INDEPENDENT EXPERTS SHOULD UNDERTAKE PROPOSED REVIEW OF INTERNATIONAL TRIBUNALS -- OR IT SHOULD NOT BE DONE AT ALL, FIFTH COMMITTEE TOLD
Press Release
GA/AB/3274
INDEPENDENT EXPERTS SHOULD UNDERTAKE PROPOSED REVIEW OF INTERNATIONAL TRIBUNALS -- OR IT SHOULD NOT BE DONE AT ALL, FIFTH COMMITTEE TOLD
19981130 Committee Discusses Tribunals, UN Procurement Reform, 1998-1999 Programme Budget and Human Resources ManagementUnless independent experts undertook the proposed judicial management review of the International Criminal Tribunals for Rwanda and the Former Yugoslavia, it should not be done at all, the Fifth Committee (Administrative and Budgetary) was told this morning.
The review must not be conducted by any Secretariat unit or the Board of Auditors, the Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), C.S.M. Mselle, continued. It should be a professional assessment of the Tribunals' work by peers. By proposing the review, the ACABQ was not registering a "vote of no confidence" in the Tribunals, he added.
The Chief, Political, Legal and Common Service, Office of Programme Planning, Budget and Accounts, Frances Zainoeddin, responded to questions posed during earlier meetings on a number of matters related to funding the two Tribunals. High vacancy rates were a consequence of large numbers of posts approved in 1998 and steps had been taken to speed up recruitment.
The Tribunals' rules of detention were in accord with United Nations standard rules, she said. The International Red Cross had full unannounced access to ensure compliance. Increased resources for medical supplies for detainees at the Rwanda Tribunal were needed, as suspects who were at large for extended periods of time were more susceptible to illnesses.
The representatives of Uganda and Canada spoke.
When the Committee turned its attention to United Nations procurement reform, it was told by the Assistant Secretary-General for Central Support Services, Department of Management, Toshiyuki Niwa, that in 1997, 41 per cent of the Organization's procurement was from developing countries. Nine per cent of that undertaken by the Procurement Division had been from developing countries, compared to 0.07 per cent in 1996. For peacekeeping, the figure was 58 per cent.
Fifth Committee - 1a - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
Introducing the Secretary-General's reports on the item, he said he would be seeking advice from the Office of Legal Affairs regarding a definition of "exigency" -- circumstances under which the normal competitive bidding process for procurement could be waived. Only two such cases had been submitted in 1998. The matter seemed to be under control, with exigency being used appropriately in the procurement process.
The Chairman of the ACABQ, Mr. Mselle, introduced that body's report on procurement reform.
As the Committee continued discussing the programme budget for 1998-1999, the Under-Secretary-General for Management, Joseph Connor, introduced the Secretary General's report on the Integrated Management Information System (IMIS), and Mr. Mselle introduced the related ACABQ report.
Also this morning, the Committee discussed human resources management. The representative of Uganda spoke and Mr. Mselle introduced the ACABQ's report.
On the Committee's programme of work, statements were made by the representatives of Panama, Cuba, Uganda, Mexico and Morocco.
The Committee will meet again at 10 a.m. tomorrow, 1 December, to continue its review of United Nations administrative and financial efficiency and human resources management.
Fifth Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this morning to review administrative and financial efficiency, aspects of the 1998-1999 programme budget, and human resources management. In addition, it was to continue discussing the financing of the International Criminal Tribunals for Rwanda and for the Former Yugoslavia.
Under the 1998-1999 budget, the Committee was to consider reports by the Secretary-General, the Advisory Committee on Administrative and Budgetary Questions (ACABQ) and independent experts on the Integrated Management Information System (IMIS). As it continued its review of efficiency, it was to take up reports on reforming United Nations procurement practices, and on outsourcing. Under human resources management, it had before it the ACABQ's report responding to a number of Secretary-General reports.
(For background information on reports on the Tribunals, see Press Release GA/AB/3268 of 20 November. For background on the Office of Internal Oversight Services report on procurement planning in peacekeeping missions, see Press Release GA/AB/3253 of 29 October.)
Programme Budget for 1998-1999
The Committee had before it the Secretary-General's tenth progress report on IMIS (document A/53/573). Since the last report, deployment of the system away from Headquarters has continued, and other users, such as the United Nations Development Programme (UNDP), the United Nations Children's Fund (UNICEF), and the International Labour Organization (ILO), have progressively adapted the software to their special requirements. A report of independent experts, initiated at the General Assembly's request, favourably evaluated IMIS from both the technical and cost perspectives. Their recommendations, as well as those of the General Assembly and the Board of Auditors, have been addressed.
Release 2 (staff entitlements) has been implemented worldwide, according to the report. Major enhancements to Release 3 (finance and support services) have been developed, and progress has been made on Release 4 (payroll and related functions) and Release 5 (operational functions). The reporting facility has been enhanced and technical research, particularly remote accessing, has progressed. By February 2000, Release 3 will be in all offices and Release 4 will be in New York by August 1999 and at all duty stations by August 2000.
Despite the progress, the complexity of the tasks should not be underestimated, the Secretary-General reports. The payroll and financial applications will require unprecedented effort by staff to prepare data and training and reorganize work flows. Many automated processes will be
Fifth Committee - 3 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
introduced for the first time in some locations. The implementation schedule is ambitious, and the system implementation date has already been postponed.
The report states that costs have been reviewed as per the General Assembly's request. To date, the General Assembly has approved a total project budget of $68.1 million. Additional estimated requirements are $9.5 million, of which $3 million relates to the 2000-2001 biennium.
In the ACABQ's related report (document A/53/7/Add.7), it recommends that the General Assembly approve the additional $9.5 million for completing IMIS, thus bringing the total cost of the project's development and implementation to $77.6 million. The need for an additional appropriation under the programme budget for 1998-1999 should be considered in the context of the first performance report for the biennium 1998-1999. It points out that the regular budget contains a provision of $9.8 million for the maintenance of IMIS during 1998-1999, and recommends that in his eleventh progress report on IMIS the Secretary-General propose a long-term maintenance plan for the System, which would also take into account the need to ensure that it is updated with advances in technology.
The ACABQ stresses the importance of implementing all the experts' recommendations and recommends that the Assembly endorse these, according to the report.
A related report, the independent experts' study of IMIS transmitted by a note from the Secretary-General (document A/53/662), was also relevant to the Committee's discussion. The experts' study was conducted in July 1998. The experts concluded that IMIS was a well-designed computer application, satisfactorily used by a large number of users with differing interests. It has been developed and implemented by a small project team, and the $68 million invested so far was reasonable for produced outputs. The most critical IMIS issue facing the Secretariat was to effectively implement IMIS systems at offices away from Headquarters in 1999.
The experts present an optional framework for long-term IMIS governance, with an IMIS Development Centre to provide services to participating members, to be funded by agreed-upon assessments from participating organizations. The level of assessments would be based on use of applications, releases and services offered by the Centre and would be made several years in advance so participating organizations and agencies could include the proposed expenditures in their budget submissions.
The Administration should work with other participating organizations to establish and fund an Inter-Agency Governance Framework for IMIS, the experts recommend. They propose a model governance framework, with Inter-Agency Advisory Groups which would advise an Inter-Agency Governing Board on matters such as the overall computer system adequacy and recommendations for changes and new initiatives.
Fifth Committee - 4 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
All organizations need additional resources in the user areas when new computer applications are being developed and implemented, but this does not appear to have been understood or taken into account when the United Nations staff reductions took place. Due to a combination of environmental circumstances and management directions, over the project's duration, there had been a heavy reliance on the contractor for conducting implementation activities which would more properly have been undertaken by United Nations substantive staff, had they been available.
Review of Efficiency
According to the report of the Joint Inspection Unit (JIU) on outsourcing (document A/52/338), outsourcing means contracting with a third party to perform specific tasks, and/or provide services and related goods, based on specified terms and conditions. Outsourcing does not include the simple procurement of goods, or the replacement or supplementation for general purposes of staff by non-regular staff (short-term, temporary, free-lance staff).
In the report, the Unit recommends a number of measures to protect the international character of the United Nations and its staff. For example, the Administrative Committee on Coordination (ACC) should develop a system-wide definition of outsourcing; there should be increased sharing among the United Nations system bodies of outsourcing; and possibilities for joint and coordinated actions should be explored to gain advantages of economies of scale and increased bargaining power.
A note from the Secretary-General transmits the response of the ACC to the above report (document A/52/338/Add.1). The ACC says the JIU data is inconsistent and outdated and should therefore not be used to make comparisons between organizations or draw conclusions about their use of outsourcing.
Exchange of information and coordination on outsourcing are already taking place via the ACC machinery, and ACC organizations will continue to share related experiences, the report states. At the same time, differences between organizations' mandates, operational environments and business practices dictate different approaches to outsourcing. Each organization must develop policies appropriate to its own circumstances. Particular attention should be paid to the need to ensure in-house "core" competencies and the ability to manage and control outsourced activities. Due attention should also be given to the issues of any negative impacts on staff and to the need to respect the international character of United Nations system organizations.
Legislative organs should not review and approve outsourcing policies, since any such review and reporting schedule would involve additional costs and micro-management by governing bodies, the report says. Each executive head should decide on systems for management control and reporting to ensure that legislative organs receive adequate information in all areas, including
Fifth Committee - 5 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
outsourcing. While each organization should decide on the optimum use of managerial resources, possibilities for joint and coordinated actions among the various United Nations organizations would be explored.
A note by the Secretary-General transmits a report of the Office of Internal Oversight Services on its review of the procurement of Lysol brand disinfectant by the Office of the United Nations High Commissioner for Refugees (UNHCR) for activities in the Federal Republic of Yugoslavia and eastern Bosnia in 1993 (document A/52/887). The Assembly had requested the review in its fifty-first session, after reading a report of the Board of Auditors (for the period ending 31 December 1995) which estimated that UNHCR procurement had resulted in losses of just over $3 million, attributed to inaccurate needs assessment and deficient procurement planning.
According to the Oversight Office's report, the authorities in Belgrade had refused to clear Lysol for importation and distribution, despite the fact that the need for disinfectant in the former Yugoslavia was becoming a serious problem. The Lysol procurement was made in response to needs identified by the World Health Organization (WHO) and other parties concerned with refugees and humanitarian assistance in the former Yugoslavia, according to the report. The shortage of disinfectants resulted from the lack of petroleum-based commodities in the country, as the international sanctions imposed by the Security Council barred the importation of such products. However, due to lack of clearance, the UNHCR was obliged to re-export over 90 per cent of the quantities procured.
The Oversight Office's review determined that the losses totalled approximately $2.1 million and that the just over $3 million in losses originally estimated by the UNHCR did not take into account the quantities of Lysol actually utilized in the Federal Republic of Yugoslavia and re-exported for use in other UNHCR programmes, the report states. The Oversight Office looked into the question of accountability and found no proof that the UNHCR staff had acted negligently, either during the procurement process or in its aftermath when solutions were being sought to minimize the potential loss.
The Office concluded that the UNHCR had been faced with a situation that could not be anticipated and that was outside its control, the report states. There had been no evidence to indicate that Lysol was or is a banned product in the Federal Republic of Yugoslavia or in other countries.
In his report on procurement reform (document A/C.5/52/46), the Secretary-General says that the concept of exigency is relative, describing an operational or support requirement that is of such immediate need that it cannot await consummation of the full procurement cycle as prescribed under the United Nations financial regulations, rules, procedures and practices. The only definition of exigency in the current procurement procedures is made in the context of financial rule 110.19, which allows for the waiver of competitive bidding when a requirement, such as requests for invitations to
Fifth Committee - 6 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
bid or requests for proposals, is deemed incompatible with the exigency of the service.
That definition reduces the procurement lead time with respect to the first aspect of the procurement cycle, the report states. However, the dynamics of field procurement are characterized by a set of urgent requirements representing a significant portion of mission requirements, which in most cases can withstand the delay of a bidding exercise, but which cannot withstand the multi-layered process of reviews and recommendations necessary for award approval, namely, the second aspect of the procurement process. Delays in the review and approval processes are major contributors to ex post facto cases. In the report, the Secretary-General proposes a definition of exigency, which is then superseded by his next report.
The Committee also had before it another Secretary-General's report on procurement reform (document A/53/271 and Corr.1). In this report he responds paragraph by paragraph to General Assembly resolution 52/226, detailing developments and accomplishments in procurement reform, while noting that this reform is an ongoing process requiring constant attention. He states that a revised Procurement Manual was published in March. The rules for procurement, which fall within the Secretary-General's purview, have been amended, including to increase the thresholds for procurement. A comprehensive review of all rules and regulations is in process with an outcome expected at this General Assembly session. He advises that, in 1997, $6.2 million was spent to procure $328 million of goods and services -- a 1.9 per cent cost against total value.
He reports that the number of ex post facto and partial ex post facto procurement cases have declined from 47.4 per cent in 1995 to 9 per cent for the first six months of 1998. Further improvements will be achieved, but such procurement cases cannot be eliminated totally, as mandates are sometimes established or extended at short notice. All cases must be fully explained and justified, and new procedures should be fully monitored and enforced. Offices have been instructed to extract procurement items from their approved budgets to allow anticipated procurement to be made public, but such disclosures should not constitute a commitment to purchase.
The report offers a sharper definition of "exigency" procurement -- by which exemptions from the practice of competitive bidding are allowed in the Financial Rules, and supersedes his previous report. Exceptions would be approved by the Assistant Secretary-General for Central Support Services where a purchase was unavoidable and would impede an operation or threaten lives or property if unsatisfied for even a short time. New evaluation criteria and registration procedures for vendors were established in 1996 and are included, along with guidelines on methods of invitation to bid, in the revised Procurement Manual.
Fifth Committee - 7 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
On equitable geographical representation on the supplier roster, the Secretary-General reports that 91 countries are represented. To achieve further improvements, staff attend trade fairs and similar events to provide guidance and engender interest in doing business with the United Nations. A common supplier database is being established with other system organizations which should expand the list of potential suppliers. He reports that all tenders over $200,000 are advertised in relevant United Nations publications and on the Internet, and that permanent missions are requested to encourage potential suppliers from their countries to contact the Procurement Division so they may register.
Following a request to examine methods of providing preferential treatment to developing countries, the Secretary-General advises that the UNDP abandoned its preferential treatment programme because it had no tangible effect. Developing country participation would be best increased through their vendors' inclusion on the roster.
On a request to investigate establishing criteria that would weight awarding of contracts in favour of vendors from States current in their payment of assessed contributions, he reports that no other United Nations organization does this, although an arm of the World Bank and the European Union did. All exclude vendors from countries under General Assembly or Security Council sanctions. According to the Legal Counsel, nothing prohibits the General Assembly from including an evaluation element other than quality or price, but such an element would have to specify the weight given to this criteria against the others.
Normally, the Secretary-General reports, requisitioning departments should not recommend suppliers. When the Procurement Officer felt proposed suppliers provided benefits not available from the roster, the Chief of Procurement Division's approval must be obtained before an invitation is extended. No consultant involved in the process should be permitted to tender or recommend suppliers.
Among the other issues the report addresses are: his proposal to reclassify the Chief of the Procurement Division post to the D-2 level; investigation of the establishment of an independent ombudsman; the completion of the phasing out of gratis personnel; the restructuring of the Procurement Division; and conflict of interest.
The Committee also has before it an addendum to this report (document A/53/271/Add.1). The addendum includes tables on actions taken on procurement reform, ongoing matters under consideration, and the implementation of the recommendations of the High-level Group of Experts on Procurement.
On increasing procurement from developing countries, the Secretary- General reports, some United Nations organizations apply special measures to suppliers from developing countries, such as inclusion on short lists or only
Fifth Committee - 8 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
permitting local or regional sourcing for certain purchases, but none apply a percentage-based margin of preference. Measures that have been employed, such as advertising, outreach and training, have also been used by the United Nations, and the Secretary-General finds the results encouraging.
Monitoring has also improved, he reports. The Procurement Division accounted for 11 per cent of the system's procurement, and in 1997 9 per cent of this was from developing countries, up from 0.07 per cent in 1996. The Field Administration and Logistics Division of the Peacekeeping Department procured 25 per cent of its goods and services from developing countries, up from 0.02 per cent in 1996.
Under Common Services, the Secretary-General reports that the Secretariat is interested in adopting the harmonized financial regulations for procurement developed by the Task Force on Common Services' Working Group on Procurement and adopted by the Executive Boards of the UNDP and the United Nations Population Fund (UNFPA). A common approach is also manifest in the development of the United Nations Common Supplier Database -- a joint effort of 12 organizations, including the United Nations itself -- which pools the supplier rosters of all participating organizations and will eventually permit shared supplier performance evaluations.
In its related report (document A/53/692), the ACABQ repeats that the practice of using suppliers recommended by requisitioners is unacceptable, and, if a properly functioning comprehensive vendor roster existed, there would be no need for exceptions. It expects steps will be taken to ensure specifications are not tailored to predetermine the choice of supplier. Regarding procurement from developing countries, the ACABQ notes that no data is provided relating to economies in transition. Information provided in support of claims of improvements in procurement from developing countries is misleading, as the data is based on country of procurement or country of head office, not origin of goods, and amounts are those on the contract not actual expenditures. The Secretary-General should indicate the basis for determining the country of origin, and whether this conforms to recognized practice.
The ACABQ reports that the trade fairs attended by staff to promote diverse procurement were not in developing countries. It states that exigency provisions on procurement may circumvent the need for a competitive bidding process, but do not rule out the need for Committee on Contracts' approval. Information on past exigency action should have been provided to better evaluate the new sharper definition of exigency the Secretary-General outlined. This definition seemed too broad to be of value in exercising the required control over the use of exigency, and the Board of Auditors will review the issue in its next peacekeeping operations audit.
The Advisory Committee reports it is still not in a position to recommend upwards reclassification of the post of Chief of Procurement Division, given the decrease in procurement activities, increased procurement
Fifth Committee - 9 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
delegation of authority and the fact that the Procurement Division is only responsible for 11 per cent of United Nations system procurement. It expects the Secretary-General to report on the effect of the dramatic decline in procurement in the 2000-2001 proposed programme budget and his report on the Support Account. Given that the Secretariat continues to express frustration at the rigidity of the procurement rules and regulation, and the matter has been pending for years, proposals for requisite changes should be made without further delay.
Human Resources Management
The Committee also had before it the report of the ACABQ on internal vacancies in the Secretariat, employment of retirees, consultants and individual contractors, and human resources management reform (document A/53/691), which follows its consideration of separate Secretary-General's reports on each topic, and a report of the Office of Internal Oversight Services on retirees.
These reports have previously been introduced to the Fifth Committee in its current session (for background on the reports see Press Releases GA/AB/3259 of 9 November, GA/AB/3263 of 13 November and GA/AB/3265 of 16 November).
Responding to the Secretary-General's report on internal vacancies in the Secretariat (document A/53/227), the ACABQ recommends the General Assembly adopt the Secretary-General's preferred option -- an amendment of the staff regulations -- in response to an Administrative Tribunal ruling. The ruling would allow staff recruited under 200 series contracts, for project personnel, and 300 series contracts, for short-term and limited duration appointments, to be considered internal candidates when determining eligibility to fill Secretariat vacancies. The amendment would establish that only staff employed under the normal 100 series rules were internal for the purpose of filling vacancies.
On the employment of retirees, the ACABQ comments on the Secretary- General's recent reports (documents A/53/526 and A/53/526/Add.1) and that of the Oversight Office (document A/53/642). It welcomes the Secretary-General's report as a first step towards establishment of a procedure for the General Assembly to monitor the employment of retired personnel.
Noting the Oversight Office's recommendation on the need for a standard definition of "retiree" and for clarification on whether the six-month limit on re-employment applies only to retirees receiving a United Nations pension, the ACABQ agrees with the Secretary-General's definition. However, it recommends that, in future, statistics also be provided on retired employees who receive a withdrawal settlement rather than a pension, and that, until the
Fifth Committee - 10 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
Assembly decides otherwise, such people should not be subject to the limitations on employment of retirees.
The ACABQ notes the weaknesses in monitoring compliance with regulation and that they will be addressed when the IMIS is installed worldwide and by arrangements in progress to connect it to Pension Fund records. It agrees with the Secretary-General that the current ceiling on retiree earnings remains appropriate. It also notes the proportion of retirees employed on a non-local basis had declined, but requests that trend be monitored carefully in terms of quality of service.
On consultants and individual contractors, the ACABQ examined the Secretary-General's report (document A/53/548). According to the ACABQ, the report was not presented in the format of past reports as requested, and reflects weaknesses previously identified including poor record keeping, data collection and processing. Because of an absence of available statistics for non-Headquarters offices, it is not possible to present comprehensive information on the type and nature of use of consultants and contractors, and so the ACABQ cannot evaluate the report's statistics. By the time the next report is prepared, IMIS should have been installed in offices away from Headquarters, so the ACABQ recommends the next report be prepared in the desired format.
The ACABQ recommends that the new definitions for consultants and individual contractors and the related proposed guidelines (document A/53/385), be endorsed by the General Assembly. It also recommends that they be applied in conformity with relevant Assembly decisions on employment of consultants.
Commenting on the Secretary General's report on human resources management reform (document A/53/414), the ACABQ notes that a vision of organizational change is offered, but not specific measures on how the vision would be implemented. It recommends the General Assembly ask the Secretary-General to submit an implementation plan, with specific measures for which the Secretariat would be held accountable. The budgetary implications of specific reform measures should be indicated in the proposed programme budget. Expanded delegation of authority should go hand in hand with clear lines of authority and accountability and improvements in the administration of justice.
Statements on Integrated Management Information System
JOSEPH CONNOR, Under-Secretary-General for Management, introduced the report of the Secretary-General on the Integrated Management Information System (IMIS). The Secretariat plan of action was, at the General Assembly's request, largely based on the independent experts' report. Not everything has been completed yet, and a considerable amount needed to be done. Delays had occurred in the completion of the payroll section. Further difficulties might
Fifth Committee - 11 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
still arise, but the Secretariat was working hard with the contractor to ensure timely delivery by January 1999 so that tests could be undertaken.
Mr. Connor was certain that the complexity of requirements would lead to further difficulties, but confident that they would be overcome. There had been delays in Release 3 at offices away from Headquarters, due to enhancement of the software so that implementation could be made easier. Implementation away from Headquarters was a difficult task and should not be underestimated, but Release 3 would be operational on time away from Headquarters. The technical and substantive operation of the software had not yet been taken over by the respective offices of the Department of Management.
He said he was more confident than he had been in the past, because considerable progress had been made since last December. There had also been considerable progress in addressing the concerns of the General Assembly and the Board of Auditors. Progress had been made possible by the hard work and dedication of United Nations staff and the IMIS team. Most of the future activities would be undertaken by the staff.
The independent experts' report was complementary -- not contradictory -- with the Board of Auditors' report, he said. The experts' report was a management report. Apart from the findings and recommendations, it highlighted one point that had been overlooked. The IMIS was not just technical, but a major reform activity touching on United Nations administration practices. It was a major tool supporting reform.
The ACABQ report highlighted some of the Experts' recommendations, he said. He wished to point out that when IMIS had been released there had been no suitable commercial software available. The experts had identified shortcomings in the development process, notably a lack of a corporate information technology plan for the entire Secretariat, and there was a lack of adequate internal staff resources. It was worth noting that that was not unusual in this type of undertaking. Additionally, the level of effort in report writing was underestimated.
The Secretary-General had proposed to the heads of United Nations system organizations that information technology be put on the agenda of the ACC, he said. There had also been good progress in the common service working group.
He said increased costs were required for increased staff and contractual services for the development of additional reports, increased staff costs for implementation at offices away from Headquarters, contractual services for possible additional very limited out-of-scope work and for possible transition assistance from main contractor. While projections in the past had had to be revised, the end of the project was getting closer and everyday there were fewer unknown areas to deal with. The process had been costly and difficult, but it had not failed.
Fifth Committee - 12 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
C.S.M. MSELLE, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), recommended that the Secretariat implement all the recommendations of the experts, and that the Assembly endorse the study of the experts. An additional amount of $9.5 million was required for IMIS, of which $6.5 million was mainly for implementing IMIS at offices away from Headquarters, which the experts indicated was a priority for 1999. The rest was required for 2000-2001. The ACABQ recommended that the Assembly approve that additional amount.
Procurement Reform
TOSHIYUKI NIWA, Assistant Secretary-General for Central Support Services, Department of Management, introduced the Secretary-General's reports on procurement reform. He highlighted a number of issues in the reports. Regarding the definition of exigency, in light of the ACABQ's concerns, he would seek the advice of the Office of Legal Affairs to improve the proposed definition. The Fifth Committee should be aware that only two cases of exigency had been submitted thus far in 1998 -- one involving peacekeeping and one the Iraq Programme. The matter seemed to be under control, with exigency being used appropriately in the procurement process.
In principle, he supported the Assembly's recommendation that requisitioners not be permitted to specify sources of manufacture or supply, but discontinuing the practice altogether might negatively impact efficiency and economy, he said. It was prudent to accept names of possible suppliers in exceptional circumstances where there was no required expertise in the Procurement Division or the existing roster was insufficient or inadequate for highly specialized procurement. He asked the Committee to reconsider the matter.
In resolution 52/226, the Assembly had emphasized the desirability of increasing procurement from developing countries and those with economies in transition, he recalled. In 1997, 41 per cent of United Nations procurement had been from such countries, according to the annual statistical report on United Nations procurement published by the Inter-Agency Procurement Services Office (IAPSO) of the United Nations Development Programme (UNDP). In 1997, 9 per cent of the Procurement Division's procurement had been from developing countries, compared to 0.07 per cent in 1996. He noted that for peacekeeping the percentage from developing countries had been erroneous in the IAPSO report; the correct level was 58 per cent.
United Nations system bodies did not use specific margins of preference, he said, except the international financial institutions. Instead, increasing procurement from developing countries was achieved by means such as global market research and business seminars in developing countries. Increased delegation of authority to peacekeeping missions was resulting in greater local and regional procurement.
Fifth Committee - 13 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
Turning then to the system of compiling procurement statistics, he said that United Nations reports on procurement were based on location of supplier, while for services, the determination was based on location of the firm's headquarters. Rules of origin were complex and costly to apply. Under the auspices of the World Trade Organization (WTO), a committee had been working for three years on a standard rule of origin for Member States. The current reporting system for procurement should continue; once the WTO came up with its standard, consideration could be given to adopting that approach on a system-wide basis.
On the matter of preferential treatment for Member States not in arrears, he said a review of the stated policies of other United Nations organizations had been completed. The information was provided in the corrigendum to the Secretary-General's main report; he hoped it would enable the Committee to explore the matter further.
On upgrading the head of the Procurement Division to the D-2 level, he said the grade should not be determined solely by the magnitude of procurement volume performed in the Division, which fluctuated from year to year. Consideration should also be given as to how the procurement function was to be performed in the future in the Secretariat, missions and offices away from Headquarters, and the role the head of Procurement Division was expected to play in that regard. The implementation of procurement reforms demanded a greater level of professionalism and discipline.
Turning to rules and regulations, he said the United Nations directives on procurement were contained in its Financial Regulations and Rules, which made the task of introducing changes complex, as it required extensive coordination with a number of Secretariat units. The Department of Management was undertaking a review to integrate procurement changes with the other changes to the Financial Regulations and Rules.
The future of procurement in the Secretariat should be a common effort with the funds, programmes and, where appropriate, specialized agencies, he said. Common procurement regulations had been developed and adopted by the Executive Boards of the UNDP and the UNFPA. The Secretariat was interested in adopting those as well. The new regulations included the concept of value for money, rather than the lowest acceptable bid -- the current basis for United Nations procurement. The Secretariat was also participating in the United Nations Common Supplier Database, which would eliminate the need for a supplier to register with each organization.
Mr. MSELLE, Chairman of the ACABQ, introduced its report. He said the addendum to the report of the Secretary-General, issued following discussions between the Secretary-General and the ACABQ, enabled the ACABQ to give a shorter response. Much progress had been made on the various recommendations. The ACABQ had asked the Board of Auditors to audit the reform measures. The ACABQ report had commented on the Secretary-General's information on
Fifth Committee - 14 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
procurement from developing countries, indicating the type of refinement needed to allow it to evaluate the statistics provided. The Advisory Committee also felt that the Secretary-General's definition of exigency was too broad for the adequate exercise of control, and therefore it was reserving comment pending discussion with the Board of Auditors. On the promotion of the head of the Procurement Division, the ACABQ had not changed its position.
Statements on Human Resources Management
Mr. MSELLE presented the ACABQ report to the Committee. Regarding changes to the Staff Rules recommended following an Administrative Tribunal decision, he believed the General Assembly should not postpone a decision on that, even if other matters were postponed.
The ACABQ welcomed the report on employment of retired personnel, as it provided a first step for monitoring, he said. The definition of retiree employed by the Secretary-General was in accord with the General Assembly's instructions. The ACABQ therefore agreed with its use, but recommended information be provided on a broader range of re-employed staff.
The Secretary-General's report on the use of consultants and individual contractors was deficient, he said. For example, the General Assembly had, on the advice of the ACABQ, asked that the report follow the format used in previous years and that had not been done. The Secretariat should look at how that issue had been reported in the past. Because of the low quality of the report, the ACABQ had been unable to evaluate the statistics. The guidelines proposed should be endorsed by the General Assembly, and applied to ensure they were in agreement with General Assembly resolutions.
On human resources management, he drew attention to the need for an implementation plan.
NESTOR ODAGO-JALOMAYO (Uganda) asked that the statement of the ACABQ Chairman be circulated.
Statements on Financing of International Tribunals
FRANCES ZAINOEDDIN, Chief, Political, Legal and Common Service, Office of Programme Planning, Budget and Accounts, responded to questions raised in previous meetings by Member States. In response to a request for comparisons of administrative support costs for Tribunal judges compared to those at the International Court of Justice, she stated that, given the different mandates of the two entities, they were not entirely comparable, but a table would be provided to show comparative costs.
In response to questions about resource requirements related to new judges, the three new Judges elected to the Former Yugoslavia Tribunal had assumed their functions as of 16 November 1998, she said. Therefore, there
Fifth Committee - 15 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
was no provision made for relocation costs in 1999. The requests for resources for the Rwanda Tribunal related to judges due to take office in 1999. There was no discrepancy between the resource requirements of the two Tribunals.
Regarding the vacancy rates, she advised that one needed to remember that 1998 vacancy rates reflected huge increases in posts added during the year. For the Former Yugoslavia Tribunal, the combination of new posts and recruitment processes of between three and six months meant high rates were to be expected. Progress had been made, and 96 per cent of 1998 approved posts would be filled by the end of this year. Regarding vacancy rates at the Rwanda Tribunal, almost 200 posts had been filled in 1997. The high vacancy rate for 1998 for that Tribunal must also be seen in the context of the number of new posts approved during the year. Some problems had been encountered with the Rwanda Tribunal that had not been encountered in the Former Yugoslavia Tribunal but they had been recognized and steps had been taken to speed up recruitment.
Responding to requests for information on the effect of frequent changes of defence counsel, she said the Former Yugoslavia Tribunal had granted 16 requests for changes of primary counsel, and the Rwanda Tribunal had granted 10. Decisions about requests by accused for changes were made only after careful review. Those changes meant disruption and delay. Some costs were duplicated, for example the costs associated with the new counsel reading documentation. It was common practice in many countries to assign defence counsels to indigent defendants, and it was also possible for the court to approve a request that such counsel be changed under certain circumstances. The same conditions were applied to indigent defendants for the Former Yugoslavia and Rwanda Tribunals.
The Tribunals' rules of detention were drawn up in accord with United Nations standard rules. The International Red Cross had full unannounced access to ensure compliance. The resources requested for increased medical supplies for detainees of the Rwanda Tribunal had been proposed because they were needed. Suspects who were at large for extended periods of time were more susceptible to illnesses which must be brought under control.
Regarding security arrangements, security officers had been assigned to the Prosecutor and the Deputy Prosecutor of the Former Yugoslavia Tribunal, she said. New judges received a briefing from the Security and Safety Services. All judges residences were alarmed, and protection was provided when required. For the Rwanda Tribunal, a rapid response security mechanism was provided for all agency staff, and this included Tribunal staff. Staff were trained in emergency response, and United Nations convoys were used for investigators' travel in the countryside. Security classifications were taken into account when organizing travel.
Fifth Committee - 16 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
On regarding witness protection, she said that in-court protection had no resource impact but when testimony was given by video link expenses might be incurred. There were also costs associated with transportation and accommodation of witnesses. Those costs were incorporated into the relevant budget. Long-term protection for witnesses for the Former Yugoslavia Tribunal was being negotiated with certain Member States, and some States had been willing to accept witnesses prior to completion of the final arrangements.
Mr. ODAGO-JALOMAYO (Uganda) said he was pleased that replies had been given because questions raised in formal meetings should be answered in formal meetings to keep the record straight. He asked for some detail on office accommodation and accommodation for senior officials provided for the Rwanda Tribunal.
JOHN ORR (Canada) asked for clarification from the Chairman of the ACABQ on the ACABQ recommendations that an expert review of the management and organizational structures of the two Tribunals be undertaken. What were the reasons for those recommendations? What type of experts did the ACABQ recommend perform those reviews, and did it envisage that the reviews would be the type normally conducted by the Office of Internal Oversight Services? he asked. If those were conducted, he hoped that the reports would be available before the end of the fifty-third session of the General Assembly, so recommendations could be taken into account in considering the year 2000 budget.
MOVSES ABELIAN (Armenia), Committee Chairman, said the Secretariat would reply to Uganda's questions on another occasion.
Mr. MSELLE said the Office of Internal Oversight Services should not carry out the survey. No Secretariat body should carry it out, including the ACABQ, nor should the Board of Auditors. The ACABQ was not calling for an administrative management review as such. Rather, the central issue was judicial management. The ACABQ was of the impression that judges needed to exercise greater control over the Tribunals' proceedings. The review should be carried out by people who were professionally qualified to discuss the work of the Tribunals, and the results should be communicated to the Assembly. It should be a professional assessment of the Tribunals' work by peers.
The requested review did not represent a "vote of no confidence" in the Tribunals, he continued. Rather, it would enable Member States to assess how the Tribunals' judicial proceedings were being conducted. The review must only be carried out by such persons as the ACABQ had recommended, otherwise it should not take place at all.
Fifth Committee - 17 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
Other Matters
The CHAIRMAN recalled that the Committee had tentatively agreed to extend its deadline to 9 December and that its reports would be considered by the plenary on 11 December. That assumption had been made on the understanding that the budget outline and first performance report would be before the Committee today. Unfortunately, those reports were not to be considered until Friday, 4 December. During this week, the Committee should try to complete its informal consultations on all outstanding issues.
He said he would not now propose a deadline for the Committee's work, but appealed to members to conclude as much work during the next few days as possible. The Committee should decide what items should be deferred to resumed sessions. He had attempted to make proposals, but found that every item was a priority to some Member State.
The representative of Panama, speaking for the Rio Group, said it was important that procurement be dealt with during tomorrow's formal meeting, in accordance with the programme of work.
The CHAIRMAN said some delegations had indicated that they were unable to discuss the matter until a report on the matter, requested last year, was submitted, but the Committee could decide how to proceed.
The representative of Cuba said revised estimates stemming from the resolutions and decisions adopted by the Economic and Social Council should not be discussed before the report on perennial activities. The schedule should be adjusted accordingly.
The CHAIRMAN noted those requests.
Mr. MSELLE said the ACABQ had taken up the report of the Secretary- General, which had been issued in March, and would report on it in the context of its report on the budget outline on Friday.
The CHAIRMAN proposed that informal consultations on revised estimates be moved to Friday, 4 December.
The Committee agreed.
The CHAIRMAN then suggested that delegations wishing to could make statements on procurement reform at tomorrow's formal meeting.
The representative of Uganda said that the Committee should accord priority to items that could be concluded. Resolutions that were rushed might later be regretted. Also, if items were opened for discussion and not concluded, the views expressed might be forgotten. In its last session, the Assembly had requested a report from the Oversight Office on the reasons for
Fifth Committee - 18 - Press Release GA/AB/3274 37th Meeting (AM) 30 November 1998
the increased costs of IMIS. That report was needed to determine whether the resources being sought were justified.
The CHAIRMAN suggested that those delegations who wished be allowed to make statements on procurement reform tomorrow, although the discussion would not be concluded.
The representative of Uganda asked whether there was time. Those who wanted to speak should do so when the issues were to be discussed to conclusion.
The CHAIRMAN said every Member State's view must be equally respected. He appealed to the Committee to agree to his proposal, or the matter would have to be decided by vote.
The representative of Panama, speaking for the Rio Group, said the Group wanted to speak on procurement reform tomorrow. In the past, items had been addressed in the absence of reports.
The representative of Mexico agreed with that statement.
The CHAIRMAN proposed again that the Committee allow those who wished to do so to speak on procurement reform tomorrow.
The Committee agreed.
The representative of Morocco asked for clarification on the Committee's programme of work.
The CHAIRMAN read out the Committee's programme of work.
* *** *