INDEPENDENT INVESTIGATION OF FUNCTIONING OF INTERNATIONAL CRIMINAL TRIBUNALS CALLED FOR IN FIFTH COMMITTEE DEBATE
Press Release
GA/AB/3269
INDEPENDENT INVESTIGATION OF FUNCTIONING OF INTERNATIONAL CRIMINAL TRIBUNALS CALLED FOR IN FIFTH COMMITTEE DEBATE
19981120 Committee Begins Consideration of International Tribunals' Financing, Concludes Discussion of Board of Auditor's ReportsThere should be an independent investigation of the operations and functioning of the International Criminal Tribunals for Rwanda and for the Former Yugoslavia, the Fifth Committee (Administrative and Budgetary) was told this afternoon as it began discussing their financing.
When it came to financing the Tribunals, there was a tendency to request posts and resources to address every possible future development, the Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), C.S.M. Mselle, also noted. Current vacancy rates must be reduced before it could be determined whether new posts were needed.
The Secretary-General's reports on revised 1998 estimates and proposed resource requirements for 1999 for both Tribunals were introduced by the Director, Programme Planning and Budget Division, Office of Programme Planning, Budget and Accounts, Warren Sach. He explained that increases in resources requested for 1999 were a consequence of Security Council decisions and the resulting expected increases in trials and investigations.
The representatives of Pakistan, Austria (for the European Union) and Syria spoke.
Also this afternoon, the Committee concluded its discussion of financial statements and reports of the Board of Auditors on United Nations system organizations and trust funds.
Member States' requests for an audit of procurement practices during 1998 to 1999 had been noted, the Board's Chairman, V.K. Shunglu, said in his concluding remarks. In addition to acknowledging the request for a horizontal audit of procurement to assess the effectiveness of efforts to reform procurement processes, he said the Board shared States' call for urgent action to address the Year 2000 computer issue.
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The Committee also heard from the Controller and Director of the Division of Financial Management Services, Office of the United Nations High Commissioner for Refugees (UNHCR), Jean-Marie Fakhouri, and the Deputy Executive Director of the United Nations Children's Fund (UNICEF), Karin Sham Poo.
If, as the Committee had been told, the United Nations was experiencing constant threats, how could staff from the Safety and Security Service be reduced? Costa Rica's representative asked during discussion on other matters. Explanations for problems with the Service were always explained as the result of resource deficiencies, she added.
The representatives of Syria, Uganda and Morocco also spoke.
The Committee will meet again at 10 a.m. on Monday, 23 November, to continue reviewing administrative and financial efficiency and aspects of the 1998-1999 programme budget, including financing the United Nations Verification Mission in Guatemala (MINUGUA).
Fifth Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this afternoon to continue its discussion on reports of the Board of Auditors. (For background on those reports, see Press Release GA/AB/3264 of 16 November.)
The Committee was also expected to discuss financing of the International Tribunals for the Former Yugoslavia and Rwanda. (For background information on related documents before the Committee see Press Release GA/AB/3268 of 20 November.)
Statements on Board of Auditors Reports
JEAN-MARIE FAKHOURI, Controller and Director of the Division of Financial Management Services, Office of the United Nations High Commissioner for Refugees (UNHCR), stressed the importance the UNHCR attached to the external audit process. The UNHCR had noted Committee members' concerns.
On the issue of income recognition and the question of whether the UNHCR had overstated its income, he said that in the accrual basis accounting system, income was recognized when it was due and not when it was received. The UNHCR followed the accrual basis of accounting for revenue and for expenditure, which provided for proper matching of revenues and costs.
However, according to the United Nations accounting standards, voluntary contributions to fund specific activities should only be recorded when received, which was the cash basis of accounting, he said. Applying that system to special programmes would have major implications. The UNHCR would not be able to undertake other mandated activities until cash was actually received. Delays in receiving cash might require programme activities to stop and start, and would represent an inefficient use of resources. Working towards a unified budget structure, which UNHCR was proposing, would go a long way in resolving the issue.
On the issue of audit certification, he said both the Board of Auditors and the Advisory Committee on Administrative and Budgetary Questions (ACABQ) recognized progress made in that area. Turning then to budget cycles, he said the UNHCR presented annual budgets and reports to its Executive Committee. For annual financial statements to be meaningful, they must be audited and an audit opinion issued. That assured donors that funds received by the UNHCR were used for the intended purposes. The UNHCR had sought the advice of its Executive Committee on the question of biennial audits. The Executive Committee members had expressed a preference for continuing with an annual audit cycle. However, they valued the advice of the ACABQ and recognized the importance of moving towards a biennial audit cycle.
Karin Sham Poo, Deputy Executive Director of the United Nations Children's Fund (UNICEF), said the Board of Auditor's report had been of particular value to UNICEF as it looked for appropriate ways to improve its efficiency and effectiveness. It also appreciated the openness, professionalism and cooperation that the external auditors had shown in the course of their audits. The UNICEF was pleased that its audit had been unqualified. Responsiveness to recommendations would continue to be a high priority, as well as follow up from previous audit reports.
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On cash assistance to governments, that was considered an expenditure because the ownership of funds transferred to governments at the time of payment, she said. The UNICEF required governments to account for the use of those funds, by the submission of documentation proving that the activities had taken place and that the funds were used for them. The payments were made on an ongoing basis in accordance with a plan of action laid out in the programme of cooperation with the relevant government. What was significant was that the balances outstanding for over nine months fell from $34.3 million at 31 December 1995, to $11.1 million at 31 December 1997, which showed that UNICEF initiatives had been effective. Actions included workshops in work-process redesign and control self-assessment.
In 1995, the Board of Auditors had recommended a review of the policy of recording cash assistance to governments. The review had revealed that UNICEF had been consistent since 1969, but that a financial regulation adopted in 1988 to define "programme assistance" had been confusing and hard to interpret. The UNICEF had advised the Board that it would update its financial regulations generally and review its rules, policy manuals and instructions.
On common premises, the issue of cost overruns on projects managed by the United Nations Development Programme (UNDP) had been the result of a recent UNDP investigation, she said. The UNICEF had been billed for costs in excess of those originally agreed upon, and had not paid because those costs could not be substantiated. The UNICEF sought, as recommended by the Board, copies of the agreements on the common premises contracts and related documentation, but the UNDP had been unable to provide detailed information for reasons that had become evident during their investigation. The UNICEF was confident that new standards and methodologies developed by the UNDP eliminated circumstances that led to those overruns.
The UNICEF administration had strengthened management of special service agreements to ensure better compliance with administrative instructions and to obtain better value for money, she said. It had also instructed heads of offices to record observance of contracting rules on individual performance appraisals of approving officials. On the geographic distribution of consultants, a survey revealed that 146 nationalities were represented and that 77 per cent of contracts went to nationals from developing countries.
On fraud, she said that very strict guidelines were in place to govern identification, reporting and prosecution of fraud, and that identification and reporting were rigorous and comprehensive. The administration of UNICEF had also taken major steps to address Year 2000 computer compliance issues.
V.K. SHUNGLU, Chairman of the Board of Auditors, said the Board was pleased to note the Fifth Committee's continued interest in the Board's work and the positive views expressed on the quality of recommendations and findings. The Board continued to seek ways to improve its reports. It also
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welcomed comments supporting additional resources. On the implementation of recommendations, the Board shared the views expressed by Member States that recurring irregularities suggested that further efforts on the part of administrations to ensure deficiencies were addressed when required. That significant deficiencies in control and implementation of programmes continued to occur was of concern.
On peacekeeping, the Board shared concerns expressed about the management of assets, regarding the transfer of unserviceable property at additional cost to the Organization, and that mission liquidation should be done expeditiously, he said. It welcomed Member States' statements on the use of consultants. Administrations should seriously address the problem. The Board agreed with Member States' views that the United Nations Accounting Standards should be fully applied, and that urgent improvement of control over accounts receivable and accountable in the Integrated Management Information System (IMIS) was required, as was faster processing of Inter-Office Vouchers.
It noted the requests for a horizontal audit of procurement during biennium 1998 to 1999, and also the request that the Board's views be taken into account in the review of backstopping of peacekeeping operations, he said. On assessed peacekeeping contributions, the disclosure of moneys not paid in the financial statements served to highlight the fact that approved dues were not received in full. It was not the intention of the Board's recommendation that a write-off occur, but that a more accurate picture of the financial situation be included in the financial statements.
The Board shared Member States' concern at the pace of preparedness in addressing the Year 2000 computer compliance issue and the need for urgent actions, he said. It also welcomed Member States' agreement on project management problems.
A Member State had said some of the Board's findings had been minor, he said. He wanted to clarify that the documentation in question was crucial for the purposes of reviewing, monitoring and control at Headquarters of resources. Once that became weak, then other problems occurred. He pointed out that the Board had also found significant problems with project management. He welcomed the support expressed for recommendations concerning UNICEF's practice of cash accounting.
Several States had stressed the need for the Board's reports to be ready when the Assembly began its session, he noted. The Auditors required three months to finalize reports after the financial statements were made available to auditing teams. That period included time for audit, drafting reports, receipt of responses to those reports, and other procedures. The Board should be able to complete its consideration on time, provided statements were submitted by the deadline.
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The Board fully agreed with those who had stressed that compliance with prescribed rules and procedures would minimize incidents of fraud, he said. Internal control standards must be concrete. The United Nations should consider preparing its own standards and submitting them to the Assembly. The Board would carefully consider all issues discussed in the Committee aiming at improving accountability and efficiency in the United Nations.
Statements on Financing the International Criminal Tribunals
WARREN SACH, Director, Programme Planning and Budget Division, Office of Programme Planning, Budget and Accounts, introduced reports containing revised estimates for 1998 and budget proposals for 1999 for the International Criminal Tribunal for Rwanda. A review of 1998 expenditure trends showed that the total expenditures would yield savings that more than offset the additional requirements arising from the Security Council's decision to increase the number of Chambers and to include Kosovo in the Tribunal's mandate. Therefore, the Secretary-General was requesting a revised appropriation of some $68.6 million gross ($62.2 million net).
On the proposed budget for 1999, resources requested came to some $106.4 million gross -- an increase of about $37.6 million gross and an additional 267 posts over 1998 appropriations, he said.
C.S.M. MSELLE, Chairman of the ACABQ, said the ACABQ recommended some $68 million gross for the International Tribunal for the Former Yugoslavia for 1998. It recommended approving the revised budget and, for 1999, an appropriation of $76.2 million for the Rwanda Tribunal.
The current vacancy rate must be reduced before a determination was made as to whether more posts were needed, he said. There was a tendency to request posts and other resources to address every possible future development. Greater effort should be made to assess the extent to which additional functions could be absorbed, before new posts were considered. For both Tribunals, he added that the ACABQ recommended an independent investigation of the operations and functioning of both Tribunals.
Mr. SACH introduced two reports on the Rwanda Tribunal: one revising budget estimates for 1998 and one for 1999. Based on an analysis of expenditure trends for 1998, net savings of $2.8 million were anticipated. Therefore, the Assembly was requested to approve a revised appropriation of $52.3 million gross -- $4.3 million less than the original gross amount.
For 1999, the request was for $73.1 million net (some $80.6 million gross) -- an increase of $22.2 million net over the 1998 appropriation, he said.
Mr. MSELLE said he had neglected to mention that the ACABQ recommended some $103.1 million gross for 1999 for the International Criminal Tribunal for
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the Former Yugoslavia, compared with the $106.4 million proposed by the Secretary-General.
AMJAD SIAL (Pakistan) regretted that the late submission of the Secretary-General's reports had delayed the reports of the ACABQ and presented an obstacle to the Committee's consideration of the matter. The late issuance of documents needed to be addressed seriously. The reports did not comply with the provisions of resolution 52/214B. Both Tribunals should be provided with adequate resources for their smooth functioning.
The ACABQ's proposal for an evaluation of both Tribunals was important, he said. The Advisory Committee proposed that the investigation cost be borne by the two Tribunals, but there was need for further clarification. Would extra costs be involved or the Tribunals' functioning be impeded? he asked.
He recalled that among the recommendations stemming from the Office of Internal Oversight Services' audit of the Rwanda Tribunal, the legal adviser to the Registrar was to be reassigned, having been involved in an exchange of private funds with defense counsel. However, the legal adviser had been exonerated after investigation by a panel. He commended the action taken by the Secretary-General who, as Chief Administrative Officer, was responsible for ensuring justice and adherence to the rules and regulations of the General Assembly.
The Assembly had determined that gratis personnel were to be phased out by December 1998, he said, but some had been accepted in August 1998. The Assembly's resolutions must be implemented, he stressed.
ULRIKE BUTSCHEK (Austria), for the European Union, regretted that the documents had come out late. She reserved the Union's right to speak at a later stage. Since the matter was of such importance, the reports should be studied properly.
TAMMAM SULAIMAN (Syria) said Syria would like to endorse the statement made by the representative of Pakistan concerning the Oversight Office's recommendation on the legal advisor that had not been implemented by the Secretary-General. That situation should be considered in the review of the activities of the Oversight Office.
Statements on Other Matters
The representative of Costa Rica said she sought information from the Secretariat on a meeting of the Committee on the Host Country which had discussed several matters raised in the Fifth Committee. The Chief of the Safety and Security Service had explained that all the problems being
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experienced were due to staff cuts. As he had advised the Fifth Committee that the United Nations was experiencing constant threats, she asked how staff from that Service could be reduced. She would like to know how many staff had been cut from the Service in the last two years, and for what reason. Additionally, she sought information on the Service's current staff levels, and how many staff would be needed for it to operate properly. It seemed there was a trend to resort to outside recruitment, and that should be based on equitable geographical representation.
Also, a dog had been seen in the conference room used by the Fifth Committee, she said. She asked if that was an indication of a threat. She would like to be informed if that dog was a United Nations dog, what type of contract it had and how much it was paid.
MOVSES ABELIAN (Armenia), Committee Chairman, said he would seek the information requested.
The representative of Syria said he supported the statement by the representative of Costa Rica. The ongoing problems with Security staff had prompted him to raise the issue again and again, and they required an immediate solution.
He also drew attention to a problem in the Fourth Committee (Special Political and Decolonization) with translations. When the Fourth Committee had begun its discussion of a report on Israeli practices in occupied Palestinian territories, only an English version of the report -- which had been distributed without translation into other languages -- had been available. He strongly protested against that. Lack of availability of documents in all languages was not just a problem but had become normal. An addendum to that report would become available in Arabic six weeks after it had been discussed, not six weeks before. He requested the Chairman to convey to those in charge that all necessary documents must be made available to all delegations six weeks in advance of discussions, so that they could be properly discussed properly.
The CHAIRMAN said he would transmit those concerns to the Office of Conference Services.
The representative of Uganda asked the Chairman if copies of his letter to the President of the General Assembly (drawing attention to the need to abide by General Assembly resolutions and the Rules of Procedure that administrative and budgetary matters should be the sole purview of the Fifth Committee) were available. If it had been issued as an official document could he be advised of its document number? he asked. He would also like a copy of any relevant letter from the General Assembly President sent to the Chairmen of the Main Committees, and wished to be advised of any response received, particularly from the Third Committee (Social, Humanitarian and
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Cultural). In addition, he asked when the Committee would have an opportunity to discuss the status of its programme of work.
The CHAIRMAN said that his letter had been issued as an official document this morning. He understood that the Third Committee planned to take action on the concerned draft resolution this afternoon. The letter had been distributed. However, it did not ask for responses and he had not received any.
He said that the Fifth Committee intended to hold informal discussions on its programme of work this coming Monday afternoon.
The representative of Morocco said he wished to draw the Secretariat's attention to an error in document A/53/662 on the Integrated Management Information System (IMIS). Only the first page of the Arabic version of that document -- some eight lines -- was in Arabic. The remainder was in English.
The CHAIRMAN advised the Committee that the problem applied to all non-English versions of that document, and that he would inform the Office of Conference Services of the problem.
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