PRESS BRIEFING BY UNDER-SECRETARY-GENERAL FOR ADMINISTRATION AND MANAGEMENT
Press Briefing
PRESS BRIEFING BY UNDER-SECRETARY-GENERAL FOR ADMINISTRATION AND MANAGEMENT
19961212
FOR INFORMATION OF UNITED NATIONS SECRETARIAT ONLY
The Under-Secretary General for Administration and Management, Joseph E. Connor, told correspondents at a Headquarters press conference this afternoon that the projected financial position of the United Nations at the end of 1996 had not improved as anticipated because some of the contributions would not be received by the end of the year. The shortfall in contributions under the regular budget came despite serious efforts by many Member States to meet their obligations, often in the face of significant economic problems. He said the financial crisis undermined efforts to reform and renew the United Nations and distracted the Organization from implementing the programs and priorities of Member States.
Although payments received in the first days of December had reduced the deficit, Mr. Connor said the total deficit of $2.3 billion for both the regular budget and peace-keeping budgets was still far too high for the financial health and viability of any organization. It would also oblige the United Nations to resort to borrowing from peace-keeping accounts in order to maintain the Organization's basic operations in 1997. Borrowing against peace-keeping operations was financially unsound and might not be available in the future as the level of peace-keeping activity was reduced.
Mr.Connor conveyed the Secretary-General's sincere appreciation to those Members which had paid their regular budget assessments in full. As of 30 November 1996, 97 Members had paid their assessments compared with 90 by the same date in 1995 and 72 in 1994.
Connor Briefing
Mr. Connor noted that of the $546 million in current outstanding regular budget assessments, 69 per cent was owed by the United States. While the United Nations had received $150 million of the $213 million promised from the United States last week, Mr Connor had been informed that the United States would not be paying the remaining portion of $63 million in 1996. In addition, a number of other payments previously estimated to total in excess of $29 million would now not be expected before 1997. As a result, the regular budget was now projected to end the year with a negative balance of $195 million.
Regarding peace-keeping operations, Mr. Connor said that unpaid assessments totalled slightly over $1.7 billion as of 30 November.
Mr. Connor said it was projected that peace-keeping cash at the end of 1996 would increase from previous forecasts by $115 million to $910 million, based on reductions in both projected receipts as well as outlays and was necessary in order to provide for the expected shortfall under the regular budget. Mr. Connor continued that at the end of the year when the regular budget which was projected to show a cash deficit of $195 million, was combined with the projected positive balance of $910 million under the peace-keeping accounts, the combined cash position of the Organization would be $715 million. With regards to payment to troop-providers, Mr. Connor stated that payments totalling $299 million have been made by the United Nations and an additional $51 million would be paid by the end of this month. We would thus have completed the promised payment of $350 million that had been previously indicated would be made periodically throughout 1996. Mr. Connor added that a special year-end payment of $200 million would also be made to troop and equipment providers based on the Russian Federation's payment of $255 million, as well as the additional one of $50 million to be made by the end of this month. However, on the basis of current projections, it is still estimated that the amount owed at the end of the year to Member States for troop and equipment costs would be around $990 million. In response to a correspondent's question concerning the reason for the United States not paying the remaining $63 million of its projected contribution, Mr. Connor said that payment was conditional on the certification that the Office of Internal Oversight Service had been performing adequately during 1996, a determination that had not yet been made by the State Department. The correspondent asked if that determination would be made by the end of the year. Mr. Connor said that it could not, because the State Department was required to present its certification to the United States Congress which was adjourned for the remainder of the year. The correspondent asked for the names of the remaining four significant Member State contributors who had not made their 1996 assessment payments to the regular budget. Mr. Connor said that he could not name those countries. However, he said that one Member State owed $16 million and three others owed in the range of $3 or $4 million and that this was the first time they had missed their forecast payment dates. In response to a correspondent's question concerning the amount of the peace-keeping operations budget owed by the United States, Mr. Connor said that the United States was responsible for 54 per cent of the amounts owed.
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