CUTTING OF 1,000 POSTS COULD CURTAIL UNITED NATIONS PROGRAMME DELIVERY, PRESIDENT OF STAFF UNION TELLS FIFTH COMMITTEE

21 November 1996

Press Release
GA/AB/3117

CUTTING OF 1,000 POSTS COULD CURTAIL UNITED NATIONS PROGRAMME DELIVERY, PRESIDENT OF STAFF UNION TELLS FIFTH COMMITTEE

19961121 Debate Continues on Financing of Peace-keeping Missions, Board of Auditors' Reports and Internal Oversight Office

The General Assembly must grant the Office of Human Resources Management greater authority to effectively monitor the Organization and should remind departmental heads to place United Nations needs above cronyism and nepotism, the Fifth Committee (Administrative and Budgetary) was told as it continued discussion of human resources management this morning.

The suggestion was made in a statement to the Committee by the President of the United Nations New York Staff Union, Rosemarie Waters, who said that the office had little power, and staff were "too frequently at the mercy of departments run like kingdoms". The departments retained excessive control over staff, posts, placement, promotion and the use of consultants, she added.

The Union President expressed concern that the 1998-1999 budget process was starting with a goal of cutting 1,000 posts, which could severely curtail programme delivery in many areas. Managers should be evaluated by their staff to determine whether they had improved their performance, failing which they should be demoted or terminated. The performance appraisal system was better suited for the private sector, she added.

Comments on her statement and on the reform of the Secretariat's internal justice system were made by the representatives of Egypt, Cuba, Algeria, Zimbabwe, Canada and Pakistan. Most agreed with a Sixth Committee (Legal) proposal that consideration of the reforms be deferred to allow for more consultations.

The Fifth Committee also discussed the reports of the Board of Auditors, administrative and budgetary aspects of the financing of peace-keeping missions and reports of the Office of Internal Oversight Services.

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Speaking on the Oversight Office, the representative of the United States said that his nation's Congress believed that an effective Internal Oversight was vital to the Organization's reform. It would be a mistake to view Congressional scepticism of the United Nations as part of some isolationist fervour sweeping the country. Rather, the American people wanted accountable and responsible budgeting, efficient management and productive results.

The representatives of the Norway, Botswana and Kuwait also spoke on the Office.

Speaking on administrative and budgetary aspects of the peace-keeping financing, the representatives of Kenya, Nepal and Nigeria called, among other measures, for speedy payment of death and disability benefits based on the principle of equal treatment of Member States. Nepal's representative stressed: "The United Nations being the vanguard of equality, justice and human rights cannot find excuses for any further delay in dealing with this matter calling for the equality of treatment." Making comments on the above item were the representatives of Canada, Algeria, Uganda, United States and Pakistan.

The representative of Republic of Korea spoke on the reports of the Board of Auditors.

Also this morning, acting on administrative and budgetary coordination, the Fifth Committee took note of the Secretary-General's report on the United Nations accounting standards and the report of the Administrative Committee on Coordination (ACC) on finances of the specialized agencies and the International Atomic Energy Agency (IAEA).

Under the Committee's consideration of human resources management, the Under-Secretary-General for Administration and Management, Joseph E. Connor, commented on the reports on the internal justice system and the views of the Sixth Committee (Legal) on the matter.

Further this morning, the Auditor-General of Ghana and Chairman of the United Nations Board of Auditors, Osey Prempeh, responded to Member States' comments on the Board's reports. The Assistant Administrator and Director, Bureau of Finance and Administration of United Nations Development Programme (UNDP), Toshiyuki Niwa; the Deputy Executive Director for Policy and Administration of the United Nations Population Fund (UNFPA), Hirofumi Ando; the Deputy Executive Director of United Nations Children's Fund (UNICEF), Karin Sham Poo; and the Deputy Director of the United Nations High Commissioner for Refugees (UNHCR), Ngonlardje-Kabra Mbaidjol, also responded to concerns about their bodies financial statements and audit reports.

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The Deputy Director, Peace-keeping Financing Division of the Department of Administration and Management, Bock Yeo Cheng, and the Chief, Finance Management and Support Service, Field Administration and Logistics Division of the Department of Peace-keeping Operations, Amir Dossal, responded to Member States' comments on budgetary aspects of peace-keeping financing.

Speaking on the Fifth Committee's role regarding budgetary matters were the representatives of Egypt, China, Algeria, Cuba, Colombia, Costa Rica, Singapore and Portugal.

The Committee is scheduled to meet again at 3 p.m., on Monday, 25 November, to take up the United Nations common and pension systems. It is also expected to take up aspects of the 1996-1997 regular budget dealing with the revised estimates from the resolutions and decisions of the Economic and Social Council, and the budget for the International Seabed Authority.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to continue discussion of financial reports and the reports of the Board of Auditors, and of the administrative and budgetary coordination of the United Nations with the specialized agencies and the International Atomic Energy Agency (IAEA). The Committee is also expected to continue considering the administrative and budgetary aspects of the financing of peace-keeping operations and the reports of the Office of Internal Oversight Services.

In addition, under its consideration of human resources management, the Committee was scheduled to take up reform of the United Nations internal justice system. It has before it two reports and two notes from the Secretary-General, as well as a report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on the system.

Also before the Committee is a letter from the Chairman of the Sixth Committee (Legal) to the President of the General Assembly following that Committee's examination of the legal implications of the Secretary-General's proposals on reform of the internal system of justice in the Secretariat.

Reform of Internal Justice System

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

In his consolidated report of September 1995 (document A/C.5/50/2), the Secretary-General states that the proposed reform is an integral part of the vast effort now under way to rationalize the Organization's management and to make it more responsive to the needs of Member States, programme management and staff members. The proposed reform is intended to enhance earlier reconciliation and resolution of disputes before they develop into formal litigation; to professionalize the membership of appeals and disciplinary boards and to provide them with the means to dispose of cases in a more expeditious yet fair manner; and to provide a cost-effective and simple justice system, with the elimination of hidden costs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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training of members of the panel of counsel. The financial implications of the ACABQ recommendations would amount to $629,200 in the proposal for 1996- 1997 -- $587,900 for new posts and $41,300 for the travel of the coordinator.

In Assembly resolution 50/290 of 2 August, the Assembly had invited its Sixth Committee, as a matter of priority, to examine the legal implications of the Secretary-General's proposals.

A letter dated 12 November from the Chairman of the Sixth Committee (document A/C.6/51/7) to the Assembly President transmits a communication from the Sixth Committee on the matter. It states that all the speakers on the issue in the Sixth Committee indicated, whether expressly or by implication, support for reform of the internal system of justice. The objective was described as that of putting in place a system that would be simple, open, efficient and expeditious.

Several speakers referred to positive elements in the proposals, says the letter. Among those mentioned were proposals to avoid problems through, among other things, improvements in communications and exchanges of information; facilitation of resolution of problems prior to the litigation stage through, for instance, mediation and ombudsman procedures; appointments of an ombudsman coordinator and of a legal officer to the panel of counsels; improved review procedures; procedures for settlement of small claims; arrangements for specialist training; and professionalization of the system.

Many of the critical comments made by the Sixth Committee delegates related to the proposals to replace the Joint Appeals Board and the Joint Disciplinary Committee, although there was also support for them. The contention that participation of members elected by the staff to those bodies was a source of inefficiency and delay, because not enough staff members were available for the task and they frequently lacked the necessary capacity or objectivity, was disputed and the validity of that contention as a reason for replacing those bodies was rejected.

With regard to the proposal to replace the Joint Appeals Board by an arbitration board, delegations contended that arbitration as a system depended on a background of equality between the parties. That was absent from the relations between the administration and the staff. The proposal for arbitration boards was also criticized for other reasons. Serious doubts were expressed about the recruitment of arbitrators from outside the United Nations because they would lack the benefit of familiarity with the special regime pertaining to United Nations staff.

In addition, the adequacy of a two-section arbitration board to deal with the existing backlog of problems and to keep up to date with the regular flow of problems was raised and cost projections were questioned in that respect. Concern was also expressed as to whether there were adequate

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arrangements for legal representation of staff members. Delegations also drew attention to the reservations expressed by the ACABQ with regard to the proposed arbitration board.

The proposal for replacement of the Joint Disciplinary Committee by a disciplinary board drew expressions of doubt about the desirability of the externally recruited arbitrators acting as chairpersons of the board. There was an objection to the proposal that staff members should be selected for the board, rather than elected, as was the case with the Committee. It was suggested that the role of the Administrative Tribunal should also be considered in the context of the reform.

The communication from the Sixth Committee Chairman states further that some delegations favoured a general deferral of the reform proposals for reflection and further consultation with the staff. A counterproposal by one delegation that the consultative processes should be strengthened so that consultation would precede administrative decisions and that the authority of the judgements of the Administrative Tribunal should be enhanced vis-à-vis the Administration was not discussed.

Statements on Reports of Board of Auditors

SUNG CHULL SHIN (Republic of Korea) said that, while some significant reforms of the procurement process had been initiated, it was discouraging to note that many of the fundamental weaknesses and irregularities previously identified by the Board of Auditors had persisted. For example, the Board's recommendation that all procurement above $200,000 should be opened to tender had rarely been implemented. Similarly, about 57 per cent of the contracts in the Department of Peace-keeping Operations had been granted on fully or partially ex post facto bases. He shared the view of the ACABQ that reforms of the procurement system should be a top priority of the United Nations.

Turning to the issue of the liquidation of peace-keeping operations, the representative expressed support for the view of the ACABQ that assets should be properly evaluated before they were shipped from a terminating mission to another part of the Organization, in order to avoid the transfer of poor quality property at extra costs to the United Nations. Therefore, he agreed with the ACABQ that improvements in inventory management would prevent the incurrence of large expenditures for freight and maintenance in the operational area. Regarding the fact that nearly 80 per cent of the consultants hired at Headquarters were from 12 developed countries, he agreed with the Board that appropriate norms should be established to govern their selection from a broader geographical base. The Secretariat should also report to the Assembly through the ACABQ on the hiring of consultants. The Secretary-General should accord priority to seeking remedies to losses due to mismanagement and implement actions accordingly, and address the recommendations of the Board.

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O.T. PREMPEH, Auditor-General of Ghana and Chairman of the United Nations Board of Auditors, responding to comments by delegations said the Board was encouraged by the positive views expressed on the execution of its audit function. All delegations had agreed that the recurring irregularities which had been highlighted in the Board's reports suggested that further efforts on the Secretariat's part and the administrations of the various funds and programmes were required to ensure that the deficiencies were fully addressed. In its future reports, the Board would indicate in a separate section cases of recurring malpractice and violation of rules and regulations where the Board's recommendation's had not yet been implemented, he continued. The Board agreed with delegates on the need for the United Nations bodies to address irregularities regarding the identification, recruitment, payment and management of consultants. It also agreed that standards of efficiency and competence should not be compromised in the engagement of consultants. However, the Board considered that the administrative instruction on the issue -- that consultants should be selected from a wide and representative number of countries -- should also receive adequate attention, he said. The process of selection of consultants would be more transparent and equitable once the Administration resumed the maintenance of rosters and modified the selection procedure by considering alternative candidates. The rosters, which should be regularly updated, should be arranged by occupational grouping and technical expertise with information on nationality and frequency of engagement. He welcomed the support of delegations for the Board's recommendations that the Secretary-General should give more attention to liquidation of peace- keeping operations and ensure that the liquidation tasks were done expeditiously and within a specified time-frame to avoid waste of resources. The Board would follow up on its recommendation concerning the deficiencies in the construction contracts of the United Nations Development Programme (UNDP) and report back to the Assembly. On the subject of fraud and presumptive fraud, he reaffirmed that the amount attributed to those cases for 1994-1995 was $3.2 million, which related to 148 cases across six organizations and involved staff members as well as non-staff members. On outstanding assessed contributions for peace-keeping operations, he said the Board concurred with the ACABQ that all assessed contributions remained collectible until the Assembly decided otherwise. In response to a concern about duplication and overlapping of functions, he said the Board had held ad hoc meetings with the Joint Inspection Unit (JIU) and, in the planning of the Board's work, careful consideration was given to the Unit's work plan. In addition, the Board and the JIU exchanged advance copies of their reports to the Assembly. In order to strengthen the cooperation and coordination between the oversight bodies, tripartite meetings among the three bodies -- the Office of Internal Oversight Services, the JIU and the Board were planned.

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Concerning deficiencies in procurement systems of the United Nations and other funds and programmes, he said the Board would continue to review those procurement systems and make appropriate recommendations towards their further improvement. Regarding the final reports of the Oversight Office, he said the Board intended to comment on those reports "where appropriate". He added that the Board would take steps to implement its recommendations towards enhancing its efficiency and effectiveness.

TOSHIYUKI NIWA, Assistant Administrator and Director, UNDP Bureau for Finance and Administration, recalled the changes in the management system under way in the UNDP in order to put the recommendations of the Board into context. In 1994, he said, the Administrator, with the endorsement of the Programme's Executive Board, had launched some management initiatives to make the UNDP a more focused and accountable organization. The recommendations and observations of the Board of Auditors were being reflected in the initiatives relating to changes.

Regarding the fact that the UNDP's financial statement had received a qualified audit opinion from the Board of Auditors on the basis of outstanding audit certificates for national execution expenditures, he said that the Programme had reviewed that issue with the Board of Auditors and raised it with the governments that received its resources. He recalled that, in response to a recommendation of the Board of Auditors in its report for the 1990-1991 biennium, the then UNDP Governing Council had approved an amendment to the Programme's Financial Regulations. The UNDP had also established a long-term audit plan, in agreement with the Board of Auditors, to ensure that sufficient audit evidence was achieved for nationally executed projects. On that basis, targeted audited expenditures for 1992-1993 had met and even exceeded the long-term audit plan.

But, he concurred with the view of the Board that, due to the increases in national execution in recent bienniums, the current strategy for obtaining audit certificates did not provide sufficient audit assurance in respect of nationally executed projects. The UNDP was reviewing the current audit strategy of national execution in close consultation with the Board of Auditors. Based on the results of that review, the UNDP would propose revisions to its Financial Regulations in the second quarter of 1997. He expressed confidence that the audit qualification would be removed in the current biennium. The UNDP would consider a policy document on national execution in mid-1997, and revised guidelines and procedures for national execution of projects would be issued.

Also, a revised monitoring and evaluation system, which would link feedback and lessons learned with management decisions, was being prepared, he said. That system would address national execution of projects. The UNDP concurred with the recommendation of the Board of Auditors on the need to review the adequacy of its current system of assessing the capacities of

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recipient governments to execute its projects. The revised guidelines were expected to facilitate the identification of gaps in the government capacity more effectively. He stressed that internal audit would be strengthened and the Programme would accord the highest priority to the timely follow-up on the recommendations of the Board of Auditors.

HIROFUMI ANDO, Deputy Executive Director, Policy and Administration, United Nations Population Fund (UNFPA), said that the qualified audit opinion on his Fund's financial statement stemmed from the failure of executing agencies to submit annual reports for each project in time. In addition to its follow-up with the executing agencies to ensure their adherence to the Fund's financial reporting requirements, the UNFPA had embarked on several initiatives to address the issue. For example, its Internal Audit Section had recently completed an in-depth review of project audit recommendations to identify the reasons for cases of non-compliance. The findings and recommendations of the review were being used by management to revise financial rules and procedures in order to eliminate inconsistencies, tighten internal controls and to institute a new system for the monitoring of compliance and follow-up with executing agencies. The new system could be in operation by the middle of next year.

The UNFPA, he continued, had also initiated a process of evaluating the effectiveness of various types of executing agencies and the managerial and technical competence required of agencies to fulfil their tasks. The evaluation, to be completed in 1997, would provide criteria for capacity- assessment and capacity-building. The Fund was also revising its national execution guidelines to address the findings of the Board of Auditors, especially with regard to the need for a systematic approach in meeting national execution requirements and in helping governments achieve self- sufficiency. Oversight, streamlined reporting formats and the inclusion of detailed work plans in project documents were receiving adequate attention in the UNFPA's revised project formulation, monitoring and evaluation procedures.

He also welcomed the suggestion by the ACABQ that the executive heads of the various funds and programmes of the United Nations should address, in the context the Administrative Committee on Coordination (ACC), the shortcomings identified by the Board. For its part, the UNFPA would heed the recommendations of the Board.

KARIN SHAM POO, Deputy Executive Director of the United Nations Children's Fund (UNICEF), assured the Committee that the agency would continue to implement the Board's recommendations as speedily and as vigorously as possible. Such action included their response to the recommendations of the agency's internal auditors as well. The ACABQ's comments and advice on a number of issues had been welcome. The UNICEF was undergoing a change in its management process. She stressed that the agency's management continued to have dialogue with its Executive Board and with the ACABQ.

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She said that in response to the discovery of fraud concerning more than $1 million in the UNICEF office in Kenya, which had been discovered in late 1994, the agency's management had taken rigorous action. The Executive Board had been kept informed. Follow-up action had been taken in September this year. Management in the Kenya office had strengthened internal controls. Much progress had been made in implementing the recommendations of the internal auditors and in taking other corrective action. A strong internal audit now existed in the Kenya office. Its proper functioning would be determined in the next audit to be held within a year. Twenty-three staff members had been summarily dismissed as a result of the internal audit and the cases had been referred to the Kenyan authorities, she said. The authorities had taken up the cases and the first case had been taken to trial. The UNICEF would continue to involve the Government in question in the criminal prosecution of the concerned persons. On the issue of cash assistance to governments, she said that such assistance had decreased during the first part of this year. The agency was following up vigorously on all cash assistance and action had been taken as recently as this month, including the threat of sanctions for non-compliance with instructions on the matter at the country level. NGONLARDJE-KABRA MBAIDJOL, Deputy Director of the United Nations High Commissioner for Refugees (UNHCR), said his organization had a systematic approach to reviewing audit issues with the UNHCR Standing Committee, which met four times a year. Regarding the implementing partners audit certification, he said UNHCR management had discussed the issue of audit and monitoring of implementing partners with the Standing Committee at its meeting in September. The Office of Internal Oversight and the Board of Auditors had welcomed the UNCHR's initiative on the matter. On the procurement of Lysol by UNHCR, which had been queried, he said his organization had considered the comments on the subject as unfair. The reference to a $3 million loss was also incorrect. That was the total cost to UNHCR. He recalled the explanatory points made on the matter to the Standing Committee and included the outcome of the matter when it was considered by the Court of Auditors of the European Community, since the European Commission was the donor in question. The Court had accepted UNHCR's explanation that the problems encountered had resulted from a political context and political decisions outside UNHCR's control. The Lysol was a product that the UNHCR would not normally purchase, he said, adding that the purchases had been made in exceptional circumstances that did not warrant the generalization that similar problems could occur as a result of shortcomings in UNHCR's normal procedures for bulk purchases. Other actions to be taken would include those in the areas of deficiencies in subagreements, programme planning, monitoring and evaluation. Training of UNHCR staff was ongoing and an implementing partner handbook had recently been published.

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Statements on Peace-Keeping Financing

NJUGUNA M. MAHUGU (Kenya) expressed concern about the financial situation facing United Nations peace-keeping operations due to the failure of some States to pay their dues, thereby transferring financial burdens to troop-contributing States. That situation should be rectified. He endorsed the recommendations of the ACABQ regarding new procedures for reimbursing States for contingent-owned equipment. The use of the term "contribution agreement" on peace-keeping missions between governments and the United Nations would cause difficulties for Member States which required parliamentary approval at the national level. Therefore, he supported the use of the term "memorandum of understanding" between governments and the United Nations on what they would contribute to peace-keeping operations.

The representative said that Kenya had faced severe problems as a troop- contributing State, with the existing insurance scheme for troops. The preparation of claims was too lengthy and time-consuming, with information sought from various sources. It also led to unequal treatment in reimbursing similar claims from Member States for death and injuries to soldiers on United Nations missions. The Assembly had adopted a resolution in 1994 asking the Secretary-General to review the current arrangements for compensation for casualties on the basis of the principle of equal treatment of Member States. Action on compensations should be initiated in the field on the basis of an accident report, board of injury reports and provost marshall investigation. That option would ensure speedy settlement of claims and simplify administrative arrangements.

PADAM NARAYAN CHOUDHARY (Nepal) said that the Assembly would require further proposals from the Secretary-General before reaching a decision on compensations for life and limb of United Nations peace-keepers. He noted the conclusion of the ACABQ that a self-insurance scheme by the United Nations for insuring its peace-keepers would be more cost-effective for the Organization.

The representative said that the Assembly had asked for revisions to the current arrangements for death and disability compensation which must be based on the principle of equal treatment of Member States and other considerations, such as the need to simplify administrative arrangements and for speedy settlement of claims. The governing principle in any arrangement for paying death and disability benefits should be the equal treatment of Member States. "The United Nations being the vanguard of equality, justice and human rights cannot find excuses for any further delay in dealing with this matter calling for the equality of treatment", he stressed.

ISAAC AYEWAH (Nigeria) said, with the growth in the number of gratis military officers to 115 as of 30 September, he was concerned about their cost, their role as decision-makers and their impact on the performance and morale of the regular United Nations staff who might feel threatened by them.

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Since many of them went on frequent field trips at United Nations expense, they could not be seen as being truly free of charge. Loaned officers comprised 100 of the 134-person staff members of the Department of Peace- keeping Operations. More than 90 per cent of the military personnel in the Field Administration and Logistics Division were gratis military officers. Such officers were in the Mission Planning Division, the Military Adviser's Office and the Situation Centre. The policy should be reviewed, as it seemed to negate the principle of geographical representation.

The representative expressed regret that the Assembly had not taken any decision on death and disability payments. Nigeria was dissatisfied with the current arrangements because its procedures were lengthy and slow, required too much paper work and contradicted the principle of equality. States were virtually left on their own to decide how much to claim as compensation. Various resolutions had reiterated the principle of equal treatment of Member States, speedy settlement of claims and a simplification of the payment of compensations. Potential beneficiaries should be saved from the pain of waiting for long periods. He also expressed concern about delays in reimbursing States' troop and equipment costs. Nigeria had paid up its due for 1996 and its peace-keeping costs were yet to be reimbursed.

BOCK YEO CHENG, Deputy Director, Peace-Keeping Financing Division, Department of Administration and Management, said that a comprehensive report on the issue of gratis military officers had been finalized, was in the process of production and would be available next week. On death and disability compensations, he clarified that the Secretariat had not just suggested the possibility of commercial insurance, but had presented it as a viable option for the consideration by the Fifth Committee. Both the commercial and self-insurance schemes would simplify the processing and payment of claims.

G. DUSCHNER (Canada) asked for further clarification on aspects of the information provided by the Secretariat on administrative and budgetary aspects of the financing of peace-keeping operations this morning.

Mr. CHOUDHARY (Nepal) also asked for clarification and more information on questions he had raised previously.

DJAMEL MOKTEFI (Algeria) also sought clarification on aspects of the document on various aspects of peace-keeping financing that had been circulated. Had the deployment of a rapidly deployable mission headquarters been agreed on by an intergovernmental body? he asked.

AMIR DOSSAL, Chief, Finance Management and Support Service, Field Administration and Logistics Division of the Department of Peace-keeping Operations, said the roving finance officers was a small part of the rapidly deployable mission headquarters. The Secretary-General would submit more

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details of the rapidly deployable mission headquarters in due course. The roving finance officers had a wider function in the mission, such as day-to- day support and troubleshooting.

Mr. MOKTEFI (Algeria) said that since the rapidly deployable mission headquarters had not been agreed on, it was premature and quite clumsy to draft the document in the way it had been drafted.

NESTER ODAGA JALOMAYO (Uganda) said he would associate himself with the statement made by the Nigerian delegate regarding the travel of gratis military officers. He asked for the Secretariat's views on the matter. There was also concern about the management of the assets of peace-keeping operations. The Secretariat had been asked to prepare a comprehensive policy on that matter. He was interested in the progress made on it. He also sought information on progress made on the codification of inventory.

NGONI FRANCIS SENGWE (Zimbabwe), Committee Chairman, said the Committee would continue discussing the agenda item next Wednesday.

WILLIAM GRANT (United States) referred to the question asked by the Ugandan delegate on the travel of gratis military officers. In responding, the Secretariat should also answer if the trips undertaken by those officers would not have been taken anyway by Secretariat staff. Presumably the trips had been deemed necessary. There was need to avoid the misconception that the travel would not have taken place if the gratis military officers had not been employed at the Secretariat.

Mr. ODAGA JALOMAYO (Uganda) asked if the travel had been taken at the expense of the Organization and, therefore, what was meant by gratis in that context.

AMJAD SIAL (Pakistan), welcoming the additional information that had been provided, said he still awaited the information requested by his delegation in two previous meetings.

Statements on Internal Justice Reforms

JOSEPH E. CONNOR, Under-Secretary-General for Administration and Management, introduced the reports of the Secretary-General on internal justice system, some of which had been discussed in previous sessions of the Assembly. Support for measures that would encourage the early resolution of disputes and for the addition of a Legal Officer to the Panel of Counsel had been expressed in the Sixth Committee (Legal). However, some reservations had been expressed against the centre-piece of the proposal, which was the professionalization of the appeal system. He expressed disappointment that the proposals presented had not found favour with legislative bodies. He

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appreciated the proposal by some delegations in the Sixth Committee favouring a general deferral of the reform to allow for reflection and further consultations with the staff.

After reviewing some of the elements of the proposed reforms that would require consideration, the Under-Secretary-General said that the Secretariat would continue to make modest reforms that were within the authority of the Secretary-General, at no additional cost. Already, the scope of the conciliation in the Joint Appeals Board had been expanded before a formal appeal was heard. A "small claims" procedure had also been introduced, under which claims for a value of less than $1,500 would be processed simply and quickly.

ROSEMARIES WATER, the President of the New York Staff Union, said had it not been for the intervention of the Fifth Committee, 30 international civil servants would have been on the street. The deterioration in staff-management relations might prevent the United Nations from achieving its goals of an efficient and dynamic Organization. The Union had been revitalized, with its Statute being rewritten to streamline and make it more effective. An Arbitration Committee had been established to settle internal disputes.

She cited other examples of how the Union was being made more effective, adding that it was not resistant to change. During the current redeployment exercise, the Union had conveyed information to the affected staff to relieve the burden on the Office of Human Resources Management. It had minimized the full impact of the redeployment exercise by identifying staff who wished to swap place with those on the redeployment list and had helped management create a job outplacement service. However, the Union disagreed with the ideology of Administrative Instruction 415, on the redeployment exercise, because it violated Staff Rule 109.1 (c). With the agreement of the Administration, the Union was addressing the legality of that administrative instruction to the United Nations Administrative Tribunal.

She said that the Administration had developed the administrative instruction on redeployment over many months in consultation with their most senior advisers and lawyers from the Office of Legal Affairs and the Department of Administration and Management. The document was then presented to staff during a three-day session of the Staff Management Coordination Committee (SMCC). Major amendments proposed by staff were not accepted.

Regarding the redeployment exercise, she said that fewer than 20 staff remained in the redeployment list at a time when 20 exceptions to the rules of recruitment had been made. While the Administration would state that the vacancies filled that way had not been appropriate for those on the redeployment list, justice must be seen to have been done. With such practices, it was difficult to foster morale or confidence in the management of the redeployment process. There was concern that elements of the

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administrative instruction on the redeployment exercise had been included in the Staff Rules and Regulations in the form of amendments to the rules on special leave and termination indemnity. Staff should be reassured that further redeployment would be undertaken with thorough staff-management consultations at all levels.

She expressed concern that the 1998-1999 budget process was starting with a predetermined goal of eliminating 1,000 posts and maintaining the 6.4 per cent vacancy rate. The Committee should provide clear guidelines on whether management was appropriately interpreting the Committee mandates. The latest reduction would severely curtail programme delivery in many substantive areas. While welcoming the global approach to the Secretariat, the Union had fears regarding the decentralization of authority to managers who had been described by their own administration as being in need of training and improvement. Since managers were being trained at great cost, they should be evaluated by their staff to determine whether they had improved their performance. A manager who failed to improve should either be demoted or dismissed. Until measures were identified to ensure accountability, the staff would be more productive under the supervision of a senior manager who reviewed the actions of local administrators.

She said that, while the Office of Human Resources Management had been vested with great responsibilities, it had been granted very little power. Departments retained excessive control over staff, posts, placement, promotion and the use of consultants. "Staff are too frequently at the mercy of departments run like kingdoms. There is a need to remind the departmental heads that they discharge programmes on your behalf, and they have a responsibility to place the needs of the Organization above cronyism and nepotism." The Assembly must grant the Office of Human Resources Management greater authority to effectively monitor the Organization.

Turning to the performance appraisal system (PAS), she said it was better suited for the private sector, not the United Nations where success was not weighed in financial terms. The appraisal system was expected to be a main issue on the next agenda of the SMCC, in order to review its first full cycle. Permanent contracts would help ensure an independent civil service by ensuring that, if the dismissal of staff was necessary, it would be based on genuine causes and not simply because of the staff's refusal to make decisions that their national governments had pressured them to make. The staff had been forced to withdraw their support for the Secretariat's proposed reforms of the internal justice system. Staff should have the right to be heard by peers who understood the system at the United Nations. The Union agreed with the need to provide a Legal Officer to the Panel of Counsel to advise staff members on their cases. The Union's proposal to let independent lawyers represent staff was rejected by the management. The Union supported the establishment of an ombudsman at a high level to mediate cases of discrimination and abuse within individual departments.

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MOHAMED FATAH (Egypt) said that the Union's statement had provided a clear picture of what was going on in the Secretariat and would be considered in the Committee's deliberations.

DULCE MARIA BUERGO RODRIGUEZ (Cuba) endorsed the final proposals from the Sixth Committee, that the deliberations on the reforms of the internal justice system should be deferred until certain matters were resolved. The statement of the Staff Union would be useful to the Committee in its deliberations on personnel management and other relevant issues.

Mr. MOKTEFI (Algeria) said that the reform of the administration of justice in the Secretariat required careful thought, since various aspects, such as the recruitment of arbitrators had to be considered. The comments of the Sixth Committee should be taken into account by the Fifth Committee.

The representative welcomed the views of staff as expressed by the Staff Union and the dialogue which had started between the Administration and the staff. Such tête-à-têtes should be continued calmly.

LOVEMORE MAZEMO (Zimbabwe) said that his delegation had serious concern regarding the proposals made by the Secretariat on the reform of the internal justice system and welcomed the suggestions of the Sixth Committee. He was concerned that the Joint Appeals Board might have been eliminated by the reform proposals. He wondered why a proposal that would have deprived staff of the right to appeal was made. Having outsiders as arbitrators would lead to arm-chair decisions made by those who did not have the experience of "life in the trenches". Outsiders could also tend to lean towards the positions of the Administration. A board of arbitrators was usually created after an agreement between two sides. If a board was created by only one side, its decisions might be unbalanced.

He expressed appreciation for the statement made by Ms. Water, pledging that her views would be taken into account in the relevant agenda items.

SAM HANSON (Canada) said he regretted the fact that problems had been identified with the proposals that had been made. He expressed the hope that they would be addressed and solved because there were deficiencies in the present internal justice system that should be corrected. While welcoming the views expressed by the Staff Union, he said he would not comment on its substance at that moment. Both staff and management should be held responsible for maintaining proper relations between the two sides.

Mr. SIAL (Pakistan) said that the Fifth Committee should consider the points raised by the Union. Pakistan would take into account the analyses offered by Ms. Waters.

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Ms. BUERGO RODRIGUEZ (Cuba) said she had sought some information on personnel that had been seconded to the United Nations. The details should be provided before the Committee started informal consultations on the matter.

Statements on Internal Oversight

ROD GRAMS (United States) said he welcomed the report of the Office of Internal Oversight Services and applauded the Under-Secretary-General Karl Paskhe and his staff for the steps that had been taken towards creating an effective and independent oversight function. The Office's report was comprehensive and readable and drew attention to the many successes as well as the continuing failures by the United Nations to take the audits and evaluations seriously. The Board of Auditors and the JIU should also prepare reports with user-friendly techniques such as those used by the Office.

While it was not the primary indicator of success, the amounts recovered or saved during the year were a measure of the Office's growing effectiveness in oversight, he said. He cited the $18.7 million in savings identified through the Office's audits and made particular reference to the $3.2 million in savings realized from the audit of the International Tribunal for Rwanda. That example made one wonder what accomplishments could be attained with more complete coverage of similar United Nations activities. An important next step was to encourage internal oversight in the specialized agencies.

The high number of complaints received by the Office's investigation's section indicated that the section should be fully staffed and responsive. He agreed with Under-Secretary-General Paschke's decision to make the investigation's section his number one staffing priority and called for adequate resources to that end. He cited the results of the Office's investigation into the United Nations gift shop. The United States would continue to monitor that case to make sure that the gift shop achieved both effective management and a higher level of profitability.

Regarding implementation of recommendations, he drew attention to the complaint of a possible waste of funds in the numerous seminars held by the Special Committee on decolonization since 1990. Such an appearance of waste of the limited United Nations resources ought to be explained publicly. Procurement should be one of the Office's top priorities over the next year. It was time for all programme managers responsible for managing procurement to take steps to prevent the kinds of abuses described in the report.

The Oversight Office should receive sufficient travel funds to carry out its mandated functions effectively, he continued. The Board of Auditors' findings on the Office confirmed that the Office's model for oversight was a good one that needed to be applied throughout the United Nations system. The allocation of insufficient resources to audit and investigative functions was

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cause for concern. There was need to monitor closely how programme managers implemented the Office's recommendations. Those concerns could be overcome only if Member States gave positive reinforcement for the Office's work throughout the year by signalling the importance of internal oversight to the Secretariat.

The United States Congress believed that an effective and aggressive Internal Oversight Office was vital to the Organization's reform, he said. It would be a serious mistake to view Congressional scepticism of the United Nations as part of some isolationist fervour sweeping the country. The American people wanted from the United Nations the same things that they were demanding from their Government and all other multilateral organizations to which they contributed: accountable and responsible budgeting, efficient and effective management and identifiable and productive results.

TRYGGVE GJESDAL (Norway) said progress continued to be made on the United Nations oversight structure, particularly in the alignment of the work programmes of the Oversight Office and the Board of Auditors. There was a potential for further synergy effects in the coordination of some research with the JIU. He supported the priority areas of oversight work listed by the Office -- peace-keeping, humanitarian activities and procurement, and the additional priority of the establishment of new United Nations bodies.

Regarding oversight resources, he said both permanent and temporary posts of the Office should be filled and the critical shortage of travel funds should be dealt with. There was need for close scrutiny of the liquidation of peace-keeping and humanitarian operations. The savings generated by the Office implied that the Office was paying its way. The deterrent role should be generating even greater savings. In the context of the medium-term plan, it would be unfortunate for the Office's identity and independence to move the internal oversight programme into the administration programme. Such a move would imply a return to the previous division of responsibilities for administration and oversight.

The Office was gradually overcoming the apprehension and reluctance of programme managers to accept critical internal oversight and was being accepted as a partner in efforts to improve performance, he said. Expressing appreciation of a number of reports by the Oversight Office, he said he looked forward to learning how the Office would address the issue of developing guidelines on internal oversight within each unit at the departmental level. He welcomed the creation and role of the Lessons Learned Unit in the Department of Peace-Keeping Operations and the results of the oversight work done in UNHCR, UNRWA and the Centre for Human Rights.

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PAUL MMOLOTSI P.RANTAO (Botswana) drew attention to the fact that some remedial measures introduced to improve the internal control situation had largely been frustrated. Some had even tried to stall or discredit the Office of Internal Oversight Services. Member States should prevail on those who sought to undermine the minimum progress achieved by the Office. Priority should be given to inventing a better managerial culture in the Organization. The Under-Secretary-General for Internal Oversight should explain whether the training exercise being conducted by the Office of Human Resources Management would usher in a new thinking in management practice.

The representative said that information in documents meant for the Assembly did not always disclose details in full or that they deliberately omitted details on the work of some agencies and peace-keeping operations. The Fifth Committee should be informed as to whether such practices were common and, if so, how best to discourage them.

ABDULLAH AL-YAHYA (Kuwait) expressed support for the efforts of the Office to contribute to the reforms of the United Nations and its efforts to improve coordination with the Department of Administration and Management and the JIU. The recommendations of the Office should not only be implemented but those responsible for lapses should be made to account for their actions.

The representative welcomed the savings that the Office had been able to identify and the fact that it had drawn attention to overpayment of per diem allowances in such missions as the United Nations Iraq-Kuwait Observation Mission (UNIKOM). That mission had not been able to recover the overpayment despite the fact that the Office had called for attempts to recover all the overpayment that had been made since its inception. He wondered why the mission had not attempted to recover the sums itself. He asked for the latest information on the status of such payments and about what had been achieved so far.

Other Matters

Mr. FATAH (Egypt) expressed concern that budgetary items were being considered by other Committees, in violation of the procedures and resolutions of the Assembly, which had previously expressed concern that some Committees were dealing with matters that were the prerogative of the Fifth Committee. Such a violation had taken place yesterday evening in a meeting of the Fourth Committee (Special Political and Decolonization), with some members of the Fifth Committee in the same room. The addition of paragraphs relating to the regular budget of the United Nations in the draft resolutions of other Committees should be stopped.

ZHANG WANHAI (China) supported the statement by the representative of Egypt. He asked the Chairman of the Fifth Committee to transmit the concerns of his Committee to the Chairman of the Fourth Committee.

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Mr. MOKTEFI (Algeria) supported the statements by Egypt and China.

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) supported the proposal by China, adding that the Fifth Committee should communicate not only with the Fourth Committee, but with all other Committees.

AURELIO IRAGORRI (Colombia) said that the formulations submitted in the draft resolutions before other Committees had stated that the budgetary implications of their decisions should be met within existing resources. References to budgetary matters should be deleted from the draft resolutions of other Committees so as to maintain the Fifth Committee as the sole body taking decisions on those matters.

NAZARETH INCERA (Costa Rica) said that the development was a serious problem, which breached the rules and procedures of the Assembly.

HO TENG YEN (Singapore) said the Secretariat should provide its interpretation of what "existing resources" meant.

REGINA EMERSON (Portugal) said that the Chairman of the Fifth Committee should transmit rule 153 of the rules of procedure of the Assembly and other relevant resolutions, on how budgetary decisions were to be taken, to the other Committees.

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