FIFTH COMMITTEE CONSIDERS COSTS OF EXTENDING VERIFICATION MISSION IN GUATEMALA

26 March 1997

Press Release
GA/AB/3140

FIFTH COMMITTEE CONSIDERS COSTS OF EXTENDING VERIFICATION MISSION IN GUATEMALA

19970326 Financing of $21 Million Would Be Authorized With General Assembly Extension until 31 March 1998

The General Assembly would authorize the Secretary-General to commit up to $21 million for the United Nations Verification Mission in Guatemala (MINUGUA) for the period 1 April to 31 December 1997 should it extend the mission's mandate until 31 March 1998, according to an orally presented and amended decision adopted without a vote this afternoon by the Fifth Committee (Administrative and Budgetary). The amount would fall under the 1996-1997 budget section on peace-keeping and special missions.

By the terms of the Committee's decision advising the Assembly on the budgetary effects of its draft resolution on MINUGUA, any related adjustment to existing appropriations would, in accordance with the procedures of Assembly resolution 41/213, be submitted in the context of the final performance report of the 1996-1997 budget to be presented to the Assembly's fifty-second session.

Assembly resolution 41/213 of 19 December 1986 -- on the review of the United Nations administrative and financial efficiency -- determined, among other things, the principles that would guide planning, programming and the budgetary process. It approved the process by which the regular budget would be approved, emphasizing the roles of the Committee for Programme and Coordination (CPC), the Advisory Committee on Administrative and Budgetary Questions (ACABQ) and the Assembly.

Explaining her position after the decision's adoption, the United States' representative said the $21 million should be fully absorbed within the current 1996-1997 regular budget. Cuba's representative said she had agreed to the decision on the understanding that the Secretariat would present proposals on to how to finance MINUGUA's activities without affecting the implementation of mandates.

Fifth Committee - 1a - Press Release GA/Ab/3140 54th Meeting (PM) 26 March 1997

Concerning MINUGUA's financing, ACABQ Chairman C.S.M. Mselle said the Secretariat had been advised by the ACABQ not to rely on savings from better than anticipated foreign exchange rates to finance MINUGUA.

Statements were also made by the representatives of the Netherlands, on behalf of the European Union, and Mexico. United Nations Controller, Jean- Pierre Halbwachs, also spoke.

The representative of Costa Rica spoke on use of the United Nations garage.

The Fifth Committee is scheduled to meet again at 7 p.m. Thursday, 27 March, to take action on outstanding draft proposals and conclude the first part of its resumed session.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to consider aspects of the 1996-1997 regular budget related to the situation in Central America. Under the related agenda items, it would take up the Secretary-General's statement of the budget implications of a draft resolution that would have the Assembly extend, until 31 March 1998, the mandate of the United Nations Mission for the Verification of Human Rights and of Compliance with the Commitments of the Comprehensive Agreement on Human Rights in Guatemala (MINUGUA) [with renewal of the mandate, the mission will be known as the United Nations Verification Mission in Guatemala (MINUGUA].

The statement of programme budget implications was submitted to the Committee in accordance with the Assembly's rules of procedure, which state that the Assembly shall not vote on any resolution that could have budget implications until the Committee has had a chance to state the text's effects on United Nations budget estimates.

By the terms of draft resolution A/51/L.69, a renewed and restructured MINUGUA would verify the agreements signed between the Guatemalan Government and the Unidad Revolucionaria Nacional Guatemalteca (URNG). With a mandate that could last for another four years, from 1997 to 2000, the mission's functions also include good offices, advisory services and public information.

In his statement on the budgetary implications of the draft resolution on MINUGUA (document A/C.5/51/47), the Secretary-General states he would require authority to commit a net sum of about $21 million for the mission for the period 1 April to 31 December, should the Assembly extend the mandate. The amount would fall under the regular budget section dealing with peace- keeping and special missions. Any need to adjust the present 1996-1997 regular budget appropriations, he adds, would be reflected in the context of the final performance report on the current budget to be presented to the Assembly's fifty-second session.

The Secretary-General explains that he needs the commitment authority because the amount was not included in the 1996-1997 budget and could neither be absorbed nor financed from the contingency fund owing to the extraordinary nature of the mission's work.

While the mission would require a total of some $23.3 million for the period 1 April to 31 December, the Secretary-General says that $2.3 million of that sum could be absorbed from what was left unspent from the $32.9 million granted to the mission for the period 1 January 1996 to 31 March 1997. That leaves a net requirement of $21 million.

Fifth Committee - 3 - Press Release GA/AB/3140 54th Meeting (PM) 26 March 1997

In addition to the costs for 1997, the Secretary-General states, the mission would require another $7.9 million for the period 1 January to 31 March 1998, an amount that would be reflected in the upcoming 1998-1999 proposed budget. The total requirements are meant for a new MINUGUA, consisting of 328 staff (129 international and 199 local), 106 United Nations Volunteers, 17 military advisers, and, initially, 58 civilian police advisers. The mission would be headed by a Chief of Mission, who would also act as the Secretary-General's Special Representative.

The Secretary-General provides a breakdown of what the amounts would pay for. The $23.3 million total estimate for the rest of 1997 would provide, among other things, for: salaries and common staff costs ($10.9 million); personal service contracts ($4.3 million); mission subsistence allowance ($3 million); rent of aircraft ($1.1 million); and civilian police observers ($1 million).

Statements on the Budget Implications of MINUGUA Draft

C.S.M. MSELLE, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced the views of the ACABQ. The mission had a complex structure, he said, which should be streamlined. The possibility of combining units should be explored to reduce supervisory functions and support staff and the utmost care should be taken to avoid duplication of activities within the overall structure. Noting that the donor community had pledged some $1.9 billion for activities from 1997 to 2000, the ACABQ had called for efforts to obtain expertise from the United Nations system, as well as seeking funding from the international donor community. A balance of $5 million in the Trust Fund for the Guatemalan Peace Process had been financing the use of consultants. Consultancies and expert requirements should be financed through the Trust Fund, rather than the regular budget.

Concerning MINUGUA's additional requirements, he said the ACABQ had been informed that the Secretariat intended to fund them from the savings expected from better-than-anticipated foreign exchange rates. Since current favourable currency rates might not last indefinitely, it would not be prudent to rely on them to finance mandated activities. As the mission could last through the year 2000, the ACABQ expected that the proposed budget for 1998-1999 would include resources for the mission for that biennium.

Bearing that in mind, he said the ACABQ recommended that the Fifth Committee inform the General Assembly that the Secretary-General would be authorized to commit up to $21 million in the 1996-1997 regular budget, should the Assembly adopt draft resolution A/51/L.69. Related requirements for adjustment of the existing appropriations would be submitted in the context of the final performance report for the biennium 1996-1997, to be presented to the Assembly's fifty-second session.

Fifth Committee - 4 - Press Release GA/AB/3140 54th Meeting (PM) 26 March 1997

NORMA GOICOCHEA (Cuba), noting that the mission's mandate related to the implementation of the peace agreements, asked why the estimates had been limited to the period ending March 1998? How did the Secretariat plan to deal with the activity which would be perennial in nature to the year 2000? Why were the financial requirements limited to approximately $21 million? If the draft resolution were adopted by the Assembly, would there be additional requirements?

JEAN-PIERRE HALBWACHS, United Nations Controller, said the Secretariat's proposals had been guided by operative paragraph 5 of the draft resolution A/51/L.69 on MINUGUA, although the mission had a perennial political mandate. Mandates of that nature should be provided additional resources based on resolution 41/213. At the moment the Secretariat was not asking for a decision on money to fund the resolution. It was only asking for authority to enter into a commitment. It would come back to the Assembly on the matter at a later date.

Ms. GOICOCHEA (Cuba) said she could not accept the explanation just given. She had taken the duration of the verification of the peace agreement into account. That was her concern. Although she had taken note that commitment authority was being requested, if the Committee were to abide by the budgeting procedures, it should not have to wait for the performance report to determine how the Mission would be financed.

NGONI FRANCIS SENGWE (Zimbabwe), Committee Chairman, then read an oral draft decision for approval by the Committee.

By the oral draft decision on the programme budget implications of draft resolution A/51/L.69, the Fifth Committee would recommend that, should the Assembly adopt the draft resolution, the Secretary-General would be authorized to enter into commitments amounting to $21 million under section 3 of the 1996-1997 programme budget -- peace-keeping operations and special missions. An additional appropriation of $1.8 million would also be required under section 32 of the budget, staff assessment, to be offset by the same amount under Income Section I, income from staff assessment.

The draft text also states that "any related requirements for adjustment of the existing appropriation would be submitted in the context of the final performance report of the programme budget for the 1996-1997 biennium to be presented to the General Assembly at its fifty-second session".

LINDA SHENWICK (United States) proposed that the words "if necessary" be added into the sentence relating to adjustments to existing appropriations and the final performance report of the 1996-1997 regular budget, so as not to prejudge the issue. The sentence should, therefore read: "Related requirements, if necessary ...".

Fifth Committee - 5 - Press Release GA/AB/3140 54th Meeting (PM) 26 March 1997

Ms. GOICOCHEA ESTENOZ (Cuba) said that she had been preparing to speak in explanation of position, since she objected to the way the Secretariat had submitted the matter. The amount requested by the Secretary-General should be provided as an additional appropriation in the regular budget, rather than a commitment authority. The proposal, as presented by the Chairman, covered the possibility of the need, or otherwise, for additional appropriations. In order to take a decision and to avoid delaying the Committee's work, the best thing to do would be to follow the decision as proposed by the Chairman, even though it would pose a challenge to Assembly resolution 41/213.

[Note: Assembly resolution 41/213 of 19 December 1986 -- on the review of the United Nations administrative and financial efficiency -- determined, among other things, the principles that would guide planning, programming and the budgetary process. It approved the process by which the regular budget would be considered and approved, emphasizing the roles of the Committee for Programme and Coordination (CPC), ACABQ and the Assembly.]

PAUL MENKVELD (Netherlands), speaking for the European Union, said that the Secretary-General's statement of budget implications was done in accordance with rule 153 of the Assembly's rules of procedure. The activities of MINUGUA were not to be financed from the contingency fund, but absorbed as much as possible in the regular budget without affecting programme delivery. The Union endorsed the Secretary-General's proposals regarding the approval of a commitment authority recommended by the ACABQ and the reflection of any related adjustment of the existing appropriation in the context of the final performance report of the 1996-1997 regular budget.

Ms. SHENWICK (United States) withdrew her proposal, since the European Union's had covered her concerns.

Ms. GOICOCHEA ESTENOZ (Cuba) said the European Union's text should be produced in writing before action was taken by the Committee. The meeting should be suspended for 10 minutes to allow consultations.

The Chairman suspended the meeting.

On resuming the meeting, the Chairman, Mr. SENGWE (Zimbabwe) proposed a new draft decision with the following provisions: should the General Assembly adopt draft resolution A/51/L.69, the Secretary-General would be authorized to enter into commitments amounting to $21 million under section 3 of the 1996- 1997 programme budget -- peace-keeping and special missions. An additional appropriation of $1.8 million would also be required under section 32 of the budget, staff assessment, to be offset by the same amount under income section. In accordance with the procedures of resolution 41/213, any related adjustment would be submitted in the context of the final performance report of the 1996-1997 regular budget.

Fifth Committee - 6 - Press Release GA/AB/3140 54th Meeting (PM) 26 March 1997

The Committee adopted the draft decision, as amended.

Ms. SHENWICK (United States) said she expected the $21 million to be fully absorbed within the current 1996-1997 regular budget.

MARTA PENA (Mexico) said she had joined consensus on the understanding that the rules outlined in resolution 41/213 would be followed. Operative paragraph 6 of the draft resolution on MINUGUA would request the Secretary- General to continue to identify resources for the mission within the limits of the approved budget for the current biennium. It did not indicate that the amount required would be absorbed within the current budget and only expressed a hope that the Secretary-General could do so to some extent. Future needs should be provided for in the 1998-1999 budget, under Section 3, related to peace-keeping and special missions.

Ms. GOICOCHEA ESTENOZ (Cuba) said she agreed to the adoption of the decision on the understanding that the Secretariat would present necessary proposals on to how to finance MINUGUA's activities without affecting the implementation of mandates. The content of operative paragraph 6 of the draft resolution on MINUGUA was very important. The limitations on the current budget should always be considered by the Committee's member when budgeting matters were considered. In future, the Secretariat should submit budget requests in accordance with normal procedures.

Other Matters

NAZARETH INCERA (Costa Rica), referring to the difficulties diplomats faced in parking outside the United Nations, said that within the Secretariat, more and more sections of the garage were being closed because the roof needed to be repaired. Did the budget not provide for that? she asked. She also asked why the Secretariat had not responded to previous concerns expressed by other delegations on that matter. Stressing that the Organization existed primarily for diplomats, she said preference should be given to them above Secretariat staff members until more garage space was available.

On another matter, she asked why the microphones in the room -- room 3 - - had been turned off when the Secretary-General had addressed the Fifth Committee on 17 March. Since the meeting was supposed to be open, the microphones should have been turned on. Did delegations ask for the meeting to be closed? she asked.

Mr. SENGWE (Zimbabwe), Committee Chairman, said he would ask the Secretariat to respond to the questions tomorrow.

Ms. INCERA (Costa Rica) insisted that the replies be given tomorrow, since members of the Committee had raised the issue of the garage on many occasions and had not been given a response.

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