ADMINISTRATIVE AND BUDGETARY COMMITTEE BEGINS SECOND PART OF RESUMED SESSION; MAIN FOCUS TO BE FINANCING OF UN PEACEKEEPING OPERATIONS

10 May 1999

Press Release
GA/AB/3292

ADMINISTRATIVE AND BUDGETARY COMMITTEE BEGINS SECOND PART OF RESUMED SESSION; MAIN FOCUS TO BE FINANCING OF UN PEACEKEEPING OPERATIONS

19990510 Committee Observes Moment of Silence In Memory of Victims of Bombing of Chinese Embassy in Belgrade

The establishment of a ceiling and a floor on the amounts that permanent members of the Security Council were obliged to pay for peacekeeping operations was unacceptable, the Fifth Committee (Administrative and Budgetary) was told this morning as it began the second part of its resumed fifty-third General Assembly session.

Guyana's representative, speaking on behalf of the "Group of 77" developing countries and China, added that the scale of assessments for peacekeeping must continue to reflect the special responsibilities of the permanent members of the Security Council and the economic conditions of other countries.

The resumed session is scheduled to last until 28 May and will focus primarily on the financing of United Nations peacekeeping operations. More than 40 reports were introduced in this morning's meeting.

During the debate, a wide range of topics was raised, including attempts to recover excess payments of mission subsistence allowance in the United Nations Iraq-Kuwait Observation Mission (UNIKOM) and payments for the costs of the Qana incident.

That Israel had not paid the costs ensuing from its aggression against the headquarters of the United Nations Interim Force in Lebanon (UNIFIL) in Qana, Lebanon, in 1996 was a source of dismay for the Arab Group, the representative of Lebanon told the Committee, speaking on behalf of the Group. Israel had not implemented the General Assembly provisions affirming that it should assume the costs of the attack on Qana.

The representative of Syria said the United Nations was a symbol of peace and stability, but Israel had never been interested in such things. Israel had been accepted as a Member State on the conditions that it was peace-loving and willing and able to fulfil its commitments under the Organization's Charter. The amount that the Assembly had determined Israel was to pay last year was nothing compared to the damage committed by Israel, which amounted to a massacre of refugees.

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Israel stood firmly behind continued strengthening of peacekeeping operations, its representative said. It regretted that the Committee's deliberations had been made an arena for political disputes by representatives of a puppet government and a brutal dictatorship. Israel was still waiting for Lebanon to implement Security Council resolution 425 (1978) which not only called for the withdrawal of Israeli forces, but also for a return to peace and security, and for the re-establishment of Lebanese Government control of the area. Those last two provisions had not been met.

Also speaking on peacekeeping financing were the representatives of Germany (for the European Union and associated States), South Africa, United States, Pakistan, Kuwait, Mexico and the Philippines. The representative of Saudi Arabia spoke on other matters, and the representatives of Lebanon and Syria spoke in right of reply. The Secretary-General's reports on the financing of United Nations peacekeeping missions and on their administrative and budgetary aspects were introduced by the United Nations Controller, Jean-Pierre Halbwachs.

The Director of External Audit of Ghana and Chairman of the Audit Operations Committee, Seth Komla Adza, introduced the report of the Board of Auditors on United Nations peacekeeping operations and reviewed some of its findings and recommendations.

The Chairman of the Advisory Committee on Administrative and Budgetary Question (ACABQ), Conrad Mselle, introduced that body's reports.

Also this morning, the Committee approved its programme of work for the session on the understanding that it would change as needed. The representative of Guyana, for the Group of 77 and China, spoke on the matter.

The Committee also decided that the deadline for submitting candidates for the United Nations Administrative Tribunal and the International Civil Service Commission (ICSC) would be Friday, 21 May. Elections would take place on 27 May.

At the outset of the meeting, the Committee observed a moment of silence in memory of the victims of the bombing of the Chinese Embassy in the Federal Republic of Yugoslavia. Addressing the Committee, the representative of China said States claiming to be the champions of human rights had flagrantly launched a missile attack against the Chinese Embassy, resulting in deaths, injuries and serious property damage. The United States-led North Atlantic Treaty Organization (NATO) must assume all responsibility for its barbaric act which openly defied international law and the norms of international relations, she added. The representative of the Russian Federation also spoke on the matter.

The Committee will meet again at 10 a.m. tomorrow, 11 May, to continue discussing United Nations peacekeeping missions.

Fifth Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to begin the second part of its resumed fifty-third session of the General Assembly, focusing primarily on the financing of United Nations peacekeeping operations. It had before it a series of reports from the Secretary-General containing information on financial performance for earlier periods and budget estimates for the upcoming peacekeeping fiscal year: 1 July 1999 through 30 June 2000. Each of the reports is accompanied by related comments and recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ). The ACABQ also submitted a consolidated report containing general observations and recommendations on peacekeeping financing and administration.

In addition, the Committee was to take up its agenda item on administrative and budgetary aspects of financing peacekeeping operations. It had before it reports of the Secretary-General and the ACABQ regarding the support account for peacekeeping operations, from which non-core activities related to peacekeeping are funded. Specifically, the support account pays for variable activities at Headquarters to assist operations in the field, including direction, assistance and guidance for ensuring their effective planning, implementation and liquidation.

Further, it had before it financial reports and audited financial statements on all United Nations peacekeeping operations, as well as the related report of the Board of Auditors, among the several documents to be considered under the agenda item of financial reports.

ACABQ Consolidated Report on Financing Peacekeeping Operations

The Committee had before it a consolidated report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on administrative and budgetary aspects of the financing of the United Nations peacekeeping operations (document A/53/895). The report contains observations and recommendations on a wide range of issues related to peacekeeping, including many on the format and structure of financing reports and on efforts to ensure year 2000 compliance. Recommendations on individual operations are issued as addenda. On the financial performance for the period from 1 July 1997 to 30 June 1998, the ACABQ reports that for peacekeeping operations, expenditures amounted to $845.6 million, against appropriations of $910.3 million for the period, leaving an unencumbered balance of $64.7 million. The Secretary- General's total estimated budgetary requirements for the period from 1 July 1999 to 30 June 2000 amount to $646.9 million gross. As of 30 June 1998, $1.8 billion of assessed contributions remained unpaid from Member States.

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Having been informed that missions are obliged to return contingent-owned equipment to the troop-contributing countries, even if the equipment is obsolete and should be written off, the ACABQ recommends that the matter be reviewed, with a view to devising a more practical and economical procedure. Other recommendations are for a timetable for implementing the Integrated Management Information System in field missions and for enhanced procurement planning so resource estimates can be more accurate.

Another section covers the following operations in liquidation: the United Nations Operation in Somalia; the United Nations Mission in Haiti; the United Nations Protection Force; the United Nations Confidence Restoration Operation in Croatia; the United Nations Preventive Deployment Force; United Nations Peace Forces headquarters; and the United Nations Assistance Mission for Rwanda.

The Committee notes that considerable progress has been made in managing liquidation more effectively and the processing of Member States claims for contingent-owned equipment and death and disability were improving. The ACABQ requested detailed justification of all staff involved in such death and disability claims that were being dealt with under the old system, since those were responsible for the bulk of delays being reported. Communication between the Secretariat and Member States needs to be improved, so States are fully aware of what is expected of them. The ACABQ also recommends that, with final reports on the above-mentioned missions, the Secretary-General should provide information on the guidelines which have already been developed for the liquidation of missions.

In the part of the report that concerns losses of United Nations property in peacekeeping operations, the ACABQ recommends that the Assembly take note of the report of the Secretary-General (document A/53/340). Data in that report should be updated to cover the period from 1 January 1996 to 31 December 1997. It recommends that standard forms and deadlines be established for reporting losses and that such losses should be included in performance reports. Future reports on the final disposition of the assets of closing missions should include clear explanations of losses caused by hostilities and theft and those resulting from write-offs, including losses from negligence.

Financing Peacekeeping Forces in Middle East

The Secretary-General's report on financing the United Nations Disengagement Observer Force (UNDOF) (document A/53/779 and Corr. 1) contains the financial performance report of UNDOF for 1 July 1997 to 30 June 1998. The General Assembly appropriated some $33.6 million gross (just over $32.7 million net) for maintenance of UNDOF for the period, while expenditures totalled some $32.5 million gross (roughly $31.8 million net), resulting in an unencumbered balance of almost $1.1 million ($887,600 net). The balance was

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mainly due to the devaluation of local currency and reduced procurement costs, because some items were available at the United Nations Brindisi logistics base. The Assembly should decide how to treat the unencumbered balance, the report states.

In an addendum to the report (document A/53/779/Add.1), the Secretary- General proposes that the Assembly apportion some $33.3 million gross (about $32.5 million net) for the period 1 July 1999 to 30 June 2000, and assess it accordingly, should the Council extend the Force's mandate beyond 31 May 1999. The proposed costs represent a 1.2 per cent ($396,400) decrease over the previous 12 months, largely due to reduced local salary requirements following a currency devaluation, and lower vehicle replacement costs, as some replacements were obtained from the United Nations Logistical Support Base at Brindisi. These reductions will be partially offset by expected increases in ration costs following a change of contractor.

In the part of its report on financing United Nations operations in the Middle East (document A/53/895/Add.1) devoted to UNDOF, the ACABQ recommends crediting Member States their respective shares of the unencumbered balance for the 1997-1998 period. For the 1999-2000 period, the ACABQ concurs with the Secretary-General's request for $33.3 million gross (about $32.5 million net), to be assessed at the monthly rate of almost $2.8 million gross (some $2.7 million net).

The Secretary-General's report on financing the United Nations Interim Force in Lebanon (UNIFIL) (document A/53/797) contains UNIFIL's financial performance report for 1 July 1997 to 30 June 1998, for which the Assembly appropriated close to $125 million gross (almost $120.9 million net).

Expenditures for the period totalled about $125 million gross (almost $121.8 million net) resulting in additional requirements of $57,600 gross ($844,000 net). The higher expenditure was mostly caused by the 61.8 per cent increase in local staff salaries from 1 March 1997, and delayed liquidation of obligations no longer required, but not identified and cancelled before the accounts were closed.

The report also provides updated information on expenditures totalling some $1.28 million in connection with the incident where the Force headquarters at Qana was damaged on 18 April 1996. This expenditure was against the authorized $1.77 million granted under General Assembly resolution 51/233.

The Assembly should act, according to the report, to note additional requirements of $57,600 gross ($844,000 net) for the period, to be covered by liquidation of obligations no longer required for the same period. It should revise the commitment authority granted under resolution 51/233 for the Qana

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incident, and the corresponding amount to be borne by Israel as decided in the same resolution, from some $1.8 million to almost $1.3 million.

Another report from the Secretary-General, on financing of UNIFIL (document A/53/819), contains the proposed budget for UNIFIL for 1 July 1999 to 30 June 2000. According to the proposed budget, the Force's maintenance cost would be $140.04 million gross ($136.01 million net). The UNIFIL comprises 4,513 troops (3,438 infantry and 1,075 logistics personnel), supported by a civilian establishment of 491 (147 international and 344 local). Some 57 per cent of budget resources relate to military personnel costs, with civilian personnel costs at 19 per cent of the budget, operational costs at 22 per cent and staff assessment at 3 per cent of the total.

The report proposes that the Assembly appropriate some $140 million gross (about $136 million net) for 1 July 1999 to 30 June 2000, which includes a $135,000 budgeted voluntary contribution. It should assess some $11.7 million gross (about $11.3 million net) for 1 to 31 July 1999, and continue this rate of monthly assessment for the period if the Security Council decides to continue the mission beyond 31 July 1999.

In the part of its report on peacekeeping in the Middle East (document A/53/895/Add.1) devoted to UNIFIL, the ACABQ accepts the Secretary-General's proposal for the 1997-1998 period, including the revisions and adjustments related to the Qana incident. It also accepts his appropriation and assessment proposals for the year beginning 1 July 1999.

United Nations Iraq-Kuwait Observation Mission

The Committee also had before it reports on financing the United Nations Iraq-Kuwait Observation Mission (UNIKOM), which is funded through a cost- sharing formula by which Kuwait pays two thirds of the bill and the United Nations the remaining third.

A report of the Secretary-General contains the financial performance report for 1 July 1997 to 30 June 1998 (document A/53/782). In 1997, the Assembly appropriated some $51.5 million gross ($49.6 million net) for UNIKOM's maintenance for this period. Expenditures totalled some $48.1 million gross ($46.5 million net), leaving an unencumbered balance of $3.4 million gross ($3.1 million net). According to the report, this was mainly due to lower catering costs for military contingents, civilian vacancies, a cost-sharing arrangement with the United Nations Office of the Humanitarian Coordinator and reduced communications, supplies and services requirements. The action to be taken by the General Assembly based on this report is a decision on treatment of the unencumbered $3.4 million.

Another Secretary-General's report on financing of UNIKOM (document A/53/817) proposes a budget of some $50.8 million gross (about $48.8 million

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net) for the 12-month period from 1 July 1999 to 30 June 2000. Of that, 26 per cent relates to civilian personnel costs. Operational costs account for 21 per cent of the budget, military personnel costs reflect 49 per cent, and staff assessment comprises 4 per cent of the total. Less than 1 per cent of total resources is related to other programmes. The Assembly should appropriate and assess the $50.8 million gross, including $32.5 million net to be paid by Kuwait, subject to the Council continuing the Mission.

In its related report (document A/53/895/Add.2) the ACABQ recommends approving the $50.8 million gross and crediting the unencumbered balance of $3.4 million gross to Member States, with two thirds of that amount first being refunded to Kuwait.

The ACABQ writes that it regrets that a report updating information on the overpayment of mission subsistence allowance is not yet available. It notes that the Mission's average monthly vacancy rate continues to be high -- 22 per cent for international and local civilian staff. The ACABQ also says the Secretary-General's proposed increases and decreases should have been better explained. It recommends approving the establishment of a new air safety/air operations post at the P-3 level, who, from 1 July 1999 through 30 June 2000, would provide services to the United Nations Peacekeeping Force in Cyprus (UNFICYP) on an "as and when available" basis.

United Nations Mission for the Referendum in Western Sahara

A Secretary-General's report on financing the United Nations Mission for the Referendum in Western Sahara (MINURSO) (document A/53/810) contains the Mission's financial performance report for 1 July 1997 to 30 June 1998. In March 1998 the General Assembly appropriated about $47.4 million gross (some $44.4 million net) for its operation for this period. Expenditures for the period totalled close to $40.9 million gross (some $39.1 million net), leaving an unencumbered balance of about $6.5 million gross ($5.4 million net). The remainder was primarily due to delayed deployment of contingent personnel and initial delays in civilian deployment. The report calls for a decision by the Assembly on the treatment of the unencumbered balance.

In a second report on financing MINURSO (document A/53/820), the Secretary-General asks the Assembly to appropriate and assess some $49 million gross (close to $45.1 million net) for 1 July 1999 to 30 June 2000 for the Mission's maintenance, pending the Council's decision to continue MINURSO's mandate. Some 53 per cent of the resources are for civilian personnel costs. Operational and military personnel costs account for 24 and 16 per cent of the budget.

The ACABQ's related report (document A/53/943) recommends that States be credited their respective shares in the unencumbered balance of some $6.5 million gross (about $5.4 million net) for the period from 1 July 1997 to

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30 June 1998. It also concurs with the Secretary-General's request for some $49 million gross (almost $45.1 million net) for the 12-month period from 1 July 1999 to 30 June 2000.

United Nations Transitional Authority in Cambodia

The Committee had before it a report of the Secretary-General on losses of United Nations property of peacekeeping operations (document A/53/340). The report provides information on losses of United Nations property at peacekeeping missions from 1992 to 1995, of non-expendable items valued over $1500 and other "attractive" items valued over $500. Between 1992 and 1995 a total of 16,337 items with an inventory value of almost $38 million and a residual value of close to $24 million were lost, including 1,898 vehicles and 1,787 generators. Of that amount, 4,207 items, valued at $9 million, were lost from the United Nations Transitional Authority in Cambodia (UNTAC).

For all United Nations peacekeeping operations between 1992 and 1995, 8,566 items were lost due to theft, with an inventory value of $22.5 million, the report states. In the environment in which peacekeeping missions generally operate, destabilized by war, with little infrastructure and where poverty is endemic, an influx of valuable equipment creates temptations to theft. Theft can be controlled, but not eliminated. Measures to provide security and control are routinely implemented, many of them derived from the experience gained with UNTAC.

Loss can be limited by deployment of sufficient experienced personnel at the beginning of a new operation, when the management and control systems must be set up, and sufficient security personnel to conduct prompt investigations, so that managers can take prompt preventive action following loss of property, according to the report. Arrangements using local security staff have not always proved successful, and international security staff should be available to provide round-the-clock supervision. In addition, the maximum physical protection must be provided, including perimeter fencing, lighting and alarms.

Various measures are in place in peacekeeping missions to protect United Nations property from theft and loss, involving administration, personnel and a number of practical measures such as checkpoints, the Secretary-General reports. He stresses the importance of using a single inventory database. Asset control systems have not been standardized, although a system is being tested. Information on the consequences of non-compliance, supported by prompt consistent action, is valuable. Support from the host government and circulation of descriptions of stolen property to authorities is also valuable, according to the report.

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Financing of Former Yugoslavia Peacekeeping Missions

The Committee also had before it a note by the Secretary-General on financing the United Nations Protection Force in Bosnia and Herzegovina (UNPROFOR), United Nations Confidence Restoration Operation in Croatia (UNCRO), United Nations Preventive Deployment Force (UNPREDEP) and the United Nations Peace Forces in the former Yugoslavia (UNPF) headquarters (document A/C.5/53/56). The note states that decisions on the unencumbered balance for 1 July 1996 to 30 June 1997 was deferred pending the final performance report for UNPF, which is not expected until the fifty-fourth General Assembly session.

The note summarizes matters still pending relating to these missions. Amounts for equipment use for only 13 of 30 troop contributors have been finalized and compensation for the loss of contingent-owned equipment has yet to be addressed. The financial rules have been amended, so the Property Survey Board is mandated to consider claims for such equipment. Additional appropriations will probably be required once the total has been determined. In 1996 the Assembly decided to keep the reimbursement budget under review pending efforts to process all claims.

Claims for goods and services provided to UNPF are still being received, the note states, and for some cases no funds were reserved. The value of the 17 claims from nine governments to date is some $13 million, and additional funds will be needed. Out of 1,733 reported incidents, 476 claims for death and disability to the value of some $38 million have been approved. Some $44 million was obligated to settle such claims and additional funds might be required. Two troop reimbursement cases are under negotiation -- one for additional reimbursement and the other for recovery of payment.

Total unliquidated obligations of UNPF amounted to $422 million, the note states, of which some $168 million is for contingent-owned equipment and some $6 million is for death and disability compensation. Any savings from obligations not required and liquidated will be available to offset against additional assessments. Other matters pending include recovery of payments made by the UNPF for items that the status-of-forces agreements said should be provided free and a claim for $70.7 million from the Government of Bosnia and Herzegovina.

United Nations Operation in Somalia (UNOSOM) and UNOSOM II

The Committee had before it a series of reports, dating back to the forty-ninth Assembly session, on financing the United Nations Operation in Somalia (UNOSOM) and UNOSOM II. The reports had yet to be considered by the Assembly. From the operation's inception at the end of April 1992 to March 1995, when liquidation began, the Assembly appropriated and assessed more than $1.804 billion gross for the two operations. In addition, the

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Advisory Committee provided commitment authority of $2 million gross for the period from 1 April to 30 June 1995 for the administrative closing of UNOSOM II.

A Secretary-General's report contains revised cost estimates for maintaining and liquidating UNOSOM II from 1 October 1994 to 31 March 1995 and estimates for the administrative closing down of the Mission for the period from 1 April to 30 June 1995 (document A/49/563/Add.2). For the earlier period, cost estimates are put at some $290.2 million gross (about $286.7 million net). Estimates for 1 April to 30 June 1995 amount to $3.3 million gross (some $2.9 million net).

An addendum to that report (document A/49/563/Add.3) provides the final financial performance report for the Mission for 1 November 1993 to 31 May 1994. Revised expenditures for the period amounted to some $614 million gross (some $610.5 million net). The resulting unencumbered balance of about $25.4 million gross (some $23.8 million net) has already been set off against assessments of Member States, so no action was required by the General Assembly.

In another addendum (document A/49/563/Add.4), the Secretary-General recommended approving $290.2 million gross ($286.7 million net) for maintaining and liquidating UNOSOM II from 1 October 1994 to 31 March 1995, comprising an additional appropriation and assessment of almost $36.5 million gross (some $36.3 million net) over the $253.7 million gross (about $250.4 million net) already appropriated and assessed from 1 October 1994 to 28 February 1995.

A later report provides the financial performance information for the period from 1 October 1994 to 31 March 1995, and from 1 April to 30 June 1995 (document A/50/741). The Assembly is asked to appropriate and assess an additional amount of roughly $45.1 million gross for the period from 1 October 1994 to 31 March 1995, taking into account the $253.7 million gross appropriated earlier for the period from 1 October 1994 to 28 February 1995 and the unutilized balance of $36.4 million gross reported for the period from 1 June to 30 September 1994.

Another report provides updated information on the disposition of UNOSOM's assets (document A/52/882). The Secretary-General asks the Assembly to take note of the report on the final disposition of the assets of UNOSOM and to approve donation of assets to the Somali district councils.

The Committee also has before it a note of the Secretary-General from the fifty-third session providing information on the status of unfinished work related to the financial liquidation of UNOSOM and UNOSOM II (document A/C.5/53/52). Of the $1.804 billion that the Assembly appropriated for operations in Somalia, adjusted expenditures came to some $1.642 billion

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gross. About $150.1 million gross was returned to Member States. With interest and other miscellaneous income factored in to the unencumbered balance, the Operation's special account has close to $28 million available, according to an annex to the text.

As of the end of 1998, unliquidated obligations amounted to $134.2 million, compared with $213.3 million at the end of 1997, the report states. Owing to the acute cash deficit in the Operation's special account, reimbursement to troop-contributing countries for troop costs was made through November 1994 only, with $29.3 million outstanding for the period from December 1994 to March 1995. For the same reason, reimbursement for certified claims for equipment, supplies and services, totalling $69.2 million, has been put on hold.

Owing to the numerous difficulties experienced by UNOSOM during the life of the Operation -- due to the complexity of the political, military and security situation, compounded by the magnitude of the administrative and financial tasks involved -- the time-frame set for liquidation proved unrealistic, the report states. Progress was made with the establishment in 1997 of a small liquidation team at Headquarters, but a number of outstanding issues remain to be finalized, including the review and finalization of contingent-owned equipment reimbursement cases and government claims for supplies, goods and services. Resolving such issues by the Department of Peacekeeping Operations and the Office of Programme Planning, Budgeting and Accounts is essential for establishing actual resource requirements, the Secretary-General stresses. He anticipates that final performance information could be ready for the fifty-fourth Assembly session.

Cyprus

A Secretary-General's report on financing the United Nations Peacekeeping Force in Cyprus (UNFICYP) (document A/53/783 and Corr.1), contains UNFICYP's financial performance report for 1 July 1997 to 30 June 1998. In 1997, the Assembly appropriated some $48 million gross (about $45.9 million net) for maintaining the Force for that period. Expenditure amounted to some $47.8 million gross (almost $45.9 million net), leaving an unencumbered balance of $178,500 gross ($6,300 net). The Secretary-General recommends that the Assembly decide on the treatment of the unencumbered balance, which resulted from slightly lower military personnel costs and lower operational cost requirements under infrastructure repairs, transport operations and communications.

Also before the Committee was the Secretary-General's report on financing UNFICYP containing his proposed budget for maintaining the Force from 1 July 1999 to 30 June 2000 (document A/53/805). He recommends appropriating some $43.6 million gross ($41.7 million net) for the 12-months including $20.4 million net to be funded through voluntary contributions from

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the governments of Cyprus (about $13.9 million) and Greece ($6.5 million), should UNFICYP's mandate be extended beyond 30 June 1999. The Assembly should assess $23.2 million gross ($21.3 million net), which is the balance net of voluntary contributions, at a monthly rate of $1.9 million gross (close to $1.8 million net).

However, the ACABQ recommends lowering that amount a bit, in its related report (document A/53/895/Add.3). Only $42.9 million gross (almost $41.2 million net) should be approved, in its view, largely because estimates for local staff costs were based on the assumption that staff costs would be increased by 12 per cent without taking into account a 1.6 per cent increase that had become effective in October 1998.

United Nations Observer Mission in Georgia

The Committee had before it a Secretary-General's report on financing of the United Nations Observer Mission in Georgia (UNOMIG) (document A/53/821), which contains the financial performance report of the Mission for 1 July 1997 to 30 June 1998. For that period the General Assembly appropriated $18.6 million gross ($17.6 million net).

Expenditure for the period totalled $18.9 million gross (close to $18.1 million net), excluding budgeted voluntary contributions in kind of about $2.1 million, resulting in an overrun of $290,200 gross ($485,200 net). This overrun related to acquiring 15 ballistic-protective vehicles, for which commitment authority for $1.7 million had been agreed to by the ACABQ.

The report recommends that the General Assembly decide to appropriate and assess an additional $290,200 gross ($485,200 net) for UNOMIG's maintenance for 1 July 1997 to 30 June 1998.

In a second report on financing UNOMIG (document A/53/844 and Corrs. 1-3), the Secretary-General proposes a budget of $29.2 million gross ($27.7 million net) for 1 July 1999 to 30 June 2000 for the Mission's maintenance. Of that, 43 per cent relates to civilian personnel costs. Operational costs account for 34 per cent, military personnel costs reflect 17 per cent and staff assessment is 5 per cent of the total. Less than 1 per cent relates to other programmes.

The report recommends that the General Assembly appropriate $29.2 million gross ($27.7 million net) for the period and assess that amount accordingly should the Council decide to continue the Mission's mandate beyond 31 July 1999.

The ACABQ's related report (document A/53/895/Add.4) notes that UNOMIG borrowed $2 million from the United Nations Mission in Haiti (UNMIH) for the period from 1 July 1997 to 30 June 1998, to meet operating costs. The loan

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will be repaid as soon as sufficient payments of assessed contributions are received.

Regarding estimates for 1999 to 2000, the Advisory Committee agrees with the Secretary-General's proposal, and recommends appropriating $29.2 million gross (about $27.7 million net) and assessing the amount at a monthly rate of just over $2.4 million gross ($2.3 million net) should the Council continue the Mission's mandate beyond 31 July 1999.

United Nations Mission in Haiti

A note before the Committee on financing the United Nations Mission in Haiti (UNMIH) (document A/C.5/53/55) states that in June 1998, the Assembly decided to defer consideration of the unencumbered balance for 1 to 31 July 1996, pending the submission of the final performance report for the UNMIH. This final performance report is not expected to be issued until the fifty-fourth Assembly session, pending determination of amounts owed for contingent-owned equipment, some of which are still being negotiated. Of 11 troop-contributing countries, amounts owed have not yet been finalized in respect of five.

United Nations Observer Mission in Liberia

According to the Secretary-General's report on UNOMIL's financial performance report for the period from 1 July 1996 to 30 June 1997 (document A/52/401/Add.1), total expenditure for the period from 1 July 1996 to 30 June 1997 amounted to just over $26 million gross (roughly $25.3 million net), compared with an appropriation of $28.6 million gross ($27.5 million net). The resulting unencumbered balance amounts to almost $2.6 million gross (roughly $2.2 million net) and should be credited to Member States. The unencumbered balance was attributable to the delayed deployment of civilian personnel, fewer rotations of military observers and a substantial portion of the Mission's equipment requirements being obtained through transfers from the Brindisi Base.

In his report on the final disposition of UNOMIL's assets (document A/52/401/Add.2), the total inventory value of the Mission's assets as at 15 February 1998 amounted to almost $14.6 million, categorized under vehicular equipment ($6.3 million), prefabricated buildings ($41,600), communication equipment ($3.9 million), generators ($991,900), electronic data-processing equipment ($1.3 million), furniture and fixture ($318,000), photocopiers ($175,100), facsimiles ($58,300), water-purification equipment ($126,400), containers ($270,400) and miscellaneous equipment ($1,072,500). Details on the disposition of assets is provided in annexes.

Another report contains information on the Mission's financial performance from 1 July 1997 to 30 June 1998 (document A/53/802). The

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Secretary-General recommends that the Assembly appropriate an additional $3.8 million gross ($3.7 million net) for 1 July 1997 to 30 June 1998. Also, it should decide on treatment of two unencumbered balances. The first is the above-mentioned $2.6 million gross for the period 1 July 1996 to 30 June 1997. The second, of $2.2 million gross (roughly the same amount net) comprises $154,200 gross from closing and liquidating the Mission for 1 July 1997 to 30 June 1998 and $2 million gross which is the balance of the commitment authority used to support the electoral process from 1 July 1996 to 30 June 1997. The Secretary-General recommends the Assembly take note of the report on the final disposition of the assets.

The ACABQ report responding to the above three reports (document A/53/896) recommends approving the actions proposed by the Secretary-General regarding the additional $3.8 million and the treatment of the two unencumbered balances.

Finding that UNOMIL's assets had been disposed of in accordance with established principles and policies, the ACABQ recommends that the Assembly take note of the report on that process. It notes that a final performance report, covering the period from UNOMIL's inception on 22 September 1993 to 30 June 1998, will be submitted to the Assembly's fifty-fourth session.

United Nations Assistance Mission for Rwanda

The Committee had before it a report of the Secretary-General on UNAMIR's financial performance for the period from 10 June to 31 December 1995 (document A/50/712/Add.3). The Secretary-General asks the Assembly to extend through 31 December 1995 the financial period from 10 June to 8 December 1995, for which the amount of $99.6 million gross (about $97.5 million net) was previously assessed, and to decide on the unencumbered balance of $4.6 million gross ($4.4 million net) remaining from the amount assessed for the period from 10 June to 8 December 1995.

A subsequent report (document A/52/752) contains UNAMIR's financial performance report for the period from 1 July 1996 to 30 June 1997, for which almost $2 million gross ($1.7 million net) had been provided while expenditures amounted to $2.4 million gross (about $2 million net), resulting in additional requirements of $456,900 gross ($283,100 net). The proposed action entails authorizing the Secretary-General to utilize credits arising from the liquidation of obligations pertaining to prior periods in an amount equal to the additional requirements.

A note from the Secretary-General on financing UNAMIR (document A/C.5/53/57) provides information on the status of unfinished work related to the Mission's liquidation, which began in March 1996. The Secretary-General anticipates that final performance information and the final report on disposition of assets will be submitted during the fifty-fourth Assembly

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session. Both the United Nations Observer Mission Uganda-Rwanda (UNOMUR) and UNAMIR were established in 1993, and the two administrations were integrated by the end of that year. In total, the General Assembly appropriated almost $512.3 million gross for the Missions. As of 30 June 1998, combined expenditures amounted to close to $445.7 million gross. An unencumbered balance of $16.7 million remains.

United Nations Mission of Observers in Tajikistan

According to a report of the Secretary-General on financing the United Nations Mission of Observers in Tajikistan (UNMOT) (document A/53/784*), the Assembly needs to decide how to treat an unencumbered balance of $2.4 million gross (almost $2.1 million net) for the period from 1 July 1997 to 30 June 1998.

In March 1998, the Assembly appropriated $15 million gross ($14.3 million net) for the expansion of UNMOT from 1 July 1997 to 30 June 1998, inclusive of $8.3 million gross already appropriated in June 1997. Expenditures totalled $14 million gross ($13.6 million net), including budgeted voluntary contributions in kind of $1.3 million.

The unencumbered balance was mainly the result of delayed deployment of civilian staff, lower than projected use of aircraft and receipt of a budgeted voluntary contributions in kind of rations, partially offset by additional requirements under the assistance for disarmament and demobilization programme and absorbing the Mission's share of the $230,300 cost for the United Nations Logistics Base at Brindisi, Italy.

In a report on financing UNMOT for the period 1 July 1999 to 30 June 2000 (document A/53/816), the Secretary-General recommends the Assembly appropriate $19.1 million gross (about $17.7 million net) apportion it at about $1.6 million gross per month should the Security Council decide to extend the Mission beyond 15 May 1999.

This figure would be $475,000, or 2 per cent, less than the 1 July 1998 to 30 June 1999 budget, the reports states, mainly as a consequence of a 30 per cent decrease in military personnel costs, and reductions in other programmes costs because no provision has been made for assistance to the disarmament and demobilization programme. Those reductions would be partially offset by increased civilian personnel costs, operational costs and staff assessment. Proposed changes to staffing requirements include one additional P-2 level public information post, and six additional volunteer posts to compensate, by collecting information, for a reduction in the number of military team sites.

The ACABQ's related report (document A/53/895/Add.5) recommends crediting the unencumbered $2.4 million gross to Member States in the manner

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that the Assembly decides. For 1999-2000, it recommends appropriating $17.6 million gross (roughly $16.4 million net). The lower amount would take into account the ACABQ's recommendation that provisions for staff requirements should be based on a 10 per cent vacancy factor for all categories, instead of providing for full incumbency, as is currently the case. That would reduce the estimates by $1.5 million gross ($1.4 million net).

United Nations Mission in Bosnia and Herzegovina

The Committee had before it the Secretary-General's report on financing the United Nations Mission in Bosnia and Herzegovina (UNMIBH) (document A/53/764) for the period 1 July 1997 to 30 June 1998. The Assembly appropriated $178.9 million gross ($170.3 million net) to finance the Mission -- including the United Nations Mission of Observers in Prevlaka (UNMOP) -- for the period, while expenditures totalled $157.1 million gross ($150.7 million net), resulting in an unencumbered balance of about $21.7 million gross. In addition, the Assembly provided a commitment authority for $10.6 million gross (about $10 million net) in December 1997 which was not used.

The Secretary-General recommends that the Assembly decide how it wishes to treat the unencumbered balance, and decide not to appropriate the additional unspent $10.6 million.

Also before the Committee was a report of the Secretary-General on financing of the United Nations Mission in Bosnia and Herzegovina (document A/53/800) recommending that the Assembly appropriate $168.2 million gross (approximately $158.2 million net), for the Mission from 1 July 1999 to 30 June 2000, and assess this amount at a monthly rate of $14 million gross ($13.2 million net), should the Council continue the Mission's mandate beyond 21 June 1999.

The Secretary-General proposes an increase of 155 posts. Of the total budget, 75 per cent of the resources relate to civilian personnel costs. Operational costs account for 18 per cent, military personnel reflect 1 per cent while staff assessment comprises 6 per cent of the total. Less than 1 per cent of total resources are related to other programmes.

The ACABQ recommends that the unencumbered balance of $21.8 million gross ($19.5 million net) for the period from 1 July 1997 to 30 June 1998 be credited to Member States in a manner to be decided by the Assembly (document A/53/895/Add.6).

For 1999 to 2000, the Advisory Committee recommends that requirements not exceed $167.6 million gross. Among other recommendations, it says that estimates for helicopter operations should be reduced by 50 per cent, and that

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the need to have both liaison and administrative offices located at Zagreb should be reviewed.

United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium and the Civilian Support Group

In a report on financing the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES) and the Civilian Support Group for the period from 1 July 1997 to 30 June 1998 (document A/53/742), the Secretary-General states that of the $134.8 million gross ($129.2 million net) appropriated, expenditures came to only $119.6 million gross (about $114.8 million net). An unencumbered balance of roughly $15.3 million gross (close to $14.5 million net) remains, of which the ACABQ has already concurred that $553,400 gross ($493,700 net) be used for liquidation tasks.

The Secretary-General asks the Assembly for authority to use $601,200 gross ($541,500 net) -- including the amount already concurred by the ACABQ -- for completing liquidation and the final audit. Also, he asks that it decide on the treatment of the remaining balance of almost $14.7 million gross (close to $13.9 million net). Finally, the Assembly should decide to apply to the Support Group the same arrangements it had earlier approved for UNTAES, so that appropriations from Governments could be retained beyond the period stipulated by United Nations financial regulations 4.3 and 4.4.

Another report from the Secretary-General (document A/53/838 and Corr.1) details the final disposition of the assets of UNTAES and the Civilian Police Support Group. Assets to the value of $51.5 million -- 67 per cent of total value -- identified as meeting requirements for other missions, have been transferred to other missions or to the Brindisi Base for storage. Assets valued at $21.2 million (or 28 per cent of total) have been sold to organizations or in the Mission area. From the sales, about $3.2 million has been credited to the special account. About $3.1 million in assets (4 per cent) was written off and assets to the value of $748,900 (1 per cent) were lost during the Mission. Approval for the write-off has not been completed. Annexed to the report are detailed breakdowns of the disposition of assets.

A related ACABQ report (document A/53/897) considers both the financial performance report and the report on the final disposition of assets. The ACABQ recommends that the Assembly approve the actions proposed by the Secretary-General regarding the missions' financial performance. It commends the Secretariat for the quality of the report on final disposition and for the progress made in the management of disposal of assets, and suggests that lessons learned be used in other missions. It also notes the benefit, as indicated previously, of leaving sufficient qualified staff in the mission area to perform liquidation tasks.

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Additional United Nations Missions in Haiti

The Committee had before it reports on financing the United Nations Support Mission in Haiti (UNSMIH), the United Nations Transition Mission in Haiti (UNTMIH) and the United Nations Civilian Police Mission in Haiti (MIPONUH).

In a report covering the period from 1 July 1997 to 30 June 1998 (document A/53/769), the Secretary-General states that the Assembly needs to decide on the treatment of an unencumbered balance of $906,800 gross ($865,200 net) for the twelve-month period. The Assembly had appropriated $28.3 million gross for maintaining UNSMIH, UNTMIH and MIPONUH for the period. Expenditures totalled about $27.4 million gross, excluding budgeted voluntary contributions in kind of $2 million, resulting in the balance.

In an addendum to the report (document A/53/789/Add.1), the Secretary- General asks the Assembly to appropriate and assess $17.5 million gross ($16.5 million net) for MIPONUH for 1 July 1999 to 30 June 2000. The funds would be used for maintaining the Mission from July through November 1999 and liquidating it from December 1999 through June 2000. The total budget estimate would be $19.3 million gross ($18.2 million net), including about $1.7 million in voluntary contributions.

In its related report (document A/53/895/Add.7), the ACABQ recommends crediting Member States the $906,800 gross ($865,200 net) for the 1997-1998 period. It also recommends approving the proposed appropriation and assessment of the $17.5 million gross ($16.5 million net) for maintaining and liquidating the Mission from July 1999 through June 2000.

United Nations Verification Mission in Guatemala

The Secretary-General's report on financing the Military Observer Group of the United Nations Verification Mission in Guatemala (MINUGUA) (document A/53/775) contains the performance report for MINUGUA's Military Observer Group for 15 February to 31 May 1997. Some $4 million gross (close to $4 million net) was appropriated by the General Assembly for the period. Expenditures amounted to just under $4 million gross and net, resulting in an unencumbered balance of $54,000 gross ($10,300 net). Subsequently, $130,200 in obligations were liquidated, resulting in an increased unencumbered balance of $184,200 gross ($140,500 net).

The report recommends that the Assembly decide on the treatment of the unencumbered balance, decide how it wishes to treat interest and miscellaneous income totalling $107,636, and decide on the treatment of any surplus arising from the eventual liquidation of remaining obligations. The report also contains the final disposition of the assets of the Military Observer Group and seeks a Assembly decision taking note of this disposition.

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In its related report (document A/53/898), the ACABQ recommends that Member States be credited their share of the unencumbered balance of $184,200 gross ($140,500 net) for the period from 15 February to 31 May 1997. With regard to the treatment of interest and miscellaneous income totalling $107,636, and unless otherwise decided, the General Assembly may wish either to credit this amount, along with any surplus from the eventual liquidation of the remaining obligations in the Special Account for the Military Observer Group, to the Peace-keeping Reserve Fund, as was the case with the United Nations Observer Mission in El Salvador, or to credit Member States their respective share, as was done in the case of the United Nations Operation in Mozambique.

United Nations Peacekeeping Support Account

The Committee also had before it a report from the ACABQ on the support account for peacekeeping operations (document A/53/418). The report states that the Secretary-General had requested 469 temporary support account posts for the period from 1 July 1998 to 30 June 1999 -- a total of 17 more posts than for the year to 30 June 1998 and including the conversion of 106 positions formally occupied by gratis personnel. The overall cost of Headquarters backstopping of peacekeeping operations for the period from 1 July 1998 to 30 June 1999 on the full cost basis would therefore be $52.1 million (including $6.8 million from the regular budget).

The ACABQ reports its dissatisfaction with the Secretariat's responses, and failure to respond, concerning its questions about support account resources. That situation has made its task to review the situation very difficult. The report specifies levels and posts by unit that the Advisory Committee is prepared to recommend for the budget period from 1 July 1998 to 30 June 1999.

Against the Secretary-General's recommendation for 20 additional posts, the ACABQ recommends that seven new posts be funded, that a further 11 be filled through redeployment, and that two (one in the Office of Internal Oversight Services and one in Contributions section) not be approved.

Whereas the Secretary-General had requested 106 posts to replace those previously filled by staff provided free by Member States (gratis personnel), the ACABQ recommends approval of 43 additional posts, redeployment to fill another 18 posts, and rejection of a further 46 posts. It recommends against proposed posts in 14 of 19 organization units.

A related Secretary-General's report (document A/53/854) contains a description of the major peacekeeping support activities for the year ended on 30 June 1998 and the financial performance report for the same period. It notes that the Assembly approved resources for the support account totalling

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$32.4 million, whereas expenditures for the period totalled about $28.6 million, leaving an unencumbered balance of $3.9 million.

The report recommends the Assembly decide to apply this unencumbered balance to meet support account requirements for 1 July 1999 to 30 June 2000.

In an addendum to that report (document A/53/854/Add.1), the Secretary- General addresses specific issues raised by the ACABQ and the Assembly in Assembly resolutions A/52/248 and A/53/12, and proposes a budget for the support account for 1 July 1999 to 30 June 2000. The report also provides a detailed breakdown of resources, posts and workloads of the areas of the Secretariat that provide support for missions, including the Department of Peacekeeping Operations.

The Secretary-General proposes a staffing establishment from the account of 406, including six new posts, and resources of $36.1 million. In addition to approving those, the Assembly is asked to decide to apply the unencumbered balance of $3.9 million from the period 1 July 1997 to 30 June 1998 to the resources required for 1999-2000, and to prorate the balance of $32.2 million.

In a subsequent ACABQ report (document A/53/901), the ACABQ commends the Secretariat for implementing measures to better monitor the use of support account resources, but also asks for a better explanation of the variances in budget implementation under both staff and non-staff budget lines, and their impact on backstopping activities.

The ACABQ recommends the Assembly approve an overall staffing establishment of 400 temporary posts and a total resource allocation of $34.9 million for 1 July 1999 to 30 June 2000. It also recommends that the unencumbered 1997-1998 balance of $3.9 million be applied to resource requirements for 1999-2000, leaving $31 million to be prorated among individual active peacekeeping operations budgets.

A related Secretary-General's note (document A/C.5/53/60) tables the estimated requirements for all peacekeeping operations for the period 1 July 1999 to 30 June 2000, and prorated provisions for the support account and estimated requirements for the United Nations Logistics Base at Brindisi. The total gross estimate is $605.6 million for the missions alone and $644.2 million when the estimates for the Brindisi base and the support account are added in.

Board of Auditors Report

The report of the Board of Auditors -- volume II -- on United Nations peacekeeping operations for the financial period ending 30 June 1998 (document A/53/5) contains financial reports and audited financial statements of all

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operations during that period. The Board audited three field missions funded from the regular budget, 13 special missions and four missions in liquidation.

During the financial year ending 30 June 1998, three cases of fraud and presumptive fraud were reported to the Board, according to the report. At UNOMIG, owing to weak security, $35,642 in cash and $3,000 in equipment were stolen. The case was being investigated. At the United Nations Observer Mission in Angola (MONUA), a vehicle recommended for write-off was found to be operational. The case was recommended to a board of inquiry. At UNIFIL, a staff member had provided incorrect information regarding education grant claims for his daughter, defrauding the Organization of $23,000. The staff member was dismissed and the Administration has initiated action for recovery.

Among its findings, the Board notes that total unliquidated obligations of $1.21 billion included $97.4 million that might no longer be valid or might need to be re-obligated in accounts. It recommends reviewing that $97.4 million to determine its validity and take appropriate action. In addition, under the new system of wet/dry leasing of contingent-owned equipment, UNPREDEP incurred $1 million more expenditure during the 18 months to 30 June 1997 than it would have done had the old system been applied. Since that cost was mainly due to the higher generic values agreed upon for items of equipment under the new system, the Department of Peacekeeping Operations should review the generic fair market value of major equipment and submit proposals for revisions as appropriate, to the Assembly.

Also, the Board found that out of the 42 countries that had contributed troops to missions, 15 had signed a memorandum of agreement and relevant agreements with the Organization, while as of October 1998, 27 countries had not. The Board recommends concluding memoranda of understanding with those 27 States.

Regarding procurement, the Board recommends that the Administration monitor closely the increasing level of procurement for peacekeeping operations, particularly in the areas of airline management and operation, motor vehicles, parts and accessories and logistical support, in view of the general decline in the level of peacekeeping operations.

A report of the Secretary-General on implementing the recommendations of the Board of Auditors concerning United Nations peacekeeping operations for the period ending 30 June 1998 (document A/53/932) responds to the Board's recommendations and details the actions taken by the Secretariat.

As an example, the report states that the Administration continues to work towards completing memoranda of understanding with relevant States, and that the process is ongoing. Regarding the methodology for reimbursement of contingent-owned equipment, the report recalls Assembly resolution 51/218 E, by which States have the option to accept reimbursement under either the old

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or the new methodologies. Also, while additional costs had been incurred as a result of the new methodology, concurrent savings were realized in the reduced infrastructure support attributable to the new methodology.

As detailed in the report, other instances of action taken in response to the Board's recommendations include: the development of a coherent and responsive policy for monitoring the level of procurement for peacekeeping missions; the redesign and start of implementation of a centralized filing system for the Procurement Division; and the devising of methodologies for improving the verification of claims against the Department of Peacekeeping Operations.

In a related report from the ACABQ (document A/53/940), the Committee welcomes progress made on the timing of the Board's report, but states it would be useful for the report to be available at the beginning of February, when it considers peacekeeping operations. Regarding the Peacekeeping Reserve Fund, the ACABQ believes, given the purpose of the Fund and the substantial decrease in the level of peacekeeping operations, that the current level of $150 million should be reconsidered by the Assembly.

Given the continued high level of unliquidated obligations, the frequency of reviews should be increased and their quality improved as a matter of priority, the report states. In addition, the Committee is concerned about the cumbersome process of reporting property losses. The functioning of the Property Boards appeared inefficient, involved and lengthy. Also, the Committee commends the Board for its management audit.

The Committee notes its concern about the retrospective application of new procedures for contingent-owned equipment, particularly the potential for double payments where contingent-owned equipment might overlap with other services. It notes that while peacekeeping levels have decreased, the costs of the top 25 services and commodities for missions has increased, so the increasing level of procurement should be monitored. It also notes the problems of contract management at MONUA, and states that the lapses should be examined. It recommends immediate action to address weaknesses in the Procurement Division's headquarters and an immediate review of the improper temporary staff hiring identified by the Board in UNDOF, including an examination of whether such practices occur in other missions.

Peacekeeping Reserve Fund

A report of the Secretary-General on the Peacekeeping Reserve Fund (document A/53/912) summarizes the status of the Fund, as well as its utilization for the period from 1 April 1996 to 31 December 1998. Established at a level of $150 million as a cash-flow mechanism for rapid response to peacekeeping needs, the Fund had a balance of $103.7 million available at 31 December 1998. Total receipts to the Fund amounted to $112.4 million,

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consisting of transfers from such operations as the United Nations Transition Assistance Group (UNTAG) ($48.8 million), the United Nations Iran-Iraq Military Observer Group (UNIIMOG) ($17.3 million), as well as the United Nations General Fund ($25 million). An amount of $58.9 million still remained due to the Reserve Fund, consisting of funds to be transferred, primarily from the United Nations General Fund ($57.6 million).

The report also states that, with regard to utilization of the Fund, loans totalling $8.7 million were made to two peacekeeping operations for initial start-up costs. Those were $3.5 million to the United Nations Observer Mission in Sierra Leone (UNOMSIL) and $5.2 million to United Nations Mission in the Central African Republic (MINURCA). The report also contains two annexes summarizing the status and utilization of the Fund.

Statements on Bombing of Chinese Embassy

MOVSES ABELIAN (Armenia) expressed the Committee's condolences to the people and Government of China for the loss of life and the damage to property experienced as a result of the North Atlantic Treaty Organization (NATO) missiles which struck the Chinese Embassy in the Federal Republic of Yugoslavia.

The Committee observed a moment of silence.

MINQIN SUN (China) said United States-led NATO, in open defiance of international law and the norms of international relations, had flagrantly launched a missile attack against the Chinese Embassy, resulting in three deaths, more than 20 injuries and serious damage to the Embassy building. Such a barbaric act, in gross violation of Chinese sovereignty, had rarely been seen in the history of world diplomacy. The Government and people of China condemned the incident, for which United States-led NATO must assume all responsibility.

Yesterday had been Mother's Day, she said. The United States-led NATO bombing had deprived a young woman of the dream to become a mother. Among the three deaths there was a young woman of 29 years old, who had married just last year. A month ago, she had written a letter to a friend, informing her that she was prepared to become a mother, but the bombing had forever deprived her of that right.

Some countries talked about human rights and claimed to be the champions of human rights, but those same countries had stooped to that barbarian act, she said. Where were the human rights in such actions? she asked. China's 1.2 billion people were all peace-loving. China demanded that United States- led NATO stopped the bombing. If it continued, it would encounter increasing condemnation and objection from the people of the world, including those of NATO countries.

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ALEXEI DVINIANINE (Russian Federation) expressed his Government's condolences to China and confirmed his country's devotion to a speedy political settlement of the conflict in the former Yugoslavia, and above all to the speedy cessation of the barbarous bombing which was causing the death of innocent people.

Programme of Work

GARFIELD BARNWELL (Guyana), speaking for the "Group of 77" developing countries and China, expressed condolences to China for what had transpired. Adequate time must be given to certain key issues, so the Committee could conclude its work on them. The Group hoped all reports on the Development Account would be issued soon. On procurement reform, the Group had submitted proposals and looked forward to their adoption. The Joint Inspection Unit (JIU) had not been considered since the main part of the fifty-third Assembly session. The Group was concerned that the item had been postponed and looked forward to its early conclusion.

The Committee then approved its programme of work on the understanding that adjustments would be made as necessary.

Financing of United Nations Operations

JEAN-PIERRE HALBWACHS, United Nations Controller, introduced the Secretary-General's reports on the financing of United Nations peacekeeping missions, and on their administrative and budgetary aspects. For 1998-1999, the Assembly had approved some $934 million for the missions, while expenditures totalled $867 million, leaving a balance of some $67 million. For 12 missions during 1999-2000, proposals were being made for some $605.1 million, exclusive of requirements for the support account and the Brindisi Base. He also drew attention to the new report format, which provided more analytical elements, and made the reports more transparent.

He then introduced reports on the support account, under which 406 posts were proposed, compared to the existing 400 posts in the budget for the current period. For the support account, the current year was one of transition, since gratis personnel had been phased out and the Department of Peacekeeping Operations had had a significant number of those staff. To date, persons for 46 of the 55 posts designed to minimize disruption from that period had been recruited. A number of factors had been taken into account, as had the overall level of peacekeeping operations, which had gone from more than $1 billion in 1996-1997 to some $650 million for July 1999 to June 2000. An overall review of the Department of Peacekeeping Operations had been undertaken and changes had been made. The roles of the Department for Peacekeeping Operations and that of Political Affairs had been reviewed, as had the role of the Department of Management. Those issues were dealt with in the report.

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For the current year, the ACABQ had recommended 393 posts for the support account and identified those which should be met from redeployment, he recalled. The General Assembly had approved 400 posts. In the current proposal, 16 posts had been identified for redeployment. Six new posts were proposed for the Rapidly Deployable Mission Headquarters, despite every effort to identify posts that could be redeployed for those.

Regarding the Brindisi Base, he recalled that $10.8 million had been provided on an ad hoc basis, and the Assembly had decided that the amount should be prorated among peacekeeping operations. Expenditures had come to $9.5 million, and the remaining balance should be set against proposed estimates for the next period.

SETH KOMLA ADZA, Director of External Audit of Ghana and Chairman of the Audit Operations Committee, introduced the report of the Board of Auditors on United Nations peacekeeping operations and reviewed some of the main findings and recommendations. The Board found that a contractor's performance in providing support services to MONUA was unsatisfactory, and some 50 United Nations staff, at a cost of $300,000 per month, had continued to undertake tasks which should have been performed by the contractor.

Among its recommendations, the Board advised that the Administration ensure that all expenditure relating to a financial period was captured in accounts for more accurate financial reporting, since peacekeeping financial statements were intended to recognize expenditure on an accrual basis, he said.

C.S.M. MSELLE, Chairman of the ACABQ, noted with satisfaction that the Secretariat had responded to many of the Advisory Committee's previous recommendations, resulting in documents that were more user-friendly and analytical. It appeared that coordination between the Secretariat and the field had improved, and the Secretariat's budget proposals had been more realistic. The effect of that improvement would not become fully obvious until performance reports for the financial period starting 1 July 1999 were analysed by the ACABQ in February 2001.

Still, many areas needed improvement, he said. For example, many missions were being terminated and the Organization's capacity to liquidate missions expeditiously should be addressed as a matter of priority. Liquidation and disposition of assets was now a lengthy and costly process. He welcomed the preparation of guidelines on the subject based on lessons learned.

The ACABQ did not propose changes to the proposals for the Brindisi Base, he said. The prorated arrangement might have to be reviewed, however, should active missions' absorptive capacity be reduced further. After examining a cost-benefit analysis by the Secretariat, the ACABQ had concluded

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that the Base's long-term future depended largely on the extent to which it could manage assets other than those of peacekeeping missions. Regarding the support account, the ACABQ recommended that the current number of 400 posts be maintained for the next financial period.

Next, he turned to a two-page ACABQ report with seven paragraphs that the Committee had criticized as not complying with provisions of General Assembly resolutions on the format of reports. The ACABQ had considered the matter and confirmed the importance of user-friendly formats. It would, therefore, consider applying Assembly resolutions on a case-by-case basis.

Statements on Peacekeeping Financing

GERHARD KÜNTZLE (Germany), speaking on behalf of the European Union, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Cyprus, Iceland and Norway, said he agreed with the Chairman of the ACABQ that this year's budget proposals were more realistic than in the past, and the format and content of reports had improved. The Union's policy regarding financing peacekeeping had been stated in the recent session of the Special Committee on Peacekeeping Operations. It remained strongly committed to the primary role of the United Nations in protecting international peace and security. Their universality made United Nations peacekeeping operations an indispensable tool in a world with many violent conflicts.

In 1998, more than 40 per cent of troops and civilian police on peacekeeping missions were nationals of the Union and its associated countries, he said, and others worked in United Nations authorized operations such as the non-United Nations mission in Bosnia. It also contributed close to 40 per cent of the financing of United Nations peacekeeping missions. The Union welcomed progress in implementing the reformed procedure for reimbursement for contingent-owned equipment. The new procedure was better than the old one, and it was pleased that the Secretariat had addressed some issues raised previously, although others still needed to be addressed.

The Union agreed with ACABQ concerns that unliquidated obligations remained high, he said. Additional efforts to monitor budget implementation and disbursement were required. The high level of unpaid assessments remained an issue of particular concern. Those Member States that did not pay their obligations promptly, in full and without conditions jeopardized the Organization's peacekeeping capacities.

The scale of assessments should reflect the principle of collective responsibility and capacity to pay, he said, and additional relief for low per capita countries and a premium for permanent members of the Security Council should be included. It was unacceptable that a Member State would unilaterally change its contribution. Additionally, some countries with above

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average gross national product (GNP) per capita gained an undeserved advantage. Those issues fell within the responsibility of the Fifth Committee.

Accounting and disposal of peacekeeping assets and coordination between procurement and asset management were issues that must be dealt with in the right manner if Member States were to have confidence in the Organization's level of use of resources for peacekeeping missions, he said. Efforts made to improve in those areas, including implementing the Field Assets Control System, were beginning to bear fruit. The ACABQ had identified areas where further efforts were required, and the Secretariat should attend to those.

The Union shared the Board of Auditors' concern that the level of missions had decreased but the level of procurement had risen, he said, and it requested a more detailed explanation of that. On the other hand, the decrease in ex post facto consideration of contract by the Headquarters Contracts Committee was welcome. Despite achievements, more improvements were necessary and possible in procurement. The severe contract mismanagement problems in MONUA were disturbing, and the Secretariat should look into recovering losses.

On the support account, the Union believed it was important and that peacekeeping backstopping should be adequately resourced at Headquarters. The professional quality and effectiveness of peacekeeping operations, and the capacity of Headquarters to ensure safety and security of peacekeeping personnel, remained a yardstick by which success or failure would be measured. More needed to be done to identify the optimal backstopping levels to launch new missions and liquidate old ones. There was also more scope for delegation of authority in the field, and that, along with the use of new technology, would help streamline backstopping operations.

The Union was concerned about the loss of expertise in the Department of Peacekeeping Operations and it hoped that establishment of the new Military and Civilian Police Division would held address that, he said. The structure should be monitored and, if that monitoring showed it was necessary, changed. The United Nations capacity to rapidly deploy missions must be improved, and therefore the Union welcomed the Special Committee of Peacekeeping Operations call for the full establishment of the Rapidly Deployable Mission Headquarters. That should be done without further delay and should not result in a decrease in military and civilian police expertise elsewhere.

GARFIELD BARNWELL (Guyana), speaking on behalf of the Group of 77 and China, reaffirmed the statement on the scale of assessments [used by the United Nations to apportion the costs of peacekeeping missions among its Members] made at the twenty-second annual meeting of the Ministers for Foreign Affairs of the Group in 1998. The Ministers had underscored that capacity to pay was the primary criterion for determining assessments. They had stressed

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that the scale for financing peacekeeping operations must clearly reflect the special responsibilities of the permanent members of the Security Council and the economic conditions of other countries, in particular developing countries. The establishment of a ceiling and a floor for permanent Security Council members was unacceptable. Cutbacks and budget limitations continued to threaten the functioning of the United Nations and its capabilities.

THEODORE ALBRECHT (South Africa) reminded the Committee that at the Eleventh Summit of the Non-Aligned Movement (NAM) (Durban, 1998), the NAM had reiterated that the current scale of assessments should be institutionalized.

HASSAN KASSEM NAJEM (Lebanon) spoke on the financing of UNIFIL on behalf of the Arab Group. The Assembly had asked that Israel pay all the costs ensuing from its aggression against UNIFIL headquarters on 18 April 1996 in Qana, Lebanon. It had also asked the Secretary-General to take measures to make Israel pay the amounts. The Secretary-General's current report made it clear that, as usual, Israel had not implemented the provisions of Assembly resolutions, affirming that Israel should assume the cost of its aggression against United Nations headquarters in Qana.

The Arab Group was dismayed that Israel, the occupying State, had not assumed its obligations and paid the amount incurred form its criminal acts, of over $1.2 million, he said. It was ironic and tragic that Israel was celebrating the fiftieth anniversary of joining the United Nations when it behaved as if it was not subject to international law or the resolutions of the Assembly or the Security Council, particularly Council resolution 425 (1978), which called for an unconditional and immediate withdrawal of Israel from the south Lebanon.

At Qana, 106 innocent women, children and elderly who had sought refuge at the mission's headquarters had lost their lives, as had United Nations troops who were implementing their duties, he said. The occupying State had not only ignored the resolutions but rewarded United Nations troops by deliberately bombarding them. The Secretary-General must include in his upcoming reports on UNIFIL information on the extent to which Israel had implemented the provisions in resolutions 51/233 and 53/237, where the Assembly asked for taking the necessary measures to make Israel comply with the provisions in those resolutions.

TAMMAM SULAIMAN (Syria) supported the above statement. That was the third year that the Assembly was discussing Israel's aggression against the headquarters of UNIFIL. The United Nations was a symbol of peace and stability, but Israel had never been interested in such things. Israel's preparation for 50 years in the United Nations was simply a misleading of the public. Israel had been accepted as a Member State on the conditions that it was peace-loving and committed and able to fulfil its commitments under the Organization's Charter. But Israel was not peace-loving, it did not fulfil

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its Charter obligations and in fact paid no heed to the Charter as it continued to occupy Arab territory and expanded settlements in violation of resolutions.

The amount that the Assembly had determined Israel was to pay last year was nothing compared to the damage committed by Israel, which amounted to a massacre of refugees, he said. The attack had not been deterred by the United Nations flag, which was a symbol of peace. The General Assembly must force Israel to implement resolutions in accordance with international law, by which aggressor States must pay the cost of their aggression. Israel must not be allowed to go with impunity. Its crimes in Qana were not its first nor would they be its last. The Qana incident was but one in a series of aggression that had become a systematic policy, first directed against Arab citizens but now directed against United Nations troops.

ROYAL WHARTON (United States) stated his support for the funding and other recommendations of the ACABQ, and in particular endorsed the commendation of improvements in format and content of reports.

In addition to some specific concerns, the United States was strongly concerned that even though the conversion of international General Service posts to local posts had been reviewed, only five such posts had actually been converted, all at UNMIBH, he said. It was difficult for him to believe there were strong overriding reasons for all such positions -- except for five -- to be retained as international. Given the potential cost savings to the United Nations if more conversions were made, it endorsed the ACABQ comment and asked the Secretariat to look further into this matter.

The United States was also concerned that procurement mismanagement and possible corruption were uncovered in United Nations peacekeeping operations, and was especially interested in seeing corrective actions taken and those responsible brought to account, he said. He noted that two General Assembly resolutions had called on the Secretary-General to report on measures taken to address United Nations Angola Verification Mission (UNAVEM III) procurement irregularities before the second part of the resumed fifty-third Assembly session. The session had now started and the report was not to be seen. He hoped that he could report to his Government that both the report had been issued and that the Secretariat was taking the matter seriously.

AARON JACOB (Israel) said Israel in general supported future funding of peacekeeping. It stood firmly behind continued strengthening of peacekeeping operations. The idea of peacekeeping was born with the birth of Israel. It had come of age as the world became more complex. The goal of maintaining peace was still clear but the means varied. Each conflict was unique and unpredictable.

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Peacekeeping operations had influenced conflicts around the world, he said. They became a fact on the ground and therefore entered the considerations of both sides. They could also act as a bridge between the parties as they both coordinated their actions with the operation. Their potential was best realized when both sides took responsibility for stability. The UNDOF in the Golan Heights now had solid and close ties with Israel, and therefore helped ensure security and stability along the border between Syria and Israel.

He regretted that the deliberations in the Fifth Committee, designed to consider financing and management, had now become an arena for political disputes. He was referring to the statements by Lebanon and Syria, which were harsh and not in line with the parliamentary nature of the Committee. One of those speakers was the representative of a puppet government and the other of a brutal dictatorship.

He reiterated Israel's position on Lebanon. It was still waiting for Lebanon to implement Security Council resolution 425 (1978), which gave birth to UNIFIL. That resolution not only called for the withdrawal of Israeli forces but also for a return to peace and security, and for the re- establishment of Lebanese Government control of the area. Those last two provisions had not been met. Israel was prepared to implement that resolution, and it called on Lebanon to cooperate. Lebanon rejected cooperation, and instead attacked Israel in outside forums like the Fifth Committee. It supported the use of the territory as a launching pad for terrorism. There were serious questions about Lebanon's intentions.

Israel regretted that Syria was sabotaging the implementation of the resolution and holding its implementation hostage to its own bid for territorial gain from Israel, he said. He called on Lebanon and Syria to resume negotiations with Israel and to work to resolve the problem in a bilateral framework. He hoped that Lebanon would stop rejecting United Nations resolutions, so peace and security along the border could be restored.

AMJAD HUSSAIN SIAL (Pakistan) welcomed improvements in the format and content of the reports before the Committee. They would help the Committee's consideration of those reports. Additionally, he hoped that further efforts to improve them would be made, taking ACABQ comments into account.

He would respond to the ACABQ general report on peacekeeping missions (document A/53/895) and reserve comments on specific missions until later, he said. The format of that and other ACABQ reports did not comply with the format requirements specified in General Assembly resolutions 214 B and 208 B. Pakistan supported the calls from the Group of 77 and China for all reports to comply with General Assembly decisions.

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He commended the analytical nature of the ACABQ report. Its useful recommendations must be endorsed by the General Assembly so that they could be rapidly implemented by the Secretariat. He agreed with the concern expressed about the high level of unliquidated obligations and with the recommendation for greater monitoring of those liquidations. Periodic reviews of unliquidated obligations were essential to confirm that only valid liquidated claims were retained in the accounts, and would also facilitate early settlement of claims.

Pakistan noted the level of unpaid assessments with concern, he said. They created great difficulties for developing countries which responded to the call to support the maintenance of international peace and security. The financial obligations were a collective responsibility and should be fulfilled in accordance with the United Nations Charter in full and on time.

Regarding voluntary contributions, there should be a standard format for disclosure of all peacekeeping funding to ensure transparency, he said. Pakistan also supported the request for disclosure of all miscellaneous income in all future budgets. It also endorsed the ACABQ comments on standard costs. The Advisory Committee's observations on staffing requirements for peacekeeping operations should be fully implemented to avoid ambiguity and to allow the General Assembly to examine proposed changes in staffing.

Recommendations on details of reimbursement options for contingent-owned equipment should also be implemented, he said, as they would allow the Assembly to determine whether the procedures complied with its resolution 52/22. Pakistan agreed with ACABQ concerns on the management of inventory in peacekeeping operations. To avoid losses, it was important to ensure the safety of assets and have effective accountability procedures for loss of property. He sought clarification on the procedures presently in place to deal with the situation.

The ACABQ concerns on the year 2000 computer problem should also be attended to, he said, adding he would like to know whether the progress report that the ACABQ had asked to be submitted by May 1999 had been submitted.

The ACABQ recommendation on negotiating for spare parts in the global contract needed elaboration, he continued. Similarly, he would like to receive Secretariat comments on the need to improve accounting for support services, as the Fifth Committee should make a recommendation to the Assembly on that important issue. Noting that enhanced delegation of authority to local property survey boards had been introduced, he asked whether adequate measures had been put in place to ensure accountability so that the increased delegation did not result in increased shortcomings in the disposal of liquidated mission assets. He noted that the General Assembly had approved procedures for the disposition of assets, and asked whether there were any

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additional Secretariat guidelines in place that governed the liquidation process.

It was the view of Pakistan that the new methodology for processing contingent-owned equipment claims would be cost effective when they were implemented in accordance with Assembly resolution 52/22, he said. He asked for clarification from the ACABQ as to whether the five year claims period recommended by that body would be in conflict with its comments on the suspension of Financial Rules 4.3 and 4.4.

Regarding loss of equipment, Pakistan would like to be advised of the Secretariat definition of gross carelessness and the delineation of the threshold of gross negligence, he added. Losses from hostile acts and from gross negligence should be so-defined and included in missions' final performance reports.

ZIYAD MONAYAIR (Kuwait) supported the statement made for the Group of 77 and China on the scale of assessments for peacekeeping operations. On UNIKOM, the budget for the next 12 months was proposed to be $50.8 million. That was a 3 per cent increase from the current budget, but sufficient justification had not been provided for the increase. The ACABQ had indicated that the budget changes should have been better explained. His delegation also supported that body's recommendation on the vacancy rate. The problem of vacant posts in UNIKOM had long gone unresolved; the Administration should take the necessary measures in that respect.

Turning then to excessive payments for mission subsistence which had been made with relation to UNIKOM, and the recovery of sums of some $6 million, he said the Assembly had requested the Secretary-General to submit a report on the recovery of amounts of money and requested the staff who had made mistakes to be responsible and accountable for what they had done. When would the report be available? he asked.

ERNESTO HERRERA (Mexico) responded to what had been said regarding revising the scale for financing peacekeeping operations. When the current arrangement had been developed in 1973, a number of elements had been considered, including economic and political aspects. With regard to the former, the arrangement recognized that some countries could not contribute to the financing of peacekeeping operations in the way that others could. Regarding the political aspects, it recognized the capacity and special responsibility of permanent members of the Security Council.

A lengthy debate could be held to determine whether developing countries had increased economic capacity since 1973 to date, he said. Mexicans would very much like to have the real salary of 1976, which was 55 per cent greater than today. The political aspects, however, had not changed. The veto right had not changed; it went beyond Chapter VII of the Charter. It was not an

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appropriate time to begin the task of reviewing the special scale for peacekeeping, the basis of which had not changed substantially.

MARY JO ARAGON (Philippines) spoke for the Association of South-East Asian Nations (ASEAN) on the scale of assessments for peacekeeping operations. She supported the suggestion made in the statements for the Group of 77 and for the NAM to institutionalize the current arrangement for peacekeeping scales. No member of the NAM or other developing countries should be placed in the category higher than group "c" of the current scale of assessments.

While ASEAN was concerned about the Organization's financial situation, and the late reimbursement of troop- and equipment-contributing countries, the solution was for all Member States, in particular the major contributor, to pay their arrears and future assessments in full and on time, without conditionalities.

[The United Nations applies an arrangement for apportioning peacekeeping expenses by which its membership is divided into four groups. Those in "group (d)" are economically less developed Member States charged at one tenth per cent of their regular budget assessment rates. Countries in "group (c)" are other economically less developed States billed at one fifth. "Group (b)" are economically developed States which are not permanent members of the Security Council, assessed at 100 per cent. In "group (a)" are the permanent Council members which are to pay 100 per cent and cover expenses left unapportioned.]

Drafts Texts

The Chairman drew attention to draft texts that had been circulated in the room.

Appointments

Acting on the Chairman's recommendation, the Committee decided that the deadline for submitting candidates to fill vacancies on the United Nations Administrative Tribunal and the International Civil Service Commission, and for the designation of the Vice-Chairman of the Commission, would be Friday, 21 May. Elections would take place on 27 May.

Right of Reply

Mr. NAJEM (Lebanon) said he would respond to the statement of the Israeli occupying forces, which contained many misrepresentations. His delegation had not tried to politicize the Committee's work. The UNIFIL headquarters in Lebanon had been attacked, and the Assembly had decided that Israel should be charged and should pay for it. He could not accept lessons in politics by the representative of the Israeli occupying forces. Lebanon knew how to handle its affairs. It cherished its relations with Syria.

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Israel had occupied southern Lebanon since 1972, and rejected implementing Security Council resolution 425 calling for its withdrawal. Israel had bombarded his country, occupied southern Lebanon and even at one point reached Beirut, all to impose a certain kind of peace on Lebanon. Lebanon would not accept Israeli occupation of its territory. Peace must be based on territorial sovereignty and the principle of land for peace.

That which the representative of the occupying forces called "terrorism" was in fact a courageous resistance against foreign occupation, which would continue with force against the Israeli occupation, side by side with diplomatic endeavours, until resolution 425 was implemented, he continued. Israel's claim to wish to implement resolution 425 was one lie within a global attempt to mislead public opinion to distract it from the crimes being committed daily. If Israel wished to implement the resolution, it could do so by immediately withdrawing, as the text stated. Israel was attempting to distract everyone from its real intentions of expansion and aggression.

Terrorism was the daily bombardment against the women, children and elderly in southern Lebanon, he said. Terrorism was confiscating the territory of others by force and massacring the unarmed. Israel did not apologize for its actions. The resistors were heroes who deserved respect. They were trying to free Lebanon from desecration and would continue until the resolution was implemented.

Mr. SULAIMAN (Syria), also speaking in right of reply, said that in considering the remarks of the terrorist State of Israel, it was necessary to recall facts that country's representative had tried to change. What Israel had said regarding support for peacekeeping operations was truly ironic and evoked his disgust. It was in total contradiction to Israel's terrorist activities in Qana. Israel's so-called humanitarian assistance was meant to disguise its crimes. What had happened in Qana was terrorism -- the deliberate bombardment by the Israeli army not only of innocent civilians but also of a United Nations peacekeeping mission's headquarters. The mission that had been bombed was a symbol of peace.

Regarding Syria's political system, he was proud of the system, which was national and based on a policy of peace and the love Syria's President enjoyed from all of his people, he said. The misrepresentation was an attempt to have Member States believe the crime that was committed was a form of humanitarian assistance. Israel was trying to give a bad name to a political system dear to the hearts of all Syria's citizens.

The two words -- peace and Israel -- did not belong in the same sentence, he said. Israel could not speak of peace. Its history was forged by massacres. It was established through a dark history of terrorism, and based on pillars of aggression, occupation, settlements on the territory of others and State terrorism. Israel had bombarded UNIFIL, and had not been

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deterred by the United Nations flag. Such a State could not speak of peace. Peace was too lofty an idea for an entity based on war like Israel to claim.

Syria was proud to provide assistance to Lebanon, and to any other brotherly country suffering as Lebanon was, he said. If that bugged Israel, so be it. Relations between the countries were brotherly, despite Israel's opposition. If Israel wanted to speak of peace, it should promptly return the territory it had stolen. New Israeli settlements were being built every day on territory occupied after 1967.

The international community should be cognizant of those facts when hearing Israel speak of peace, he said. Syria had no territorial ambitions in the region, but simply wanted restoration of territory stolen from it. The lies of a State based on terrorism -- Israel -- could not fool the international community.

Other Matters

AHMED FARID (Saudi Arabia) supported the statement made by Lebanon on behalf of the Arab Group. His delegation had asked for information during the main session, in December, regarding resolution 53/208, section D, on pattern of conferences cost accounting. Specifically, it sought a list of United Nations staff members with experience in setting up a cost accounting system -- either in the United Nations or in another arena -- to determine whether it was necessary to resort to outside contractors. The list should indicate names, academic qualifications and work experience.

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