CODE OF CONDUCT PROPOSED FOR UN STAFF AMONG ISSUES DISCUSSED IN FIFTH COMMITTEE AS CONSIDERATION OF INTERNAL OVERSIGHT REPORTS CONTINUE
Press Release
GA/AB/3191
CODE OF CONDUCT PROPOSED FOR UN STAFF AMONG ISSUES DISCUSSED IN FIFTH COMMITTEE AS CONSIDERATION OF INTERNAL OVERSIGHT REPORTS CONTINUE
19971112 Secretary-General Kofi Annan's proposed code of conduct for United Nations staff would provide administrative guidance and remedy a confusing situation brought about by a huge mass of rules and regulations, Canada's representative said this morning as the Fifth Committee (Administrative and Budgetary) discussed reports of the Office of Internal Oversight Services. Speaking also for Australia and New Zealand, the representative said the body of rules failed, for instance, to adequately define "conflict of interest" within the United Nations system. Further, confidential internal documents had been obtained by the media and their allegations published. Since such publicity could hamper due process, leaks must be prevented. The Oversight Office should indicate whether the code would protect against conflicts of interest in the United Nations system, the United States representative said. The adoption of such a code of conduct would be a first step towards resolving the problems identified, Under-Secretary-General for Internal Oversight Services, Karl-Theodor Paschke, said, as he responded to Member States' questions. The Oversight Office could not help the media's focus on the negative aspects of its findings and found it almost impossible to stop leaks, despite its concerted efforts, he said. While some media accounts on the Office's annual report had been perceptive, the article in the 2 November edition of The Sunday Times of London had distorted the reality in the United Nations system. The representative of Mexico opposed the view of the Office of Legal Affairs that the Oversight Office's recommendations were transmitted to the General Assembly only for information purposes and that the organ should not pronounce on them. While some recommendations could be implemented without Member States' blessings, the Oversight Office could not take action on programmatic issues; that was Member States' prerogative.The representatives of Belgium (speaking for the European Union and associated States), Poland, Egypt, Cuba, Bangladesh and Japan also spoke.
The Fifth Committee is scheduled to meet again at 10 a.m., on Friday, 14 November, to continue discussing audited financial statements and reports of the United Nations Board of Auditors.
Fifth Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this morning to continue considering the Secretary-General's report on the Office of Internal Oversight Services; and to continue its review of the United Nations efficiency, which includes reports of the Oversight Office. (For background information on the reports before the Committee, under both items, see Press Release GA/AB/3185 of 5 November.)
Statements on Internal Oversight
PETER MADDENS (Belgium), speaking for the European Union, Bulgaria, Cyprus, Lithuania, Poland, Romania and Slovakia, said the independence of the Office of Internal Oversight Services must be protected to ensure its effective implementation of Assembly mandates. The words in the preface to the annual report of the Office, written by Under-Secretary-General, Karl- Theodor Paschke, had been well-chosen. He had been struck by the fact that the media was more interested in the most controversial elements of the Office's annual reports. The press should strive to note other aspects of the Office's reports in a more balanced manner. He supported the comments in the last paragraph of the preface to the report concerning the process of change being undertaken in the Organization.
The Secretariat should provide more information on the accountability of managers and the penalties that would be imposed on acts of irregularities, he said. In that instance, he recalled a previous report of the Oversight Office on the Field Administration and Logistics Divisions. The savings achieved due to the Office's recommendations were significant and showed that it focused on auditing and ensured preventive actions. He welcomed efforts suggested to simplify follow-up procedures in the Organization. The deficiencies high- lighted by the Office were a cause for concern; waste and abuse should be reduced. Staff should be given simpler rules they could understand and work with. He welcomed the Office's focus on priority areas such as procurement, humanitarian activities, peacekeeping and newly established bodies.
On humanitarian activities, the Oversight Office had stated that Office of the United Nations High Commissioner for Refugees (UNHCR) should do all it could to address the problems it had highlighted, he said. The reports concerning the International Criminal Tribunals for the Former Yugoslavia and for Rwanda would be considered when the Committee takes up the budgets of those bodies. He welcomed the fact that cooperation between the Office and the United Nations funds and programmes had improved, as typified by recent decisions of the United Nations Population Fund (UNFPA) and the United Nations Children's Fund (UNICEF). The Oversight Office deserved the support of Member States.
RICHARD SKLAR (United States) said he agreed with the Under-Secretary- General that the creation of the Oversight Office was one of the most
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effective reform steps taken by the Assembly. His delegation was impressed with the overall quality of the Office's reports, readability, clarity and conciseness. Other oversight bodies, such as the Advisory Committee on Administrative and Budgetary Questions (ACABQ), the Joint Inspection Unit (JIU) and the Board of Auditors should make their reports more readable. The United States delegation welcomed the view of the Office of Legal Affairs that the United Nations Secretariat could implement Oversight Office recommendations without formal endorsements by the Assembly. According to the legal opinion distributed in document A/C.5/52/12, sufficient authority existed to implement oversight recommendations to strengthen the internal oversight mechanisms of United Nations programmes and funds.
Turning to some details in the reports regarding the Oversight Office, he said it showed that almost $18 million had been saved or recovered as a result of the actions of the Office. That showed the Office's growing effectiveness in rooting out waste, mismanagement and inefficiency. In particular, he pointed out the issue of the successful conclusion of a case involving an official of the United Nations Conference on Trade and Development (UNCTAD) who had been found guilty of embezzlement and dismissed. That person had so far paid back more than half the $600,000 he had stolen.
Numerous audits of peacekeeping operations had also shed light on the variety of difficulties experienced in procurement, internal controls and payment procedures in such missions as the United Nations Assistance Mission for Rwanda (UNAMIR), he said. He welcomed the ability of the Office to call attention to the problems that existed in the Rwanda Tribunal and the subsequent statement that things had improved there. The Office had also noted from an investigation into charges of conflict of interest at a United Nations entity that United Nations staff regulations did not provide adequate protections against conflicts of interest. The United States had believed for some time that such was the case and had pursued the creation of a clear and definitive code of conduct for those working for the United Nations. While the Office's findings had helped shape the draft code of conduct being considered by the Secretary-General, the Office should indicate whether the code now provided the protection that had been lacking.
The Oversight Office had made substantial progress in fulfilling its mandate to provide effective oversight for the United Nations, he continued. As that did not mean that no more could be done, the Fifth Committee should continue monitoring the provision of resources for the Office. He expressed concern at the negative effects of the long and bureaucratic recruitment process on the ability of the Office to hire staff of its choice. Since that hurt the Office's ability to carry out Assembly mandates, the United States would work hard to ensure that the Office got what it needed.
JAN JAREMCZUK (Poland), expressing support for the statement made for the European Union, said the creation of the Office for Oversight Services in 1994 had been the Assembly's first real step towards overall reform. Since
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its inception, that Office had contributed to the United Nations by heightening fiscal awareness, eliminating irregularities, and encouraging self-evaluation within management.
The Office's efficacy had increased over the years, he said. Although much of the amounts identified by the Office had been recovered, many of its recommendations had not yet been implemented appropriately. The discovery of substantial irregularities in certain system bodies and endeavours were of deep concern to his delegation. Member Sates must ensure that United Nations resources were utilized responsibly. He supported the Office's activities, which were an integral part of the Organization's new management culture and its overall reform.
SAMUEL HANSON (Canada), speaking on behalf of Australia and New Zealand, said that the Office acted as a deterrent to waste and mismanagement. Its work enhanced transparency and accountability within the Organization. It had combated irregularities and wrongdoing, and made its reports more client- oriented. He noted that the number of United Nations rules and regulations had built up over the years and now provided confusion rather than guidance. The Oversight Office had pointed out that among all those rules, an adequate definition of "conflict of interest" had been lacking. The United Nations code of conduct should correct that deficiency. He welcomed information that the Office had introduced a quality control system for its work, because it should be able to withstand internal and external scrutiny.
A number of the Oversight Office's investigations had resulted in actions against individuals and vendors, he said. Due process must be observed in the Office's investigations, as well as its reporting. Documents purporting to be confidential internal reports had been obtained by the media, and the allegations contained therein published. Such publicity could seriously hamper due process. Precautions must be taken to ensure that such incidents did not occur again in the future.
The Office's recommendations were not submitted to the General Assembly for approval or endorsement, but rather for information purposes, he said. The Assembly should not express its view on the findings contained within the Office's report, as that might act to the detriment of due process. The Office should continue its efforts to improve management through both corrective and preventive action.
AHMED DARWISH (Egypt) expressed support for the priorities identified by the Oversight Office such as procurement, humanitarian activities and peacekeeping. The work of the Office was ensuring a beginning of improvements in management in the Organization. The preface to the annual report had stated that the complexity of United Nations rules, which had allowed some mismanagement, were being addressed. As for the recently developed code of conduct, he expressed the hope that it would resolve the issue of irregularities, such as conflict of interest in the Organization. The annual
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report had also noted shortcomings in the financial and administrative rules that allowed those charged with irregularities to avoid penalties and to continue committing those offences.
He asked whether the Secretariat had made provisions for personnel who would follow up on the recommendations of the Office on the discoveries of waste and fraud and ensure that those found guilty would not get other positions in the United Nations. He asked whether the more than $330,000 lost due to fraud in the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) was being recovered. The Secretariat should clarify the underutilization of two aircraft used to support the missions in relation to the former Yugoslavia and the disposition of unserviceable ammunition.
The media should portray in a balanced and objective way what had been stated by the Office, rather than use its statements to defame the Organization, he said. The cooperation between the Office and United Nations funds and programmes should be strengthened.
EVA SILOT BRAVO Cuba expressed regret over some of the contents of the preface to the annual report on the work of the Oversight Office. The Office should not lose sight of the fact that it had been created to contribute to better implementation of mandates. While the Office might be improving its consultations with its clients, the Secretariat should provide more information on how the views of programme managers had been taken into account by the Office. She also asked for details on the budgetary cuts made as a result of the Office's recommendations, and whether the cuts went beyond the $104 million agreed to during the adoption of the 1996-1997 budget in 1995. The Office should state why it had not been able to name those responsible for the failure of the United Nations access control system. Why was the Office involving itself in the budgetary process? she asked. The audit of various peacekeeping operations and procurement was useful. She said the establishment of any new organ was the absolute prerogative of Member States. The Office's new system of consultations with the governing bodies of funds and programmes seemed innovative in the sense that sometimes those bodies found themselves merely asked to implement recommendations they had not been consulted about. The Secretariat should clarify certain matters related to the opinion of the Office of Legal Affairs on the implementation of the recommendations of the Office. For instance, she asked for the basis of the recommendation contained in that opinion. Some of the recommendations could seem to have been designed to interfere with the intergovernmental process.
All oversight bodies should comply with the provisions of the letter of the resolution that created the Office, she said. The resources allocated for the Office in terms of posts and travel funds had been increased in the proposed 1998-1999 budget. There were also proposals to continue the use of gratis personnel in the Office. In that regard, she reiterated the need to abolish the use of such personnel and called on the Office to cut to the bare
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minimum the use of consultants. It was shocking that a substantial increase had been proposed in the 1998-1999 budget for the Office, even though it had not been identified as a priority or substantial programme of the Organization. True priorities had been targeted for resource reductions.
HUMAYUN KABIR (Bangladesh) said the work of the Oversight Office had contributed to streamlining United Nations procedures and had thus enhanced its overall efficiency. It was encouraging to note that a large number of the Office's recommendations had been implemented. The fact that some duty stations within the United Nations system operated differently from Headquarters did not bode well for the system's overall functioning. While the Oversight Office had identified those differences, it appeared that it had not conducted an analysis of the reasons for their existence.
The Office had noted that staff rules and regulations protected individual staff members but not the interest of the Organization, he said. However, the Organization's interest should not be different from that of its staff. In addition to identifying lapses and instances of mismanagement, the Office should also recognize instances of above-average performance.
The Office should diversify its focus in the future, to include branches of the Secretariat, he said. Continued irregularities and mismanagement in procurement and peacekeeping operations were a source for concern. The Office had found substantive deficiencies in the Commission on Human Rights, due partly to recruitment constraints. Had the Commission's technical support to developing countries also been assessed? he asked. Long-neglected technical support activities should be undertaken on a priority basis.
It was disquieting to note that staffing problems continued in the international tribunals, he said. Those bodies should receive the resources they needed to fulfill their mandates. Recruitment for work at the United Nations should always be based on the principle of equitable geographical representation. He called for constructive cooperation between the Oversight Office and the external oversight bodies.
KAZUO WATANABE (Japan) said that in view of the size of the Organization's annual budget, transparency and accountability were of great importance. Checks and balances were also needed, particularly within the Secretariat. He was, therefore, pleased to note that the Office was in a position to report directly to the Secretary-General.
The Oversight Office must prioritize its activities, he said. He supported the following priorities: procurement procedures, peacekeeping operations and humanitarian activities. The Office's work to date had resulted in both tangible and intangible results. While it was not easy to deal with the mass media, suitable relations should be established with such groups.
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MARTA PEÑA (Mexico) said she was struck by some of the Office's findings, particularly those related to the Economic Commission for Latin America and the Caribbean (ECLAC) in Mexico. She had thought that the Oversight Office had been informed that measures had already been taken to remedy some of the problems it had identified.
She did not share the view that the Oversight Office's recommendations were transmitted to the Assembly on an informational basis only and that the Assembly should not pronounce on them, she said. While some recommendations could perhaps be undertaken without the blessing of Member States, the Oversight Office could not take action on programmatic issues; that was the prerogative of Member States.
KARL-THEODOR PASCHKE, Under-Secretary-General for Internal Oversight Services, said the statement by the representative of Ukraine made at an earlier meeting, had been heard, and the Office would rethink its ways in order to improve productivity and recruitment. The Office was addressing the subjects mentioned by the Ukraine and would continuously improve its working methods. As to the question raised by Saudi Arabia, he said that the Audit and Management Consulting Division would engage in another audit of the United Nations gift centre. As to the opinion of the Office of Legal Affairs on the transmission of individual reports to programme managers for implementation, he said the understanding was that it was up to programme managers to implement recommendations and for the Assembly to discuss them and comment on the Office's work. It was not necessary, however, for the Assembly to approve the recommendations.
The $18 million in savings and recoveries had been included as the amounts reclaimed from the implementation of recent and previous recommendations, he explained. The recoveries pertained, for instance, to ECLAC, which had to recover some overpayments of rent in Mexico. In addition to collection of overpayments, the Oversight Office also helped prevent such incidents from happening. The Office had also recommended budget cuts in order to ensure that its recommendations were reflected in the proposals of departments or offices, he continued. For example, it had made the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES) reduce its budget by about $4 million to reflect the fact that it had received some free accommodation as a result of the implementation of the status-of-forces agreement by its host country. He provided those details in response to the clarifications sought by Algeria's representative.
He also responded to questions from India's delegate, on the recommendations made following investigation into the International Trade Centre of the UNCTAD/World Trade Organization. He said they had been meant to improve management at that body. As for the Republic of Korea's suggestion that the Oversight Office should convey a more balanced picture of the Organization, he said the annual report had praised some departments and clients for the progress they had made and given credit where it was due.
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The perception of oversight work in the United Nations or any other large bureaucracy would always be a problem, he said. Even though he was not happy with the labels the media had attached to him, there was no way to prevent journalists from using metaphors to describe his functions. Whenever he launched the annual reports of the Office, he tried to accentuate positive aspects by stressing the progress that was being made in fighting abuse in the Organization. However, he could not help the media's refusal to pick up such angles and focus on the negative instead. Even though some media accounts had been perceptive, an article in the 2 November edition of The Sunday Times of London had distorted the reality that existed in the United Nations and had used some internal documents, a development the Office was looking into. The Organization found it hard to restrict documents, with the easy availability of the photo-copying machine and the fact that the Office had to present draft copies of its reports to its client. Once draft reports were sent out, it was almost impossible to trace where all documents had gone to and to trace leaks and plug them. It would be difficult to stop such a phenomenon.
Turning to a suggestion from the Russian Federation, he said his office already had a computer system for tracking the status of the implementation of its recommendations. On the question by the United States on the criteria used to publish OIOS reports, he said that many of them went to the Assembly through the Secretary-General. But, the Office also considered things such as the substance of a report and the fact that the Assembly should not be overburdened before choosing which audit reports were to be sent to that legislative body. It was also careful in handling reports written after the conduct of investigations. As to whether the Secretary-General's draft code of conduct met the Office's views on what was required to stop irregularities, such as conflicts of interest, he said the approval of the code would be a first step in resolving such problems. The Organization' staff rules would have to be amended to fully address some of the problems identified by the Office.
ANWARUL KARIM CHOWDHURY (Bangladesh), Committee Chairman, said that the debate on the reports of the Oversight Office would be kept open. The Under- Secretary-General had sought time to provide more information, and informal consultations would be conducted under the direction of Amjad Hussein Sial (Pakistan).
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