FIFTH COMMITTEE APPROVES TEXTS ON FINANCING UN INTERMIN ADMINISTRATION MISSION IN KOSOVO AND OFFICE OF INTERNAL OVERSIGHT SERVICES

Press Release
GA/AB/3353

FIFTH COMMITTEE APPROVES TEXTS ON FINANCING UN INTERMIN ADMINISTRATION MISSION IN KOSOVO AND OFFICE OF INTERNAL OVERSIGHT SERVICES

Also Takes Decisions on Level Of Peacekeeping Assessments of Kiribati, Nauru and Tonga

Two draft resolutions, on financing the United Nations Interim Administration Mission in Kosovo (UNMIK), and on the Office of Internal Oversight Services, were approved by the Fifth Committee (Administrative and Budgetary) this morning, along with a number of draft decisions.

The draft resolution on UNMIK would have the Assembly provide that mission with some $427.06 million for the period 10 June 1999 to 30 June 2000. Among other terms, the resolution would have the Assembly emphasize that all peacekeeping missions should be given equal treatment. The Assembly would also express its concern at delays experienced in deployment and resourcing of peacekeeping missions, particularly those in Africa.

By the terms of the text on the Oversight Office, the Assembly would reaffirm its role as the United Nations principal internal oversight organ of the Organization and recognize its importance in assisting the Secretary-General. The Assembly would ask that the Office’s reports be forwarded to it for consideration and action. By other terms, the Assembly would decide to evaluate its procedures at its fifty-ninth session.

Both these texts were introduced by the Committee’s Vice Chairman Ahmed Darwish (Egypt) and approved without a vote.

Decisions on the level of peacekeeping assessments of three new Member States -– Kiribati, Nauru and Tonga –- were also approved without a vote following their introduction by another Committee Vice-Chairman, Amjad Sial (Pakistan).

By other decisions, all proposed by the Committee’s Chairman, Penny Wensley (Australia), and approved without votes, a statement of the programme budget implications of a draft resolution on Afghanistan would be communicated to the Assembly, the Assembly would note estimated requirements for activities already mandated by the Security Council for 2000-2001, and revised estimates for the 2000- 2001 programme budget arising from the effects of currency exchanges and inflation.

The Committee also discussed the financing of the United Nations missions in Sierra Leone and East Timor, the peacekeeping support account for backstopping

Fifth Committee - 1a - Press Release GA/AB/3353 47th Meeting (AM) 15 December 1999

peacekeeping missions at Headquarters, and the second performance report for the Organization for 1998-1999.

The representatives of Finland (on behalf of the European Union), the Philippines (on behalf of the Association of South-East Asian Nations (ASEAN), China, Norway, Canada (also on behalf of Australia and New Zealand), Poland, Ghana, the United States, Bolivia, Pakistan, Egypt, Argentina, Guyana (on behalf of the “Group of 77” developing countries and China), Mexico, Cuba, and the Russian Federation addressed the Committee.

C.S.M. Mselle, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), and the United Nations Controller, Jean-Pierre Halbwachs, introduced reports and answered questions. Bock Yeo, Director of the Peacekeeping the Finance Division, Compton Persaud, Chief of Finance Management and Support Service, Field Administration and Logistics Division, and Warren Sach, Director of the Budget Division also answered Member States’ questions.

The next meeting of the Committee will be announced in the Journal.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to take action on draft resolutions and decisions on the Office of Internal Oversight Services, on financing the United Nations Interim Administration Mission in Kosovo (UNMIK), and on the groups to which three new Member States -- Kiribati, Nauru and Tonga -- will be placed for the purpose of determining the level of their assessment for peacekeeping.

It also planned to take up the financing of the United Nations Mission in Sierra Leone, the United Nations Transitional Authority in East Timor, the peacekeeping support account, the second performance report, the programme budget implications of a draft resolution on Afghanistan, estimates for financing matters of which the Security Council is seized, and revision of programme budget estimates to account for inflation and currency exchange rates.

The Committee had before it a draft decision that would have the Assembly place Kiribati in the "group d" list of economically less developed States for the calculation of its peacekeeping financial obligations (document A/C.5/54/L.20).

A similar draft decision would apply the same criteria to Nauru (document A/C.5/54/L.21), and a third would apply the criteria to Tonga (document A/C.5/54/L.22).

[The groups established for the purposes of determining the level of peacekeeping assessment are first described in Assembly resolution 43/232 on the financing of the United Nations Transitional Assistance Group (UNTAG). That resolution describes four groups of Member States: permanent members of the Security Council, which were levied at the highest rate; group b -- other economically developed Member States, levied at a lower rate; group c -- economically less-developed Member States, levied at a lower rate; and group d -- specifically mentioned less economically developed States, to which the lowest rate of assessment applies.]

The Committee also had before it a draft resolution (document A/C.5/54/L.17) by which the General Assembly would reaffirm the role of the Office of Internal Oversight Services as the principal internal oversight organ of the Organization. It would also recognize the importance of the Office in assisting the Secretary- General to fulfil his internal oversight responsibilities.

By other terms, the Assembly would ask the Secretary-General to transmit the reports of the Office to the General Assembly for its consideration and action, ask him to make substantive comments, as appropriate, on the Office's findings and recommendations, and ensure that the views of the concerned departments on any recommendations are included.

The Assembly would also decide that institutional arrangements governing reimbursements of costs for the Office for activities undertaken regarding United Nations funds and programmes should be in accordance with relevant rules and regulations of the respective funds and programmes. It would decide to evaluate and review the functions and reporting procedures of the Office, and any other matter which it deems appropriate, at its fifty-ninth session.

It also had before it a draft resolution on financing UNMIK (document A/C.5/54/L.18). By its terms, the Assembly would decide to appropriate some $427.06 million gross ($410.09 million net) for the Mission for 10 June 1999 to 30 June 2000, including the $200 million previously authorized. It would decide to apportion the $302.06 million gross not previously apportioned.

By other terms, it would ask the Secretary-General to undertake a study on the use of United Nations Volunteers in peacekeeping operations. It would also ask him to fully adhere to the rules concerning the use of gratis personnel, and to make full use of facilities and equipment of the United Nations Logistics Base to minimize procurement costs, and, to that end, to speed up implementation of the assets management system at all peacekeeping missions.

The Assembly would ask him to take all necessary action to ensure maximum efficiency and economy in the Mission's administration, and to continue to recruit local staff against General Service posts to reduce costs. It would also ask him to finalize agreements with agencies with roles in implementation in the Mission's mandate and to report on those to the Assembly.

It would emphasize that all future and existing peacekeeping missions should be given equal and non-discriminatory financial and administrative treatment, and that missions should be provided with adequate resources to discharge their mandates. It would also express concern at the delays experienced in deployment and resourcing of peacekeeping missions, particularly those in Africa.

Noting the status of outstanding contributions, it would express appreciation for those Member States that had paid their assessment and urge others to make every effort to pay in full and on time. It would emphasize that no peacekeeping mission should be financed by borrowing funds from other active missions. It would also invite voluntary contributions to the Mission from Member States.

By other terms, the Assembly would encourage the Secretary-General to continue with measures to render all staff safe and secure.

Regretting that the Secretary-General's report did not contain satisfactory explanation, it would ask him to improve his presentation in the future and submit them in a timely manner. It would endorse the view of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), and decide to keep the financing of UNMIK under review during its fifty-fourth session.

The Committee had before it a report of the Secretary-General on financing the United Nations Observer Mission in Sierra Leone (UNOMSIL) (document A/53/454/Add.1), containing the proposed budget for 1 July 1999 to 30 June 2000 for the maintenance of that Mission. The Secretary-General proposes a budget of some $16.41 million gross ($15.56 million net) -- a 25.4 per cent decrease (some $5.59 million) from 1998-1999.

Of that total, 46 per cent was for civilian personnel costs, the report states. Operational costs accounted for 22 per cent, while military personnel costs are 27 per cent. Staff assessment comprised 5 per cent of the total. Less than 1 per cent of total resources related to other programmes.

The proposed decrease was largely due to a 64.2 per cent reduction in operational costs, partially offset by 5.8 per cent increases in military personnel costs and civilian personnel costs, a 0.5 per cent increase in other programmes, and an 18.3 per cent increase in staff assessment costs.

The Committee also had before it another report of the Secretary-General on financing UNOMSIL (document A/54/455) containing the revised budget for UNOMSIL for 1 July 1999 to 30 June 2000, which is some $17.97 million gross higher than the initial proposal. The new proposal, which incorporates additional requirements for the provisional expansion of the Mission arising from Security Council resolution 1260 (1999) of 20 August 1999, is for a total of $34.82 million gross (about $32.87 million net). This does not cover estimated costs associated with the deployment of a peacekeeping force, proposed in the Secretary-General’s report to the Security Council.

The original budget was for 70 military observers, together with a 15-person medical unit and five civilian police advisers, supported by 50 international and 48 local staff. The Security Council, by resolution 1260 (1999), authorized the provisional expansion of UNOMSIL to up to 210 military observers, along with the necessary equipment and administrative and medical support, as well as the strengthening of the political, civil affairs, information, human rights and child protection elements, and the appointment of a Deputy Special Representative of the Secretary-General and the expansion of the Office of the Special Representative of the Secretary-General.

The Secretary-General, therefore, asks the Assembly to appropriate some $34.38 million gross inclusive of the amount of some $11.91 million gross ($11.62 million net) already authorized by the ACABQ. He asks it to assess some $15.47 million gross ($14.79 million net) for the period from 1 July to 13 December 1999, and some $18.91 million gross (about $18.08 million net) for the Mission’s maintenance for 14 December 1999 to 30 June 2000, at a monthly rate of $2.87 million gross (about $2.74 million net), subject to the extension of the mandate by the Security Council beyond 13 December 1999.

In a related report from the ACABQ (document A/54/490), that body explains that owing to the prevailing security situation and uncertainty as to the future deployment of UNOMSIL in February, it refrained from making recommendations to the General Assembly on the Mission's budget, and that, as a result, the Fifth Committee took no action during its resumed fifty-third session on the Mission's financing for 1 July 1999 to 30 June 2000.

It notes that, prior to this report, the total commitment authority provided by the ACABQ for the Mission's maintenance since 1 July is some $11.91 million gross (some $11.62 million net). Of this amount, it was advised that, as of 30 September 1999, expenditure amounted to some $3.56 million, leaving an unencumbered balance of about $8.20 million.

Given that the security situation in the operational area had improved, the ACABQ urges that speedy recruitment of personnel be undertaken to ensure the Mission mandate's full implementation. An amount of $9.9 million is proposed for military observers. It was advised that, as of 8 October 1999, 141 were in place. It asks that the deployment of military observers be carefully synchronized with the start of the functions to which they would be assigned.

Regarding the estimate of some $4.18 million for non-recurrent items, the ACABQ was advised that the standard cost manual for peacekeeping operations was being revised and would be ready for use in budgets for 1 July 2000 to 30 June 2001. It recommends that terms and classification used in the manual should be consistent with those used in budget documents.

The ACABQ reports it was advised that amounts totalling $15.8 million had been assessed on Member States for 13 July 1998 to 13 March 1999, while payments received as of 8 October totalled $13 million. There was, therefore, a shortfall of $2.8 million. Cash available as of 8 October amounted to $5 million, while unliquidated obligations for 1 July 1998 to 30 June 1999 stood at $2.2 million. As of 8 October, an amount of $4.2 million had been borrowed from the Peacekeeping Reserve Fund. The ACABQ asks the Secretary-General to provide information on the operation of the Reserve Fund in his report to be submitted to the ACABQ at its winter session.

The ACABQ recommends approval of the appropriation and assessment proposed by the Secretary-General.

The Committee also had another Secretary-General’s report on the United Nations missions in Sierra Leone (document A/54/633). This report notes that Security Council resolution 1270 (1999) of 22 October establishes a new mission in Sierra Leone -- the United Nations Mission in Sierra Leone (UNAMSIL) -- to take over the substantive civilian and military components of UNOMSIL.

The Secretary-General requests additional resources for the establishment and maintenance of UNAMSIL for the 1999/2000 financial period, estimated at some $174.14 million gross ($173.26 million net). This amount would bring the full budget of United Nations operations in Sierra Leone to some $208.52 million gross ($206.13 million net) and incorporates, pursuant to Security Council resolution 1270 (1999), the proposed budget of some $34.38 million gross ($32.87 million net) for the provisional expansion of UNOMSIL contained in report A/54/455 above. Action by the General Assembly on the proposed budget of UNOMSIL has been held in abeyance pending this budget proposal for UNAMSIL.

This UNOMSIL/UNAMSIL combined estimate of some $208.52 million includes total commitment authorities amounting to some $52.97 million approved by the ACABQ.

The budget breaks down as follows. Some 10.1 per cent of budget is for civilian personnel. Operational costs are 33.4 per cent of the budget. Military personnel costs will account for 55.2 per cent. Staff assessment is 1.1 per cent and less than 1 per cent relates to other programmes.

The Security Council established UNAMSIL for an initial six months, the report notes. It authorized a military component of a maximum of 6,000 personnel, including 260 military observers. It also decided the mandate of UNOMSIL should terminate immediately on the establishment of UNAMSIL. In view of its decision that UNAMSIL would take over from UNOMSIL, the revised budget estimate for UNOMSIL remains valid for UNAMSIL.

The Secretary-General proposes the Assembly approve the use of the UNOMSIL special account for UNAMSIL. He asks it to appropriate some $208.52 million gross for the maintenance and provisional expansion of UNOMSIL and the establishment and maintenance of UNAMSIL for the period from 1 July 1999 to 30 June 2000, inclusive of some $11.91 million and about $41.06 million previously authorized for UNOMSIL and UNAMSIL by the ACABQ.

He also asks it to assess some $168.55 million gross ($166.62 million net) for the two missions for 1 July 1999 to 21 April 200, and to assess about $39.97 million gross ($39.51 million net) for UNAMSIL’s maintenance for 22 April to 30 June 2000, at the monthly rate of some $17.3 million, subject to extension of its mandate beyond 21 April 2000.

In a related report from the ACABQ (document A/54/647), that body notes that, as of 22 November 1999, expenditure for 1 July to 22 November was some $27.80 million net, leaving an encumbered balance of about $24.88 million of previously approved funds.

Noting that the proposed civilian staff establishment for UNAMSIL totals 581 posts, of which 227 are international, 72 are United Nations Volunteers, and 282 are local staff, the ACABQ welcomes the use of local staff to minimize the employment of international staff, but also notes that little information is given on functions for the additional 213 local staff. This information should be provided in the future.

Noting the proposal for Deputy Special Representative at the Assistant Secretary-General level, the ACABQ, in view of the need to ensure cohesive leadership for the Mission, asks that, before positions of deputy special representative are proposed, all pertinent factors be taken into account and full justification be provided to the Assembly.

Rather than endorse the Secretary-General’s proposal to establish a P-3 post for a resident auditor, the ACABQ recommends that two P-4 posts be authorized for resident auditors for UNAMSIL. It also asks for a review of Professional staff resources proposed for the Regional Support Services Section.

Commenting on a proposed $20.18 million sought to transport contingent-owned equipment, the ACABQ concludes that the quantity of material to be airlifted and the costs involved are not based on firm estimates, nor on agreements with troop- contributing countries.

Regarding a projection of monthly cost for the use of S-61N helicopters at $242,000 for each helicopter, the ACABQ notes that this amount is not based on an agreement with a supplier of aircraft, and asks for a review to see whether the service could be provided at a lower cost.

The ACABQ claims experience has shown that the estimated flying hours are not always fully used, and states that there is, accordingly, room for adjustment of the total of some $18.91 million sought for air operations.

It notes that no provision had been made in the proposed budget for demining activities.

Given the above, the ACABQ recommends the Assembly appropriate and assess the amount of $200 million gross for the maintenance and provisional expansion of UNOMSIL and the establishment and maintenance of UNAMSIL for 1 July 1999 to 30 June 2000. It had before it a Secretary-General's report on financing of the United Nations Transitional Administration in East Timor (UNTAET) (document A/54/236/Add.1). In it, the Secretary-General asks for a commitment authority with assessment for $205.4 million to cover the most immediate requirements for UNTAET, pending the submission of detailed cost estimates to the Assembly.

The report also notes that, on 26 October 1999, he received authority to enter into $50 million in commitments from the ACABQ to meet immediate start-up costs of UNTAET.

Detailed cost estimates for 1 December 1999 to 30 June 2000 are being prepared, the report states, and will be submitted in early 2000. In the interim, immediate cash resources are required to enable the Mission to meet its monthly operating costs. As a consequence, the Secretary-General is seeking commitment authority and assessment of $205.4 million, including the $50 million already authorized by the ACABQ.

In a related report from the ACABQ (document A/54/653), that body notes that the estimate includes resources for four months full deployment of the military component of the Mission, and may need to be adjusted if there is a delay in replacement of the multinational force currently in East Timor with the UNTAET force. It also notes the estimated civilian personnel costs (some $53.63 million) are not based on what will actually be required by the Mission, since the workload of each organizational unit is not known at present.

Noting that UNTAET has assumed the remaining assets of the United Nations Mission in East Timor (UNAMET), the ACABQ recalls that the Secretary-General was to report on the state of those assets at the end of 1999, and that it had previously recommended that performance information on UNAMET be submitted by January 2000. The information on the assessment of UNAMET assets should be included in the latter report.

Regarding the UNTAET trust fund established to receive contributions to finance the rehabilitation of essential infrastructure, the ACABQ notes that, to date, no funds had been received. Thus, a request for additional money to meet these expenses may be sought in the detailed budget proposal. The second trust fund, for the multinational force, had received $5 million in contributions, and $100 million had been pledged.

The ACABQ recommends that the Secretary-General be granted authority to enter into commitments not exceeding $200 million, inclusive of the $50 million already authorized, pending the preparation of the detailed estimates for the Mission.

Given that there would be a one-month overlap (November 1999) between phase II of UNAMET and the newly established UNTAET, and that separate accounting and budgetary arrangements would be maintained for both missions, the ACABQ also recommends that the Assembly authorize the establishment of a special account for UNTAET.

The Committee also had before it the report of the Secretary-General on the support account for peacekeeping operations (document A/54/648).

The report contains revised post requirements for the support account for peacekeeping operations for the period from 1 July 1999 to 30 June 2000 as a result of the increased backstopping requirements at Headquarters arising from two new peacekeeping operations, UNMIK and UNTAET, and the expansion of UNOMSIL into UNAMSIL, and of the United Nations Mission in the Central African Republic (MINURCA) and the United Nations Mission for the Referendum in Western Sahara (MINURSO).

In this connection, the report recalls that the General Assembly, in its resolution 53/12 B of 8 June 1999, authorized for the 12-month period from 1 July 1999 to 30 June 2000 an amount of $34.89 million for the support account for peacekeeping operations, the financing of which was pro-rated among the individual budgets of active peacekeeping operations.

The Secretary-General is requesting additional 67 posts to be funded from the support account, the report says. And the actions to be taken by the General Assembly are set out in paragraph 11 of the report.

A related report from the ACABQ (document A/54/661) recommends that the General Assembly approve the establishment of the 67 temporary posts and that it authorize the Secretary-General to enter into commitments up to $3.5 million for related costs. It recommends he report on these in the performance report for 1 July 1999 to 30 June 2000.

The ACABQ report also says that it expects full justification for the requirements of all support account posts will be provided in the context of the comprehensive annual proposals on the total requirements for departments involved in backstopping peacekeeping operations, which is due in spring 2000. It stresses the importance of providing workload indicators, adding that, in this regard, a database should be established and maintained for each unit.

The Committee also had before it the report of the Secretary-General containing the second performance report (document A/54/631 and a correction).

This report provides an estimate of the anticipated final level of expenditures, changes in parameters for inflation and exchange rates and cost-of- living adjustments compared with the assumptions made in the first performance report. The first performance report was reviewed by the General Assembly at its fifty-third session, and formed the basis for the revised appropriations and estimate of income for 1998-1999.

The revised requirements under the expenditure sections amount to $2,488.3 million, a decrease of $41.6 million. The revised estimate under income sections amounts to $356.4 million, a decrease of $6.3 million.

In the light of the chronic cash shortage of the Organization, the Secretary-General asks the General Assembly to temporarily suspend certain financial regulations in respect of surpluses arising at the end of the financial period 1998-1999.

In the related ACABQ report (document A/54/7/Add.7), that body reiterates its recommendations that the Secretariat should attempt to base performance reporting on actual expenditures for the first 21 months, and that future performance reports should indicate the amount of unliquidated obligations included in estimated expenditures for the biennium. It has also asked the Secretary-General to provide a complete analysis of the impact of the suspension of financial regulations on all Member States -– in particular those that have paid their assessments in full.

The Committee also had before it a statement by the Secretary-General on the programme budget implications of draft resolution A/54/L.58 on Afghanistan (document A/C.5/54/41). The statement says that, should the General Assembly adopt the draft resolution extending the United Nations Special Mission to Afghanistan (UNSMA), estimated requirements of $3.4 million would be charged against the $86.2 million provision for special political missions in the proposed programme budget for 2000-2001.

The Committee also had before it a report by the Secretary-General containing estimates in respect of matters of which the Security Council is seized (document A/C.5/54/39).

The report concerns actions taken by the Council in 1999 regarding good offices, preventive diplomacy and post-conflict peace-building missions, on the basis of requests from governments and/or recommendations of the Secretary- General.

In 1998, the General Assembly decided, in resolution 53/206, that a provision of $86.2 million at revised 1998-1999 rates should be included in the proposed programme budget for the biennium 2000-2001 for special political missions.

The report contains the proposed resource requirements of eight political missions pertaining to matters of which the Security Council is seized, the mandates of which will be extended into the biennium 2000-2001. The total estimated requirements, amounting to $9.96 million, would be charged against the $86.2 million provision proposed for special political missions of the proposed programme budget for 2000-2001.

In a related ACABQ report (document A/54/7/Add.10), that body recommends the Assembly approve total requirements of $9.96 million for the eight missions against the provision for special political missions.

The Committee also had before it the report of the Secretary-General on revised estimates: effect of changes in rates of exchange and inflation (documents A/54/623 and Corr.1).

This report notes that, in accordance with established practice, the proposed programme budget is re-costed prior to its adoption by the General Assembly, following its preliminary re-costing, as reflected in the budget proposals of the Secretary-General. The report provides the latest data on actual inflation experience, the outcome of salary surveys and the movement of post adjustment indices in 1999, and the effect of the evolution of operational rates of exchange in 1999 on the proposed programme budget for the biennium 2000-2001.

The re-costed level of the resources proposed under the expenditure sections would amount to $2,584.6 million, it concludes. Similarly, the re-costing estimates of income for 2000-2001 would amount to $365.7 million.

The Committee also had before it an addendum to this report (documents A/54/623/Add.1 and Corr.1), which points out that there had been in the previous report data up to November 1999 were used as the basis of analysis. Since that report, it says, there has been a significant change in the performance of a number of currencies against the United States dollar. The addendum provides updated information as of December 1999 on the impact of changes to the operational rates of exchange and post adjustment indices on the proposed programme budget.

The re-costed level of the resources proposed under the expenditure sections would therefore amount to $2,561.9 million. Similarly, the estimates of income for 2000-2001 would amount to $363.8 million.

In a related report (document A/54/7/Add.9), the ACABQ states it has found no technical basis for objecting to the Secretary-General's revised estimates and, accordingly, transmits them to the Fifth Committee for consideration.

Action.on Texts before Committee

The Committee first took up a draft resolution on the Office of Internal Oversight Services. On that draft resolution, the Committee was advised that a subheading was missing from the printed text of the draft.

AHMED DARWISH (Egypt) introduced the draft resolution on the work and mandate of the Office of Internal Oversight Services (document A/C.5/54/L.17). He said that the draft had been accepted by consensus in informal consultations, which was a vote of confidence in the Oversight Office.

He also drew attention to the need to insert the subhead “Programmes and Funds” before the thirteenth operative paragraph of the draft.

The Committee then approved this draft resolution without a vote.

It then took up texts related to its agenda item on administrative and budgetary aspects of the financing of United Nations peacekeeping missions.

The three draft decisions on the placement for peacekeeping assessment purposes of new Member States Kiribati, Nauru and Tonga (documents A/C.5/54/L.20, L.21, L.22) were introduced by AMJAD SIAL (Pakistan). He said consensus decisions on all three drafts had been taken in informal consultations.

The Committee approved all three without a vote.

The Committee then turned to consideration of the draft resolution on the financing of UNMIK (document A/C.5/54/L.18).

The draft resolution was introduced by Mr. DARWISH (Egypt). He explained that this draft resolution had been agreed to without a vote in informal consultations, despite some differences of opinion on the technical levels of assistance.

The Committee then approved the text without a vote.

The representative of Finland, speaking on behalf of the European Union, said in explanation of position that the Union wished to emphasize that the current budget should not prevent the Secretary-General from proposing further adjustments in the staffing structure of and resource estimates for UNMIK in future budget estimations.

The representative of the Philippines said she hoped the grade level of the head of the office of gender affairs could be reviewed in the future.

Financing of United Nations Missions in Sierra Leone

The United Nations Controller, JEAN PIERRE HALBWACHS, introduced the Secretary- General’s reports

The Chairman of the ACABQ, C.S.M. MSELLE, introduced that body’s reports.

ELIAS LAHDESMAKI (Finland), speaking on behalf of the European Union, said the Union supported the recommendation of the Advisory Committee for assessment in the amount of $200 million gross for the maintenance and provisional expansion of the United Nations Observer Mission in Sierra Leone (UNOMSIL) and the establishment and maintenance of the United Nations Mission in Sierra Leone (UNAMSIL) for the period 1 July 1999 and 30 June 2000.

It also supported the recommendation of the Advisory Committee that the Secretary-General be granted the authority to enter into commitments in an amount not exceeding $200 million for UNTAET, inclusive of the $50 million already authorized by the Committee.

SUN MINQIN (China) said that China’s position on Africa was well known. It supported activities for peace and security in Africa. After the signing of the Lomé Agreement, the United Nations had to respond as quickly as possible and support the peace process in Sierra Leone with real action. The UNAMSIL should be adequately financed to ensure it could fulfil the mandate the Security Council had given it.

China was in favour of recruiting the maximum number of local staff to save on international staff costs, she said. Regarding the Secretary-General’s failure to ask for resources for demining, China sought an explanation from the Secretariat.

ERLING SKJONSBERG (Norway) said the present situation in Sierra Leone was volatile and called for urgent action. He supported the Council mandated mission. Speedy, secure and effective deployment was necessary to support the Lomé Agreement, and, for this, adequate resources were required. Norway was providing military observers and civilian police for this Mission, and had contributed to the reconstruction trust fund.

He noted that no budget had been put forward for demining, and that a technical assessment of the mine situation had not been undertaken. Norway supported the ACABQ figure of $200 million gross for UNAMSIL.

CHRISTOPHER BURTON (Canada), speaking also on behalf of Australia and New Zealand, said he noted the Secretary-General’s request for authority to commit up to $205.4 million for UNTAET, and that the ACABQ, because of expected delays in deployment, had recommended slightly less be authorized. He hoped that delays in deployment of the military component would be kept to an absolute minimum.

The three Member States supported the figure of $200 million, in accordance with the ACABQ recommendation, and for the reasons it had given, he said. They also strongly supported full assessment of this amount.

On Sierra Leone, he said that the decision to establish UNAMSIL was important for Africa and a step towards peace in Sierra Leone. He supported the mission. Canada, Australia and New Zealand supported the recommendation of the ACABQ that $200 million be appropriated and assessed, rather than the $208.52 million requested by the Secretary-General, he stressed.

He said he regretted that no provisions were made in the budget proposal for demining activities, given the need to ensure the safety of United Nations personnel and the need to clear Sierra Leone of landmines. This activity was required.

He encouraged all Member States to pay their assessments for the missions to ensure they would be equipped with predictable and secure funding.

JAN JAREMCZUK (Poland) aligned himself with the statement made by the representative of Finland on behalf of the European Union.

LESLIE KOJO CHRISTIAN (Ghana) asked why the provision for civilian police for Sierra Leone had been pegged at such a low level. He also hoped that the Department for Peacekeeping Operations would review the proposed helicopter support service to see if it could be provided at a lower cost. The UNAMSIL should be put on a firm footing from the beginning, in order to be able to fully carry out its mandate.

BOCK YEO, Director of the Peacekeeping Finance Division, said that at the time of the preparation of the UNAMSIL budget the area where mines were located had not been secure, and so it had not been possible to carry out the required assessment. This was now in process, and requirements for demining would be submitted when available.

COMPTON PERSAUD, Chief, Finance Management and Support Service, Field Administration and Logistics Division, responding to the question about helicopters, explained that these were heavy-lift helicopters required for the deployment of equipment. The existing helicopters did not have the capacity to deliver the equipment needed. To allow deployment within the time frames specified, larger helicopters would be required.

He explained that the numbers of staff required for the support of military observers was set according to a ratio that had been developed over time, and through experience elsewhere. He would answer the question about police in informal consultations, he said.

Financing of UNTAET

The United Nations Controller, Mr. HALBWACHS, introduced the Secretary- General’s reports. The Chairman of the Advisory Committee, Mr. MSELLE, introduced that body’s reports.

MARY JO ARAGON (Philippines), speaking on behalf of the Association of South-East Asian Nations (ASEAN), said ASEAN supported the recommendation of the Advisory Committee for the Secretary-General to be granted the authority to commit $200 million for UNTAET, inclusive of the $50 million already authorized by the Committee. And it further supported the establishment of a special account for the mission.

ROYAL WHARTON (United States) said he supported the Advisory Committee’s proposed assessment of $200 million and he expected the forthcoming donors’ conference for the trust fund to be fully successful.

Support Account

Mr. MSELLE introduced that body’s report.

Mr. HALBWACHS then introduced the Secretary-General’s report.

Mr. LAHDESMAKI (Finland), speaking on behalf of the European Union, said the Union was strongly committed to the United Nations’ primary role in the maintenance and promotion of international security. The total peacekeeping budget was three times what had been estimated in June, when Member States had approved the support account. The complexity of mandates of new missions, as well as large civilian components associated with them, constituted a greater challenge and demand on the Secretariat at every phase.

Adequate backstopping of missions at Headquarters was essential, he said. The Assembly was responsible for ensuring that adequate resources were provided, and the support account was the appropriate means to do this.

All departments involved in peacekeeping backstopping must be structured efficiently, staffed adequately, informed properly and well-prepared to plan, deploy and manage their tasks, he said. The Union supported the proposal to establish 67 temporary posts, he said.

Mr. BURTON (Canada), speaking also on behalf of Australia and New Zealand, said he supported the Secretary-General’s proposals for an additional 67 posts to meet staffing needs arising from backstopping for the new missions. He viewed the Secretary-General’s request as a first step towards building a “core and surge” approach to Secretariat capacities to meet the requirements of peacekeeping commitments. He also supported the Advisory Committee’s recommendation that the Secretariat review workload indicators to gain an overall appreciation of total resources, both human and financial.

Mr. WHARTON (United States) said he was concerned about the way in which the request for an increase in the support account had been handled. He did not believe the submission of this request by the Secretariat in the last weeks of the Fifth Committee deliberations was fair. It was particularly unfair given that the matter had been discussed in detail several months ago.

When it had last been discussed, the United States had stated that it was unhappy that a comprehensive review of the support account, examining the relationships between departments involved, the procedures needed to perform tasks efficiently, and structures and staffing required had not been undertaken, he said. This review had not yet been completed, although he was encouraged that the ACABQ had called for a similar review. He asked that this review be completed prior to the Fifth Committee’s resumed session in June.

The United States was unhappy with the presentation at this time of this request, he said, but respected the ACABQ and its work, so it would discuss that body’s recommendations in informal consultations.

EDUARDO GALLARDO (Bolivia) said Member States had been told that there was a significant increase in requirements. He asked what percentage of the increase could be attributed to new missions.

Mr. SIAL (Pakistan) said backstopping was necessary for the efficient functioning and security of peacekeeping missions. He regretted the late submission of the Secretary-General’s report, but was ready to endorse the Advisory Committee’s recommendations on it. He asked for clarification on whether the additional requirements would enable the Secretariat to fulfil the resolution of the General Assembly on the redeployment of the Rapidly Deployable Mission Headquarters.

Mr. JAREMCZUK (Poland) aligned Poland with the statement made by the representative of Finland on behalf of the European Union.

Mr. DARWISH (Egypt) associated Egypt with the statement made by the representative of Pakistan.

MARIA FABIANA LOGUZZO (Argentina) supported the ACABQ proposal regarding the 67 additional posts in the Department for Peacekeeping Operations, in view of the expansion of that Department’s tasks resulting from new missions and the expansion of old missions. It understood that these posts were necessary to optimize the response capacity of that Department and to support activities in the field.

Mr. HALBWACHS said the $650 million referred to was what was estimated to be the annual cost of the peacekeeping operations then in existence -- the difference between that amount and the $2 billion referred to now related essentially to the missions for East Timor and Kosovo and the expansion of the Sierra Leone mission.

On the redeployment of the rapid deployment force posts, the Assembly had not granted new posts, but had endorsed the earlier recommendation of the Advisory Committee. The question of redeployment would be dealt with in the forthcoming annual report on the support account.

Mr. WHARTON (United States) asked if the new support account posts would eventually be eliminated after the surge requirement disappeared.

Mr. HALBWACHS said they would.

Mr. SIAL (Pakistan), speaking on the Rapidly Deployable Mission Headquarters, said that it had been hoped that, in view of the normal vacancy rate, a positive action should have been taken to redeploy six posts; he hoped the Secretariat would make a concrete recommendation in order to enable the functioning of the Headquarters. Programme Budget for 1998-1999

The United Nations Controller, Mr. HALBWACHS, introduced the report, explaining that its objective was to provide as accurate as possible a presentation, based on expenditures thus far, of the expenditures for the biennium and reasons for changes.

Mr. MSELLE, Chairman of the ACABQ, presented the body’s report on the second performance report.

GARFIELD BARNWELL (Guyana), speaking on behalf of the "Group of 77" developing countries and China, asked what the impact of vacancy rates on mandated programme and activities would be. He expressed the Group's wish that during the implementation of the coming biennium the Secretariat would work on the basis of the vacancy rate approved by the General Assembly.

THOMAS REPASCH (United States) drew attention to the Advisory Committee’s view that the goal of performance reporting should be to relate financial data to programme performance. The main point of the United States concerned the proposal to suspend the provision of financial regulations concerning surpluses, and he wished to add his own concerns to those of the Advisory Committee. The assumptions on which the idea of suspension had been based had not proved to be entirely accurate.

As a result of recent actions taken by the United States Government, the financial position of the United Nations was set to change substantially, he said. Recent payments also did not include additional amounts due from the United States which were still in the pipeline. The point was that the cash situation of the United Nations had changed substantially and, therefore, suspension was not necessary.

As far as the continuing high-vacancy rate was concerned, it seemed to be isolated in a few programme areas and he urged the Secretariat to take appropriate action. He also wondered if some travel for the purposes of data collection could be obviated by better use of technology.

On reduced requirements under general operating expenses, he noted a reduction. For this, he commended the Secretariat and urged the continuation of such efforts. He also noted a reduced need for consultants and experts and commended the Secretariat; this was in line with what the United States had been saying all along. He added that he regretted that no savings from efficiency measures had been found.

ERNESTO HERRERA (Mexico) said Mexico agreed with comments made by the representative of Guyana about the Development Account. It was a pity that it was not possible to identify resources arising from greater efficiency that could have been allocated to the Account. He also added his concern to that of the ACABQ about vacancy rates.

Regarding the suspension of regulations that had been requested, he asked if there was a precedent for this. He also asked whether credits been passed to Member States. If no credit was extended, there must, in principle, be a special account in which the money was being held. He asked if such an account existed and what amount was in it. If it existed, he sought information on how much should be credited to Mexico if the regulations were not suspended.

DULCE BUERGO RODRIGUEZ (Cuba) said she was concerned about the vacancy rate. She understood the difficulties of abiding by the vacancy rate, but sought information from the Secretariat on the effect of the freezing of hiring, and on the direct link between vacancy rates and the hiring freeze.

She was also concerned that no savings had been identified as a result of efficiency measures and therefore there was nothing to transfer to the Development Account, particularly in the light of reductions being rationalised in the report on the basis of efficiency gains. There appeared to be a contradiction, and she would like an explanation.

Cuba continued to be concerned about the cash situation and reaffirmed that all Member States must comply with their contractual obligations, on time, in full and without conditions. In the interim, suspension of the regulations should be approved as a palliative for the cash-flow problem.

JOHN ORR (Canada) said he wished the performance reports could have been issued earlier. On the proposed suspension of financial regulations, Canada noted the money owed to troop contributing countries -- this was one of the major ways the Organization was being financed. It was a burden that should be shared equally, and the sensible way to do this was by the suspension of the financial regulations. He also wished to know whether favourable lease terms that had apparently led to savings would extend into the current biennium.

Mr. SIAL (Pakistan) said that as a troop contributor his country was waiting for reimbursement, but was also ready to support suspension of financial regulations as proposed by the Secretary-General. There should be a brief annex to the report indicating assessments of States to the regular budget and contributions made by the end of the budgetary period. He also asked what the total amount retained by the United Nations as a result of the suspension of the financial regulations was. The programme performance report should include relevant financial data in the body of the report itself, he said. On efficiency measures, he said the Committee had been promised significant savings but there was no indication of savings achieved through efficiency measures. He also concurred with the observations of the Advisory Committee that the Office of the Human Resources Management (OHRM) should take action to streamline hiring practices to reduce vacancy rates.

NIKOLAI LOZINSKI (Russian Federation) recalled that when the budget for the next biennium was presented, he had spoken against the proposed suspension of financial rules, as was then suggested. The same proposal was being made in this report. He repeated the position that the Russian Federation was not prepared to accept the suspension of Financial Rules.

WARREN SACH, Director of the Budget Division, then answered Member States’ questions. On the impact of vacancy rates on the fulfillment of mandates, he said it was too early to give any indication of this impact, as the vacancies tended to be concentrated in a limited number of offices. This would be represented in the programme performance report, to be reviewed by the Committee for Programme and Coordination in May next year, and then presented to the Assembly.

On the connection of vacancy rates with a hiring freeze, he said there had not been such a freeze this biennium. There had been one in the previous biennium which had resulted in high vacancies at the time. In this biennium there had been a consistent downward trend in vacancy rates.

On the absence of identified efficiency gains for the Development Account in the performance report, he said it had been hoped that amounts in addition to the $13 million previously identified would be generated, even though a reduction of over 900 posts was to be absorbed.

In May, the Secretariat had indicated to the ACABQ that gains of some $5 to $7 million might be available, he said. He was disappointed to note that no programme managers had been able to expressly identify any savings as directly due to efficiency measures, despite an express request for them to do so.

Efficiency gains were distinct from savings due to high vacancy rates, favourable currency exchanges and lower inflation, he said. Some fortuitous gains in programme implementation had been achieved, but it was not felt that these could be properly attributed to efficiency gains.

On the reductions in expenditures about which the ACABQ asked for further information, about half were in General Assembly Affairs and Conference Services, but that Department also had above expected expenditures in other areas that exceeded the savings. Thus there were no net savings arising from this Department’s activities.

Regarding the savings by the Department of Peacekeeping Operations, these related to special political missions and were the result of high vacancies, not efficiencies.

The savings in the Office of Legal Affairs occurred as a result of Treaty Series volumes not being processed because of translation holdups.

Reduced General Operating Expenses were the result of favourable terms of leases, and therefore could not be called efficiency gains. The lease improvements were reflected in the budget proposals for the forthcoming biennium.

On construction costs, there was a late charge for a 1994-1995 project expense which would be charged against the current biennium but would allow closure of the relevant account.

United Nations Controller, Mr. HALBWACHS, then explained, in response to questions about the requested suspension of the financial regulations, that Member States would be provided with an update of the financial situation. The situation would probably be better than expected by about $100 million, but this would still mean $2.1 billion was owed for unpaid assessments, at least some of which was for the regular assessment.

The improvement did not mean the Organization was out of the woods, he explained. It was currently financed by not paying troop contributors and those who provided contingency-owned equipment.

The Assembly had agreed to this suspension of the rules four times in the past, he said, in 1972, in 1980-1981, in 1982-1983 and in 1986-1987. When the financial situation returned to normal the Assembly might like to take this money back and return it to Member States.

In response to the request for an annex to the performance report on the status of contributions, he said this could be done, but pointed out that the information was already available and distributed to all Member States in the status of contributions report.

Mr. GALLARDO (Bolivia) asked about new troop contributions –- for the mainly small countries involved, what would be the impact of this situation? he asked.

Mr. HALBWACHS said troop contributors would be subjected to the same treatment to those serving ongoing missions. No particular mission or contributor was to be favoured from the financial point of view.

Mr. BARNWELL (Guyana), speaking on behalf of the Group of 77 and China, wished to indicate the Group's support for the temporary suspension of the financial regulations. It reaffirmed its position that all assessed contributions should be paid in full.

Mr. SIAL (Pakistan) conceded that information on the status of contributions was provided, but he thought a one-page annex would make the picture clearer.

Mr. HALBWACHS said it was not possible to produce a one-page annex –- all the Member States would not fit on a single page. He did not agree that the Secretariat could produce for the General Assembly a report that contained voluminous detail on programme and budget -- this would delay the performance report itself. He agreed, however, that more financial data could be made available.

Proposed Programme Budget for 2000-2001

The Committee then resumed consideration of the proposed programme budget for 2000-2001 and the programme budget implications related to a draft on the situation in Afghanistan and its implications for international peace and security (A/54/L.58).

Mr. SACH introduced the relevant report of the Secretary-General.

The Committee then decided, without a vote, to inform the General Assembly that should it adopt draft resolution A/54/L.58, the requirements of $3,407,600 would be charged against the provision for special political missions requested in section 3, Political affairs, of the proposed programme budget for the biennium 2000-2001, in accordance with General Assembly resolution 53/206.

The Committee then turned its attention to estimates in respect of matters on which the Security Council is seized.

Mr. SACH, Director of the Budget Division, introduced the report. It was to allow the Secretary-General to implement mandates already approved by the Council. These included mandates for the United Nations offices in Angola, Bougainville and Burundi, the Burundi peace process, the political office for Somalia, the peace- building support office in Liberia, the Security Council expert panels on Angola, and the Special Envoy of the Secretary-General in Africa. The total requested was some $9.96 million, to be charged against the amount already requested for special political missions in the 2000-2001 budget proposal.

The Committee Chairman, PENNY WENSLEY (Australia), then proposed a draft decision on this matter which was as follows:

“The General Assembly

Takes note of the report of the Secretary-General contained in document A/C.5/54/39 on the estimates in respect of matters of which the Security Council is seized;

Approves the charge of $9,964,500 for the eight missions against the provision for special political missions requested under section 3, Political affairs, of the proposed programme budget for the biennium 2000-2001 in accordance with General Assembly resolution 53/206.”

The Committee then approved this decision without a vote.

The Committee then turned its attention to the question of Revised Estimates: effect of changes in the rate of exchange and inflation.

Mr. SACH introduced the Secretary-General’s reports on this issue and explained the distinction between the two documents.

Ms. BUERGO RODRIGUEZ (Cuba) said she noted that as a result of the revised estimates the proposed revised estimates for the current budget would decrease. Adjustment was merely a technical exercise and her delegation had no problem with it. She pointed out, however, that since it was known what the revision was, it might lead to an adjustment in the procedures already referred to and she hoped that delegations would act in a consistent manner. She opposed the imposition of arbitrary ceilings, she added.

Mr. SIAL (Pakistan) said that after having given careful thought to the fact that the Secretariat had already examined the financial impact of the implementation of ACABQ recommendations, he had decided that this was useful and hoped it would be provided in future.

He expected that recosting would be finalized as the programme budget consideration concluded, he said, taking the programme budget implication statements recently approved into account.

On Internal Oversight, he said he could not understand the request that a new post for a planning and compliance officer be created at the P-4 and P-5 level. He sought an explanation of this.

The Chairman, Ms. WENSLEY (Australia), then proposed that the Committee recommend the Assembly take note of the revised estimates arising from the recosting of the effects of changes in rates of exchange and inflation.

Mr. SIAL (Pakistan) said he understood there would be further recosting done between now and the budget decision. Mr. SACH then explained that there was a typographical error in the report. The Oversight Office statement should read ”at the P-4 not the P-5 level.”

No further recosting was expected between now and the appropriation, he said.

The Committee then approved the decision without a vote.

The meeting was adjourned.

* *** *