COUNCIL ADOPTS FINANCIAL REGULATIONS OF SEABED AUTHORITY, DISCUSSES LEGAL AND TECHNICAL COMMISSION RULES
Press Release
SEA/1647
COUNCIL ADOPTS FINANCIAL REGULATIONS OF SEABED AUTHORITY, DISCUSSES LEGAL AND TECHNICAL COMMISSION RULES
19990827(Received from the International Seabed Authority)
KINGSTON, 26 August -- The Council of the International Seabed Authority, meeting in Kingston this morning, adopted without vote the regulations that will govern the financial administration of the Authority.
The Council also resumed discussion of the draft rules of procedure of the Legal and Technical Commission. It concentrated on one remaining point, access by member States to meetings of that expert body when it deals with matters of particular concern to them, notably environmental emergencies triggered by activities in the international seabed area.
On a related issue, Chile restated the intention of the Latin American and Caribbean Group to seek a decision at the current session on its proposal to add one seat to the Commission's current membership of 22. The Group would nominate a candidate for election to the Commission next year.
The Council will meet again at 3 p.m. today to deal with these issues and wrap up its work for the current session. Also to be decided is the budget of the Authority for 2000 and whether to hold one or two sessions next year. Council President Charles Manyang D'Awol (Sudan) announced that consultations were still in progress on the latter topic.
Financial Regulations
The financial regulations adopted by the Council this morning (ISBA/5/C/L.3) govern the financial administration of the Authority, from budgetary preparation by the Secretary-General, through examination and approval by the Finance Committee, the Council and Assembly, and on to the handling and auditing of funds.
They provide for a financial period of two consecutive calendar years beginning with 2001-2002, marking a break with the current practice of single-year budgets. In deciding on the budget prepared by the Secretary-General every other year, the Council and Assembly are to take into account the recommendations of the Finance Committee. Appropriations by the Assembly are to be voted annually, in accordance with article 172 of the 1982 United Nations Convention on the Law of the Sea, which calls for annual budgets.
Administrative expenditures would be met from a general administrative fund, backed up by a working capital fund used to finance appropriations until income is available. Contributions from member States are set in a scale of assessments based on the United Nations scale, with ceiling and floor (maximum and minimum) rates fixed by the Authority. The Authority may accept voluntary contributions in cash or otherwise, which are to be kept in trust funds or special accounts.
Funds are to be kept in banks designated by the Secretary-General, who must report thereon to the Council from time to time. The Finance Committee must be informed when money not immediately needed is invested on a short-term basis, while long-term investments of trust funds and special accounts may be made after consultations with an investment counsellor appointed on that Committee's recommendation.
In addition to internal controls, accounts of the Authority are to be examined by "an internationally recognized independent auditor with experience in the audit of international organizations". An annex to the regulations contains additional terms of reference for the audit.
In adopting the financial regulations today (decision in ISBA/5/C.3/L.6), the Council also decided to apply them provisionally pending approval by the Assembly, and recommended such approval.
The text adopted today was based on a draft (ISBA/4/C/L.3) submitted by the Finance Committee, which worked on it between March 1997 and August 1998. The Council examined that version at two meetings on 16 August. Suggestions for changes, incorporated in today's version, concerned such matters as annual appropriations within a two-year financial period (Japan), ceiling and floor rates of contribution (Japan), the role of the Finance Committee in investment actions (Chile) and the requirement that the outside auditor have experience with international organizations (Italy).
In today's discussion, Chile again raised a point concerning regulation 8, dealing with custody of funds, which gives the Secretary-General the authority to designate the bank or banks in which the funds of the Authority are kept. Under the regulation, the Secretary-General "shall from time to time report to the Council on the designation of such bank or banks." Chile felt that the Secretary-General should be required to seek Council approval on any decisions relating to the investment of such funds.
In response Secretary-General Satya N. Nandan insisted that managing the Authority's finances was an administrative function and should not be "micro-managed". As the chief administrative officer, the Secretary-General must have the authority to use his judgement for the good of the Authority.
This view won support from Fiji, France, Ghana and the United Kingdom. They found Chile's proposal impractical and excessively bureaucratic, especially in light of the infrequency of Council meetings, and were satisfied that the current wording of the regulation was in keeping with United Nations practice.
Rules of Legal and Technical Commission
In the resumed debate on the draft rules of procedure of the Legal and Technical Commission (ISBA/5/C/L.1/Rev.1), the Council again took up proposals to amend rule 53, which concerns participation in Commission meetings by member States of the Authority and entities active in the international seabed area. Rule 53 contains three paragraphs authorizing any member of the Authority, with the Commission's permission, to attend a meeting when a matter particularly affecting that State is being considered and to express its views on such matter. Council members remained divided on the issue of the right of coastal States to participate in meetings of the Commission and the power of that expert body to decide who may participate in its meetings.
Chile, which had rejected an earlier compromise revision of rule 53 suggested by Secretary-General Nandan, proposed two sentences:
"Any member of the Authority may send a representative to express its position when the Commission is considering an environmental emergency situation which is of concern to it."; and "The Commission may invite any State or entity to express its views without vote on the matter being considered by the Commission."
Chile felt its new proposal would protect the work of the Commission and at the same time address the right of coastal States to participate in its meetings when a matter particularly affecting such States was being discussed. Yemen said it would accept the new proposal. Fiji rejected it as being "too narrow and rather exclusive" in referring only to coastal States, and said the draft rule was acceptable as it stood.
Brazil proposed that the first paragraph of rule 53 be replaced with wording based on rule 74 of the Council's rules of procedure: "Any member of the Authority not represented on the Council may send a representative to attend a meeting of the Council. Such a representative shall be entitled to participate in the deliberations but not to vote."
France said Chile's proposal and a fourth paragraph suggested by the Secretary-General were complementary. The latter is as follows: "Any member of the Authority may make a request to the Council to convene a meeting of the Commission in order to consider a matter of particular concern to that member involving an environmental emergency. The Council shall convene the Commission and request it to give urgent consideration to such matter and report to the Council as soon as possible with its findings and recommendation".
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