GA/AB/3262

FIFTH COMMITTEE CONTINUES DISCUSSION OF INTERNAL OVERSIGHT OFFICE

12 November 1998


Press Release
GA/AB/3262


FIFTH COMMITTEE CONTINUES DISCUSSION OF INTERNAL OVERSIGHT OFFICE

19981112 Information about an internal investigation that was supposed to be secret had been leaked to the media and put on the Internet, the Fifth Committee (Administrative and Budgetary) was told this afternoon, as it continued its discussion on the activities of the Office of Internal Oversight Services.

The leak had to have originated in the Oversight Office, the representative of Iraq said. The information leaked aimed to prejudge the conclusions of the enquiry into two staff members. Their nationality had been revealed and that was prejudicial to the country concerned. Iraq demanded an immediate investigation.

The representative of Norway, however, noted that lack of media attention to the Oversight Office's annual report this year marked the success of the Office's proactive approach. Mainstreaming oversight had added an extra dimension to United Nations reform and had increased public confidence in the Organization.

Also this afternoon, as the Committee discussed "other matters", it decided to request analysis of the Secretary-General's human resources reform report from the Advisory Committee on Administrative and Budgetary Questions (ACABQ).

Following discussion of the programme budget for 1998-1999, it approved a draft decision by which the General Assembly would take note of the Secretary-General's progress report on the construction of conference facilities at Addis Ababa and endorse related ACABQ recommendations. Action on two draft decisions on that item was deferred.

The Director of the Programme Planning and Budget Division, Warren Sach, introduced the Secretary-General's reports on office accommodation in The Hague, financing the dining room at the International Court of Justice, and on conference facilities at Addis Ababa and Bangkok.

In other business, the Committee concluded its discussion of the financing of the United Nations Observer Mission in Sierra Leone (UNOMSIL),

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with the Director, Peacekeeping Financing Division, Department of Management, Yeo Bock Cheng, introducing the Secretary-General's report on the issue.

On aspects of the 1998-1999 programme budget, the representatives of Cuba and the United States spoke. During discussion on activities of the Oversight Office, the representatives of the Russian Federation, Republic of Korea and Cuba also spoke.

When the Committee turned to other matters, statements were made by the representatives of Cuba, Costa Rica, Panama, Pakistan and Algeria. Also, the Committee's Secretary, Joseph Acakpo-Satchivi, addressed the Committee.

The Committee will meet again at 10 a.m. tomorrow, 13 November, to continue discussing human resources management and the activities of the Oversight Office.

Fifth Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to discuss financing of the United Nations Observer Mission in Sierra Leone (UNOMSIL); the activities of the Office of Internal Oversight Services; and aspects of the programme budget for 1998-1999. Under the latter agenda item, it was to take up reports on United Nations office accommodation in The Hague, arrangements for covering the costs of the dining room at the International Court of Justice and conference facilities at Addis Ababa and Bangkok.

(For information on reports on the Oversight Office, see Press Release GA/AB/3260 of 10 November.)

Financing UNOMSIL

In a note by the Secretary-General (document A/53/191), he requests that a supplementary item "financing of the United Nations Observer Mission in Sierra Leone" be allocated to the Fifth Committee.

The Secretary-General's report on financing of UNOMSIL (document A/53/454) contains his proposed budget for the establishment and operation of UNOMSIL from 13 July 1998 to 30 June 1999, amounting to about $24.3 million gross (some $23.5 million net). This sum includes about $784,000 gross related to the cost of strengthening the Office of the Special Envoy of the Secretary-General for the period 17 April to 12 July 1998. It provides for the deployment of 188 military and civilian personnel, including 85 military observers, 5 civilian police advisers, 50 international civilian staff and 48 locally recruited personnel.

In the report, the Secretary-General proposes that of the $24.3 million gross to be appropriated, some $14.9 million gross ($14.5 million net) be assessed for the Mission's operation from 13 July 1998 to 13 January 1999, and approximately $9.5 million gross ($9 million net) be assessed, subject to the Security Council extending the mandate beyond 13 January 1999, for the period 14 January to 30 June 1999. This would be at a monthly rate of some $1.7 million gross ($1.6 million net).

Established by the Security Council in July 1998, initially for six months, UNOMSIL is mandated to monitor the military and security situation in the country and to provide the Secretary-General's Special Representative with information to help determine when conditions would allow for subsequent deployments of military observers. It was also mandated to monitor: the disarmament and demobilization of former combatants, including monitoring the role of the Economic Community of West African States' Monitoring Observer Group (ECOMOG); respect for international humanitarian law; and the voluntary disarmament and demobilization of members of the Civil Defence Forces.

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In its related report (document A/53/654), the Advisory Committee on Administrative and Budgetary Questions (ACABQ) recommends that the Assembly appropriate and assess an amount of $22 million gross for the period from 13 July 1998 to 30 June 1999, subject to the Council extending the mandate of UNOMSIL beyond 13 January 1999.

The ACABQ notes that the Secretary-General had been given commitment authority of $10.6 million gross ($10.4 million net) for the period from 13 July to 13 November 1998. Of this amount, expenditure of $1.4 million had been accounted for. The ACABQ mentions areas in which savings might be identified. For example, with regard to air operations, the travel of some personnel could be combined to achieve savings, while communications and equipment needs could, to some extent, be met through in-house assets from the United Nations Logistics Base in Brindisi, Italy.

Aspects of 1998-1999 Programme Budget

The Secretary-General's report on office accommodation at the Palais Wilson (document A/53/302) says the General Assembly may wish to note his plans to complete construction of the third conference room at the Palais Wilson, utilizing funds made available by the Government of Switzerland. The three conference rooms in the Palais Wilson (two existing and one requiring construction) were needed to accommodate all human rights meetings, except those of the Commission on Human Rights and the Subcommission on Prevention of Discrimination and Protection of Minorities, which would be held at the Palais des Nations.

The Secretary-General recommends that the General Assembly take note of his report on financial arrangements associated with the dining room at the International Court of Justice (document A/C.5/53/19). Under an agreement between the Carnegie Foundation and the United Nations, the International Court of Justice occupies the Peace Palace in The Hague. Although it was estimated that revenues generated from the dining room, which opened in 1997, would be sufficient to absorb the operational costs, the dining room has suffered a financial deficit to date. The Carnegie Foundation indicated to the Court that if usage of the dining room does not improve, it may have to re-evaluate current arrangements and propose alternatives. The Secretary-General would inform the General Assembly of developments as appropriate.

The Carnegie Foundation has an agreement with a catering firm which calls for payment, by the Foundation, of a management fee plus reimbursement of salaries of catering staff and product costs submitted to the Foundation for audit and approval. The Foundation is also responsible for other operating costs, such as utilities and insurance.

By resolution 52/222, the General Assembly had approved a Supplementary Agreement between the United Nations and the Carnegie Foundation on use of the

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Peace Palace, the report recalls. This amended article II of the Agreement to reflect the United Nations revised annual contribution and subject it to annual increases relating to inflation. The current annual contribution of some 1.8 million Netherlands guilders includes operating costs of 40,000 Netherlands guilders for the dining room.

The Secretary-General's report on construction of conference facilities at Addis Ababa and Bangkok (document A/53/347) says the project at Addis Ababa started in 1991, was completed in 1996 and inaugurated in 1998. Work related to the completion of the telecommunications system was the only activity still outstanding, but no additional resources were being requested beyond the level of some $115.2 million already approved for the project by the General Assembly.

As of 30 June 1998, total disbursements came to some $113 million, the report says. While all remaining accounts are expected to be finalized in 1998-1999, closure of the construction-in-progress accounts was contingent on the outcome of a potential claim from the contractor for extra work and loss of time related to the telephone system. Regarding deficiencies identified in the telecommunications system, the report says that authorities had not cleared from customs the items needed to remedy them. Discussions and negotiations with the host Government should resolve the customs problem within the one-year warranty period, at which time the contractor would correct those deficiencies.

The Secretary-General suggests that the Assembly take note of the report, and note also that progress reports would continue to be submitted until the project was completed. Annexed to the report is a selected list of meetings held at the conference facilities from November 1997 to June 1998. The construction project at Bangkok had been completed in 1993 and no further reports would be submitted, the report says.

In its related report (document A/53/7/Add.5), the Advisory Committee expresses serious concern about the effect that any non-compliance with the provisions of the Agreement between the host Government and the United Nations might have on the total cost of the telecommunications system project. It recommends that the Secretary-General take urgent measures to find a resolution to the dispute and report on the result of the negotiation to the General Assembly before the end of 1998.

Statements on Programme Budget for Biennium 1998-1999

WARREN SACH, Director of the Programme Planning and Budget Division, introduced the reports of the Secretary-General to the Committee. He said the report on the cost-benefit analysis of the Palais Wilson addressed the need for a third conference room at the Palais. The costs would be borne by the host Government, while the benefits would accrue to the United Nations. An additional conference room would assist the timely scheduling of meetings of

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the human rights bodies, and the Palais des Nations' conference rooms would consequently be available to accommodate requests for rooms previously not met during peak periods.

On the report on financial arrangements associated with the dining room at the International Court of Justice, he said that the operation of the dining room had no impact on the United Nations regular budget, and no changes were proposed. He suggested the Committee might wish to take note of the report.

The third report was on conference facilities at Addis Ababa and Bangkok, he said. Regarding the construction costs for Bangkok, those had already been capitalized. The Addis Ababa conference facilities had been completed in 1996 and inaugurated this year. The only outstanding element was the telecommunications system. Some deficiencies had been identified, but they could not be fixed because of problems of customs clearance. Staff had been working on resolving the problem of customs clearance. It was expected that the problems could be addressed in the warranty period, provided the necessary items were cleared from customs. While the Secretary-General would continue to report on progress, it was anticipated that the problems would be resolved and the accounts finalized in this biennium. He suggested the Committee might wish to take note of the report.

MOVSES ABELIAN (Armenia), Chairman of the Fifth Committee, then read out a proposed draft decision on conference facilities at the Palais Wilson, the text of which reads as follows:

"The General Assembly takes note of the report of the Secretary-General on a cost-benefit analysis on the use of existing conference facilities available at the Palais Wilson at Geneva, contained in document A/53/302."

EVA SILOT BRAVO (Cuba) requested more time to consider the draft decision. Given the short amount of time available since Committee members had first seen the draft decision proposed, action could be taken in the next few days.

Consideration of the draft decision was postponed pending informal consultations. The CHAIRMAN then called for comments on the Secretary- General's report on the dining room at the International Court of Justice.

THOMAS REPASCH (United States) said the report was filled with useful information about efforts to provide a catering facility. The United States took note of the report's affirmation that the dining room was a useful contribution to the efficiency of the International Court of Justice, but was concerned that it was running at a deficit. He sought details of the loss so far and information on the chances of improvement. He drew the Committee's attention to previous General Assembly decisions that catering operations should be self-supporting where possible.

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He also noted that the report said judges and others paid for lunches at the facility at full cost. He sought advice as to whether that was the cost of the food only, or included costs of utilities and other related costs. The United States believed the United Nations should not be subsidizing costs of that or any other catering facilities. All costs should be identified and should be reimbursed by the caterers. He understood the dining facility costs were not borne by the United Nations, due to relations with the Carnegie Foundation, but he would expect the same standards that applied to other facilities to be met.

The Committee then turned its attention to the report on construction of additional conference facilities at Addis Ababa and Bangkok.

Mr. REPASCH (United States) referred to problems in getting needed equipment through customs of the host country. The report indicated that that problem should be resolved within the one-year warranty period. However, in his view, the warranty period should begin on the day the system was up and running.

Mr. SACH, Director of the Programme Planning and Budget Division, said that while that would be desirable in principle, the terms were that it started from the date the shipment was made -- February 1998. The one-year warranty period was getting close to expiring. At this stage, the United Nations was not in a position to make a change in the warranty period.

The CHAIRMAN then read out a draft decision:

"The General Assembly takes note of the annual progress report of the Secretary-General on the construction of conference facilities at Addis Ababa in Bangkok and contained in documents A/52/579 and A/53/347 and endorses the recommendations of the ACABQ contained in paragraph 5 of its report A/53/7/Add.5."

The Committee approved that draft.

Financing UNOMSIL

YEO BOCK CHENG, Director, Peacekeeping Financing Division, Department of Management, introduced the Secretary-General's report on the financing of the Mission in Sierra Leone. Total cost estimates comprised almost $6 million in non-recurrent start-up costs and close to $18.4 million in recurrent costs. Since the report had been issued, several costs had been reduced for reasons including delays in implementing deployment of military observers. The ACABQ had been informed of that, and had used the revised figures in developing its recommendations.

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Statements on Office of Internal Oversight Services

NIKOLAI LOZINSKY (Russian Federation) supported the continuation of regular audits of United Nations peacekeeping operations. Despite the reduced amount of such operations, required financial resources were considerable. Particular attention should be paid to procurement activities. He welcomed the inclusion of human resources management in the Oversight Office's priority areas, and said the Oversight Office should continue its efforts to correct defects in that sphere.

On the Office's subject reports, he said those should be considered under the agenda items to which they corresponded. While he supported in principle the continuation of the strategic course for the broadest possible coverage of United Nations areas, he also emphasized the need for further study of the control and oversight issues with an introduction of other recommendations in areas of key importance to the Organization and its Member States.

Without questioning the decision to divide discussion on various aspects of the reports and the Office's work between three different agenda items, the Russian Federation believed that an opportunity should be found for at least an unofficial joint discussion of all key areas of the Office's work. Review of Assembly resolution 48/218 B [by which the Office had been created] should be linked to discussion on the quality and outcome of the Office's work. Consideration should be given to linking the review of other oversight mechanisms in the United Nations.

TRYGGVE GJESDAL (Norway) said the Office's annual report in previous years had led to media attention to various improper activities uncovered. The absence of such attention this year indicated success of the Office's proactive approach. Further, mainstreaming internal oversight at the United Nations and improved oversight coordination had added an extra dimension to reforms and increased public confidence in the Organization and its funds and programmes. The Office's achievements provided assurance that the Secretariat and the funds and programmes were managed satisfactorily. Such assurances were important to all Member States.

Norway had been particularly interested in oversight within the Organization's humanitarian activities, and especially those of the United Nations High Commissioner for Refugees (UNHCR), he said. The Oversight Office's audits had focused on overall programme administration at headquarters and in the field. Norway worked closely with the Office of the High Commissioner to increase transparency and accountability in all aspects of financial and operational management. It was satisfied that the Office's annual report confirmed that constructive efforts made by the High Commissioner responding to earlier observations by the Oversight Office and the Board of Auditors had been effective. Such efforts must be further strengthened. He agreed with the Office's finding that the drive to

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decentralize management had led to short-term problems, but would, over the long run, improve programme management and control.

Last year, his delegation had expressed dismay over findings of fraud in the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) from 1992 to 1995, he said. Norway had noted the Office's assurances that internal controls were being strengthened at the Agency. The report indicated that UNRWA had begun action to address the Office's core recommendations from its review in 1995. He agreed with the Office that UNRWA was burdened by management problems stemming primarily from the complex political situation and budgetary constraints.

On the International Criminal Tribunal for Rwanda, the Oversight Office had found that it was functioning more effectively than in previous years, he noted. Still, the report indicated continuing problems in some areas, including staffing problems. He was encouraged by improved Headquarters' support for the Tribunal and trusted that, with the establishment of a third trial chamber, the Tribunal would continue to improve the fulfilment of its objectives. He hoped that with improved support from Headquarters, along with the Oversight Office's support, the Tribunal would be able to further improve its administrative functioning.

KIM EUY-TAEK (Republic of Korea) said he took note of the on-going efforts of the Oversight Office to cooperate and coordinate its programme with other oversight bodies. He noted with satisfaction that the working methods of the Oversight Office had become part of the management structure, and that the implementation rate for audit recommendations had increased to 73 per cent. He also noted the increased number of reports from the Office and the increased demand for its reports by mandates of legislative bodies, which provided meaningful indicators of the use of the Oversight Office.

He noted the promulgation of new Guidelines for Programme Monitoring and Evaluation and the effort to introduce the internal control standards developed by the International Organization of Supreme Audit Institutions, and welcomed the application of its service to human resources management.

Ms. SILOT BRAVO (Cuba) said there was a need to more clearly delineate the role and functions of the Oversight Office so it could carry out its mandate. In its report, it requested an additional post to monitor implementation, and another additional post. Cuba regretted that an annual report had been used to make budget requests. In transmitting the report, the Secretary-General should have stated a view on that. Cuba requested additional information on the request for posts and the work that such posts would carry out.

The report contained information on a meeting hosted by the Swiss Government, she said. That was not a United Nations meeting, and it was not good practice to report on them. Ways to improve oversight services of funds

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and programmes was a subject pending a General Assembly decision on the controversial interpretation of the mandate of the Office. Cuba agreed with the need to improve oversight mechanisms in funds and programmes, although there should be respect for the institutional needs and arrangements of each separate fund or programme regarding oversight.

The Oversight Office had reported savings and recovery of some $10.3 million, she said. In a previous report, it had identified $10.1 million in reductions to the budget, courtesy of Oversight Office activity. Cuba sought information about the sections where budget reductions had occurred and how those savings were related to activities that had not been carried out in the 1996-1997 biennium.

While the report dealt with implementation of recommendations, no information was provided on recommendations that did not have the support of the relevant programme managers, she said. Cuba sought information on that, on how responses were sought from programme managers and on the procedures followed. She supported the proposal that annual reports should reflect information on that subject.

Cuba appreciated the evaluation of recruitment processes at Headquarters, she said. She requested additional information on comments on shortcomings in staff recruitment processes, notably on the lack of transparency and on delegation of human resources authority. In the light of consideration of the General Assembly on reform of human resources management, it would have been useful to have had more specific recommendations from the Oversight Office on the impact of delegation and shortcomings of human resources management.

She said that all recommendations of the Oversight Office that required legislated mandates should be submitted to the relevant intergovernmental bodies. Cuba supported the need for continued cooperation between the Oversight Office and external oversight bodies, with due respect to the different functions and the contributions each could make to improving the work of the Organization. Cuba required complete compliance with General Assembly resolutions by all oversight bodies.

MOWAFAK AYOUB (Iraq) said that the Under-Secretary-General for Internal Oversight Services, Karl Th. Paschke had previously spoken of an investigation of two staff. He had refrained from commenting earlier because he had understood that the matters were still in internal processes. He had now learnt that the matter had made its way into the media and the Internet. Having learned that, he needed to comment. The information in the media showed that the leak had come from the Oversight Office, as the leaked information was secret and known only to the Oversight Office staff. That information should not have been communicated before it was considered by the Fifth Committee. The nationality of the staff concerned had been given, and that was prejudicial to the country concerned. The leak aimed at bending the

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enquiry and prejudging its conclusions. Iraq demanded an immediate investigation into the source of the leak and a written response from the investigation.

Other Matters

DULCE BUERGO-RODRIGUEZ (Cuba) said that since the introduction of the report of the Secretary-General on reform of human resources management, a number of delegations including Cuba had sought the responses of the ACABQ to that matter. The Chairman had said a response from the Advisory Committee would be received. The Advisory Committee report had not dealt with the matter. She asked what had been done in response to the request. Cuba proposed that the closure of debate on human resources management be postponed until a report from the Advisory Committee had been received.

NAZARETH INCERA (Costa Rica) said she wanted to refer to the letter read yesterday from the Chief of United Nations Security responding to her questions. She had, unfortunately, not been present to hear it, but according to the information she had received, the letter had not answered her questions. She had asked who had decided that only permanent representatives could use the Delegates' Entrance vehicle gate, and under what legislative mandate. She was surprised to learn that the architects had not anticipated, in 1993 when the gates were installed, the number of users. She did not object to having credentials checked prior to entry. As to references to special privileges of permanent representatives, she wished to inform the Chief of Security that everyone at the United Nations had the same privileges, and all had the right, unless the General Assembly decided otherwise, to use all entrances and exits to the premises.

Her question was who had made the decision, and under what mandate, she said. She also wished to know who had been contracted to carry out work on the escalators. Every other week they could not be used. Also, the elevators, when needed during meetings, could not be used because they were being modified. Now they were slower than ever. She asked who had decided this should be done and under what circumstances.

MILES ARMITAGE (Australia), Acting Committee Chairman, said her comments would be passed on.

JUDITH CARDOZE (Panama) supported the comments made by the representative of Cuba. Why had the ACABQ not submitted its views on the Secretary-General's report on human resources management reform? she asked. Several related documents had not yet been issued. She asked why that was so, and hoped they would be submitted as soon as possible. Turning then to the Committee's upcoming party, she urged members to buy their tickets and contribute beverages.

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AMJAD SIAL (Pakistan) said the representative of Cuba had raised an important point. The Secretary-General's report contained administrative issues, and the ACABQ should consider it before discussion on the agenda item was closed. Other related reports, including those on internal vacancies and the use of consultants, were to be considered by that body. He asked about the status of the ACABQ's report on annexes to the Secretary-General's report on the development account (document A/52/1009).

JOSEPH ACAKPO-SATCHIVI, Fifth Committee Secretary, recalled that the representative of Tunisia had asked whether the report on human resources management would go to the ACABQ for consideration and comment. Her remark had been taken up by Cuba's representative. The Committee Chairman had said he would inform the ACABQ Chairman of the request, and that had been done. The ACABQ Chairman had felt the Secretary-General's report was political and that it was for Member States to take a decision on it. Since the representative of Cuba was insisting on a report from the ACABQ, that body's Chairman would be informed and invited to the Committee tomorrow morning to explain why he felt it should not consider the report.

The Chief of Security would be informed of the representative of Costa Rica's concerns, he said. He would give her a copy of the letter he had received.

The Acting CHAIRMAN said discussion on human resources management would continue during the meeting tomorrow and the Committee could then consider proposals to extend the discussion.

Ms. SILOT BRAVO (Cuba) said she had noted what had been said. Ultimately, the Committee would have to take a decision on the report which the ACABQ was being asked to consider. While she recognized the political implications of such a decision, there were also administrative issues. She then asked about the status of the ACABQ's consideration of reports on the programme budget, particulary those concerning pilot projects and the contingency fund.

The Acting CHAIRMAN said answers would be sought.

Mr. SIAL (Pakistan) said that while he would welcome the presence of the Chairman of the ACABQ, it would be more prudent if the ACABQ considered the Committee's request and conveyed its opinion to the Committee, instead of a discussion.

Ms. CARDOZE (Panama) said human resources management was of great importance to her delegation, and the Advisory Committee's analysis was needed. The ACABQ should comment on reports on retirees (document A/53/526), guidelines for consultants (document A/53/385), use of consultants (document A/53/548) and human resources reform (document A/53/414).

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Ms. INCERA (Costa Rica) supported the statement made by the representative of Pakistan. Why should the Committee wait for the ACABQ Chairman to come and engage in a debate? she asked. A number of delegations had made a request. She did not see what there was to discuss.

DJAMEL MOKTEFI (Algeria) said confrontation between the ACABQ Chairman and members of the Committee should be avoided, since it would be counter- productive. The Committee should consider formulating a specific request that the ACABQ consider the document.

The Acting CHAIRMAN said the Fifth Committee could request the ACABQ to take up the reports.

Ms. CARDOZE (Panama) said the ACABQ should also consider the report on internal vacancies (document A/53/327).

Ms. SILOT BRAVO (Cuba) recalled that on the day the Secretary-General had introduced his report on human resources management, the representative of Tunisia had requested that it be sent to the ACABQ. No delegation had opposed that request. If the Committee wanted to continue losing time and make a formal request, she would not object. But it was regrettable that after almost a week of discussing human resources, the ACABQ had not taken any step to include in its agenda the reports mentioned.

The Acting CHAIRMAN said Movses Abelian, the Fifth Committee Chairman, should be the one to make a ruling. However, his understanding was that the earlier request had been from delegations rather than from the Committee itself. The Committee could now decide to request the ACABQ to study those reports.

He suggested that the Committee request the ACABQ to consider the report on human resources reform.

The Committee agreed to that decision.

The Acting CHAIRMAN said he understood that the ACABQ had already considered the reports mentioned by the representative of Panama.

Ms. CARDOZE (Panama) said it was that body's responsibility to submit its views on those reports so the Fifth Committee could take a decision on them.

Mr. ACAKPO-SATCHIVI, Committee Secretary, said ACABQ reports were expected on the reports she had mentioned. He expected to receive them by tomorrow evening and bring them for processing. The Committee would not conclude discussing human resources management until it had considered all the reports on the item.

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For information media. Not an official record.