GA/AB/3266

CONTRIBUTIONS COMMITTEE WOULD BE REQUESTED TO HOLD SPECIAL SESSION TO CONSIDER REQUESTS FOR EXEMPTION TO ARTICLE 19, BY FIFTH COMMITTEE TEXT

18 November 1998


Press Release
GA/AB/3266


CONTRIBUTIONS COMMITTEE WOULD BE REQUESTED TO HOLD SPECIAL SESSION TO CONSIDER REQUESTS FOR EXEMPTION TO ARTICLE 19, BY FIFTH COMMITTEE TEXT

19981118 Committee Also Approves Text on Financing UNOMSIL, Discusses Human Resources Management, Board of Auditors Reports

The Committee on Contributions would be requested to hold a special session in early 1999 to consider requests for exemption to Article 19 of the United Nations Charter, by which Member States lose voting rights when their outstanding dues reach a certain point, according to a draft resolution approved without vote this morning by the Fifth Committee (Administrative and Budgetary). Such requests were recently made by Bosnia and Herzegovina, Republic of the Congo, and Iraq.

By another draft resolution, also approved by the Committee this morning without a vote, the Assembly would appropriate $22 million gross for the United Nations Observer Mission in Sierra Leone (UNOMSIL) for the period from 13 July 1998 to 30 June 1999. The representative of Canada introduced the draft on UNOMSIL, and Pakistan's representative spoke before the Committee's action.

Ireland's representative introduced the draft related to Article 19, which was considered under the agenda item on the scale of assessments used to split the costs of the Organization's expenses among its Member States. Before action, statements were made by the representatives of the United States, China, Austria (for the European Union) and Indonesia.

The Committee decided to recommend to the Assembly the programme budget implications of that draft, after the Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), C.S.M. Mselle, introduced that body's views on the matter. The representatives of the United States and Japan spoke.

Following that recommendation, statements in explanation of position on the draft resolution were made by the representatives of Uganda, Cuba, New Zealand, Australia, Singapore, Zambia, Congo, Poland and Indonesia.

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On human resources management, the representative of Côte D'Ivoire said that, to avoid "ethnic ghettos" in United Nations staffing, the Office of Human Resources Management should conduct a study on racial discrimination and monitor career advancement. A quota system should be use to ensure proper representation.

Many African staff members felt they were relegated to subordinate positions despite their performance and qualifications, he said. Fewer and fewer African nationals were in policy-making positions. It took an average of 18 years for an African recruited as a junior professional to be promoted to the P-5 level, he added.

Uganda's representative said that staff of colour believed they were discriminated against, and that where there was smoke there was fire. The Organization accepted that gender discrimination existed, and where discrimination against women existed, racial discrimination was also likely.

The representative of Cuba said that although no post was the "fiefdom" of any Member State, certain posts were always filled with nationals of the same State, while other posts were rotated among developed countries. On use of consultants, attempts to subordinate the principle of equitable geographical representation in order to achieve savings did violence to the principles of the United Nations Charter and related Assembly resolutions.

Iran's representative said that the lack of a comprehensive system for career development could create an imbalance in favour of fixed-term and non-career staff. Replacing permanent staff with short-term employees and consultants because of reductions in the level of posts undermined the Organization's institutional memory and affected programme delivery.

The representatives of China and Libya also spoke.

Also this morning, the Committee discussed financial reports and reports of the Board of Auditors. Speaking also for Australia and New Zealand, Canada's representative said that some organizations covered in the Auditors reports were not funded by the United Nations. Their audits should be reviewed by the ACABQ and then by the relevant governing board, not the General Assembly.

The representative of Austria, for the European Union and associated States, said that in light of the dramatic increase in the Board's workload, he supported the proposal for additional resources. During the next audit cycle, the Board should evaluate the effectiveness of efforts to reform procurement processes by conducting a horizontal audit of the process.

The awarding of exigency contracts was an ongoing problem, India's representative said. Action was needed, as a priority, to address

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irregularities in the appointment and evaluation of consultants, as well as inadequacies in their work.

After a discussion on other matters, and a ten-minute suspension for consultations, the Committee decided that its Chairman would send a letter to the President of the General Assembly reaffirming the importance of adhering to agreed procedures regarding consideration of budgetary matters.

The representatives of Panama, Algeria, Costa Rica, Syria, China, Cuba, Austria (for the European Union), Egypt, Pakistan, Libya, Iran, Uganda, Indonesia, Canada, Ecuador and India spoke.

The Committee will meet again at 10 a.m. tomorrow, 19 November, to discuss the United Nations pattern of conferences.

Fifth Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to take action on draft resolutions relating to the financing of United Nations peacekeeping operations -- the United Nations Observer Mission in Sierra Leone (UNOMSIL) -- and the scale of assessments used for splitting the cost of the Organization's expenses between its Member States. It was also scheduled to take up a report on the programme budget implications of the draft on the scale.

In addition, the Committee was to continue discussing human resources management, as well as the United Nations system financial reports, audited financial statements, and reports of the Board of Auditors.

(For background on human resources reports, see Press Releases GA/AB/3251 of 8 October and GA/AB/3258 of 9 November. For financial statements and Auditors reports, see Press Releases GA/AB/3255 of 2 November and GA/AB/3264 of 16 November 1998.)

Financing UNOMSIL

The Committee had before it a draft resolution on the financing of UNOMSIL (document A/C.5/53/L.14) submitted by the representative of Canada on behalf of the Chairman of the Committee, following informal consultations.

By its terms, the General Assembly would decide to appropriate $22 million gross (about $21.3 million net) for the establishment and operation of UNOMSIL from 13 July 1998 to 30 June 1999, which would include deployment costs of $783,700 gross for 17 April to 12 July 1998 and some $10.6 million gross ($10.4 million net) previously authorized by the Advisory Committee on Administrative and Budgetary Questions (ACABQ) for 13 July to 13 November 1998.

It would decide to apportion some $12.9 million among Member States for 13 July 1998 to 13 January 1999 and to apportion about $9.1 million for 14 January to 30 June 1999 at a monthly rate of some $1.6 million.

Scale of Assessments

The draft resolution on the scale (document A/C.5/53/L.13), pertains to requests for exemptions to sanctions under Article 19 of the Charter. Under Article 19, Member States who are significantly behind in the payment of their dues to the Organization are deprived of voting rights in the General Assembly, unless exempted by the General Assembly from that sanction.

Normally, requests for exemptions are submitted to the General Assembly through the Committee on Contributions, which makes a recommendation to accept

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or reject the request through the Fifth Committee. The Fifth Committee has been holding informal discussions on action to be taken on three requests -- from Bosnia and Herzegovina, the Republic of Congo and Iraq -- received after the Committee on Contributions had completed its regular session. Earlier this session, the Fifth Committee recommended granting of exemptions to two such requests from Guinea-Bissau and Georgia.

By the terms of the draft, the General Assembly would request the Committee on Contributions to hold a special one-week session early in 1999 to consider requests for exemptions and to report to the Assembly at its resumed fifty-third session.

The General Assembly would also reaffirm its role under Article 19, and the advisory role of the Committee on Contributions under rule 160 of the General Assembly rules of procedure.

According to a statement submitted by the Secretary-General (document A/C.5/53/35), should the Assembly adopt the draft, the convening of a special session of one week's duration in 1999 would require $271,800. Of this amount, an additional appropriation of $94,800 under section 1A (Overall policy-making, direction and coordination) of the programme budget for 1998 to 1999 would be needed to cover the travel of members of the Committee on Contributions who did not reside in New York, and for the travel of the Chairman of the Committee to introduce its report to the Fifth Committee.

Introduction of Draft Resolution on Financing UNOMSIL

GABRIELLE DUSCHNER (Canada), who had conducted informal consultations on the item, introduced the draft.

AMJAD SIAL (Pakistan) said his delegation had joined the consensus, but the Secretariat should take into account, comments made during the informal consultations on efficiency and economy in conducting operations.

Action on Scale of Assessments

FRANK SMYTHE (Ireland), who had conducted informal consultations on the item, introduced the draft which had been agreed to by consensus in the informals. He thanked those who had been involved for their patience in the complicated proceedings.

The representative of the United States said his delegation had joined the consensus with some misgivings. The Committee's October decision to grant two exemptions without referral to the Contributions Committee might have had a short-term imperative. However, circumventing Article 160 of the rules of procedure was now going to cost the United Nations over a quarter of a million dollars. There had been no such urgency to require the Committee on Contributions to act before its scheduled session.

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In the context of the normal discussion of the Contributions Committee, there could be opportunity for the Assembly to make recommendations to that body on how to adjust its work programme to deal with applications for exemption to Article 19, he said. A hasty, ad hoc process such as had taken place recently was not the way for important decisions to be made. He accepted the resolution on the understanding that the Committee on Contributions would look at its programme of work and reduce its June session proportionately. He also hoped that there would be consideration of how to deal rationally with applications of Member States for exemption.

The representative of China said his delegation's proposal had been made more than a month ago on the item. His delegation would join the consensus, but when a Member State submitted an application for exemption, it should go through the appropriate procedures. That was an issue his delegation had stressed in October. However, the Committee had then approved the application for two Member States. Now, his delegation stressed the need for equal treatment for all Member States. When considering such matters in the future, those two principles should be the basis.

The representative of Austria, for the European Union, said the current decision was a major improvement over the decision taken on 7 October. He welcomed the fact that the Committee on Contributions was again involved in the process for requests for exemption. The role of that body must be preserved. He thanked the countries involved for their flexibility. There was need to adopt a procedure to avoid the necessity of special sessions in the future, and he was confident that the Committee could approve a draft resolution during its ongoing debate on the agenda item.

The representative of Indonesia said that his delegation agreed with the observations and comments made by the representative of China.

The Committee then approved the draft without a vote.

MOVSES ABELIAN (Armenia), Fifth Committee Chairman, then drew attention to the statement on programme budget implications regarding that draft.

C.S.M. MSELLE, Chairman of the ACABQ, presented the views of that body. By identifying savings, there would be no need for further appropriations.

The representative of the United States asked whether, if the Contributions Committee was able to reduce the length of its June session by a week, there would be comparable savings in the budget to offset the cost of the special session.

Mr. MSELLE said he had said there would be additional requirements, but not necessarily additional appropriations.

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The representative of Japan emphasized that the Member States concerned should submit as quickly as possible detailed data to back up their requests for exemption. Otherwise, the Contributions Committee would be unable to discuss the issue.

The CHAIRMAN then proposed that the Committee decide to make the following recommendations:

"Should the General Assembly adopt the draft resolution L.13, an additional appropriation of $94,800 would be required under section 1a of the budget, and would be considered in the context of the first performance report for the biennium 1998-1999".

The Committee decided to make that recommendation.

The representative of Uganda, speaking in explanation of position on the draft resolution, said that Uganda had reluctantly joined in the consensus language of the draft. However, he would like to emphasize that all requests for exemptions under Article 19 must be made according to Rule 160 of the General Assembly Rules of Procedure. All countries that might fall under Article 19 provisions should take note of the meetings of the Committee of Contributions. Member States must work together to strengthen Article 19. Additionally, the recommended special session of the Committee on Contributions should not be at the expense of the regular session of this committee.

The representative of Cuba regretted that the decision had taken more time than it should have. In later discussions, Cuba would speak extensively on Article 19. He supported the comments made by China and deeply regretted that with this decision requests would, once again, be taken up in an unequal and discriminatory way.

The representative of New Zealand said that her delegation noted with pleasure that the draft reaffirmed Article 19 and Rule 160. That was an improvement over the events of the previous exemptions. The draft resolution brought activities back in line with procedure. New Zealand supported the statement made by the representative of Uganda.

The representative of Australia said Australia was pleased to join the consensus and was pleased that the Committee had decided to seek the views of the Committee on Contributions. That was the prudent way to deal with such requests. The Fifth Committee should act on requests on the basis of sound technical advice from the body set up to provide it. It was important to ensure that Article 19 remained the viable instrument it was meant to be. In future, he hoped less costly solutions than a special session of the Committee on Contributions would be used. Australia appreciated the patience of the three Member States that had waited a number of weeks for a response to their requests.

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The representative of Singapore said it had taken almost a month to arrive at the decision, but it was a decision in the right direction. Rules of Procedure had been followed. Singapore supported the draft resolution, as it reaffirmed the importance of the Committee on Contributions as the proper channel for such requests.

The representative of Zambia said Zambia had joined consensus because it understood that two wrongs did not make a right. He hoped this draft resolution would close the door on back-door applications for exemptions to Article 19 sanctions.

The representative of the Congo said he was pleased that, at long last, the difficult negotiations had been completed. They had taken a whole month. There were lessons to be taken from the negotiations. In the future, a decision should be made as to how to treat Article 19 and Rule 160 of the Rules of Procedures. The General Assembly would have to take a firm decision on how things would be done. It was important to realize that everything contained in the resolution should not be institutionalized. The Fifth Committee had chosen to apply Rule 160 strictly. If that was institutionalized, Member States would have to institutionalize special sessions of the Committee on Contributions.

The representative of Poland said he supported the statement made by Austria on behalf of the European Union.

The representative of Indonesia said Indonesia had joined the consensus on the draft resolution with a strong wish that the Committee on Contributions would give favourable consideration to the three requests concerned.

Statements on Human Resources Management

ZHANG WANHAI (China) said he would like to take the floor to support the Syrian statement of 16 November, especially the part on the security of United Nations personnel which was very important. From a procedural point of view, the issue of safety and security of staff should be discussed in the Fifth Committee.

NESTER ODAGA-JALOMAYO (Uganda) said that the work of the Fifth Committee was structured so that in an off-budget year, the main agenda item was supposed to be issues related to personnel. Uganda was therefore disappointed that the reports on human resources management had been introduced close to the eve of the main part of the fifty-third General Assembly. That did not give the Committee enough time to exhaustively consider the various reports introduced under the agenda item. The late issuance of some reports and the unavailability of the ACABQ reports on some issues compounded the problems small delegations, particularly those from developing countries, had in looking at the issues in-depth.

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A microscopic look at the Secretary-General's report on human resources management reform had been taken, he said. Uganda concluded that the report, in some cases, contradicted Article 101 of the Charter. That point had been well stated by the "Group of 77" developing countries and China. The report also gave the impression that nothing had been working in the Organization, which was not fair to the underpaid international civil servants who had, under difficult circumstances, kept the Organization functioning. A number of the proposals contained in the report had been implemented for several years by some national governments. The Organization must move fast to adjust its management style. It was important that the Organization stop holding staff accountable for the process and start holding them accountable for results. The General Assembly had repeatedly said the essential management-improvement programme required competent central machinery, and that was more important after years of restructuring. The Office of Human Resources Management needed to maintain its central policy authority.

He said the United Nations had been through a complex reform process since 1986, under the labels of reform, then renewal, then consolidation, then restructuring, then strengthening and now back to "renewing the United Nations: a programme for reform". The Secretariat had accorded the process disproportionate high priority, including when allocating resources, and reform had become a priority in the medium-term plan and the Programme Budget. Uganda would appreciate being told of the vision of the Organization in the mandated priority areas.

The United Nations was unique, he said, and it could not be run as a corporation, nor could it be based on models drawn from Member States. It was a non-profit making Organization. Those who still shared the wishes of the founding fathers would like to see a United Nations that encompassed all the peoples of the world, regardless of sex, religious belief or nationality. Uganda took solace in the statement of Assistant Secretary-General for Human Resources Management that she had learned that some practices from outside did not apply, and that she would not go down a path until she had discussed it with the participants.

Two issues of paramount interest to Uganda needed to be highlighted, he said -- the issue of gender, and the treatment of minority groups, particularly those of African descent. Uganda would support all initiatives that would allow 50/50 gender balance in posts subject to geographic distribution. He regretted the slow pace at which qualified female staff were being appointed at senior and policy-making levels, although there had been some movement in the right direction.

Gender balance should not be achieved at the expense of geographical balance, he said. Female staff should be recruited from as wide a geographical base as possible. He was disappointed to note that while recruitment of female staff from some regions was very low, in others it was very high. The Secretary-General should implement an affirmative action

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programme in that regard, and Uganda would appreciate receiving a conference room paper on the subject, indicating the nationality of all female staff in posts at the D-1 level and above.

Staff of colour had a perception that they were discriminated against in the Secretariat, he said. The last place one would expect that was at the United Nations. Commendable steps had been taken to rid the Organization of gender discrimination, but Uganda would like to know what had been done to rid it of racial discrimination. In response to that matter being raised previously, the Office of Human Resources Management had said there was no racial discrimination, but that it would conduct an survey and report on the matter. Samples of questionnaires had also been promised to the Fifth Committee. Neither the report nor the questionnaire had been forthcoming.

There was no smoke without fire, he said. Racial Discrimination must, therefore, exist. The Organization had accepted that gender discrimination had existed, and an environment of gender discrimination would be likely to have racial discrimination. Uganda hoped that measures similar to those taken to address gender discrimination would be applied.

RAFAEL DAUSA CESPEDES (Cuba) expressed concern that the Secretary-General's intention to decentralize functions and delegate authority might not take into account the concerns of Member States, as reflected in a number of resolutions, including 51/226, on the need to take steps to make programme managers exemplify the performance culture. The Secretary-General's report on implementing resolution 51/226 described the way accountability was to be achieved, but did not define procedures for analyzing the quality of decisions taken by programme managers, or the measures to be applied when such decisions were inappropriate. So long as no effective steps were taken along those lines, the proposed delegation of authority could not become reality. An effective system of accountability would contribute to raising staff morale and enhancing transparency. Greater delegation of authority must be accompanied by strengthening of the system of in-house justice to guarantee fair and non-discriminatory processes.

The Secretary-General had proposed that staff moving to Professional ranks from other areas go through a trial period, if they had worked in other services or come via national exams, he said. But that should not apply to staff promoted through in-house exams from other services. Effective performance appraisal must be the method for gauging the performance of such staff in their new capacities. He noted the repeated expressions of concerns about difficulties arising from the freeze in the professional ranks. There was need for further information from the Secretariat on that and other matters. Had there been compliance with the provisions of resolution 51/226 on the possibility of offering permanent contracts to staff that had completed their trial period? Also, what measures had been taken to ensure placement within one year of staff passing national examinations? he asked.

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Regarding the composition of the Secretariat, he expressed concern about the imbalance of developing countries in senior and policy-making posts, despite the Assembly's resolutions on that matter. The Secretariat must implement measures required for correcting the situation. Moreover, more information was needed on measures to comply with resolution 49/222 to ensure more equitable distribution of staff within departments. The Assembly had endorsed the recommendation that no post be viewed as the fiefdom of any Member State. However, that had not been complied with. Certain posts were always occupied by nationals of the same State, while other high-level posts were rotated among developed countries. Whatever resolution the Committee adopted on the item should include provisions to correct that.

On consultants, he expressed concern that the Secretary-General's report on the matter attempted to subordinate the principle of equitable geographical representation to the achievement of savings in their hiring. By that idea, consultants hired at the three major headquarters would come solely from developed countries. The proposal did violence to the principles enshrined in the Charter and could call into question the Secretary-General's intention to comply with Assembly resolutions on the matter.

He noted the Office of Internal Oversight Services' recommendations on hiring retirees, and that such hiring primarily took place in the area of conference servicing. A representative of the Department of General Assembly Affairs and Conference Services should address the Committee on the implications of that in a formal meeting. His delegation would comment on the Secretary-General's report on human resources management reform after it received the report of the ACABQ.

MANLAN AHOUNOU (Côte d'Ivoire) said the system of recruiting through competitive examinations, which placed all candidates in one pool without distinction of nationality, was a means of achieving greater transparency and fairness in selecting staff. However, without a quota of posts for individual countries, the system often contributed to excluding nationals of developing countries, who seldom took part in those examinations. The system of quotas should be used.

Fewer and fewer African nationals were in positions of policy-making decisions, he said. On average, it took 18 years for an African recruited to P-2 through competitive examination, whose performance was satisfactory, to be promoted to the P-5 level. African nationals held those senior posts for an average of 6 years. Often, they did not reach the P-5 level before retirement. The average length of time for an African to move from the P-4 to P-5 level was 11 years. Many African staff members felt they did not have proper career prospects and that they were relegated to subordinate positions despite their qualifications. To meet those allegations, the Assistant Secretary-General for Human Resources Management should conduct a study to ascertain whether discrimination existed in the system.

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Measures to promote women seemed to apply primarily to certain regions and penalized some Member States, he said. When nationals of a country were only in junior posts, priority must be given to them when vacancies in higher level posts were considered. The principles used for improving gender balance should be applied to increasing representation of Member States. The criteria of recruiting in line with competence and integrity, transparency and fairness must be applied with regard to gender and geography.

It was unfortunate that staff members' career prospects had to do with their nationality or area of origin, he continued. It was unfortunate that those from some regions found themselves frozen in positions regardless of their performance or output. The Office of Human Resources Management should monitor the careers of officials, and there should be a system of monitoring and controlling results so that "ethnic ghettos" were avoided.

SEYED MORTEZA MIRMOHAMMAD (Iran) said the Secretary-General's proposals for reforming human resources management centred on delegating authority to programme managers. But it was not clear whether he had developed appropriate guidelines on career development or human resources management in a multilateral environment. Nor was it clear whether any systematic monitoring mechanisms had been put in place to ensure implementation of relevant Assembly resolutions. Managers must be trained to handle their authority. Without such training, it would be difficult to ensure that the global Secretariat reflected the interests of all Members.

It was of great importance that a comprehensive career development system be developed, he said. Lack of such career opportunities for staff might create an imbalance in favour of fixed-term and non-career staff, and thus deprive the Organization of the core it required for continuity and effectiveness. He noted efforts to strengthen the Performance Appraisal System, but emphasized that that was not a substitute for career development. The Iranian delegation was also concerned about internal control weaknesses in engaging consultants. Use of such employees might hide the shift away from equitable geographical representation. Replacing permanent staff with short-term employees and consultants as a result of the reduction in the level of posts undermined the Organization's institutional memory and affected the work delivery.

Recruitment processes must ensure fair and transparent recruitment with a view of equitable geographical representation, he said. No Iranian had been recruited in the past two decades, yet the Secretariat's report on staff composition revealed a reduction in the representation of Iranian staff, particularly at higher levels. In addition to high-level Iranian positions in the Secretariat being undermined, some Iranian staff had long been due promotion. The Secretariat should address those concerns and ensure that Iranian representation did not fall below the mid-point figure, which was already too low.

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IBRAHIM ELMONTASER (Libya) supported statements made for the Group of 77 and China, and by the representatives of Uganda and Côte d'Ivoire. As much as he appreciated the efforts of the Secretariat to produce the many reports on human resources management that the Assembly had requested, all those requested reports should be issued in their entirety. He saluted the Secretary-General for his straightforwardness regarding retirees, and for his agreement with the recommendations of the Oversight Office. The results from the audit of the use of consultants were cause for concern.

According to the Secretary-General's report on the composition of the Secretariat, 24 countries were unrepresented, 9 under-represented, 139 adequately represented and 13 over-represented, he said. Priority in recruitment should be given to staff from unrepresented and under-represented countries. The report contained inaccurate information on his country. It indicated that Libya was adequately represented, but documents containing the names of staff members listed some persons as Libyan who were not. Those statistics must be changed immediately, and the Secretariat should take into account the correct information when determining numbers for recruitment. He drew attention to an error in the Arabic text: it had stated that four women had been recruited from Libya who were in fact men.

He stressed the importance of training personnel in a number of areas, including translation and interpretation. While the total number of staff had reached 33,037 staff as of 30 June 1998, only a small percentage were subject to equitable geographical distribution, he noted. The guidelines for determining percentages of posts subject to geographical distribution should be reviewed, as should the formula for determining States' ranges for those posts. He would make other remarks at a later date.

The CHAIRMAN said that, pending the availability of the ACABQ reports on human resources management, the Committee would continue and conclude its discussion at a later date.

Statements on Reports of the Board of Auditors

THOMAS SCHLESINGER (Austria) spoke for the European Union, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Cyprus. There was need for further refinement in the reports of the Board of Auditors. He noted the dramatic increase in the Board's workload and supported its proposal for additional resources. Expressing grave concern over the lateness of the reports, he said they should be published before the Assembly's regular session began, as had been done in the past, to allow time for adequate review.

The Union was concerned at the slow rate of implementation of the Board's recommendations, and supported the Board's proposal, contained in resolution 51/212B, on the accountability of programme managers or department heads in implementing recommendations, he said. The Union also supported the

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Board's recommendation to strengthen monitoring by Headquarters of field operations' financial management. Differences within system bodies regarding compliance with United Nations accounting standards required urgent review and coordination.

He regretted the qualified audit opinion on the financial statements for the United Nations Development Programme (UNDP), the United Nations Population Fund (UNFPA) and the United Nations International Drug Control Programme based on insufficient certification. Problems associated with the use of consultants were another source of concern and the Board should monitor compliance with the recently issued guidelines on them. A special investigation should be carried out on payments to contractors for the UNDP information system and change management initiative. The UNDP Administrator should report to the Executive Board on measures to implement the ACABQ's and the Auditors' recommendations.

The need for procurement reform had been underlined consistently, yet the Board identified a number of continuing irregularities, he said. Deploring lax attitudes on rules and regulations, he said the Board should, during the next audit cycle, evaluate the effectiveness of measures to reform procurement by conducting a horizontal audit of the process. The Union also supported other views of the ACABQ, including that ex gratia payments to Judges of the International Criminal Tribunal for Rwanda should be reimbursed to the United Nations.

On peacekeeping operations, assessed contributions were collectable unless the Assembly decided otherwise, he said. Provision should not be made in the financial statements for delays in the collection of assessed contributions. The Board's comments should be taken into account when the complete backstopping requirements at Headquarters were reviewed for the peacekeeping support account.

He said the formulation of targets and performance indicators should be imposed on all programmes and projects; without those, there was no meaningful measurement of implementation of programmes and projects, and no recourse regarding accountability of programme managers. The Auditors' reports provided ample evidence of irregularities in financial management and administration in the United Nations and adherence to its financial regulations and rules. Too often, managers' failure to abide by those rules resulted in financial losses to the Organization, and they should be held accountable.

LUCIE TALBOT (Canada), also speaking on behalf of Australia and New Zealand, said she endorsed the recommendations of the Board of Auditors and the comments of the ACABQ. She was concerned about the reported lack of preparedness for Year 2000 computer system problems, which could seriously impair the ability of the Organization to carry out its mandates.

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The United Nations, as well as other funds and programmes, relied on the Integrated Management Information System (IMIS), and although it was supposed to be Year 2000 compliant, no testing had been done. Organisations that had not yet assessed their core systems for Year 2000 compliance might have left it too late. She would welcome follow up of the Office of Internal Oversight Services on the problem and a report from the Office to the Fifth Committee on it.

She noted that the Board of Auditors reports addressed some minor compliance issues, for example that some agencies' project files did not contain all the relevant documents. That type of compliance issue should be reported directly to management with Oversight Office follow up, and should only be reported to the General Assembly when recommendations were not implemented. The report of the Board on the United Nations Drug Control Programme, which included a management audit, was useful, and more of that type of audit, which was within the mandate of the Board, would be welcome.

Six organizations covered by the reports did not receive funding from the United Nations, she said, and their audits were reviewed by their executive boards. In those cases, audits should be reviewed by the ACABQ, and then by the relevant governing board. Then the General Assembly would not need to review those audits.

United Nations Accounting Standards were the principles for financial statements that should be followed by United Nations organizations. Those standards should be fully applied. In some instances, numerous financial schedules were provided, in addition to those required by the standards, and managements might wish to analyze the need for those additional statements. They could be reduced substantially, which would give all concerned more time to concentrate on more substantial issues. All organizations should be encouraged to submit biennial reports.

There still seemed to be widespread problems of control of the use of consultants, she said, which left the door open for mismanagement and abuse. Appropriate action must be taken by management. She welcomed the forthcoming discussions in the Fifth Committee on the proposed new guidelines.

Nine of the thirteen reports of Board of Auditors had been issued in October, she said, and had thus not been available when the Committee had begun its programme of work. The General Assembly had resolved that the Board should submit its reports to the ACABQ not later than 1 June and she urged the Board to make all possible efforts to comply with that requirement.

RAJAT SAHA (India) said the concise summary of the findings of the Board of Auditors was a focused overview of their assessment. The Board's observations and suggestions, given the Secretary-General's reform goals of efficiency and cost-effectiveness, were timely and useful. That a proper assets management system had not evolved was of concern. Standard procedures

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for a thorough review of all assets and liabilities of a mission in liquidation, before assets were disposed of and liabilities discharged, were prerequisites to avoid waste.

An effective system to monitor contracts awarded on the basis of delivery schedules was yet to be put in place, he said. Transfer of unserviceable property at additional cost continued to be a perennial problem. India also noted that the Board was unable to provide an opinion on the statements of the UNDP, the UNFPA and the Drug Control Programme, because there was insufficient evidence that funds for nationally executed programmes had been used for the purposes intended.

The UNICEF's failure to comply with the recommendation outlined in General Assembly resolution A/51/225 needed urgent remedial action, he said. Improved control over accounts receivable and accounts payable needed should also be a priority given the release of the modifications to the IMIS. Reconciliation of accounts based on entries of inter-office vouchers should be taken up right away. Regarding the use of consultants, the award of exigency contracts remained a problem. Actions to complete reform of the use of consultants should be taken as a priority basis. Irregularity in the appointment of consultants repeatedly found reflection in the Board's reports and inadequacies continued to exist. Even evaluation of work performed by consultants was unsatisfactory.

Evidently there were still holes in the implementation of Auditors' recommendations, he said. In some instances, problems and solutions were simple. Despite assurances that they would be addressed, Member States were still receiving advice from the Board that problems had not been addressed. India urged the establishment of clear lines of authority and accountability. Unless a proper administrative financial and management system was assured, the achievement of the objectives of the United Nations would continue to suffer.

Statements on Other Matters

JUDITH CARDOZE (Panama) reported on the status of the annual Fifth Committee holiday party. She said she hoped to be able to report on successful completion of that project soon.

DJAMEL MOKTEFI (Algeria) said he wished to draw the Committee's attention to a draft resolution being considered in the General Assembly's Third Committee (Social, Humanitarian and Cultural) -- document A/C.3/53/L.45 -- which included language that compromised the Fifth Committee. Under such circumstances, it was important to remember that rule 153 of the Rules of Procedure clearly reaffirmed that budgetary and administrative matters fell solely and firmly within the control of the Fifth Committee. He requested the Chairman write to the Chairman of the Third Committee to point that out.

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NAZARETH INCERA (Costa Rica) said she supported the comments made by Algeria. The Third Committee was moving into the purview of the Fifth Committee in discussing adoption of that resolution. All Committees must be reminded of the rules incumbent on them.

TAMMAM SULAIMAN (Syria) said those activities of the Third Committee were important and confirmed that the Fifth Committee should discuss them. Yesterday, he had asked that it be conveyed to the President of the General Assembly that discussion of the immunities and privileges of staff should also rightly be discussed in the Fifth Committee. The practice of other bodies discussing matters within the purview of the Fifth Committee should stop as it mixed the competencies of different organs. He supported the proposal that the Chairman advise the Chairman of the Third Committee that financial matters belonged to the Fifth Committee.

The CHAIRMAN summarized the proposals he had received so far. Members had proposed he write a letter to the Chairman of the Third Committee about the draft resolution, drawing the Third Committee's attention to General Assembly resolution 45/248, which affirmed that administrative and budgetary matters should be discussed in the Fifth Committee. It would then be up to the Third Committee to decide what action it would take.

Mr. ZHANG (China) agreed with the representative of Algeria's comments and with the Chairman's proposal.

EVA SILOT BRAVO (Cuba) also supported Algeria's statement and the Chairman's proposal. She felt that the Chairman should also draw the attention of the Third Committee to the relevant parts of the General Assembly's Rules of Procedure and to other Assembly resolutions subsequent to resolution 45/248 that further stated that administrative and budgetary matters were the responsibility of the Fifth Committee.

Mr. SCHLESINGER (Austria), for the European Union, said the Union could not join consensus on an agreement to send such a letter to the Chairman of the Third Committee. It was within the purview of each Committee to pronounce on resource needs. It was up to the Fifth Committee to make budget recommendations and to discuss the details. The Union would not join a consensus on such a letter.

AHMED DARWISH (Egypt) said the issue was not about one item in the Third Committee, but a matter of principle. The Fifth Committee had just confirmed in a draft resolution the importance of following the Rules of Procedure. It could not use a double standard.

AMJAD SIAL (Pakistan) said it was important to respect procedures on administrative and budgetary matters, but Member States tended to forget the resolutions they had passed. The 1990 General Assembly resolution had expressed concern on the issue and had also invited the Secretary-General to

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bring it to the notice of all intergovernmental bodies. Given the proposal to write a letter, there should be coordination by the Secretariat to make Committees aware of their relevant competencies.

Mr. ELMONTASER (Libya) called on Committee members to support the proposal to send a letter or letters to ensure understanding of the competencies of the General Assembly Committees.

Mr. MOKTEFI (Algeria) said his request was very clear-cut -- it was to ask the Third Committee to recall the Rules of Procedure. A decision had already been taken this morning by the Fifth Committee, which reaffirmed that a matter should go to the competent Committee for comments and observations. He was surprised that some delegations were using a double standard. He did not understand such behaviour. His request could not give rise to any opposition from members, as he had merely asked the Chairman to send a letter recalling decisions taken by the General Assembly.

He was surprised that Member States approached General Assembly resolutions so selectively, he said. He had merely asked that the Fifth Committee draw the attention of other Committees to the importance of not overlooking the Rules of Procedure. It was useful for Committees to recall those rules. If no consensus could be reached, Algeria would act in the Committee in the appropriate manner.

Mr. MIRMOHAMMAD (Iran) said he was not sure whether to express surprise at the comments of certain delegations, or view the responses as in keeping with their regular approach. They said they were serious about the Rules of Procedure but then rejected a proposal which he felt was the least that the Fifth Committee could do in support of those Rules. The Chairman's proposal to send a letter was the minimum with which he could rest. Delegations had announced the seriousness of procedures. The issue of the budget was a matter for the Fifth Committee. If the consensus approach was going to be broken, there would be consistency.

Ms. INCERA (Costa Rica) said she was amazed at the reaction of the European Union to the suggested letter. Some members of the Committee had short and selective memories. She asked once again for a letter to be sent along the lines of the Chairman's proposal.

Mr. ODAGA-JALOMAYO (Uganda) said that if you believed in a principle, you should stick to it even when you were not happy about the possible outcome. The problem in the Fifth Committee was that issues were not approached on merit. Representatives tended to get emotional and did not approach issues from a rational perspective. As had been stated by the representatives of Pakistan and Algeria, General Assembly resolution 45/248 was quite clear, and it was the outcome of a consensus decision of the Fifth Committee. It so happened that reaffirming that decision went against a matter quite dear to a number of delegations, but the Committee should

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reaffirm that the decision taken at the forty-fifth General Assembly was as clear today as it had been then. Therefore, he supported the proposal that a letter be sent, not just to the Third Committee, but to all Committees, affirming that administrative and budgetary matters were matters for the Fifth Committee. If consensus failed on that proposal, the Committee would make a decision.

Those that had sponsored the draft resolution in the Third Committee might wish to reconsider, he said. Countries that shared his view on principles would support that proposal.

Ms. SILOT BRAVO (Cuba) said she was surprised that a proposal to affirm measures approved by the General Assembly had been rebuffed by certain delegations. That was quite unexpected. She reiterated her support for the sending of a letter advising Committees of the Rules of Procedure and the General Assembly resolutions. She believed that the proposal from the representative of Uganda would be appropriate. Committees needed to be mindful of procedures that Member States had adopted. A straightforward proposal such as that put forward should enjoy the backing of all delegations.

Ms. INCERA (Costa Rica) said that the proposal was designed to establish procedural matters and did not need to go beyond procedure.

The Committee then suspended its meeting for ten minutes for further consultation on the matter.

The CHAIRMAN proposed orally that the Committee decide that he would write a letter to the President of the General Assembly expressing the Committee's concern, and drawing attention to General Assembly resolution 45/248 section six to all relevant subsequent General Assembly resolutions and to rule 153 of the General Assembly's Rules of Procedure, on role of the Fifth Committee. The letter would request the General Assembly President to transmit it to all other Committees. The drafted letter would be presented to the Fifth Committee prior to its being sent. He believed that proposal could receive consensus support.

He also informed the Committee that the Secretariat had expressed concern about that aspect of the draft resolution before the Third Committee, and had drawn its concerns to the attention of that Committee.

Mr. DARWISH (Egypt) said the proposal went some way in addressing his concerns. If a letter was only sent to the Third Committee, that might give the impression that it was for information only. The Fifth Committee had to make it clear -- which had been done before -- that it was the competent Committee on aspects of the budget and human resources, and on administrative issues.

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Mr. SULAIMAN (Syria) said he was prepared to accept the proposal, but he wanted to draw the Committee's attention to a request he had made yesterday that was similar to today's. He also wanted to draw the role of the Fifth Committee to the attention of the President of the Assembly, as it was not just the other Committees, but the General Assembly itself that had discussed matters that rightly belonged before the Fifth Committee when it had recently discussed the privileges and immunities of United Nations staff.

Mr. ATIYANTO (Indonesia) thanked the Chairman for advising the Committee of the results of the further consultations on the matter. He sought advice as to when the letter might be sent as time was of the essence.

Mr. SIAL (Pakistan) requested that the letter sent be issued as an official document of the General Assembly, as had been done last year. As timing was important, he proposed that the letter be sent today.

Mr. MOKTEFI (Algeria) said Algeria would join a consensus on the proposal as formulated by the Chairman. He stressed the importance of the timing of the letter, and supported the suggestion that it be issued as an official General Assembly document.

Mr. SCHLESINGER (Austria) said the European Union joined the consensus.

Ms. CARDOZE (Panama) thanked the Chairman for finding a solution to this minor controversy.

The CHAIRMAN advised the Committee that the Director of Programme Planning and Budget Division of the Office of Programme Planning, Budget and Accounts, Warren Sach, had drawn the attention of the Secretary of the Third Committee to those matters. The Secretariat had done its part, he said. Now it was the turn of Member States,

Mr ODAGA-JALOMAYO (Uganda) expressed concern about when the letter would be sent, and asked if the Committee knew when the Third Committee planned to take action on the draft resolution. He hoped the Fifth Committee was not too late.

The CHAIRMAN then proposed that it be drafted today. Additionally, the Secretary of the Fifth Committee would be asked to communicate the Committee's concerns orally to the Secretary of the Third Committee. He would sign the letter and submit it this afternoon. He would not propose a deadline for the President of the General Assembly to transmit it, but would ask that it be done as soon as possible. The Assembly President was aware of the time-frames of the Committees. Tomorrow morning, the Chairman would inform the Fifth Committee of what he had done.

Mr. ATIYANTO (Indonesia) said he appreciated the gesture the Chairman had made in dealing with this complex question. There was sensitivity on the

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issue of the timing of the letter. The Chairman had suggested the Secretary of the Fifth Committee would inform the Secretary of the Third Committee today, and the letter would also be sent today. Perhaps the letter sent to the General Assembly President could be copied for the Chairmen of all Committees.

The CHAIRMAN said that, as the letter would ask the Assembly President to transmit the Committee's views to other Committees, he could not also transmit it to them himself.

JAMES ORR (Canada) said he had consulted with his colleagues in the Third Committee. He proposed that any views transmitted to the Third Committee refer solely to the procedural aspects, and not to any specific resolution being reviewed in that Committee. Sensitive negotiations were under way there.

The CHAIRMAN said that the Third Committee planned to take action on the draft resolution tomorrow afternoon. The thirty-three co-sponsors of the draft were also represented in the Fifth Committee. He suggested representatives speak to their colleagues in the Third Committee.

MONICA MARTINEZ (Ecuador) proposed that the Fifth Committee review the draft letter before it was sent.

Mr. ODAGA-JALOMAYO (Uganda) said he supported the valid recommendation that Fifth Committee representatives speak to colleagues in the Third Committee to ensure that no decision was taken until the letter had reached the Third Committee. He had full confidence in the Chairman's drafting abilities and suggested the Chairman draft the letter and then send it.

The CHAIRMAN said that if the letter became an official General Assembly document, everyone would be able to see it.

Mr. MOKTEFI (Algeria) confirmed that he had full confidence in the Chairman's drafting abilities.

Ms. SILOT BRAVO (Cuba) said she appreciated the Chairman's efforts to get to a decision. Some representatives seemed to want to reopen the discussions. She added Cuba's support to the proposal that representatives speak to their Third Committee colleagues to ensure that no decision was taken until the letter had been received.

Ms. INCERA (Costa Rica) echoed Committee members' confidence in the Chairman to write a letter based on what had been done last year. It would be available to all Member States as an official Assembly document.

Mr. SAHA (India) said the Committee had reached a consensus and should go along with it. He stressed that since it was a sister Committee that was

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concerned, representatives should inform members of their delegations in the Third Committee.

The CHAIRMAN asked the representative of Ecuador if she agreed that letter could be sent and seen post facto. He would not mind showing the Committee the letter tomorrow morning, but timing was of concern.

He then proposed that he send a letter to the President of the General Assembly drawing his attention to the relevant General Assembly resolutions and its Rules of Procedure, requesting that the President draw them to the attention of the Assembly's Main Committees. The letter would also ask him to take into account the importance of timing, and to transmit the concerns as soon as possible. The letter would submitted this afternoon.

The Committee agreed to that proposal.

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For information media. Not an official record.