PRESS BRIEFING BY USG FOR INTERNAL OVERSIGHT SERVICES

Press Briefing

PRESS BRIEFING BY USG FOR INTERNAL OVERSIGHT SERVICES

Under-Secretary-General for Internal Oversight Services Karl Paschke told correspondents at a Headquarters press briefing this afternoon that the general message of his report was that the functioning of internal oversight was proof of a better, healthier United Nations.

In introducing his fourth annual report (document A/53/428) distributed yesterday, Mr. Paschke said the Office of Internal Oversight Services was doing its job and that its impact had made it a useful and important element of the new management culture of the United Nations. Covering the 12-month period between 1 July 1997 to 30 June of this year, only one more annual report remained to be submitted before a new Under-Secretary-General for Internal Oversight Services was appointed. During the four years of the Office's existence, it had been recognized by the Secretary-General in his cover letter to the report that internal oversight had matured and that the Office would continue to be a key element in reform of the United Nations.

The preface to the report contained information on the new management culture of the United Nations, Mr. Paschke continued. The report was very complimentary about the intensified horizontal communication among United Nations departments and among the Secretariat and the separately administered funds and programmes. The report called for more delegation of authority and for more accountability. It also discussed certain adjustment the Office was making in its oversight approach.

Chapter I of the report covered general questions about the Office's management and the increasing number of its reports, Mr. Paschke said. This year, the number of reports was close to 20 and more than 60 per cent of reports being written today were mandated, meaning they had been requested by legislative bodies. That indicated a growing interest in the work of the Office, he said.

A significant statement with regard to the implementation of the Office's recommendations was contained on page 7 in paragraph 5 of the report, Mr. Paschke said and read the statement. "The emphasis by OIOS on the full implementation of its auditing inspection has continued to cause changes within the management culture of the United Nations. The sense of accountability and responsibility thus instilled can be expected to reduce further the occurrence of abuse and to enhance the efficiency and effectiveness of management."

The priorities of the Office had remained the same during the past year, Mr. Paschke went on to say. Those were peacekeeping, humanitarian affairs, procurement and new United Nations bodies. The category of human resources management had been added, and the Secretary-General had devoted particular attention to that area.

The performance indicators of the Office were the savings created by its work, Mr. Paschke said. The over savings during the past year caused by the Office work totalled $21.2 million, and there had been an implementation rate of 73 per cent of its recommendations, representing an increase over the last year. A new analysis had been added, what was called the "intended impact of OIOS recommendations", which showed that the majority of its recommendations were aimed at improving operational efficiency and effectiveness along with improved management control.

Chapter II, Mr. Paschke said, detailed the work that the Office had done during the reporting period in the priority areas. In oversight on peacekeeping, it had identified certain administrative weaknesses and had concentrated on mission subsistence allowance payments and problems connected with liquidation of missions, since, more often than not, they were terminating, a phase that always required oversight. The Department of Peacekeeping Operations had always been a model client in responding positively to criticism and trying to change.

Mr. Paschke said that audit coverage of the Office of the United Nations High Commissioner for Refugees (UNHCR) had recently been intensified in view of that body's efforts to decentralize and reorganize, with greater delegation of authority in the field. In the long run, that new structure would benefit UNHCR and would also call for intensified supervision and monitoring of implementing partners. In addition, the Office had continued to look at procurement as a priority, and had looked at insurance, rental and space management, along with aviation services. It had also looked at the International Criminal Tribunal for Rwanda, an exercise being similarly conducted today at the International Criminal Tribunal for the Former Yugoslavia.

On human resources management, Mr. Paschke said, there was a detailed analysis of the recruitment process on page 23. Complaints were frequent on the length of the recruitment process, and the Office had figured out that the exact number of days was an average of 461 days for recruitment. The submission of that result to the Office of Human Resources Management had sent shock waves throughout the Office and the recruitment process was now being addressed as a key problem.

Chapter III of the report addressed the differences between audit, inspection, evaluation and investigation, Mr. Paschke said, adding that, in summary, the annual report aimed at giving a comprehensive account of the work of his Office. Issues that had been the subject of other reports were included, as were issues that would never be detailed to the Assembly so as not to overburden that body.

A correspondent asked why it had taken so long for the recommendation of the Oversight Office to terminate the contracts of two United Nations staff members found to have been involved in wrongdoing in the Rwanda Tribunal. Why had the recommendation made in December not been implemented until May?

Oversight Office Briefing - 3 - 28 October 1998

"That question should be posed to those involved in administration of the Tribunal", Mr. Paschke said, adding that the length of time had been noted with criticism and the Registrar had been questioned. The incident was indicative of the situation that administration was at times reluctant to act on recommendations involving staff and contracts. All possibilities of disciplinary process were exhausted before the rather painful decision was taken.

In response to a question about whether the report addressed the need for more evenness in procurement, Mr. Paschke said the report had not commented on the regulation of procurement "but I know what you're talking about". Procurement was provided by a very limited number of providers and Member States. It was also a political issue, having very little to do with administrative weaknesses of procurement and more to do with the reality faced by the Organization. Procurement was a problem and should be considered. Delegations had expressed interest in addressing it.

What response to the report was expected from the United States, which had been very critical of United Nations Administration and had held back dues because of it, a correspondent asked. "Is this the kind of report that will make them pay up?"

It was always hoped that annual reports would have a positive effect in that they showed the willingness to address weaknesses and deficiencies, Mr. Paschke said. By showing that United Nations operations were subject to oversight, the Organization was showing that it was "just doing a better job in going about its business".

Mr. Paschke added that in talking with United States leaders, he had found them to be understanding about the United Nations doing its job. They had also seemed to share the view that the Oversight Office had become an element of better management approach at the United Nations. Those who were in favour of the United Nations had expressed that view to the Secretary- General himself in Washington. Unfortunately, that had not led the United States Congress to pay up its arrearage, which Mr. Paschke said made him "as frustrated as anyone else at the United Nations".

In answer to a follow-up question on what were the biggest areas of lack of efficiency and weakness at the United Nations, Mr. Paschke said that in recent years those areas had been identified which were the most "risky" in international administration. Those areas would continue to be addressed and a different approach to oversight work would also be undertaken, in which the deficiencies would be addressed in a more horizontal manner.

Among those deficiencies was the relative lack of accountability or understanding of accountability in the Organization, Mr. Paschke said. Hopefully, those questions would be able to be addressed not just on an individual basis but rather in a general way, so that it would be a leitmotif for the Organization to do something about. The role of oversight would

Oversight Office Briefing - 4 - 28 October 1998

continue, as internal oversight was a continuous element of any sound public administration culture.

A correspondent asked about the misuse of trust funds, such as in the electoral process in Haiti, where the funds were diverted to change the electoral process. What type of recommendation can be made regarding that area leading from the administrative to the political?

Mr. Paschke said his Office's recommendations carried weight because they were recognized by legislative bodies, and the more those bodies took an interest, the more those responsible for weaknesses and inefficiencies were forced to make corrections. Political issues were sensitive and the Office stayed away from them. It only analysed situations and made recommendations. The decision to implement the recommendations lay with management and ultimately with the Secretary-General as Chief Executive Officer of the Organization.

"I'm proud to say that in 99.9 per cent of cases, the Secretary-General has endorsed out recommendations", Mr. Paschke said. Being able to report a 73 per cent implementation rate was reason to be satisfied. The international community had agreed that the rate was a high rate of implementation, more than most oversight bodies could report.

A correspondent then asked what had happened to the $3 million that had disappeared in Somalia. "That is still an open case, as is any unsolved case in an investigative department", Mr. Paschke said. "I must confess I don't have much optimism that the $3 million will be recovered, but it is an open case."

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