FIFTH COMMITTEE RECOMMENDS $155 MILLION FOR ANGOLA MISSION, REDUCES TO $9 MILLION AMOUNT FOR LIBERIA MISSION
Press Release
GA/AB/3180
FIFTH COMMITTEE RECOMMENDS $155 MILLION FOR ANGOLA MISSION, REDUCES TO $9 MILLION AMOUNT FOR LIBERIA MISSION
19971030 Concludes General Discussion on 1998-1999 Budget; Consideration of Budget Sections To Begin Tomorrow.The Fifth Committee (Administrative and Budgetary) this morning recommended the appropriation of $155 million for the United Nations Observer Mission in Angola (MONUA) and a reduction to $9 million for the United Nations Observer Mission in Liberia (UNOMIL), covering different periods.
Acting without a vote, the Committee approved a draft resolution by which the General Assembly would appropriate $155 million gross ($150 million net) for the operation of MONUA for the period from 1 July 1997 to 30 June 1998. That amount includes almost $50 million gross ($48.2 million net) authorized by the ACABQ for the period from 1 July to 31 October 1997.
The Observer Mission, which succeeds the United Nations Angola Verification Mission (UNAVEM III), was established this year by the Security Council.
By a draft decision on UNOMIL financing, also approved without a vote, the Assembly would decide to reduce the appropriation for that Mission to $9 million gross ($8.4 million net) for the period of 1 July 1997 to 30 June 1998. The Assembly, in June, had authorized the appropriation of approximately $20.5 million.
UNOMIL was established by the Security Council in September 1993 to support the peace agreements for Liberia. With the holding of presidential and legislative elections, and the installation of a new Government in August, the Secretary-General determined that the Liberian peace process had successfully concluded.
In his report on the financing of UNOMIL, the Secretary-General said that of the revised amount, almost $4 million is for withdrawal and $2 million for administrative closure.
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Also this morning, the Committee concluded its general discussion of the proposed budget for the 1998-1999 biennium.
The United States could not support additions to the Secretary-General's proposed $2.583 billion budget for the 1998-1999 biennium that were not offset by complementary reductions, identified savings, or funds made available through beneficial recosting, that country's representative said. The proposed budget seemed to reflect the priorities set out in the medium-term plan for 1998-2001. The Secretary-General's proposal to enhance development activities with administrative savings was particularly welcome.
Reductions in staffing must not cripple mandated programmes, Egypt's representative said. Consultants and outside experts must be used only when equivalent services could not be found within the Organization. Mandated activities should be implemented without use of gratis personnel.
The representative of Belgium, speaking for the European Union and associated States, said while the Secretary-General's budget proposal had put an emphasis on rejuvenating the United Nations, the Secretary-General's proposal would reduce posts below the P-4 level, which was precisely where young people would be recruited.
System reform and cost control must be oriented towards strengthening the United Nations, India's representative said. Reducing costs should not be an end in itself.
The draft on UNOMIL was introduced by the representative of Zimbabwe and the text on MONUA was introduced by the representative of Portugal. Statements were made in explanation of position by representatives of the United States, Egypt and Germany.
United Nations Controller Jean-Pierre Halbwachs also spoke.
Statements on the budget proposed for the 1998-1999 biennium were made by the representatives of Thailand, Bahamas, Indonesia, Republic of Korea, Libya, Russian Federation, China, Romania, Ghana, Sudan and Syria.
The Fifth Committee is scheduled to meet again at 10 a.m. tomorrow, 31 October, to conclude its discussion on the reports of the Joint Inspection Unit (JIU) and continue its consideration of the Organization's pattern of conferences. It also expects to begin its section-by-section consideration of the proposed programme budget for the 1998-1999 biennium, beginning with Chapter II, Part I: overall policy-making, direction and coordination.
Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this morning to continue its discussion of the budget proposed for the 1998-1999 biennium and the reports of the Joint Inspection Unit (JIU). It is also expected to take action on two draft resolutions -- on financing the United Nations Observer Mission in Liberia (UNOMIL) and the United Nations Angola Verification Mission (UNAVEM III).
(For background on the proposed 1998-1999 budget, see Press Release GA/AB/3173 of 22 October. For background on the JIU, see Press Release GA/AB/3172 of 22 October.)
Draft Text on Financing of UNOMIL
The draft decision on UNOMIL (document A/C.5/52/L.5) would have the Assembly decide to reduce the appropriation for the Mission to about $9 million gross ($8.4 million net) for the period of 1 July 1997 to 30 June 1998. The Assembly had authorized, in June, some $20.5 million gross ($18.9 million net) for the same period.
Taking into account the $5.1 million gross ($4.7 million net) already assessed for July through September 1997, the Assembly would also decide to defer the apportionment of the additional amount of some $3.8 million gross ($3.7 million net), under the draft's terms.
Also by the text, the Assembly would endorse the observations and recommendations contained in the report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on financing the Mission.
In that report, the Advisory Committee states that as an unencumbered balance of some $2.5 million gross ($2.1 million net) remains in the Mission's budget, no additional assessment is necessary. (For further information, see Press Release GA/AB/3176 of 23 October.)
The Observer Mission was established by the Security Council for an initial seven months to support peace agreements on Liberia. Its mandate was subsequently extended, most recently through Council resolution 1116 (1997) of 27 June, by which it was extended from 1 July to 30 September, with the expectation that it would end on that date. With the holding of Liberia's presidential and legislative elections and the installation of a new government last August, the Secretary-General informed the Council that the Liberian peace process had successfully concluded.
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Draft Resolution on Financing of UNAVEM
By a draft resolution on financing of UNAVEM III, the Assembly would appropriate $155 million gross ($150 million net) for the operation of the Verification Mission's successor, the United Nations Observer Mission in Angola (MONUA), for the period from 1 July 1997 to 30 June 1998. That amount includes almost $50 million gross ($48.2 million net) authorized by the Advisory Committee for the period from 1 July to 31 October 1997. The Assembly would also decide to continue using the Verification Mission's special account for MONUA.
The draft would also have the Assembly decide to maintain the level of the posts for the Deputy Special Representative of the Secretary-General and the Chief Administrative Officer at their originally authorized levels, and approve the reclassification of the post for one Chief of the Human Rights Division at the level of Director (D-1).
Annexed to the draft, which contains 18 operative paragraphs, is a chart indicating the monthly assessments for the Mission's operation for the period from 1 November 1997 to 30 June 1998.
The MONUA was established by Security Council resolution 1118 (1997) of 30 June for an initial four-month period until 31 October, during which it would take over and deploy UNAVEM's assets and military units in Angola until they are withdrawn.
Statements on Proposed 1998-1999 Budget
ASDA JAYANAMA (Thailand), welcoming efforts to reform the United Nations system and initiatives to effect savings and improve efficiency, expressed support for the Secretary-General's intention to reduce the proportion of resources of the regular budget devoted to administration and other non- programme costs by at least one third. However, in the drive to achieve cost- effectiveness and efficiency gains, care should be exercised to make sure that there were sufficient resources to cover mandated activities of the Organization.
Thailand reaffirmed its support for the Organization's current programme budgeting practice, he said. Assembly resolution 41/213 had outlined the principles to be followed in the planning, programming and budgeting process. It reaffirmed the role of the Committee for Programme and Coordination (CPC), ACABQ, and the Fifth Committee in that process.
The proposed 1998-1999 budget represented a decrease in nominal terms from the previous biennium of 0.8 per cent, he said. Reducing the level of the budget should not be an end in itself but the result of the efforts to
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achieve a truly efficient and effective United Nations. Quoting the report of the ACABQ, he said "a true saving is achieved by reducing costs while continuing to produce the same or better programme results".
MAURICE MOORE (Bahamas), expressing support for the statement made at a previous meeting of the Committee by the representative of the United Republic of Tanzania on behalf of the "Group of 77" developing countries and China, said the streamlining of the Organization was in the interest of all Member States. However, it should not affect adversely the delivery of services to them. A close examination of the ACABQ report gave cause for concern. The report indicated that the ACABQ execution of mandates was suffering, and the Secretariat would have to provide concrete evidence to allay Member States' concerns.
The Bahamas would be making investigations to make sure that there would be adequate resources for programmes for the advancement of women and the development of smaller States, he said. It was concerned about the proposed eradication of certain Secretariat posts held by women.
AHMED DARWISH (Egypt), expressing support for the statement made on behalf of the Group of 77 and China, said the proposed budget registered a negative growth and coincided with the introduction of reforms, which could significantly affect the Organization's work. The current financial crisis of the United Nations had reached alarming proportions which prevented the fulfilment of activities agreed to by Member States.
He called on Member States to pay their arrears, which would allow the Organization to repay those countries that had contributed troops and equipment. It was unacceptable that some countries called for changes while withholding their payments. Reducing the number of posts must not be an end itself; the practice must contribute to increased performance and financial savings. The Secretary-General had said that new technology and redistribution of responsibilities had been the basis of staff reductions. Any reduction in staffing must be justified and not lead to the detriment of mandated programmes.
Consultants or outside experts must be used only when such services could not be drawn from within the Organization, he said. The Department of Peacekeeping Operations relied heavily on gratis personnel loaned to the Organization by some Member States. Mandated activities should be implemented without use of gratis personnel.
He stressed the importance of activities that reinforced international cooperation to combat terrorism in all its forms. The proposed budget's lack of resources for preventive diplomacy might result in the Organization's inability to respond rapidly to potential conflict. He expressed full support
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for the work of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and said there was no justification for the proposed reduction of posts from that programme. Net budgeting for bodies which were jointly financed might lead to their financial instability. The number of posts proposed for the Special Committee on decolonization were below the level in the medium-term plan.
SAMANTHA ARI WARDHANA (Indonesia), associated himself with the statement made on behalf of the Group of 77 and China. The proposed budget of $2.583 million represented a reduction of more than 4 per cent from the last biennium. Although the Secretary-General had made assurances that mandated programmes would be implemented fully, the proposed reduced budget might very well threaten the delivery of mandated outputs.
He reaffirmed the importance of United Nations efforts to promote economic and social progress, particularly for developing countries. The proposed reduction of posts for the 1998-1999 biennium should not affect mandated programmes. The Organization's staffing should reflect equitable geographical representation, and the national competitive examination programme should be continued to improve that geographical balance. Further, he supported a 24 per cent increase in resources for training for the Organization's staff.
There was a discrepancy between the role intended for the United Nations and its limited resources, he said. The Organization's continued slide towards insolvency must be addressed. Its reform should enhance efficiency, not excuse Member States from their financial obligations.
MYUNG CHUL HAHM (Republic of Korea) said while his delegation generally supported a reduced budget, it was concerned about its negative impact on the delivery of a number of services and outputs, as indicated in the ACABQ report. Budget cuts and the abolition of posts should not always be an end in themselves. Rather, such cutbacks should enhance the United Nations ability to conduct programmes mandated by Member States. What was cut out should be "blubber and not muscle".
Regarding the reduction of posts, he said it was important to recall Assembly resolution 51/226 which requested the Secretary-General not decrease the proportion of entrance-level posts at the P-1 to P-3 levels for budgetary purposes. That resolution also called on the Secretary-General to expand his efforts to search for candidates from Member States which were represented below mid-point. His delegation shared the concern over the proposed abolition of one Professional (P-4) post and one general service post in the Examinations and Tests Section. The national competitive examination was important for addressing the imbalance of representation among Member States.
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IBRAHIM ELMONTASSER (Libya) welcoming the attention given in the programme budget for developing countries, called for assurances from the Secretariat that the proposed budget would not have any negative consequences on programmes for those countries as had been the case in the previous biennium. He noted that there had been a resource reduction of $124 million from the previous budget. The proposed budget should include the maintenance of all posts necessary to carry out all mandated programmes. Libya was concerned by the proposed increase of funds for the use of consultant services at a time when there were staff cuts, most of which came from developing countries.
Were Member States going to prevent the Secretary-General from collecting funds necessary to carry out programmes such as peacekeeping? he asked. There was need for a forceful policy of "paying up" in full and without conditions, especially for countries who were capable of paying. Despite sanctions imposed on it by a major Power, Libya had continued to pay its contributions regularly, because it was proud to be a Member of the United Nations. In the face of recent attempts to increase sanctions, Libya continued to attach great importance to the United Nations and would honour its commitments.
EVGUENI N. DEINEKO (Russian Federation) said the proposed budget was being considered in parallel to the Secretary-General's reform process. Decisions taken by the Fifth Committee on the budget would affect implementation of reform initiatives. To enhance consideration, documents should be prepared and submitted in advance of discussion.
The Russian Federation generally supported the proposed budget, he said. Efforts to increase cost-effectiveness and productivity were welcome, as was the majority of reform proposals that focused on streamlining the Secretariat and United Nations common system.
However, the proposed budget did not contain mechanisms for protecting against changes in inflation and exchange rates, he said. The problem had been mentioned in earlier years, and he requested information from the Secretariat on measures that could mitigate the impact of possible sharp currency fluctuations. Another point of concern was the increase in high- level posts, which would upset the balance of the Organization's staffing.
The proposed abolition of posts had been accompanied by increased resources for consultants and other outside experts, he said. The United Nations rules and regulations must be adhered to in preparing new proposals. He requested more detailed information on result-oriented budgeting, areas where the United Nations budget savings might be used, and the proposed "development account".
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ZHANG WANHAI (China) said that since 1987, the United Nations had been plagued by financial difficulties. The ACABQ had stated in its recent report that the Organization's budgetary process had become disorganized. He concurred with the Secretary-General that implementing the proposed budget and reform plan would be impossible without financial solvency. He called on all Member States, especially the largest contributor, to immediately pay arrears without conditions.
He was concerned that changes were being made in the procedures for considering the programme budget, he said. The budget should be prepared by costing the mandated programmes, with reference to the budget outline approved by the Assembly. The three stages of budget preparation were planning, programming and budgeting; that process should not be changed at will. The Secretary-General's reform proposal would inevitably affect the procedure for budget preparation.
The proposed 1998-1999 budget was less than that of the present biennium, he said. Member States were concerned about whether mandated programmes could be implemented with reduced expenditures and staff. He hoped the Secretary-General would honour his pledge that the overall reductions would in no way affect implementation of United Nations programmes and activities.
Inconsistencies regarding the Secretary-General's staff requirements should be clarified, he said. In his statement to the Fifth Committee the Secretary-General had said the number of posts would be reduced to 8,839. However, his report on the financial and programmatic implications of his reform package indicated that the number of posts proposed by the Secretary- General was 8,695.
P. J. KURIEN (India) said that if the mandated programmes and activities of the United Nations could be implemented more efficiently and with lower expenditure, it would be of direct benefit to all Member States. However, it was imperative to bear in mind that the reform of the system and control of budgetary expenditure must have as their principal objective the goal of strengthening the United Nations. Cost reduction could not be an end in itself.
While there was growing recognition among Member States of the need for reform of the United Nations, there was unwillingness on the part of some States to meet their financial commitment that would allow the United Nations to pursue that agenda. The willingness of Member States to invest in that process was of paramount importance.
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Concerning vacancy rates, issues raised by the ACABQ in its report needed to be addressed, he said. Without a convincing clarification, doubts would continue to remain as to the reasons underlying such action. India concurred with the Advisory Committee's observation that the maintenance of high vacancy rates seriously hampered the delivery of mandated programmes. PETER MADDENS (Belgium), speaking on behalf of the European Union, and Bulgaria, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Czech Republic, Cyprus and Liechtenstein, said management of the Organization's budget required a relationship of trust between the Member States and the Secretariat at various levels. For example, there was trust involved in the implementation of the mandates without having to micromanage every aspect of that implementation. Adoption of the proposed budget before the end of the year was an obligation, he said. Consequently, postponing decisions until later for political and/or procedural reasons was, therefore, neither a viable option nor an acceptable alternative. It was hoped that there would be no delays. He said that some of the priority sectors of the budget for the European Union were international peacekeeping and security, promotion of sustained economic growth and sustainable development in accordance with relevant Assembly resolutions and decisions taken at the most recent United Nations conferences, development of Africa, promotion of human rights, and efficient coordination of humanitarian assistance operations. However, in reading the proposed programme budget, the European Union had been disappointed to see that once again the portion of the budget devoted to a number of priority sectors seemed, at first glance, limited. He noted that while the Secretary-General's budget proposal had put an emphasis on rejuvenating the United Nations, his proposal would reduce Professional posts below the P-4 level, which was precisely where young people would be recruited. The European Union would return to this issue in informal consultations. EUGEN MIHUT (Romania) associated himself with the statement made for the European Union. The proposed budgetary reduction was a step towards increasing the Organization's financial and administrative efficiency. Reform was a complex process intended to enhance functioning in an era of global change. He noted that net savings would be added to resources earmarked for economic and social development. He hoped that regional cooperation for development would benefit from a substantial share of that dividend. His delegation welcomed the new concept of "net budgeting", he said. It was logical to include in the Organization's budget only its share of expenditures of bodies in the system that were financed on an inter-agency basis.
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JACK WILMOT (Ghana) associated himself with the statement made for the Group of 77 and China. Reduction of the budget level was not by itself a positive achievement; the lowered level must reflect increased efficiency. Savings measures had reduced the capacity of various departments to undertake analysis and research aimed at producing reports on important global issues. The Secretary-General's report on the impact of those measures on implemented activities had shown that budget reductions had negatively affected the delivery of development activities in trade and other areas of crucial importance to developing countries.
Expressing concern about the Organization's vacancy rate and the proposed reductions in staff, he said high vacancy rates hampered delivery of mandated programmes and made the budgetary process less transparent. He asked for information on the feasibility of the Secretary-General's proposed vacancy rate of 5 per cent for Professional staff and 2.5 per cent for General Service during the next biennium.
Despite reduction in resources, the Secretary-General had proposed an increase for social and economic development, he said. He supported the policy objectives in the area of development, and the increased focus on Africa.
Resources for the Department of Peacekeeping Operations were less than its requirements, resulting in an overdependence on gratis personnel, he said. The concept of net budgeting had some merit, but budgetary proposals must be transparent. Financial statements for 1996 had not been issued to the Board of Auditors. Those should be provided at the earliest possible date. The late submission of documents imposed undue pressure on the Assembly and its Committees. The Secretariat should be strictly accountable for the timely submission of requested documentation.
RICHARD SKLAR (United States) said that in general, the United States endorsed the principal aspects of the Secretary-General's proposed budget. It also supported the Secretary-General's proposed reorganization and redistribution of responsibilities contained in his reform package. It was hoped that the General Assembly Plenary would shortly complete its informal discussions on those actions that the Secretary-General could carry out.
Initial United States analysis indicated that the proposed budget accurately reflected the priorities contained in the medium-term plan for 1998-2001, which had been approved by the General Assembly last December, he said. The Secretary-General's proposal to enhance development activities and to finance those additional costs from savings in administrative overhead were especially noted. While the United States favoured shifting savings into development-related activities, it awaited more information regarding how the new office of development finance would operate. Among other things, it was
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believed that clear and acceptable criteria would need to be developed for drawing on funds from the development account.
The United States was concerned that the budget had no provisions for special missions that were likely to be undertaken during the next two years, he said. Although current procedures allowed for those additions during the course of the biennium, such additions could cause the United Nations to exceed the $2.583 billion budget limit now proposed. The United States could not support such additions to the budget or in fact any other additions that were not offset by complementary reductions, identified savings, or funds made available through beneficial recosting.
Comparable figures should be used when comparisons were made in costs between periods, he said. It was important to compare apples to apples. Past budgets had not used the concept of net budgeting and great care should be taken.
With respect to individual budget sections, it was noted that emphasis had been place on ensuring implementation of mandated programmes, combined with a sustained attempt at keeping administrative costs down, he said. The Secretary-General had previously stated his intention, which the United States supported, to reduce by one third the proportion of resources from the regular budget which were devoted to administration and other non-programme activities.
LAYLA OMER BASHIR (Sudan) said a feeling of security among staff was necessary in order for them to produce good results. A balance between cost- cutting and staff security had to be struck in the new budget.
The financial crisis of the Organization could not be alleviated unless all Member States met their obligations, she said. States that did not pay their contributions should be deprived of their rights within the Organization.
JEAN-PIERRE HALBWACHS, Assistant Secretary-General for Programme Planning and United Nations Controller, said that a number of comments had been made during the debate on the feasibility of fulfilling legislated mandates with decreased budgetary resources. While the proposed budget was of a lower amount, it complied with the requirement that mandated programmes be implemented. Staff costs represented the most significant part of the Organization's budget; they were, therefore, inevitably affected by the proposed cuts. The proposed budget had been reviewed by competent bodies, and the Secretariat was confident that it would meet the Organization's programme of work.
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Referring to Member States' concern about the use of net budgeting for several United Nations bodies, including the JIU, he said. The practice was not new in the United Nations system. It should not give rise to concern. The Assembly still retained its authority to approve the budgets of jointly financed bodies. The one change was that only the United Nations share in the costs was reflected in the budget. A paper would be issued on the issue, which would hopefully dispel misgivings.
The vacancy rate had always been factored into budgets, he said. In any organization, posts became vacant; recruitment, particularly in the United Nations, took time. The Assembly had arbitrarily set a higher rate which had led to the current steps to achieve that rate. The vacancy rate was not being used as a control on the level of expenditure. It was merely a technical tool for analysis.
TAMMAM SULAIMAN (Syria) thanked the Controller for replying to concerns raised during the Committee's general discussion on the budget. He asked for a written response to specific questions posed in the debate by his delegation.
Action on Draft Texts
The Fifth Committee first turned to a draft decision on the financing of UNOMIL.
LOVEMORE MAZEMO (Zimbabwe) introducing the draft text on UNOMIL, said by its terms, the Assembly would reduce its earlier authorization of funds for financing the Mission according to changes in the field.
The Fifth Committee approved the draft decision without a vote.
The Committee then took up the draft resolution on the financing of the Mission in Angola.
REGINA EMERSON (Portugal) read out several oral revisions to the text which had been agreed to during informal consultations. A new operative paragraph, to be inserted between existing paragraphs 7 and 8 the would read:
"Requests that the Secretary-General, in order to reduce the cost of employing General Service staff, take the necessary steps to employ locally- recruited staff for MONUA to General Service posts commensurate with the operational requirements of such posts and to report on this matter;".
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Speaking before action on the draft text, the representative of the United States said he was waiting for a response from the Department of Peacekeeping Operations to his request for details regarding a $20 million claim. However, that would not affect his support of the resolution.
AMANY FAHMY (Egypt) asked for clarification on language used in the revisions to operative paragraph 8.
Mr. HALBWACHS offered an alternative wording.
The Committee agreed to that revision, and approved the draft resolution without a vote.
Speaking after action, the representative of Germany said that he had joined the consensus on peacekeeping financing. However, the amount of every peacekeeping budget would not be fully covered by contributions by Member States since one State, since October 1995, had announced its intention to reduce its assessed contributions to peacekeeping budgets to an amount that it deemed convenient. Germany was not ready to assume additional financial burdens or accept a change in its share in the current scale of assessments because of the non-payment of other States.
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