the relative place of each activity.

Speaking on the medium-term plan generally, JEAN MARC MPAY (Cameroon), on behalf the African Group of States, said that the adoption of the medium- term plan would be very important for the United Nations, as it would set

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clear goals for all departments of the Secretariat and provide a framework for the United Nations budgets. The Perspective had not taken into account the interest of developing countries and failed to give sufficient weight to the United Nations role in economic and social development. The role of the Organization must not be selective and should reflect the interests of the entire membership. The document called the Note should be approved, as it would provide a good basis for consensus and since it had addressed the shortcomings in the Perspective. The priorities in the Note should be accorded equal status and they should not be seen as having been listed according to any order of priority. The African Group could not join in adopting a medium-term plan without the approval of an introduction outlining United Nations priorities.

Regarding Programme 6 (Africa: New Agenda for Development), he said that the trends towards globalization and interdependence made it normal for Africa to expect partnership and shared responsibility from the rest of the international community. "No nation, no matter how powerful and rich or developed, could afford to entertain the illusions of comfort and isolated security by treating with contempt the plight of any nation or continent", he said. "It is a question of enlightened self-interest. As we say in Africa, a child who says the mother cannot sleep should not also be expected to sleep."

In the Note, the critical situation in Africa had been mentioned as a persistent problem of the United Nations, he continued. Despite the volumes of words written, real and concerted efforts had yet to be made to ensure a durable and self-sustaining economic recovery for the continent. In fact, the 1980s for Africa had been a lost development decade despite the United Nations Programme of Action for African Economic Recovery and Development. The General Assembly's creation of the United Nations New Agenda for the Development of Africa in the 1990s was a recognition of the failure of the Programme of Action and an attempt by the Organization to restore some hope to the continent. The preamble for the New Agenda y clearly spelt out the commitments of the international community, a key element of which was the provision of adequate resources into Africa to achieve a 6 per cent growth rate and the allocation of 0.7 per cent of the international community's gross national product as official development assistance.

He said that the mid-term review of the implementation of the Agenda, which took place from September 16 to 20, did not allow for optimism. The estimated resource mobilization levels were far from being attained. In order to attain the planned growth of 6 per cent, it had been estimated that the international community would provide at least $30 billion in official development assistance in 1992, after which the real net of such assistance would need to grow at an average rate of 4 per cent per annum. But the mid- term review report stated that, as of 1995, official development assistance stood at only $26.4 billion. While the aggregate net resource flows to Africa

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had reached $31 billion in 1995, Africa's external indebtedness had increased from $300 billion in 1991 to $322 billion in 1995.

He said that the implementation of the New Agenda during the medium-term plan period should highlight as key issues financial resource mobilization, the transfer of technology and external debt. The New Agenda remained the basic mandate for African economic and social development and any other action programmes only translated the New Agenda into action in operational terms. While agreeing with the recommendations of the CPC, the African States would like to have performance indicators or benchmarks included in each subprogramme.

MARTHA MONTANO (Bolivia), also speaking for the Rio Group, expressed support for the programme on human rights. The High Commissioner should act in accordance with the relevant resolutions of intergovernmental bodies. He should take note of the views reached at the Vienna Conference on Human Rights, which had decided that the right to development was an inalienable and integral part of fundamental human rights.

PATRICK KELLY (Ireland), also speaking for the European Union and Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia and Slovakia, said that the mandate for the work described in programme 19 derived from the United Nations Charter and from the Vienna Declaration and Programme of Action and other human rights instruments. It reflected all relevant mandates including the results of the restructuring exercise that the High Commission had carried out. Therefore, the mandate of the Centre for Human Rights and the High Commissioner and decisions of the Assembly and other policy-making bodies were accurately reflected in programme 19, which should be adopted unchanged by the Assembly. The Centre must be ensured the means to carry out its functions adequately.

Ms. PENA (Mexico) said she could not endorse the conclusions and recommendations of the CPC since there had been none on the programme. The CPC had not been able to reach conclusions due to the divergence of views on the text. The letter from the Third Committee (Social, Humanitarian and Cultural) had only reproduced different views, reflecting the lack of conclusion in the CPC. Mexico was committed to the Vienna Conference's views that all human rights were indivisible and interrelated and that the right to development was part of the fundamental human rights.

AZLAN MAN (Malaysia) said he supported the statement of the Non-Aligned Movement on the programme. The objective of the United Nations work programme on human rights was to promote enjoyment of all human rights, including the right to development. That work programme must be in line with the Vienna Declaration, the Universal Declaration of Human Rights, as well as other human rights instruments. Programme 19 must be carried out in accordance with those instruments.

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The restructured Centre for Human Rights appeared to have departed from those considerations and from mandated activities, he continued. No mandates must be neglected and all funds earmarked for mandated activities must be used only for those activities. Regarding the right to development, there should be a programmatic approach and competent staff must be recruited to carry out those activities. Advisory services and technical cooperation activities must not be merged with field activities. Combining the two sets of activities was of concern and could undermine respect for the sovereignty of States.

RODOLFO REYES RODRIGUEZ (Cuba) said, although he welcomed the efforts of the High Commissioner for Human Rights in preparing the programme, it lacked some elements to make it a perfect programme. In that connection, he supported Colombia's comments. Expressing his reservations, he said the programme should be amended before it was adopted by the Assembly. Referring to the introductory paragraph of the programme, he said that if the last sentence were to be retained, the list of principles of the Vienna Declaration should be exhaustive. There should also be an indication of all the organs related to system-wide coordination in the field of human rights and the mandate of each body.

He then suggested a number of modifications to the text, such as subparagraph (m) of paragraph 19.3, which he said was not consistent with the participation of the non-governmental organizations in the United Nations activities. It should be redrafted to comply with established mandates. He asked why the programme should be restricted to three subprogrammes. He called for four subprogrammes, with the additional one devoted to the right to development.

Emphasis should be placed on the protection of the rights of minorities and vulnerable groups and such issues as racism and xenophobia. In other amendments, he proposed that the proposals in paragraph 19.9 on the objectives of fact-finding bodies be placed under 19.2 on the general objectives of the programme. Referring to fact-finding procedures under subprogramme 19.3, he said those procedures should not be presented along with other aspects of that subprogramme.

FABIAN PALIZ (Ecuador) supported Bolivia's statement on the programme, speaking on behalf of the Rio Group. Stressing the importance of the promotion and protection of human rights, he said achieving the right to development was an important challenge to the international community. Achieving sustainable development was an important goal and was related to the promotion of human rights. Appropriate structures should be put in place and the necessary resources should be given to the relevant bodies to carry out the programme.

Mr. NOUR (Egypt) said he supported the statements by Colombia on behalf of the Non-Aligned Movement on programme 19. The programme was of great

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importance. However, the programme's structure had not been agreed to by the relevant organs, such as the Economic and Social Council and the Commission on Human Rights. How could those bodies assume their responsibilities when their decisions were ignored? he asked. Referring to the restructuring of the Centre for Human Rights, he said there was a need to take account of the competence of the Commissioner for Human Rights. There was also some concern about the way the human rights programmes were planned and carried out, especially when such action was contrary to the wishes of Member States.

He stressed that the majority of Member States attached great importance to the right to development and to its inclusion as a new subprogramme. A distinction must be drawn between advisory services, technical cooperation and oversight activities. To put all into a single subprogramme as proposed would mean that the two issues would be amalgamated and could give rise to political sensitivities, which should be avoided.

Statements on Human Resources Management

DENIS HALLIDAY, Assistant Secretary-General for Human Resources Management, responded to questions asked by delegations in the Fifth Committee on Friday. His responses in previous meetings had been provided to Committee members in writing, but the transcription done by his staff was duplicating the work of staff working in the Committee. He suggested that delegations request summary records of their questions.

He went on to say that the ad hoc P-2 examinations had been held to correct a situation of a number of staff members who had been recruited on short-term contracts over a long period of time. It was a pragmatic approach to try to retain highly qualified individuals. The result of the exercise was that unsuccessful persons who were still encumbering posts would have to be separated. Regarding the freezing of posts, he said posts had been frozen by programme managers, who had taken the initiative to find savings at the departmental level, and by the Office of Human Resources Management. The Department of Administration and Management had issued various guidelines for the selection of posts to be frozen. During the freeze on recruitment, staff were hired through the national competitive examinations and the external language examinations.

Responding to other questions, he said the three persons referred to by the representative of Uganda who had returned from mission were at work. On the implementation of decisions of the Joint Appeals Board, he said it was not feasible to respond without details of specific cases. To another question, he said he did not know of cases in which staff had been refused posts so that external candidates could be hired. External candidates were only considered when staff was not available in-house.

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Regarding the concerns about racial discrimination, he read a response the Secretariat had recently prepared on the matter for the media. The Secretariat stressed the importance of ensuring equity in recruitment and promotion. It should be noted that the United Nations personnel records did not include reference to race or ethnic background. Further, a mechanism existed for staff to seek redress if they experienced discrimination. As far as he was aware, no such appeals currently existed. Staff could also raise such issues with the Office of Internal Oversight Services. In the coming weeks, a questionnaire concerning gender and racial issues and the policies that staff would like to be put in place to deal with such discrimination, would be sent to all United Nations staff system-wide. Regarding promotion, there was a proportional regional balance among staff, given the present regional balance in the Secretariat.

To other questions asked, he said any persons holding permanent contracts who had been sent on assignment would be given preference for vacancies in established posts on their return. The filling of posts that had been reclassified upward were submitted to the appointments and promotion bodies. The redeployment exercise had not been driven by individual performance. As stated in the Administrative Instruction which governed the exercise, departmental heads had used a comparative analysis of criteria, such as seniority, mobility and years of service, as a means of identifying the best performing staff. There were some excellent staff members among those who were not placed in the exercise. Their failure to be placed should not be attributed to the staff members. There were other limitations.

The Committee Chairman, NGONI FRANCIS SENGWE (Zimbabwe), said he hoped that racial discrimination did not exist in the Organization. The ACABQ's report on financial statements and the Board of Auditors' reports had referred to the existence of an "old boys network" in the recruitment of consultants. Stating that "where there is smoke there is fire", he said Member States needed to be assured that such problems did not exist in the Secretariat.

Ms. BUERGO RODRIGUEZ (Cuba) said that she would be satisfied if the discussions were continued in informal consultations. While waiting for the report of the Sixth Committee (Legal) on the reforms of the internal justice system, her delegation would be ready to go to informal consultations on human resources management as long as the Fifth Committee formally heard the views of United Nations staff on their relationship with management. The Committee should hear from them, since it had heard the Administration's views on staff- management relations.

WOLFGANG STOCKL (Germany) agreed that discussions on personnel management should continue in informal meetings of the Committee. The Assistant Secretary-General should provide an organigram on the OHRM, with a breakdown of the Office, during the consultations.

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JUDITH M. CARDOZE (Panama) supported Cuba's comments.

Mr. NOUR (Egypt) asked to be informed as to when the debate on human resources would end. Would the suspension of the debate, pending the receipt of the Sixth Committee's report on the internal justice system, continue? he asked.

SAM HANSON (Canada) asked how the proposal to hear from the staff would be accommodated in procedural terms, since the Fifth Committee normally dealt with the Secretary-General.

THOMAS REPASCH (United States) said that Canada's representative had pre-empted the question he had intended to ask on the issue of hearing staff views.

DJAMEL MOKTEFI (Algeria) supported Cuba's proposal. The views of the staff should be heard before the Assembly took any decision. As to the procedure, the issue should be handled as the United Nations common system was addressed, with the staff representatives having the right to respond to the views of the Secretariat.

Ms. BUERGO RODRIGUEZ (Cuba) said that her proposal was to have the staff air their views in a formal Fifth Committee meeting. The bureau could decide on the technicalities of how to proceed. Algeria's proposal could be taken up. The Committee could proceed to informal consultations on the agenda item, though.

TAMMAM SULAIMAN (Syria) supported Cuba's views. It was necessary to hear how the staff saw their relationship with United Nations managers. The referendum on staff members would provide a view of how they evaluated the United Nations management.

Mr. STOCKL (Germany) said he supported hearing from the staff members, in principle. The modalities of how to hear their views should be left to the Committee's bureau.

Ms. INCERA (Costa Rica) said she wanted to hear the staff views.

Mr. HALLIDAY, Assistant Secretary-General for Human Resources Management, said that the Secretariat would welcome the staff views once the Sixth Committee had made its views known on the internal justice reforms.

DENISE ALMAO (New Zealand) said that the Mr. Halliday's comments today should be distributed in writing to Committee members even during informal consultations on the agenda item.

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Ms. BUERGO RODRIGUEZ (Cuba) said the Secretariat should provide information on the breakdown of the staff seconded to the United Nations and of those who were career officers. The bureau should determine how to proceed on how the Committee would hear the staff views.

The Committee then concluded the debate on the agenda item on human resources management, which had been suspended pending the receipt of the report of the Sixth Committee on the internal justice reforms. Informal consultations would begin on the agenda item as the Fifth Committee waited for the comments of the Sixth Committee.