THOSE RESPONSIBLE FOR CORRUPTION IN PEACEKEEPING PROCUREMENT MUST BE HELD ACCOUNTABLE, UNITED STATES TELLS FIFTH COMMITTEE

25 May 1999

Press Release
GA/AB/3298

THOSE RESPONSIBLE FOR CORRUPTION IN PEACEKEEPING PROCUREMENT MUST BE HELD ACCOUNTABLE, UNITED STATES TELLS FIFTH COMMITTEE

19990525 Committee Concludes Discussion of Financing Peacekeeping In Angola, Central African Republic, Former Yugoslav Republic of Macedonia

The United States was concerned with mismanagement and possible corruption in procurement for peacekeeping operations and wanted those responsible held accountable for their actions, the representative of that country told the Fifth Committee (Administrative and Budgetary) this morning.

As the Committee concluded its general discussion of the financing of the United Nations missions in Angola, the Central African Republic and the former Yugoslav Republic of Macedonia, the United States representative asked for an explanation of the delay in the report on measures taken to address procurement irregularities in the United Nations Angola Verification Mission (UNAVEM). He also called upon the Secretariat to guarantee that, in the new operation in East Timor, every effort would be made to prevent such procurement irregularities.

Responding to the United States, the Chief of the Finance Management and Support Service, Department of Peacekeeping Operations, Compton Persaud, told the Committee that those involved with the procurement difficulties in Angola were no longer working in that area. The report on those difficulties was not yet ready because extensive discussions and actions were needed to present a clear picture of what had transpired in procurement. He expected it would be submitted before the next General Assembly session.

Continuing, he said a number of steps had been taken to transfer lessons learned from procurement in Angola to other missions. Those included training of officials responsible and increased monitoring by his Division. Those deployed to East Timor were properly briefed, and submissions were made to Headquarters to determine that financial rules and regulations were followed.

Also this morning, the Fifth Committee recommended that the General Assembly take note of the Secretary-General's quarterly report for the period from 1 January to 31 March 1999 on progress made in clearing the backlog of claims for death and disability incidents.

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The representative of Portugal associated herself with the United States delegate's statement. The Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), C.S.M. Mselle, introduced his Committee's reports.

The Committee will resume its work at 10 a.m. Thursday, 27 May, to take action on draft proposals related to the financing of the peacekeeping operations and continue considering appointments to fill vacancies.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to continue discussing the financing of United Nations peacekeeping operations.

Financing United Nations Observer Mission in Angola

In his report on financing the United Nations Observer Mission in Angola (MONUA) from 1 July 1997 through 30 June 1998 (document A/53/908), the Secretary- General asks the Assembly to decide on the treatment of an unencumbered balance of close to $4.6 million gross (some $4.3 million net). The Assembly had appropriated a total of $175 million gross (about $166.5 million net) for the period, while expenditures came to some $170.4 million gross (some $166.5 million net). Another report on financing MONUA (document A/53/937) contains the proposed budget for the 12-month period ending on 30 June 2000 for liquidating the Mission. The Secretary-General indicates that the Assembly must decide on an appropriation and assessment of $7 million gross (some $6.6 million net) and decide on the treatment of the unencumbered balance of $149,720 gross ($49,625 net) in respect of the United Nations Angola Verification Mission (UNAVEM) and UNAVEM II.

Of the total budget, operational costs account for 39 per cent of resources. Civilian and military personnel costs account for 36 and 20 per cent of the budget, respectively, while staff assessment comprises 5 per cent of the total. No provision is required for other programmes.

In its related report (document A/53/957), the Advisory Committee on Administrative and Budgetary Questions (ACABQ) recommends that the General Assembly appropriate the amount for the liquidation of MONUA. It also recommends that the Assembly's action take into account the unencumbered balance of almost $4.6 million gross (some $4.3 million net) for the period from 1 July 1997 to 30 June 1998, and the unencumbered balance of $149,720 gross ($49,625 net) in respect of UNAVEM and UNAVEM II.

Financing United Nations Preventive Deployment Force

In his report on financing the United Nations Preventive Deployment Force (UNPREDEP) from 1 July 1997 through 30 June 1998 (document A/53/786), the Secretary-General asks the Assembly to decide on the treatment of an unencumbered balance of almost $6.9 million gross (some $6.3 million net). For the period, the General Assembly had appropriated some $46.5 million gross (almost $45 million net), while expenditures had totalled $39.6 million gross (about 38.7 million net). The remainder was largely the result of lower operational requirements and vacancies in military and civilian personnel staffing, in view of the expected liquidation of the Force, pursuant to Security Council resolution 1142 (1997).

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A report on financing UNPREDEP from 1 July 1998 to 30 June 1999 (document A/53/437/Add.1) revises cost estimates for maintaining the Force during that period, including its liquidation from 1 March to 30 June 1999. The Secretary- General asks the Assembly to reduce the appropriation it had provided to $43.1 million gross (some $42 million net). Also, he asks that it assess another $9.7 million gross (some $9.5 million net) for the period, in addition to the roughly $33.4 million gross ($32.5 million net) already assessed.

Another report on financing the Force provides a revised and updated budget for the period from 1 July 1999 to 30 June 2000 (document A/53/812/Add.1). The Secretary-General asks the Assembly to appropriate $172,600 gross ($155,200 net) for liquidating the mission from 1 July to 15 October 1999.

The ACABQ, in its related report (document A/53/958), recommends that unencumbered balance from 1997 to 1998 be credited to Member States in a manner to be decided by the Assembly. It recommends accepting the Secretary- General's proposals for the 1998 to 1999 period, and the cost estimates for 1999 to 2000.

Financing Mission in Central African Republic

The Secretary-General's report on financing the United Nations Mission in the Central African Republic (MINURCA) from 27 March to 30 June 1998 (document A/53/791) asks the Assembly to decide on the treatment of an unencumbered balance of almost $1.9 million gross (roughly $1.8 million net). The Assembly had appropriated some $18.6 million gross (about $18.3 million net) for establishing and operating MINURCA for that period, but expenditures had come to only $16.7 million gross (about $16.5 million net). The balance had resulted largely from delays in deployment of military contingents and civilian police, international civilian vacancies and reduced requirements under operational costs.

Another report on financing MINURCA (document A/53/939) contains the revised maintenance budget of MINURCA for the period from 1 July 1998 to 30 June 1999 and the proposed budget for following the 12-month period. The Assembly is asked to appropriate and assess an additional amount of $34.3 million gross (some $33.9 million net) for the 1998-1999 period, inclusive of the commitment authority of $18.1 million gross ($17.7 million net) granted by the ACABQ for the period from 1 December 1998 to 28 February 1999. Also, it is asked to appropriate and assess $31.4 million gross (some $30.6 million net) for 1 July 1999 to 30 June 2000. The budget proposed for 1999-2000 is some $32.2 million gross (about $31.4 million net), inclusive of budgeted voluntary contributions in-kind of $784,400.

In its report on financing MINURCA (document A/53/971), the ACABQ recommends acceptance of the Secretary-General's proposals.

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Administrative Matters

A note by the Secretary-General (document A/C.5/53/58) contains the seventh quarterly report on progress made in clearing the backlog of death and disability claims. The 222 claims awaiting processing are presented by country, and by peacekeeping operation. Another annex contains a comparison of the total number of incidents of death and disability reported by peacekeeping operations as of 31 March 1999 (4,826) and the related number of claims submitted to the Secretariat (2,052).

Statements on Financing Peacekeeping Operations

SHARON BRENNEN-HAYLOCK (Bahamas), Fifth Committee Vice-Chairman, drew attention to the Secretary-General's reports, which had been introduced by the Controller at an earlier meeting.

C.S.M. MSELLE, ACABQ Chairman, introduced that body's reports on Angola, UNPREDEP and MINURCA.

ROYAL WHARTON (United States) said that his delegation fully supported the observations and recommendations of the ACABQ concerning the financing of the Angola Mission. However, he noted with concern its observation that the overall monitoring of expenditures for the Mission had been weak. Also, because of the revelations of particularly damaging practices, the General Assembly last June, in resolution 52/8C, had called upon the Secretary-General to report before the second part of the resumed fifty-third session on the status of measures taken to address the April 1998 Office of Internal Oversight Services report on UNAVEM procurement irregularities. That request had been repeated in resolution 53/211 in December. Therefore, it was with deep disappointment that his delegation had heard the United Nations Controller state on 11 May that the report would not be ready until the fifty-fourth session.

That was particularly disheartening because the Deputy Secretary-General, in reply to a letter from the United States Mission, had written that a report on progress on the UNAVEM investigation would be submitted to the General Assembly "shortly". In that connection, he wanted to know what interpretation should be given to the word "shortly", since the report was not yet ready. He also wondered where the evidence was of the Secretariat taking action against the abuse of the procurement process, if it was unable to prepare a report nearly one year after the General Assembly had formally requested it and more than two years since the Oversight Office had officially reported on the procurement problems in Angola.

It was difficult for his delegation not to conclude that the institutional culture of the Department of Peacekeeping Operations did not yet accord sufficient priority to combating such abuses. His Government was concerned with procurement mismanagement and possible corruption in peacekeeping operations and

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wanted corrective actions to be taken, and those responsible made to account for their actions. He wanted to know from the Secretariat why the report had been delayed and when it would be provided. His delegation also wanted to note the statement by the ACABQ in relation to the procurement problems in Angola.

In conclusion, he said that a new major operation was being planned for East Timor. He called upon the Secretariat to guarantee that, in the planning and conduct of that operation, every effort be taken to ensure that procurement irregularities, similar to those in UNAVEM and MONUA, did not recur.

MARIA REGINA SERRAO EMERSON (Portugal) said she wanted to support the intervention by the United States. Her delegation was also seriously concerned with the irregularities in the Angola Missions and wanted to see a report requested in the relevant General Assembly resolution. She also wanted to see action taken to correct the problems.

COMPTON PERSAUD, Chief, Finance Management and Support Service, Field Administration and Logistics Division, Department of Peacekeeping Operations, said the absence of the report was a continuing concern. He had hoped the report would be concluded and presented for consideration at the current session. Most of the reports that had been requested by the Assembly had been provided, but two could not be produced in time. Those drafts were being worked on. Extensive discussions and actions were needed to present a clear picture of what had transpired in procurement, and that was why the report was not yet ready. He expected the reports to be ready before the next Assembly session. Within three months, they would be ready to be submitted to the Committee.

A number of steps had been taken to transfer the lessons learned from procurement in Angola to other missions, he continued. Several training sessions had been held, including in Angola and Brindisi, to update knowledge on procurement practices.

As for the United States request for a guarantee on the planning and conducting of the mission in East Timor, he said it was difficult to guarantee that all actions would be taken in strictest accordance with financial regulations and rules. Those deployed to the mission were properly briefed, and monitoring on the part of the Field Administration and Logistics Division had been improved. Submissions were made to Headquarters to determine that financial rules and regulations were strictly complied with. That, combined with training, would hopefully lead to the avoidance of the difficulties found in Angola. None of the staff involved in the procurement difficulties in Angola were now involved in procurement or finance areas, he added.

The Committee recommended to the General Assembly that it take note of the Secretary-General's note on the progress made in clearing the backlog of death and disability claims.

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TAMMAM SULAIMAN (Syria), Rapporteur of the Committee, said that, as a coordinator on agenda item 165 on the Joint Inspection Unit, he wanted to inform the delegates that a draft had been prepared on the proposals submitted by each delegation. The text would be distributed following the meeting and would be discussed later to give everybody a chance to comment on the draft.

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