DEVELOPING COUNTRIES ARE EXCLUDED FROM OFFERING GRATIS PERSONNEL, GROUP OF 77 TELLS FIFTH COMMITTEE

Press Release
GA/AB/3136

DEVELOPING COUNTRIES ARE EXCLUDED FROM OFFERING GRATIS PERSONNEL, GROUP OF 77 TELLS FIFTH COMMITTEE

Developing countries had virtually been excluded from offering gratis personnel to the United Nations because the system had been set against them, the representative of the United Republic of Tanzania told the Fifth Committee (Administrative and Budgetary) this afternoon as the Committee continued discussing the issue of gratis personnel provided by governments and other entities.

Speaking on behalf of the "Group of 77" developing countries and China, he said the current system of gratis personnel was also a threat to the unique international character of the Organization. Also of concern was the attitude of some countries which were exerting the strongest pressure to reduce the Organization's resources and programmes and, at the same time, supporting recourse to gratis personnel. They found little wrong with the system.

Stressing that the current system of gratis personnel had no legitimacy and must be changed, the representative wondered if it was not yet another way of reforming how the United Nations operated. In that connection, he said it was unacceptable to argue that such personnel had been requested by the Assembly.

The representative of Cuba said the root causes of accepting gratis personnel had to do with the political interests of some Member States that wanted to infiltrate the Secretariat, influence its decisions and obtain information in sensitive areas that affected their national interests. Expressing support for the recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) that all mandated activities should be fully budgeted, she said the Assembly's decisions on the matter must focus on achieving transparency and accountability and lead to a strengthening of its role in regulating and monitoring that practice.

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"The issue of gratis personnel should not be a dispute between North and South, between the developed countries and the less developed countries", the United States representative said. Despite the importance of having an independent international civil service with wide geographical representation, gratis personnel should be used where their expertise was needed. If implemented, some of the recommendations of the ACABQ could spell the end of gratis personnel or add significantly more posts to the regular budget. "We are also afraid that the cost of budgeting and assessing the posts could not be accomplished within the current budget ceiling, an outcome which is unacceptable to my Government."

The representative of the Netherlands said, on behalf of the European Union and associated States, that special circumstances and requests by the Assembly warranted use of most of the 442 gratis personnel in the United Nations. For example, without their help to the International Criminal Tribunals for Rwanda and the former Yugoslavia, the results achieved by the Office of the Prosecutor would not have been possible. But their use should be guided by proper guidelines and procedures.

Statements on the issue of gratis personnel were also made by the representatives of Pakistan, Syria, Indonesia, Costa Rica, Singapore, Egypt and Argentina.

Speaking on the United Nations financial situation, Egypt's representative emphasized that his country had paid up its 1997 regular budget dues since 2 January.

Also this afternoon, for the consideration of the review of United Nations efficiency, Inspector Raul Quijano, of the Joint Inspection Unit (JIU), introduced the Unit's report on the common services provided at Headquarters. David Woodward, Chairman of the Audit Operations Committee, introduced the Board's report on improving oversight services within the Organization.

The Committee is scheduled to meet again at 10 a.m., on Monday, 17 March, when it is scheduled to be addressed by Secretary-General Kofi Annan on United Nations reform and other matters. It is also expected to conclude its general debate on gratis personnel and hear the related views of the Coordinating Committee for International Staff Unions and Associations (CCISUA).

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to continue its consideration of matters relating to gratis personnel provided to the United Nations by governments and other entities. It will also take up issues related to the review of efficiency of the Organization's administrative and financial functioning, based on reports prepared for the forty-ninth, fiftieth and fifty-first sessions of the General Assembly.

Regarding gratis personnel, the Committee is considering a report by the Secretary-General (documents A/51/688 and Corr.1) and another by the Advisory Committee on Administrative and Budgetary Questions (ACABQ) (document A/51/813). (For details of the reports, see Press Release GA/AB/3135 of 11 March).

Review of Efficiency

Under the agenda item on review of the efficiency of the Organization's administrative and financial functioning, the Committee has before it a report of the Secretary-General on jurisdictional and procedural mechanisms for the proper management of the United Nations resources and funds; another from the ad hoc intergovernmental working group on the jurisdictional and procedural mechanisms for the proper management of the United Nations resources and funds; and a report of the Secretary-General on review of efficiency of the administrative and functioning of the United Nations on subsidiary bodies responsible for coordination, administrative questions and budgetary matters.

Also before the Committee are two notes by the Secretary-General, the first transmitting to the Assembly the views of the Panel of External Auditors and the Board of Auditors on how oversight could be improved; and the second transmitting to the Assembly a note dated 13 November 1996 from the Joint Inspection Unit (JIU) containing its updated and additional views on the strengthening of the external oversight mechanisms in accordance with Assembly decision 47/454 B of 23 December 1992.

The Committee also has before it: the 1995 report of the Committee for Programme and Coordination (CPC), which contains a section on review of efficiency; a note by the Secretary-General transmitting the comments of the Administrative Committee on Coordination (ACC) on the JIU report on the United Nations system common premises and services in the field; and another note by the Secretary-General transmitting to the Assembly the JIU report on "Common services at United Nations Headquarters" (JIU/REP/96/5).

The Secretary-General's report on jurisdictional and procedural mechanisms for the proper management of the United Nations resources and funds (documents A/49/98 and Corr.1 and Adds.1-2), dated 22 March 1994, presents the views of 12 Member States on the issue. At its forty-eighth session, the

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Assembly decided to establish an ad hoc intergovernmental working group of experts to study the establishment of a new jurisdictional and procedural mechanism to address alleged cases of fraud in the United Nations. The report presents the views of Argentina, China, Colombia, France, India, Netherlands, Panama, Sweden, Brazil and Burkina Faso.

The report of the ad hoc intergovernmental working group (document A/49/418), dated 22 September 1994, was the conclusion of three sessions held at Headquarters in 1994 in which the working group studied cases of fraud and presumptive fraud. It noted a number of financially significant instances of fraud or presumptive fraud in the area of peace-keeping operations and concluded that, in view of the extremely high level of expenditure involved, procurement for those operations constituted a major risk area of possible fraud or other abuse against the United Nations, both outside and within the Organization.

According to the report, the working group recommended that provisions should be made in the Financial Regulations and Rules and the Staff Regulations and Rules requiring every United Nations staff member to report without delay to the Secretary-General any instance in which there appears to be financial irregularity or misconduct involving the financial integrity of the United Nations, whether arising within or outside the Organization. Another recommendation called for the Secretary-General to promulgate additional financial and staff rules specifically for and limited to temporary peace-keeping missions that would ensure the independence and objectivity of persons appointed for procurement functions. Those rules should establish a time-limit within which an initial audit of the mission would be undertaken and provide a schedule for follow-up action.

The working group also advised the Secretary-General to impose surcharges on staff members who violate the provisions of the Financial Regulations and Rules and other financial instructions of the United Nations. It stressed that the strengthening of the internal and external audit functions would contribute greatly to the deterrence of fraud and other misconduct in the United Nations. Accordingly, it strongly endorsed the initiatives under way in that direction. The working group also recommended that the Secretary-General monitor the effectiveness of the newly established Committee on Personal Responsibility and Financial Liability of the United Nations Development Programme (UNDP) and consider whether it would be useful to establish a similar mechanism in the United Nations.

A note by the Secretary-General, dated 5 October 1994, transmits the views of the Board of Auditors on improving the oversight functions within the United Nations (documents A/49/471 and Corr.1). The Board states that it has been able to work within its mandate and has encountered few difficulties in pursuing its inquiries or in fulfilling its responsibilities. Therefore, its dual mandate -- to express an opinion on the financial statements and to make

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observations with respect to the efficiency of the financial procedures, the accounting system and the internal financial controls -- should remain unchanged.

Regarding the Board's structure and composition, the report calls for the retention of the current three members. It states that the Board has gradually expanded its coverage of management issues and that it has access to fully qualified staff whenever they are required. However, given the increasing number of requests from the General Assembly, the Board expresses concern about the adequacy of the financial provisions made for its work. It considers that its budget should be put on at least the same basis as that of the Office of Internal Oversight Services, as set out in Assembly resolution 48/218 B.

Regarding cases of fraud or presumptive fraud, the report states that the Board intends to intensify its scrutiny of such cases. The Board stresses that the implementation of its recommendations is an area that needs better attention. Remedial action taken by the administration should also include invoking the provisions of Financial Rule 114.1 on personnel responsibility, wherever necessary, in order to act as an effective deterrent against the persistent violations of the Financial Rules and relevant administrative instructions. The ACABQ should also develop its role, in line with its mandate, to hold the senior managers directly accountable for inadequacies and deficiencies in the implementation of the recommendations, on the basis of the follow-up reports of the Board, adds the report.

The Secretary-General's report on the strengthening of the external oversight bodies such as the JIU and the Board of Auditors (document A/49/633), dated 30 November 1994, reiterates that he had established an Office of Internal Oversight Services, adding that other initiatives are under way in the context of the Secretariat restructuring and the setting-up of a transparent system of accountability and responsibility. The selection of Inspectors for the JIU might be improved greatly if regional groups, in deciding upon countries to be asked to propose candidates for the JIU, reached agreements so that the number of States selected to propose candidates equalled the number of Inspectors to be appointed from a regional group.

The report adds that the ACC decided to review the consultation procedures at the inter-agency level relating to nominations for membership of the JIU, the International Civil Service Commission (ICSC) and other bodies. It also considered how United Nations system of organizations could interact more substantively with the JIU. The Assembly might wish to revert to those issues at its next session, it adds.

In another note by the Secretary-General, dated 13 November 1996, transmitting additional views on the strengthening of external oversight mechanisms (document A/51/674), the JIU writes that Member States should

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urgently address the general weakness of oversight mechanisms. Those include the weak provisions for the implementation of and follow-up on the approved recommendations of those bodies. The Unit also argues that cooperation among external oversight bodies should be defined more precisely. They should undertake complementary projects, consider implementing complex oversight projects with shared responsibilities and move from protecting their respective mandates to developing a culture of positive cooperation.

The JIU adds that, since the oversight bodies' mandates have been approved by the Member States, it should not be blamed for any unnecessary duplication. It notes that Member States have emphasized the need to ensure respect for the distinct roles of the external and internal oversight bodies. To avoid duplication, the JIU tries to coordinate its work with other oversight bodies, and more effort should be made to develop cooperation among them.

Commenting on its own internal workings, the JIU writes that it has made its work more relevant and improved the quality of its output. Member States and the secretariats of participating organizations should help it select subjects to be included in the programme of work. The Unit has updated its internal standards and guidelines to ensure that inspections and investigations are conducted effectively.

As for Member States' role in improving oversight, the JIU note states that intergovernmental bodies should guide oversight bodies on the issues that particularly concern Member States. States should tell the secretariats of participating organizations that external oversight units enjoy their support, in order to make the secretariats take those units seriously. That would help overcome resistance to implementing some of oversight recommendations.

The independence of external oversight bodies from related secretariats should be assured, the note adds. Like the Office of Internal Oversight Services, other oversight mechanisms such as the JIU should enjoy administrative and budgetary independence from secretariat officials. But, JIU Inspectors believe that the Unit's independence has been compromised by the Secretary-General's interpretation of article 20 of the JIU Statute, which provides that the Unit's budget should be established by the Secretary-General after consultation with the ACC on the basis of proposals from the JIU.

The Secretary-General, however, has cut budget estimates for the JIU in the 1996-1997 budget without any explanation to the Unit or the Assembly, highlighting the Unit's lack of operational independence from the Secretariat, the note continues. The Unit's interpretation of the procedure spelled out in article 20 is that its budget proposals should be submitted to the Assembly, through the ACABQ, together with the comments of the Secretary-General and the ACC. Such a procedure would enhance the Unit's independence from the secretariats of the participating organizations.

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The Secretary-General's budget estimates have not provided for the repeatedly requested strengthening of the JIU, the note adds. Moreover, a reduced 1988-1999 budget estimate had been recommended for the Unit, without consultations, by the Consultative Committee on Administrative Questions (Financial and Budgetary Questions).

The report of the Committee for Programme and Coordination (CPC) on the work of its thirty-fifth session (document A/50/16), dated 30 June 1995, contains among other things, a chapter on a review of the Organization's efficiency. In accordance with General Assembly decision 47/454 of 23 December 1992, the Committee was requested to express its views on the roles and coverage of the subsidiary bodies responsible for coordination, administrative questions and budgetary matters, including the ACABQ, the United Nations Board of Auditors, JIU and CPC with a view to improving the effectiveness of their oversight and coordination mechanisms.

The CPC recognized the need to pay in-depth attention to its coordinating role, which should be based on substantive issues. To that end, it required a more detailed insight into the efforts of the ACC and other relevant departments of the United Nations in that respect. The Committee considered that there should be careful preparation of joint CPC/ACC meetings in which there should be more dialogue through in-depth discussions. The Committee also stressed the need for the Secretariat to provide it regularly with complete and relevant documentation.

By another note (document A/51/124-E/1996/44), dated 6 May 1996, the Secretary-General transmits to the Assembly and the Economic and Social Council the comments of the ACC on the JIU report on the United Nations system common premises and services in the field. In its comments, the JIU states that the important subject has been kept under continuous review within the United Nations system, as well as in inter-agency mechanisms. The Joint Consultative Group on Policies, an inter-agency body, had focused over the past few years on establishing common premises in countries where the cost was considered to be high, and where new premises would result in lower monthly charges and would facilitate the consolidation of administrative infrastructures. Although the ACC had followed a consistent policy to support, whenever possible, common premises to be shared among United Nations system agencies and programmes, it cautions against a heavy reliance on the cost/benefit analysis of the potential financial benefits from that type of arrangement.

A note by the Secretary-General (documents A/51/686 and Adds.1-2), dated 20 November 1996, transmits to the Assembly the JIU report entitled "Common services at United Nations Headquarters". The JIU report states that legislative guidance on common services were intended to achieve administrative and technical uniformity, ensure the most efficient use of personnel and resources and avoid the establishment and operation of

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competitive or overlapping services. The Inspectors have assessed how these and related objectives are being pursued by the United Nations and its affiliated programmes and funds (UNDP, United Nations Children's Fund (UNICEF), United Nations Population Fund (UNFPA) and United Nations Office for Project Services) which share common Headquarters and other similar denominators such as a common charter, legal identity, financial and personnel regulations, and membership.

The services covered in the report include: telecommunications; the Integrated Management Information System (IMIS); legal affairs; conference services, translation; interpretation and printing; distribution; public information and library; medical service; procurement; travel; buildings management and related services; security and safety; pouch and mail services; and insurance unit. All the services except for public information and legal affairs are concentrated in the Department of Administration and Management and are designed, budgeted, staffed and managed to meet the servicing requirements of United Nations policy organs and Secretariat departments.

The report states that the special responsibilities and status of common services managed by the United Nations should be more clearly recognized and established by the Secretary-General. If optimally organized and managed, common service arrangements could constitute the administrative and technical centre-piece of a cohesive and cost-effective United Nations common system. As currently organized and managed, those services are not effectively serving that fundamental objective.

The Inspectors find that although a number of services are provided by the United Nations on a reimbursable basis to the programmes and funds, only a few pass the litmus test of a genuine common service governed by principles that identify them as such. At present, barely 3 per cent of the combined administrative and programme support resources at the common Headquarters of the organizations concerned have been brought under common service arrangements. The unique role of Headquarters common services as instruments for achieving a cohesive and cost-effective United Nations system has still to be properly recognized and established within the Secretariat.

Based on their analysis of the common services, the Inspectors make recommendations in the areas of policy guidance, implementation and system- wide control. First, the Assembly provide policy guidance on the matter by endorsing the new framework for common services proposed by the Inspectors, which details the rationale and the main objectives, provides general guidelines, and proposes the extension of the coverage of common services organized into two major clusters. Also, the Assembly should include a regular item on common services to be reported on by the Secretary-General every two years in the context of the budget. The executive boards of the funds and programmes should require their respective secretariats to report on progress made on strengthening common services.

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Second, the Secretary-General and the executive heads of the programmes and funds should agree on a plan of action for the progressive implementation of common services at Headquarters. That plan should include the list of services to be shared, and further standardization of operational policies, administrative rules and procedures in each area of common services.

Third, the special role of the services should be enhanced and properly established within the Secretariat to ensure that their budgetary and staff resources are fully commensurate at all times with their common system responsibilities and tasks. Further, they should have the authority and autonomy to manage their budgetary and staff resources efficiently under the primary responsibility of duly empowered user-management committees representing all user entities.

Statements on Gratis Personnel

PAUL MENKVELD (Netherlands) speaking for the European Union -- and Bulgaria, Cyprus, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Norway -- said acceptance of gratis personnel should be guided by proper guidelines and procedures, which was not currently the case. Discussions on gratis personnel should focus on the proper policies and guidelines for the non-traditional gratis personnel, since policies already existed for such traditional type of gratis personnel as United Nations associate and technical cooperation experts and interns.

He said that, while the existence of 442 of such personnel seemed substantial in comparison with the total number of regular budget posts, they were hired under special circumstances. Of the 442 personnel, 112 of them were working for the United Nations Special Commission set up under Security Council resolution 687 (1991) in connection with the disposal of Iraq's weapons of mass destruction. They were provided by 16 Member States, with the support costs charged to the Commission's resources.

He said that another 87 personnel were working for the international criminal tribunals for Rwanda and the former Yugoslavia. Without the help of the lawyers and investigators who were seconded, the results achieved by the office of the prosecutor would not have been possible. Furthermore, 141 gratis personnel, mainly military officers, were provided to the Department of Peace-keeping Operations. Due to the different funding mechanisms for peace- keeping missions, a consolidated staffing table, required to implement all the mandates of the Department of Peace-keeping Operations and related sections of the Department of Administration and Management, did not exist.

The Secretary-General, he added, should submit a proposal on the total requirements for human resources from all sources of funding for the backstopping of peace-keeping operations. The information should include posts financed from the regular budget, trust funds, officers loaned by Member

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States and other voluntary contributions in the period 1 July 1996 to 30 June 1997.

Turning to the 64 gratis personnel in the Department for Humanitarian Affairs, he said some of them were experts in contractual relationships with the United Nations, based on special service agreements. Related programme support costs were levied on donor governments through trust funds. The break down of the gratis personnel showed that, in almost all cases, special circumstances and requests by the Assembly had warranted their use. The Union appreciated the intention of the Secretary-General to establish a uniform policy, consistently clarifying the status, accountability and responsibility of all types of gratis personnel. The policy should make a distinction between mandated programmes and supplementary ones. Further, it should distinguish between mandated programmes for which there were budgeted resources and staff, versus programmes that lacked such resources.

He said the Union did not agree with the ACABQ recommendation to limit the extent to which a particular unit could be staffed by gratis personnel. Units, such as the United Nations Special Commission and the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), depended almost fully, or to a large extent, on personnel funded from extrabudgetary resources. They should be able to continue to do so. After the establishment of distinct categories of gratis personnel -- those performing supplementary tasks and those carrying out mandated tasks -- the charging of programme costs in a consistent and non-controversial manner should be possible. The support costs charged -- now at 13 per cent -- should be reviewed.

DAUDI N. MWAKAWAGO (United Republic of Tanzania), speaking on behalf of the "Group of 77" developing countries and China, said priority should be directed at the present system of gratis personnel which, if not corrected quickly, might begin a process of dismantling the United Nations' international character and culture. The fact that such personnel incurred expenditure from the regular budget without the Assembly's approval was a very serious development. The Group did not object to the use of Type I personnel. The large number of Type II personnel, however, was of great concern.

The issue of resources was critical, he said. It was unfortunate that mandates were approved without adequate resources being provided. "Of more concern is the attitude of some countries which are exerting the strongest pressure to reduce resources and the programmes of the United Nations and, at the same time, support recourse to gratis personnel and find little wrong with this system", he said. "Developing countries have virtually been shut out from participating in the exercise of offering gratis personnel, because the system is set against them."

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He went on to say that the existing system implied that only those with adequate resources to fund gratis personnel in New York could offer such staff, he continued. The situation was ironic and gave the impression that developing countries that were owed millions of dollars by the United Nations for their participation in peace-keeping operations were incapable of producing individuals to perform such services as investigation and military planning. As an example -- of the 63 gratis personnel for the international tribunals, only one P-3 came from one of the 132 members of the Group of 77 and China. Of the total of 34 countries providing gratis personnel to the Department of Peace-keeping Operations, only 13 were from the Group .

"We must level the playing field", he said. The system must be changed quickly, and change should begin by ensuring that the Assembly approved the use of all gratis personnel. There were some countries that would object to a system of funding positions now occupied by gratis personnel, but their arguments would not be convincing. "Is it too much to demand that the cost and the manner of procuring the services of about 443 gratis personnel be more transparent and fair?" he asked.

Expressing concern about the Secretariat's handling of the issue of accountability of such personnel, he said it must also insist on the payment of their support costs. In addition, it was disturbing to see instances of some gratis personnel representing the Secretary-General and consulting with Member States, as if they were ordinary staff members. "If they were not accountable to the Secretary-General, on what basis are some of these individuals being asked to represent the Chief Executive in relations with Member States?" he asked.

More disturbing, he said, were instances of preference being given to such personnel for employment in the Organization, thereby subverting the Organization's proper recruitment procedures. That was an injustice to staff who had distinguished service in the Organization and who were being separated from it. Related to such concerns was the extensive, almost indiscriminate, outsourcing of United Nations operations advocated by certain quarters, which would lead to unacceptable practices, such as those of the present system of gratis personnel. The system was also undemocratic.

A fair, equitable and transparent system must be established to ensure that all countries had the opportunity to consider providing much of the expertise now provided by gratis personnel, he said. The concern about the threat to the unique international character of the Organization deepened when the Assembly's decisions were not implemented in the manner agreed upon after long periods of negotiation among all Member States. "Long-standing, established procedures adopted by the Assembly, often by consensus, were ignored or distorted by certain high officials of the Secretariat in a fog of ambiguous explanations, simply because powerful countries have pressured these officials to act differently", he said.

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Stressing that the current system had no legitimacy and must be changed, he wondered if the present system of gratis personnel was regarded as yet another way to reform the way the United Nations conducts its affairs. In that connection, it was unacceptable to argue that such personnel had been requested by the Assembly.

AHMAD KAMAL (Pakistan) said the preponderance of gratis personnel in some departments showed that, in come cases, the responsibilities of some departments had been subcontracted to a few Member States. Such a situation, as in the Department of Peace-keeping Operations, where 125 of 143 military officers were on loan, was a cause of concern. The Secretary-General's report had stated that gratis personnel were, for the most part, staff of their individual governments. That meant they were neither subject to Article 100 of the United Nations Charter and the Staff Regulations, accountable to the Secretary-General, nor subject to geographical distribution.

While the Secretary-General had stated that the gratis personnel were in jobs for which expertise was not available within the United Nations, there was no satisfactory explanation on the nature of such specialized tasks, he continued. "We do not understand the specialization required to work in the Field and Logistics Division of the Department of Peace-keeping Operations", he said. There was no justification for using such personnel in senior levels of the Department of Administration and Management and of the Office of Internal Oversight Services. Those sensitive areas should be manned by United Nations professionals subject to Article 100.

He said he had noted from the Secretary-General's report that 33 per cent of the costs of gratis military officers was borne by the Organization. The estimated annual cost of administrative backstopping of the officers charged to the United Nations budget was some $1.58 million on a one-time basis, and $2.21 million on recurring basis. Such costs were causes of concern. Basically, the use of gratis personnel had arisen due to the United Nations financial crisis. The acceptance of personnel on loan could be considered, at best, an ad hoc and not a permanent solution. There would be no need for them if Member Stats paid their dues. "It is rather intriguing to my delegation that some Member States are forthcoming in voluntary contributions, but they are not respecting their legal obligations."

To solve the problem permanently, he said, the use of gratis personnel should not be accepted in the Secretariat, even on exceptional bases. The Secretariat's work should be performed by international civil servants who were subject to staff rules. In exceptional circumstances, where the required expertise was not available, gratis personnel might be accepted for assignments in the field only, and for limited periods. Member States should be informed quarterly on the status of such personnel. Trust funds should be set up to provide the Secretary-General the chance to recruit United Nations staff in accordance with regular procedures.

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KARL INDERFUTH (United States) said the Secretary-General had made a very important point -- without gratis personnel, the Secretariat could not have executed recent Assembly and Security Council mandates in a timely manner. The United States provided a significant number of gratis personnel, particularly for peace-keeping operations. The provision of such personnel reflected the importance it placed on ensuring that United Nations' missions were accomplished efficiently. "If we have the expertise, and it is needed, we are happy to provide it."

The representative said, "The issue of gratis personnel should not be a dispute between North and South, between the developed countries and the less developed countries." The contribution of gratis personnel should be continued in areas where their expertise was needed. The United States understood the importance of an independent international civil service and of wide geographical representation. The trust fund for the Rapidly Deployable Mission Headquarters might be one type of solution for situations requiring personnel with specific expertise.

The United States, he said, could not join consensus on some of the recommendations of the ACABQ on the matter. For example, the ACABQ had recommended full funding of positions occupied by the gratis personnel and requiring that all personnel go through the recruitment process. The ACABQ's proposal for budgeting and assessing posts occupied by loaned personnel could spell the end of gratis personnel. While the ACABQ had noted that the 450 gratis personnel cost the United Nations some $40 million, it had not estimated how much it would cost to fully finance the posts they filled. If those posts were fully funded, as the ACABQ recommends, such a development would add significantly more posts to the regular budget, exceeding those currently occupied on a gratis basis. "We are also afraid that the cost of budgeting and assessing the posts could not be accomplished within the current budget ceiling, an outcome which is unacceptable to my Government."

Continuing, he asked the Secretariat to estimate how much it would cost to fill the posts currently encumbered by gratis personnel and if additional posts would have to be created to support newly budgeted posts. As to the recommendation that gratis personnel be recruited through the regular appointment process, he said, "We fear that, had the regular appointment process been followed, these posts never would have been filled in time and missions could have been in jeopardy." As for the 13 per cent administrative fee the Organization sometimes charged Member States that provided the personnel, it was unrealistic to charge States additional fees for providing requested services at their own expense.

Therefore, he said, in working on a policy on the use of gratis personnel, the United States would support full budgeting of posts for disclosure and transparency purposes, while distinguishing between budgeting and assessment. It would seek support for gratis personnel to augment regular

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staffing on an "as needed" basis and to provide expertise not available in the international civil service. The policy should make gratis personnel bound by staff rules and regulations and distinguish between those who performed mandated work and those who did not. The recommendations of the Secretary- General and the ACABQ would hamstring the Organization when it needed to conduct emergency or fast-moving missions.

TAMMAM SULAIMAN (Syria) said it was imperative for the Assembly to discuss the issue of gratis personnel in the context of the more comprehensive issue of the Organization's financial situation, since the Secretary-General's report suggested decreased resources had contributed to the present situation. If all Member States paid their dues, there would be no need for gratis personnel. Noting that gratis personnel were not subject to Articles 100 and 101 of the United Nations Charter (regarding staff performance and obligations) nor the staff rules, he said they were, therefore, not accountable to the Secretary-General. They also incurred costs to the Organization. The use of gratis personnel must not become a permanent situation.

The phenomenon had gone beyond what was temporary, he said. Many of the individuals occupied high-level posts and influenced the Organization's international character. He agreed with the ACABQ that all such positions must be reflected in the budget and must be subjected to the Organization's staff rules. Such personnel should be used only in emergency situations, or in areas where specific expertise were needed that did not exist in the Secretariat. The trust fund for gratis personnel must be supported by Member States for use by the Secretary-General to ensure the principle of geographical representation in accepting gratis personnel. Gratis personnel should not be given sensitive tasks and must be in positions subordinate to staff members.

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) said the practice of gratis personnel, was a long-standing one in the United Nations. In recent years, there had been a departure from the rules that regulated the acceptance of such personnel, which had led to the failure to implement Articles 100 and 101 of the Charter and had ignored the issue of equitable geographical representation. The ACABQ's report should have given a clearer picture of the situation. The Secretary-General's report gave some explanation of the causes. However, the root causes were much deeper and had to do with the political interests of some Member States that wanted to infiltrate the Secretariat, influence its decisions and obtain information in sensitive areas that affected their national interests.

Instead of proposing persons for recruitment to established posts, some governments preferred to contribute gratis personnel, she said. That was clear proof of a premeditated double standard by those governments, especially when one bore in mind that their nationals occupied key posts and held

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politically sensitive positions in the Organization. Gratis personnel should not be entrusted with policy decisions, nor assigned to sensitive positions. Their functions must be clearly defined.

She supported the ACABQ's recommendations that all mandated activities should be fully budgeted, she said. The Secretariat would have to inform Member States what human and financial resources were required and what activities would be developed with the resources. It was unacceptable to use such gratis personnel to carry out activities that did not receive Member States support.

The Assembly should regulate strictly the use of gratis personnel, she continued. The Secretariat had been haphazard in its approach to the matter. The rules regarding support costs must continue to be implemented, since the 13 per cent charge was not excessive. Contributing Member States also benefited from having their nationals gain experience in the Organization. Such personnel were also trained by the Organization. The Assembly's decisions on the matter must focus on achieving transparency and accountability and lead to a strengthening of the Assembly's role in regulating and monitoring that practice.

PRAYANO ATIYANTO (Indonesia) said, if the Secretariat's resources proved inadequate, the Secretary-General should make relevant proposals to the Assembly. The Assembly should correct the imbalance between regular budget posts, those financed from the support account for peace-keeping operation and the number of gratis military officers. He welcomed the Secretariat's effort to propose guidelines for accepting gratis personnel. In implementing the ACABQ recommendation that the proposed guidelines be improved, the Fifth Committee should thoroughly discuss those guidelines and suggest improvements. Improved versions of the guidelines should be submitted to the next resumed session of the Committee for further deliberations. The Secretary-General should report regularly on gratis personnel and the ACABQ should continue reviewing the subject.

NAZARETH INCERA (Costa Rica) expressed concern that gratis personnel were neither accountable to the Secretary-General, subject to staff rules nor to relevant articles of the Charter. The 13 per cent support costs charged for the personnel were not applied uniformly. The negative implications of the use of the gratis personnel ran counter to the principle of equitable geographical representation and the United Nations Charter. The Assembly should be told of the full costs of all of its mandates. Gratis personnel must be used only on exceptional bases and solely with the Assembly's approval. The Assembly should consider and approve the guidelines on the acceptance of such personnel. Efforts should be made to guarantee the transparency of the Secretariat in the implementation of the Assembly mandates.

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SEYED MORTEZA MIRMOHAMMAD (Iran) expressed concern that the use of the gratis personnel might distort the United Nations international character at a time when the Organization was in danger of losing institutional memory through the downsizing of its staff. He was concerned that Member States that were calling for staff cuts were supporting the increased use of gratis personnel. Such personnel should be accepted only with the approval of the Assembly. The costs and manner of using the gratis personnel should be transparent. They should be accountable and impartial in performing their duties. He agreed with the recommendations of the ACABQ that the use of Type II personnel should be on exceptional bases and for limited duration.

HO TONG YEN (Singapore) said five main problems had been identified in the use of gratis personnel, including their unprecedented increase which affected the character of the international civil service; disproportionate representation of developed countries; the accountability of such personnel; and the lack of transparency in their recruitment. Their increase was a result of the unprecedented financial crisis faced by the Organization. Restricting their use, however, would not solve the United Nations resource problems.

Developing countries should participate more in providing gratis personnel, he continued. Such personnel could be allowed to hold senior positions as long as they were accountable to the United Nations and not their governments, since all United Nations employees must be accountable to the Secretary-General. He supported the 13 per cent surcharge and proposed ways of dealing with costs incurred by gratis personnel. There must be greater transparency in the appointment of gratis personnel. All Member States must be invited to provide gratis personnel for posts at all levels. "It is unacceptable for only the richest, biggest and most powerful Member States to be invited to provide gratis personnel to fill senior posts in the Secretariat." He cautioned against abruptly stopping the system.

AMR NOUR (Eygpt) said he had noted the great imbalance in gratis personnel. They undertook extremely sensitive functions in the Secretariat such as in internal oversight and providing advice on political issues which they should not do. The financial issues related to their use had not been dealt with according to the Organization's financial rules. The Assembly must provide guidelines that would deal with the deficiencies resulting from the increased use of gratis personnel in the Secretariat. Their functions must be carefully determined, they must be accountable and their financial consequences for the Organization must be taken into account in the budget.

The Secretary-General's guidelines for accepting gratis personnel were welcome but should take account of the ACABQ's comments, including issues such as neutrality of the international civil servants, respect for the Organization's financial regulations, and the setting of maximum limits on their employment. The objective must be to achieve transparency, equitable

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geographical representation and equal opportunity in participation by Member States in providing such personnel. In that connection, a trust fund should be established and rules could be agreed for its use.

CARLOS RIVA (Argentina) associated his delegation with the statement by the United Republic of Tanzania on behalf of the Group of 77 and China. He agreed that the Secretary-General sometimes had to use gratis personnel under special circumstances. The use of gratis personnel had expanded from their traditional roles to new areas which now included the Department of Administration and Management and the Office of Internal Oversight Services. Argentina had provided, free of charge, some persons who had expertise that was not available in the Secretariat, on the understanding that they would be used only for short periods and in exceptional circumstances. Member States should provide the resources needed to enable the Secretariat carry out its mandates. The personnel should be subject to staff rules and used only temporarily. The use of gratis personnel in the economic and social fields, the Oversight Office and other areas would affect the United Nations reputation of impartiality, which it must maintain.

The representative said he would support measures to improve the recruitment of the most appropriate staff in the numbers and period required. He supported the ACABQ recommendation that would have the Secretary-General report annually on the use of gratis personnel, including details on their nationalities, duration of work and their functions. The Secretary-General should not use those personnel for posts kept vacant solely for financial reasons or accept Type II personnel in quantities that were larger than United Nations needs. He supported the recommendation in paragraph 17 of the ACABQ report. [Note: In that paragraph, the ACABQ, taking into account that provisions are made in relevant budgets, states that it did not see a need to charge administrative support costs for Type II gratis personnel performing mandated duties in urgent situations or very specialized functions.]

Statements on Review of Efficiency

RAUL QUIJANO, an Inspector with the Joint Inspection Unit (JIU), introduced the Unit's report on the common services provided at Headquarters and described how it was drawn up.

DAVID WOODWARD, on behalf of the Chairman of the United Nations Board of Auditors, introduced the Board's report on improving oversight services within the United Nations. He said the Assembly should balance its additional requests for audit with a recognition of their resource implications. On the issue of fraud, their prevention and detection were the responsibility of management. The Board had a limited ability to help in that regard. But it planned its audits in such a way as to detect cases of fraud. Further, the separate roles of internal and external oversight bodies should be maintained and they should not duplicate their activities.

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Financial Situation of United Nations

Mr. NOUR (Egypt) said his delegation had received a note from the Secretariat on Egypt's contributions, which had been finalized and published last January. But the note had not revealed the date on which the contributions were paid to the bank account determined by the Secretariat. The note had also failed to indicate the amount paid and to explain those omissions. It had not stated what steps would be taken to prevent a recurrence of such mistakes. Egypt was proud of being one of the few States that paid up their dues on schedule, something other Member States should emulate without conditions. The Secretariat should encourage States to pay up their dues punctually and explain why it had excluded Egypt from the list of States that had paid up their dues, publish the correct date of the payment and say how it would avoid such an error in future. The error should be corrected in all United Nations documents to show that Egypt paid up its dues on 2 January.

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