FIFTH COMMITTEE COMPLETES WORK FOR FIFTY-THIRD SESSION, APPROVES TEXTS ON DEVELOPMENT ACCOUNT AND CONTINGENT-OWNED EQUIPMENT

28 May 1999

Press Release
GA/AB/3300

FIFTH COMMITTEE COMPLETES WORK FOR FIFTY-THIRD SESSION, APPROVES TEXTS ON DEVELOPMENT ACCOUNT AND CONTINGENT-OWNED EQUIPMENT

19990528 Concluding Second Resumed Session, Committee Also Approves Text on Management Irregularities Causing Financial Losses to Organization

Completing its work for the fifty-third session of the General Assembly this afternoon, the Fifth Committee (Administrative and Budgetary) approved, without a vote, draft texts on a variety of subjects, including the Development Account and contingent-owned equipment.

By the text on the Development Account, approved today as the Committee finished its second resumed session, the Assembly would accept three projects for using the dividend: an online network of institutions for building capacity in public administration and finance; a research network for economic analysis; and activities for building capacity in pursuing the objectives of Agenda 21, the Copenhagen Declaration and Programme of Action of the World Summit for Social Development, and the Beijing Declaration and Platform of Action.

By an orally amended draft on contingent-owned equipment, the Secretary- General would be asked to convene the Phase V Working Group, in accordance with resolution 49/233 A of 23 December 1994. By other terms, the Assembly would continue considering reform procedures for determining reimbursement to Member States at its fifty-fourth session.

By a text on management irregularities causing financial losses to the United Nations, the Assembly would endorse the views of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), and request the Secretary- General to submit a report at the fifty-fourth session on the topic.

Also this afternoon, the Committee recommended that the Assembly defer, until its fifty-fourth session, consideration of:

-- the report of the Board of Auditors on United Nations peacekeeping operations;

-- the question of the modalities for operating the Development Account;

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-- the question of procurement reform; and

-- the agenda items "Review of the implementation of General Assembly resolution 48/218B" and "Joint Inspection Unit".

It further recommended that the Assembly defer until its next session consideration of documents on procurement and outsourcing; common services at Geneva; the Secretariat's post structure; impact of the implementation of pilot projects; conference facilities at Addis Ababa and Bangkok; and on the activities of the Office of Internal Oversight Services.

Draft texts and updates on the status of informal consultations were introduced by the representatives of Syria (the Committee's Rapporteur), Australia (the Committee's Vice-Chairman), Bangladesh, Republic of Korea and Portugal.

The representatives of Germany (for the European Union and associated States) spoke on procurement, as did the representative of Canada.

On the Development Account, statements were made by the representatives of Germany (for the Union), Guyana (for the "Group of 77" developing countries and China) and Uganda.

On contingent-owned equipment, the representatives of Canada (speaking also for Australia and New Zealand), Pakistan, Algeria, Egypt, Cuba and Jordan spoke.

The representatives of Syria, Germany (for the Union), Egypt, Cuba and Poland spoke on implementation of resolution 48/218, establishing the Office of Internal Oversight Services.

The representatives of Cuba and Algeria spoke on the Joint Inspection Unit.

Statements on "other matters" were made by the representatives of Panama, Russian Federation, Syria and Côte d'Ivoire. The Assistant Secretary- General for Central Support Services, Toshiyuki Niwa, addressed the Committee.

Concluding remarks were made by the representatives of: Finland for the Western European and Other States Group; Guyana, for the Group of 77 and China; Singapore, for the Asian Group; Syria, for the Arab Group; Philippines, for the Association of South-East Asian Nations (ASEAN); United Republic of Tanzania, speaking also for Uganda and Kenya; and the representatives of Mexico, Poland, India and Panama.

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The Committee's outgoing Chairman, Movses Abelian (Armenia), expressed appreciation for the support he had received during his term. He hoped that some of the achievements in the Committee's working methods could be continued. The Committee could benefit from meetings starting on time. Given the will, changes could be made.

He said he hoped that in the future, political will would prevail, so consensus decisions could be reached earlier, the number of informal consultations could be reduced as in the past, and night meetings would not be needed. Consensus might be complicated, but he hoped the Committee would make all efforts to adopt its decisions with the broadest possible agreement.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to take action on all remaining items on its agenda.

Action on Outstanding Agenda Items

TAMMAM SULAIMAN (Syria), Fifth Committee Rapporteur, said the Committee had conducted informal consultations on the item of financial reports and reports of the Board of Auditors, but had been unable to reach consensus.

On the recommendation of its Chairman, MOVSES ABELIAN (Armenia), the Committee decided to recommend that the Assembly defer its consideration of the report of the Board of Auditors on the United Nations peacekeeping operations contained in document A/53/5 (volume II) to its fifty-fourth session and decided to give priority consideration to the report during the main part of its fifty-fourth session.

Turning next to review of the Organization's administrative and financial efficiency, the Committee's Vice-Chairman, MILES ARMITAGE (Australia), said there was no draft resolution, despite efforts to come up with one.

Acting on the recommendation of its Chairman, the Committee then recommended that the Assembly defer consideration of the question of procurement reform until its fifty-fourth session and decided to give priority consideration of that question during the main part of the fifty-fourth session.

The representative of Germany, speaking on behalf of the European Union, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania and Cyprus, said that the Union attached great importance to the matter of procurement. For that reason, it had given much scrutiny to the performance of the Secretariat in that area, particularly that of the Procurement Division. He welcomed the recent improvements and said that the Union was conscious that they had been achieved only through great efforts on the part of the management and the staff of the Division.

He particularly welcomed the fact that those efforts had sought to increase opportunities in the award of procurement contracts to vendors from developing countries and countries with economies in transition, as requested in previous resolutions. The fact that progress had very clearly been made was appreciated by the European Union. He urged all parties involved to continue those efforts. Progress was a shared responsibility of Member States, as well as of the Secretariat. With that understanding, some member States of the European Union had already given financial support to Secretariat proposals, which were aimed at broadening the vendor base. He hoped that those efforts

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would continue to promote a wide participation in a fair, transparent and competitive procurement process.

He said the European Union also regretted not having reached agreement on a resolution on procurement reform at this time, because an opportunity had been lost to restrict the procurement opportunities of Member States in arrears, which was a long-standing demand of the Union.

The representative of Canada expressed appreciation to the new leadership in the Procurement Division. He welcomed the progress they had made in improving procurement procedures and urged that it continue.

The Committee then turned to the programme budget for 1998-1999.

HUMAYUN KABIR (Bangladesh) introduced a draft resolution on the Development Account (document A/C.5/53/L.68). The Committee approved that text without a vote.

By its terms, the Assembly would approve, on an ad hoc and one-time basis, three of the Secretary-General's proposals for using the development dividend:

-- Proposal F: an online network of regional institutions for capacity- building in public administration and finance (Department of Economic and Social Affairs);

-- Proposal G: a research network for economic policy analysis (Department of Economic and Social Affairs); and

-- Proposal H: activities for capacity-building in developing countries in pursuance of the objectives of Agenda 21, the 1995 Copenhagen Declaration and Programme of Action of the World Summit for Social Development, and the Beijing Declaration and Platform of Action (Department of Economic and Social Affairs).

Proposal H would be renamed by the draft, as above.

The Assembly would also decide that the anticipated duration of the approved projects contained in the report of the Secretary-General should not be used as a precedent for setting time limits for the programmes of the regular budget.

The Fifth Committee then decided, in connection with the question of the modalities for operating the Development Account, to recommend to the General Assembly that it decide to defer the question to the main part of its fifty- fourth session with a view to finalizing it prior to the consideration of the proposed programme budget for the biennium 2000-2001.

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Germany's representative, for the European Union, said the Union had supported the Account since its introduction, and was, therefore, pleased that the Assembly had finally approved projects for use of the productivity gains. To regularize the Account in accordance with existing rules, the Assembly would need to establish a special account of a multi-year nature. The Union would have welcomed the introduction of such an account. The coordinator of the agenda item had proposed a draft resolution on the modalities of the Account which was well-balanced. But once again, the Fifth Committee was unable to reach agreement on it, and the Union deeply regretted that outcome.

The representative of Guyana, speaking on behalf of the "Group of 77" developing countries and China, said the Group had been optimistic on reformulated project proposals and anticipated that the draft would be adopted. The Group was in broad agreement with the draft text, which had been provided in the informals. He requested that his right to make a statement on the matter be reserved for the plenary.

The representative of Uganda said that he had wanted to make a formal statement on the matter, but he would not make it, since the representative of Guyana had stated that the Group of 77 and China would make a statement at the plenary. His delegation was concerned that the Committee was making decisions on the implementation of projects without taking a decision on the Development Account. That could lead to complications in the future.

The Committee then took up a draft on contingent-owned equipment (document A/C.5/53/L.69), introduced by the representative of the Republic of Korea and orally revised by the Committee's Chairman.

It approved that text, by which the General Assembly would request the Secretary-General to convene the Phase V Working Group, in accordance with its resolution 49/233 A of 23 December 1994. It would also decide to continue consideration of the question of reform procedures for determining reimbursement to Member States for contingent-owned equipment at its fifty-fourth session.

The representative of Canada, also for Australia and New Zealand, said the three countries had called for convening the Phase V Working Group by early 2000, based on the recognition of the need to review the rates of reimbursement and address other issues that had arisen as the Organization gained experience in the reformed procedures. Secretariat officials had advised that they could meet the early 2000 timeline and even that they anticipated that initial planning could begin mid-June, subject to the Assembly's decisions. Given that, and in light of the recommendation of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on the timing of Phase V, she looked forward to the Secretariat beginning its work to convene the Phase V Working Group by early 2000.

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The representative of Pakistan regretted that a decision had not been reached. The project plan outlined in the annex to resolution 49/233 A had been delayed. It was to have been completed by March 1998. He hoped the Secretariat would make arrangements for the early convening of the Phase V Working Group for early 2000. He asked that the Secretariat submit the report of the Phase V Working Group to facilitate consideration of the agenda item by the Committee.

Algeria's representative said his delegation had participated in the spirit of cooperation on the item, based on certain principles relating to the need to give equitable treatment to troop-contributing countries without necessitating dual payments or additional responsibilities for the United Nations.

The Secretariat was to convene the meeting after the formal decision of the General Assembly, he said. It was not on the basis of individual requests, but on the basis of a resolution to determine the opportune time for convening the meeting of the Phase V Working Group. The Working Group mechanism dealing with reforming amounts to be reimbursed for contingent-owned equipment should be submitted for review by the Fifth Committee and by expert bodies, such as the Board of Auditors and the ACABQ, to ensure transparency in the work of the Working Group, so that its recommendations took into account the interests of all parties -- the suppliers of matériel for peacekeeping operations, and the Organization itself. The balance between those interests must be preserved.

The representative of Egypt said his delegation supported the intervention by Pakistan and emphasized the importance of creating the Phase V Working Group as soon as possible.

The representative of Cuba said that the exchanges on the subject had been very useful. Various opinions had been expressed, and they should be taken into account when consideration of the matter was resumed. She supported the statement by Algeria, which contained interesting elements. Those elements should be considered when the item was again taken up during the fifty-fourth session.

The representative of Jordan said that he wanted to affirm the importance of the Phase V Working Group, which should meet as soon as possible.

The Committee then turned to the item on the review of the implementation of General Assembly resolution 48/218B.

Reporting on the results of consultations on the item, REGINA EMERSON (Portugal) informed the Committee that no decision had been made on the matter.

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The Committee decided to recommend that the Assembly defer consideration of the item entitled "Review of the implementation of General Assembly resolution 48/218B" to its fifty-fourth session and decide to give priority consideration of that item during the main part of the fifty-fourth session.

The representative of Syria said that his delegation joined the consensus on the delay of consideration of the item. He had hoped that the consideration of the matter would be finished at the current session. He also expressed hope that the Committee would be able to adopt a decision in the early days of the fifty-fourth session. His delegation attached great importance to the work of the Office of Internal Oversight Services, but there were limits, which should be put on its role.

The representative of Germany, speaking on behalf of the European Union and associated countries, said that he regretted that the review had not been finalized. His delegation attached great importance to the issue, and he hoped that the negotiations on the matter would continue and would be finalized soon.

The representative of Egypt said that his delegation wanted to reaffirm the importance attached to the role of the Oversight Office as a factor that would help the Secretary-General to manage the human and financial resources of the Organization and lead to the better performance of the United Nations. He regretted that no consensus had been achieved at the second resumed session on the matter.

The representative of Cuba said that because of the lack of time and other matters related to discussions to be continued among the delegations, the consideration of the matter had not been concluded. All efforts should be made to eliminate differences and achieve an agreement on the matter as soon as possible, to allow the Oversight Office to continue its important work. It was important for the Fifth Committee to find a solution to the question, which had been under its review for a long time.

The representative of Poland associated himself with the statement made by Germany, on behalf of the European Union and associated States.

Mr. SULAIMAN (Syria), Fifth Committee Rapporteur, said that the Committee had been unable to conclude its consideration of the item on Joint Inspection Unit, although it had been very close to doing so.

The Committee then recommended that the Assembly defer consideration of the item to its fifty-fourth session and decide to give priority consideration to that item during the main part of the session.

The representative of Cuba said her delegation attached importance to the item. All of the paragraphs had been agreed upon in principle. She regretted that what had prevented the adoption of the draft related to

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conditionalities between one item and another. Linking items should not be the spirit prevailing in the Committee's consideration. Specific items should not be held hostage. She hoped the next Bureau would take into account that situation and do everything possible to ensure that future repetitions of such situations were avoided.

Algeria's representative said his delegation accepted the decision to defer consideration of the agenda item. He expressed sympathy and support for the representative of Syria who had exhibited great flexibility. The representative of Cuba had noted the departure that had created a poor precedent: a text had been negotiated and then challenged and linked to another matter not directly linked to the agenda item. For the sake of rationality, such experiences should be avoided in the future.

The Committee then turned to the draft resolution on management irregularities causing financial losses to the Organization (document A/C.5/53/L.72).

By its terms, the Assembly would endorse the views of the ACABQ and request the Secretary-General to submit a detailed report at the fifty-fourth session on the topic. That report should take into account reports mentioned in the ACABQ's report, including procedures for determining gross negligence and the responsibilities to be incurred by those who had committed such negligence, preventive measures to identify the factors that exposed the Organization to irregularities, and measures for improving internal control and accountability.

The Committee approved the text without a vote, which was introduced and orally amended by its Vice-Chairman, Mr. ARMITAGE.

It then took up a draft decision on review of efficiency (document A/C.5/53/L.75). It approved that text, by which the Assembly would defer until its fifty-fourth session consideration of documents on procurement and outsourcing; United Nations common services at Geneva; developments in the Secretariat's post structure; impact of the implementation of pilot projects; and construction of conference facilities at Addis Ababa and Bangkok. It would also defer consideration of the report of the Secretary-General on the Office of Internal Oversight Services.

Other Matters

JUDITH CARDOZE (Panama) said the representative of Cyprus had called to inform that his wife had delivered a healthy baby.

NIKOLAI LOZINSKY (Russian Federation) asked how long the Delegates' Lounge was to be closed.

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TOSHIYUKI NIWA, Assistant Secretary-General for Central Support Services, said that the cafeteria would be closed this summer. He would inform the Committee about the opening arrangements, which he needed to confirm.

Mr. LOZINSKI (Russian Federation) asked when the Assistant Secretary- General would inform the delegates and how they would get the information.

Mr. NIWA said that, if the delegate was referring to the cafe on the second level, the notification on that must have been issued. The alternative to the closing of that cafeteria and bar was keeping open the Viennese Cafe. The other option was the South Lounge outside the Security Council, and he had personally assessed the matter of opening it. As the location was very small and overcrowded, there was also a quiet room nearby where some coffee service would be provided.

Mr. SULAIMAN (Syria) said that he could not fully understand what the situation was in regards to the parking of non-diplomatic cars in areas allocated for diplomats. Violations were being found and violators were fined $10 daily. However, a number of cars without DPL plates had been authorized to park in that area. They had special permits. That created a certain confusion, so now the sign in the garage should read "DPL plates and authorized cars only". The fact that construction work was going on in the garage was exacerbating the situation, and the delegations had to cope with it. If in the future problems arose, he would like to discuss them with the Assistant Secretary-General personally.

MANLAN AHOUNOU (Côte d'Ivoire) said he wanted to take the opportunity to ask a question concerning parking. In the Fifth Committee, it was no longer an exception that work continued beyond working hours, and he was surprised that after midnight he had received a ticket for the parking of his car. He wanted to know what to do. Could account be taken of the fact that work continued after working hours? he asked. Some solution should be found.

Mr. SULAIMAN (Syria) said that his delegation wanted to thank Mr. Niwa for answering the questions. He did not want to turn the meeting into one dealing with the garage matter, but his delegation had raised the problem of parking, as it was becoming increasingly serious. The Secretariat had not responded to the questions and requests on the matter, despite the fact that Mr. Niwa has promised that all measures would be taken to avoid those problems.

Because of the construction in the garage, the space reserved for diplomatic cars had been taken, and there was room for only 17 cars on level 2B of the garage, he continued. Every day there were four to 17 unauthorized cars parked in the reserved space. Even if those vehicles were used by individuals working in the missions and by diplomats, they should not park in those spaces,

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unless they had diplomatic plates. If they could park there, then the sign in the garage should be changed. Those spaces were reserved for diplomats, and the current situation could not continue.

At least half the garage should be reserved for the diplomats, because they depended on it for their work, he continued. He also supported the representative of Côte d'Ivoire regarding the matter of working after midnight, and he was surprised that fines were applied. There had to be a distinction between the cars of delegates and others. When Mr. Niwa had come to the Committee last time, there had been talk about telephones, and his promises had not been fulfilled.

Mr. NIWA replied that the only thing he could say was that he would follow up on the matter. He had made his statement on the basis of the information provided to him; he needed to check it. In respect of the parking ticket, the staff was doing what it was supposed to do. When the presence of the car in the garage was related to official business, affected missions could explain the situation in a letter. He would look into it.

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