FIFTH COMMITTEE CONCLUDES GENERAL DISCUSSION OF FINANCING OF SEVERAL PEACEKEEPING OPERATIONS

Press Release
GA/AB/3229

FIFTH COMMITTEE CONCLUDES GENERAL DISCUSSION OF FINANCING OF SEVERAL PEACEKEEPING OPERATIONS

The Secretariat should explain its use of gratis personnel to negotiate contracts with troop-contributing countries, the Fifth Committee (Administrative and Budgetary) was told this afternoon as it concluded its general discussion of the individual budgets of most United Nations peacekeeping operations.

Several speakers alluded to a report by the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on financing operations in Croatia, which had stated that negotiations between the United Nations and nine troop-contributing countries for wet-lease arrangements -- a contingent- owned reimbursement system -- had been conducted by two teams of gratis personnel officers from Headquarters. Almost all the members of the teams were of the same nationality as the three major troop-contributing countries, the report noted. [Gratis personnel are loaned by Member States free of charge to the United Nations.]

The representative of Pakistan noted with concern that the use of gratis personnel of the same nationality as troop-contributing countries in the mission area could create a possible conflict of interest. The Secretariat should explain its reasons for resorting to such an extraordinary practice, he added.

In other business, the representative of the United Kingdom, speaking on behalf of the European Union and associated States, recalled the Union's previous proposal for revising the scale of assessments. The proposed change would lead to a scale that adjusted automatically to altered economic circumstances while continuing to take account of the needs of Member States with below average per capita incomes. A Secretariat document showing the relationship between peacekeeping shares and per capita income had been updated and should be made available as a conference room paper.

The representative of Indonesia, speaking on behalf of the "Group of 77" developing countries and China, said the Committee's current session was not the proper time to discuss the scale of assessments of peacekeeping operations. The representatives of China, Pakistan, Egypt and Algeria supported that position, while the representative of the United States said he saw no problem with satisfying the United Kingdom's request.

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Also this afternoon, the United Nations Controller, John-Pierre Halbwachs, introduced the Secretary-General's reports on the United Nations Logistics Base in Brindisi, Italy, and on death and disability claims. He also introduced the Secretary-General's report on budgetary requirements for peacekeeping operations from July 1997 to June 1998, as well as a report summarizing the proposed budgetary requirement for 13 peacekeeping operations for the 12 month period beginning 1 July 1998. The representative of Canada (speaking also for Australia and New Zealand) said the Brindisi Base was proving its usefulness and should receive the funding it required to continue its operations. The Committee concluded its general discussion on the Base.

The Director of the Peacekeeping Finance Division, Department of Management, Yeo Bok Cheng, responded to questions posed by representatives.

The Committee is scheduled to meet again at 10 a.m. tomorrow, to begin consideration of the support account for peacekeeping operations -- under the agenda item on administrative and budgetary aspects of peacekeeping financing -- and of gratis personnel. Financing operations in Haiti and the Central African Republic will be taken up later in the week.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to continue its discussion of financing individual peacekeeping operations, as well as on administrative and budgetary aspects of United Nations peacekeeping operations. (For background, see Press Release GA/AB/3227 issued today.)

Statements

NICHOLAS THORNE (United Kingdom), speaking on behalf of the European Union, Bulgaria, Czech Republic, Estonia, Hungary, Lithuania, Poland, Romania, Slovakia, Slovenia, Cyprus, and Norway, said the primary role of the United Nations was the maintenance of international peace and security. Peacekeeping was one of the Organization's primary tools in discharging that responsibility.

It was essential that the most effective administrative budgetary and financial arrangements for peacekeeping operations were in place, he said. The Union fully endorsed the recommendation of the Special Committee on Peacekeeping Operations that the United Nations must improve its operational capacity to maintain international peace and security, inter alia, by effectively planning, deploying and managing current and future operations.

New procedures for contingent owned equipment were far superior to the old, he said. The Special Committee had called for the timely implementation of recommendations of the Phase IV Working Group to improve the application of the new procedures and the transition from old to new. The Union regretted that the Secretary-General had not been able to submit his report on the application of the new procedures in time for it to consider the issue at this session. Effective peacekeeping required effective back-up. There was no point in putting troops into the field without it. Effective procurement arrangements were essential.

He recalled the Union's proposal for the revision of the scale of assessments for peacekeeping operations contained in the package of proposals introduced to the high-level working group on the financial situation of the United Nations in January 1996, he said. The methodological changes proposed would lead to a more equitable and more transparent scale which would adjust automatically to altered economic circumstances while continuing to take account of the needs of Member States with below average per capita incomes.

The document showing the relationship between peacekeeping shares and per capita income had now been updated, he continued. He requested that the information be made available now as a conference room paper. Equitable sharing of the load was the Union's primary objective. The Union believed that the peacekeeping scale should be updated in such a way as to remove the

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anomaly which allowed a few countries with above average per capita gross national product to gain an undeserved advantage at the expense of other Member States.

AMJAD HUSSAIN SIAL (Pakistan) said he hoped that the Secretariat's forthcoming final financial performance report on the United Nations Peace Forces in the former Yugoslavia would be detailed and respond to the questions posed by the ACABQ. He noted the ACABQ's concern about the composition of teams that had conducted negotiations with troop-contributing countries which had opted for wet-lease arrangements. He noted with concern the ACABQ's observation that the use of gratis personnel of the same nationality as the troop-contributing countries in the mission area created a possible conflict of interest. The Secretariat should explain its reasons for resorting to such an extraordinary practice.

He asked what measures the Secretariat would be taking to avoid the possibility of double payments for items that would be covered under the new wet-lease arrangements, he continued. Noting corrective measures taken to improve the inventory control and assets management system, he recalled that the ACABQ had stressed the importance of all missions having a complete inventory database, and said the Assembly should request the Secretary-General to take appropriate action in that regard.

He noted with concern that property worth about $68 million had been written off or lost. That fact raised serious concerns about the effective control of United Nations property. The Committee should be informed about the reasons for such actions. Such information should be provided in the final disposition of assets of all peacekeeping operations.

He then drew attention to the fact that inventory value of property sold to the Implementation Force, the International Criminal Tribunal for the Former Yugoslavia and the Mine Action Centre was generally much higher than the value of property auctioned. When it came to electronic data processing, however, the situation was different than that of vehicles. Further, he noted that the inventory value of some items of property sold to the Force was the same or higher than the sale value. The Secretariat should provide explanations of its decisions in that regard, including on how old equipment could retain its original value -- or higher -- after years of use.

He supported the ACABQ's comments that there was need for effective measures to increase the effectiveness of auctioning United Nations assets located in peacekeeping mission areas. Finally, he asked for clarification on whether the quality of property mentioned in the report corresponded with the quantity mentioned in the inventory. Other points would be brought up during the informal consultations.

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On administrative and budgetary aspects of peacekeeping, GABRIELLE DUSCHNER (Canada), speaking also for New Zealand and Australia, said that there was real need for a central storage facility for United Nations operations. Despite the downward trend in the number of such operations in recent years, there was reason to believe that new missions would continue to be needed. It made sense to maintain a limited range of start-up kits to support short-notice operational requirements, such as that for the recent United Nations Mission in the Central Africa Republic (MINURCA) operation. The Brindisi Base was proving its usefulness and should receive the funding it required to continue its operations.

A year ago, death and disability claims had numbered 564, she said. Now, there were less than 90 claims awaiting processing, and the number was decreasing daily. She looked forward to the day when the quarterly report would show no claims. Until that day, however, the Secretary-General's quarterly report could be more informative. She would welcome information on how many had been processed by the Office of Programme Planning, Budget and Accounts and were awaiting payment.

Also speaking on United Nations Peace Forces, DJAMEL MOKTEFI (Algeria) said his delegation was concerned about several points made by the ACABQ. That body had indicated that negotiations were conducted by gratis personnel between the United Nations and troop-contributing countries. All members of the negotiating teams had been of the same nationality as those of the troop- contributing country. How could the Secretariat send negotiating teams comprised of gratis personnel of the same nationalities as the troop contributors? he asked. Also, regarding the lack of an accounting system, he noted that the Organization sometimes paid twice for contracting services. He expressed his delegation's disappointment about the way in which auction had been carried out, and requested an improvement in the procedure of auctioning of peacekeeping operations property. Also, the ACABQ mentioned that property originally valued at over $56 million had been written off. How could such an amount be written off? he asked. What corrective measures would be taken to ensure that no repetition occurred? he asked.

PRAYONO ATIYANTO (Indonesia), speaking on behalf of the "Group of 77" developing countries and China, felt that this session was not the proper time to discuss the scale of assessments of peace-keeping operations. Various General Assembly resolutions had laid down guidelines for such operations.

The financing of such operations should reflect the responsibilities of the permanent members of the Security Council, he said. The varying capacities of different States to pay was a valid concept. The scale should be retained according to the principle of collective but differentiated responsibility.

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CHEN YUE (China) said her delegation supported the statement of the representative of Indonesia. The question of the scale of assessments was important, but was not on the list of agenda items for this session and should be taken up later. The position of China on the question remained unchanged.

Mr. SIAL (Pakistan) said his delegation fully supported the statement of the Group of 77. The Committee's plate was already too full and requests for additional reports would further burden its work.

AHMED DARWISH (Egypt) said that his delegation also supported the statement made by Indonesia. He underlined the importance of differentiating between the scale of assessments for peacekeeping operations and the regular budget. He added that there was no need at this time to open a debate on the scale.

Mr. THORNE (United Kingdom), speaking on behalf of the European Union and associated States, said he wished to draw the attention of the Committee to exactly what he had said on behalf of the Union. The points made had been designed to remind delegates that there remained on the table elements originally proposed in 1996. He had requested the paper in question, not as a document but as a conference room paper, in order to assist the work of the Committee. There had been no suggestion made that the debate be reopened.

Mr. MOKTEFI (Algeria) said his delegation also supported the statement made by the representative of Indonesia. With respect to the request of the representative of the United Kingdom, the second resumed session had no agenda item on the scale of assessments, so there was no reason to call for such a paper at the current time.

YEO BOCK CHENG, Director of the Peacekeeping Finance Division, Department of Management, said the document called for by the representative of the United Kingdom was in an advanced draft stage, but further refinements were necessary. Regarding the series of inquiries on inventory related questions, he asked if the matter could be taken up tomorrow, when his colleagues could respond to the questions.

Regarding progress reports on the status of dealing with the backlog on death and disability claims, normally as a matter of course, as soon as the Department of Peacekeeping Operations had certified such claims, they were put forward for payment. Sometimes, however, they were sent back to the Department for corrections, or at times there was no cash available. In most circumstances, there was an attempt to pay.

MICHAEL R. BOYNTON (United States) said he did not see any problem with satisfying the United Kingdom's request for a conference room paper. It could

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be placed under agenda item 142 on administrative and budgetary aspects of the financing of United Nations peacekeeping operations.

Mr. MOKTEFI (Algeria) said his delegation was sorry to return to the question of the conference room paper. Because the document had no status and was not under an agenda item for the current work of the Committee, Algeria did not see the need for such a paper.

NAZARETH A. INCERA (Costa Rica), Committee Vice-Chairman, said the Bureau would consider the matter and report on the results.

JEAN-PIERRE HALBWACHS, Assistant Secretary-General for Programme Planning, Budget and Accounts and United Nations Controller, introduced the Secretary-General's reports on the United Nations Logistics Base in Brindisi, Italy. He also introduced the Secretary-General's quarterly report on progress made in clearing the backlog on death and disability claims. A backlog of 90 claims remained, he said, which was a significant improvement to 31 December, when the number was over 200.

He introduced another report providing updated information on the earlier note of the Secretary-General on the budgetary requirements for peacekeeping requirements from July 1997 to June 1998. The updated amount came to about $958 million. An additional report provided the estimate for peacekeeping funds for the forthcoming year: almost $826 million.

The Committee concluded its general debate on the Brindisi Base.

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