Resumed Fifty-fifth General Assembly

Fifth Committee

44^th Meeting (AM)

ADMINISTRATIVE AND BUDGETARY COMMITTEE BEGINS FOUR-WEEK RESUMED SESSION

The Fifth Committee (Administrative and Budgetary) began its first resumed session this morning, adopting its programme of work for 13 March to 2 April, hearing the introduction of reports, and electing Ramesh Chandra (India) as a Vice-Chairman.

The session will be primarily devoted to the problems of human resources management.  Among the 16 items on its agenda, however, are also reports of the Board of Auditors; a review of the Organization's efficiency and financial situation; activities of the Office of Internal Oversight Services; and financing of several peacekeeping missions and the International Tribunals.

This morning, the Committee heard the introduction of reports on the Integrated Management Information System (IMIS), the asbestos problem in overseas buildings, facilities management, profitability of commercial activities, internal and external printing practices, the Task Force on Common Services, construction of additional conference services at Addis Ababa, security arrangements in Geneva, senior-level appointments, and the budgetary and financial situation of organizations of the United Nations system.

When he introduced the report of the Joint Inspection Unit (JIU) on senior-level-appointments at the United Nations, Inspector Eduard V. Kudryavtsev said the Unit recommended wider consultations with Member States regarding senior appointments.  As the Secretary-General had expressed a willingness to consult Member States with respect to such appointments, he believed it would be appropriate to strengthen such a democratic approach by a special decision by the Assembly.  Further, according to the latest report of the Secretary-General on the composition of the Secretariat in 2000, 56.2 per cent of the total number of 311 senior posts (D-1 and higher) were occupied by nationals of 17 States, while representatives of 79 States did not hold any such positions -– a significant geographical disproportion.

The representative of the Russian Federation supported the recommendation of the JIU regarding the need for wider consultations with Member States regarding senior appointments and said that the Performance Appraisal System (PAS) should apply to officials at all levels.

The representative of Iran, speaking on behalf of the “Group of 77” developing countries and China, echoed several delegates’ concerns about the late submission of the Secretary-General’s comments on the JIU report and supported the recommendations of the Unit.

The representative of Sweden, on behalf of the European Union and associated States, said that the prerogatives of the Secretary-General as chief administrative officer of the United Nations should be respected.  Holding consultations with Member States risked leading to unnecessary delays in the appointment process.

The reports before the Committee were introduced by:  Assistant Secretary-General for Central Support Services, Toshiyuki Niwa; Director of the Programme Planning and Budget Division, Warren Sach; Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), Conrad S.M. Mselle; and Director of the Office for Inter-Agency Affairs, Qazi Shaukat Fareed.

The representative of Syria also spoke.

The Committee will continue its work at 10 a.m. Wednesday, 14 March, when several agenda items are to be introduced, including:  the review of the efficiency of the United Nations; activities of the Office of Internal Oversight Services; and financing of the International Tribunals.

Background

The Fifth Committee (Administrative and Budgetary) met this morning to decide on organizational matters for the first part of its resumed session and to begin its consideration of several issues related to human resources management, the programme budget for the current biennium, and administrative and budgetary coordination within the system.

Programme Budget for Biennium 2000-2001

The Committee had before it the Secretary-General’s twelfth progress report on the Integrated Management Information System (IMIS) (document A/55/632), in which he states that with successful implementation of payroll in September 2000 and introduction of additional functions over the past 12 months, the development phase of the project has been completed. 

[The purpose of the IMIS, which was approved by the General Assembly in 1988, is to develop unified processing of administrative actions at all major duty stations, which would also facilitate reporting on them.  The main areas covered by the System are personnel and post management, accounting, procurement, travel, payroll, and budget execution.]

According to the report, finance applications have progressed at the United Nations Office in Geneva, the Economic Commission for Latin America and the Caribbean (ECLAC) and the Economic Commission for Africa (ECA).  The use of the System has increased at all duty stations:  more than 500 online users access the System every day, and there are over 370 daily accesses of the reporting system.

The Secretary-General goes on to note major efforts to strengthen training facilities, saying that all the training courses are now available online.  An agreement has been reached in principle to establish an IMIS common service in cooperation with the United Nations Development Programme (UNDP), the United Nations Population Fund (UNFPA), the United Nations Children’s Fund (UNICEF) and the United Nations Office for Project Services (UNOPS).  IMIS Service is progressively being integrated into the Information and Technology Services Division of the Office of Central Support Services (OCSS).

According to the report, the United Nations continues to be responsible for the maintenance of the system, and, as planned, the main contractor ceased all activities by the end of October 2000.  Although some delays have been encountered in the IMIS implementation of payroll at Headquarters and for the finance and payroll applications at offices away from Headquarters, overall projected expenditures remain within the approved budget.  The finance applications will be completely implemented at offices away from Headquarters by mid-2001.

In conclusion, the Secretary-General says that the IMIS team is reviewing, in consultation with the users, the priority areas for its further improvement.  Work has already started on upgrading the technology to make IMIS more accessible through the Web.  The completion of the project will also enable the United Nations to re-engineer the users’ interface, to make the system more user friendly.  Other major undertakings include research for a new reporting tool; ensuring data consolidation; analysis of the peacekeeping missions' requirements for IMIS application; and archiving the IMIS data.

In a related report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) (document A/55/7/Add.8), the Advisory Committee reiterates its expectation that wider use of the IMIS modules in the United Nations will be ensured throughout all the funds and programmes.  Expressing concern over limited progress on the implementation of IMIS in peacekeeping operations and the Tribunals, it recommends that the Secretary-General should identify the structural and financial constraints hampering progress and make proposals in that respect.

The Advisory Committee notes that expenditures for IMIS amounted to some $74.87 million as at 31 October 2000 and that the total cost of the project was expected to remain within the budget estimates approved by the General Assembly (about $77.58 million).  In conclusion, the Advisory Committee recommends that the General Assembly take note of the twelfth progress report of the Secretary-General.

Also before the Committee was a report of the Secretary-General on the review and assessment of the asbestos problem at the United Nations and management of asbestos-containing materials at overseas buildings at Geneva, Vienna, Nairobi and regional commissions (document A/55/135).  According to the report, materials containing asbestos were used only in limited quantities in buildings for the United Nations Office at Geneva as acoustical and fireproofing material.  Almost all asbestos-containing materials have been removed from the old and new buildings, except for small amounts of fireproofing material in the new building, which is fully encapsulated and poses no risk to occupants.  No additional funds or resources are required for the management of the asbestos problem there.

In Vienna, however, asbestos-containing materials were used extensively as acoustical, fireproofing and insulating materials, the report says.  All surfaces are regularly inspected and maintained in an encapsulated state.  A long-term master plan is under development, and associated processes and costs are under discussions between the United Nations and the Austrian Government.

The report says that the United Nations Office at Nairobi does not contain any asbestos-containing materials.  At ECA in Addis Ababa, all asbestos-containing materials are maintained in an encapsulated condition and pose no health or safety problems.  Asbestos materials had been removed from the regional office of ECLAC in Santiago 15 years ago.  The Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok has no asbestos-containing materials is its buildings, infrastructure or equipment.  The Economic and Social Commission for Western Asia (ESCWA) in Beirut also contains no asbestos materials.

The report of the Secretary-General on facilities management (document A/54/628) was prepared in response to the request from the General Assembly to present the value of United Nations-owned buildings and submit a comparison between the United Nations and normal standards for the cost of maintenance vis-à-vis the value of buildings.  It provides an update on the principal properties occupied by the United Nations worldwide, focusing on their replacement value and long-range maintenance and modernization of the existing buildings.

The report proposes a decentralized technical, administrative and budgetary approach to the management of globally coordinated facilities, based on information exchange and common practices.  To implement such an approach, the OCSS is expected to develop, in collaboration with all duty stations, an Organization-wide policy, which would involve a common framework for property values.  It would also provide an assessment of relative operational, maintenance and energy costs. Rather than centralize the information, the document finds it more efficient and feasible to designate as focal point one buildings management professional at each duty station.

Detailed databases will be prepared to facilitate programme development and implementation of standards and guidelines for long-range maintenance and operations, the Secretary-General states.  The plan involves long-range planning period of 10 to 15 years, but medium-term plans and biennial budget proposals will continue to be presented, with greater emphasis on the coordination and integration, as well as budgetary consistency over time. 

In implementation of the proposal, regular meetings and seminars for Buildings Management Officers have been held, and several working groups on facilities management have been created.  A Joint Advisory Standing Committee on Environmental and Occupational Health and Safety Issues has been established.  Other efforts include creation of a database of all office and conference spaces and development of a capital master plan for renovation and management of ageing United Nations Headquarters facilities. 

Further, according to the report, current maintenance expenditures at United Nations-owned buildings are well below the minimum recommended industry standards.  A tentative review of the existing arrangements for properties maintenance indicates that increased expenditures by the Organization will be unavoidable.  The low level of current maintenance funding is starting to cause serious problems, and increased difficulties can be anticipated in the next few years, unless immediate steps are taken.  To address such a situation, a 3.2 times increase in the combined annual expenditures would not be unreasonable.

Another document before the Committee was a report of the Secretary-General on the Overseas Properties Management and Information Exchange Network (OPMIEN) (document A/55/210) -- a globally coordinated collaborative approach to facilities management.  The Secretary-General says that to facilitate coordination of common concerns related to facilities management, the OCSS is proposing an Organization-wide collaborative team of professionals from each duty station to regularly network and exchange information on best practices, common approaches and policy directives.  Such a network would enhance safety, reliability and efficiency of the facilities, while integrating technological innovations into the buildings infrastructure.

The report proposes a decentralized approach, with the OCSS providing a coordinating role in collaboration with the Organization-wide team.  The team would develop and maintain a database of all land, buildings and property values, office and conference spaces, relative operational and maintenance costs.  It would also exchange information via the Internet and e-mail and would meet once a year at one of the duty stations.  Funding for OPMIEN would be included in the regular budgets of the offices at each duty station.  Alterations, improvements, major maintenance and construction programmes would be projected over a period of 10 to 15 years.

In his report on common services (document A/55/461), the Secretary-General states that the Task Force on Common Services was launched in New York as part of the reform measures announced in 1997.  It was convened by the Assistant Secretary-General for Central Support Services, with the participation of departments from the Secretariat and various funds and programmes of the United Nations system.  Eleven working groups were established, including those on legal services, financial services, procurement matters, printing, facilities management, travel and transport services, archives and records management, security and safety services, personnel services, the IMIS and information technology and telecommunications.

The objective of the exercise was to ensure that support services were cost-effective, high quality and timely.  It was also important to ensure that they were provided on a competitive basis and resulted in full client satisfaction.  During the fifty-fourth session of the Assembly, the Office of Internal Oversight Services identified some of the barriers to the expansion of common services, among which were differing mandates of intergovernmental bodies; the system's culture of "turf protection"; and the lack of interaction among heads of organizations.

The report goes on to say that to date the Task Force's most significant achievement has been the creation of a culture of collaboration.  A working norm of referral and coordination based on equal partnership among the representatives of the Secretariat and the funds and programmes now exists, and exchange of information and identification of best practices have been facilitated. The common service strategy stresses sound central services and coordination of activities.

Considerable progress was made over the last three and a half years, the report states.  Major accomplishments are evident in procurement, travel and transport services, human resources and IMIS.  Based on achievements in New York, consideration is to be given to dissemination of results to Geneva, Vienna and other work stations.  The Task Force has decided to establish a two-year project for a Common Services Support Unit to be attached to the Executive Coordinator, to be jointly financed by the Secretariat (40 per cent) and the UNDP, UNICEF, UNFPA and UNOPS (together 60 per cent).

Future work will focus on areas that will benefit most from the common services approach, the report says.  For instance, there are plans for the establishment of a joint United Nations archives and research centre, and policies and procedures related to archives and record-keeping are to be harmonized.  New arrangements are planned for shared accounting services, and efforts will continue to establish a common treasury support unit.  Integrated Management Information Systems are to be further developed, including the development of field connectivity.

The General Assembly is requested to take note of the achievements and constraints encountered to date and to note the reorientation and new priorities for the future.  The Assembly is also encouraged to request the Secretary-General to report to it at its fifty-seventh session in 2002, on the progress made, and decisions taken, on the future of the Task Force on Common Services, bearing in mind the two-year time frame of the Common Services Support Unit.

The Committee also had before it a report of the Secretary-General (document A/55/546) on proposed measures to improve the profitability of the commercial activities of the United Nations, in which he identifies a number of practical measures that can be taken by the Secretariat to boost sales of existing commercial services at the United Nations.

The first operation considered in the report is the United Nations Postal Administration, the net income of which is projected at some $11.2 million for 2000-2001.  Its net profit is estimated at about $2.6 million.  The Postal Administration's profitability might be substantially improved by reorienting its focus, renegotiating its relationship agreement with the host country's postal administration and boosting its marketing activities.  Also, increasing the quality of available data would improve strategic planning at the postal administration.

The proposal for a new United Nations visitors' experience, which will be taken up in a separate report, outlines a number of steps that would eliminate the current losses of the guided tour operation, including an increase in the cap on the number of visitors permitted per tour.  Improving physical facilities, which would reduce the security risks of increased tour volume, would make this possible.  During 2000-2001, revenue for guided tours is estimated at about   $5.55 million, with net negative revenue of $1.23 million.

The United Nations Bookshop is the premier source for books on global issues published by the Untied Nations and the specialized agencies, the report says.  Of total direct sales, about 70 per cent is to libraries, while of the remaining sales 5 per cent is to businesses, non-governmental organizations, bookshops and governments, respectively.  Revenue to the United Nations is projected at about $13.2 million for 2000-2001, with net profits estimated at about $1.8 million.  Net revenues from the Bookshop have declined from a record high in 1995 during the United Nations fiftieth anniversary.  The Secretary-General recommends using a contractor with book and retail experience.  Increased marketing, sales and customer service awareness in the Bookshop will ultimately lead to enhanced customer experience and amplified awareness of United Nations publications. 

The report says that the United Nations Gift Centre operation, located in the public concourse of the General Assembly building, is currently under the contract management of the Hudson News Company.  Profit to the United Nations is projected at about $1.82 million for 2000-2001.  The current location of the Gift Centre reduces traffic and sales.  Repositioning the Centre in conjunction with the introduction of the new visitors' experience would contribute to greater public attendance and increased sales. 

The Commercial Activities Service is responsible for the oversight of all food operations at United Nations Headquarters, the report states.  All café and dining operations are contracted to Restaurant Associates.  Under that arrangement, the United Nations receives some 8 per cent of gross revenues subject to a minimum of $500,000 per year.  For 1998-1999, the net revenue for catering did not generate a percentage that would supersede the minimum financial obligation.  The gross contribution made to the United Nations, therefore, was $500,000 in each of these years. 

The expiration of the contract with Restaurant Associates presents an opportunity to clarify the respective roles of the United Nations and the contractor and to allocate different parts of the catering service to different contractors.  Once the current contract expires, the coffee shop might also be outsourced to a provider with brand-name recognition.

The Secretary-General concludes that improving the profitability of commercial activities must be viewed as an important part of ongoing reforms at the United Nations and must be implemented and monitored over an extended period of time.  The creation of conditions that would enable targeted monitoring and strategic management is essential to the overall reform effort.  He requests that the Assembly take note of the measures outlined in his report and encourage the Secretariat to proceed with their implementation in a manner that would not compromise the international and non-commercial nature of the Organization.

In his report on internal and external printing practices of the Organization (document A/55/132), the Secretary-General says that over the last three biennia, internal printing at the United Nations has been reduced by 31 per cent in physical terms and by some 20 per cent in costs.  The external printing programme has been reduced by some 35 per cent in dollar terms.  This has resulted from better management of publication activities and closer monitoring of requirements for specific types of documents and other printed products on the part of the users.  Introduction of modern technologies for electronic storage of documentation and desktop publishing has also contributed to the reduction of paper output. 

The Secretary-General says that the Secretariat will further streamline its printing practices, thereby ensuring that they continue to respond to the evolving needs of the United Nations and its Member States.  He asks the General Assembly to take note of his report.

Also before the Committee was a report of the Secretary-General on the construction of additional conference facilities at Bangkok and Addis Ababa (document A/55/493).  Annual progress reports have been submitted to the Assembly on the construction of conference facilities at Addis Ababa.  Construction of the new conference facilities at ECA began on 29 April 1991.  By April 1996, the construction was substantially completed, and in 1998 the building was inaugurated.

With the completion of the construction of the conference facilities, the Secretary-General asks the Assembly to note that construction costs amounting to some $114.94 million have been reflected in the books of the Organization.  The Assembly should also note a balance of funds in the amount of some $7.70 million that remain under the construction-in-progress account as of 30 June 2000.  He recommends that the Assembly retain the funds in that account pending consideration of all related matters.

In its report in connection with the above reports (document A/55/7/Add.1), the ACABQ recommends that the General Assembly take note of the Secretary-General's reports on asbestos (document A/55/135); facilities management (document A/54/628); overseas properties management (document A/55/210); common services (document A/55/461); and printing practices (document A/55/132).

Regarding the asbestos problem, the ACABQ states that it intends to review the situation at the United Nations Office at Vienna and inform the General Assembly accordingly.  The Committee is concerned that no tests have been performed, to date, to determine the type of asbestos-containing materials at ECA.  At the same time, it notes that a programme of bulk samples testing to determine the extent of the asbestos problem is being developed in coordination with United Nations Headquarters.

Agreeing with the Secretary-General's approach towards the United Nations buildings and land, the Advisory Committee welcomes the Secretary-General's efforts in exploring the ways and means of coordinating a common system of their management.  It also shares the Secretary-General's view that the postponement of preventive maintenance often increases the overall need for resources for emergency repairs.  The Advisory Committee intends to review in due course the proposed capital master plan.  It will submit its recommendations to the General Assembly accordingly. 

      The Advisory Committee also stresses the importance of building up reliable and comprehensive databases in all major areas of facilities management.  It believes that the membership of the overseas properties management information exchange network should be organized in such a way as to ensure its efficiency.

Regarding common services, the Advisory Committee expresses its disappointment that the Secretary-General's report does not contain analysis of the unsatisfactory performance of the common services working groups.  It is not convinced that the decision to discontinue the working groups on facilities management, information technology and telecommunications and printing services is fully justified, for there is nothing to prevent the three working groups from being at least as productive as the other working groups of the Task Force on Common Services and not to make contributions in their related areas of responsibility. The Committee also stresses that there are still many unresolved issues of common interest in the areas of facilities management, printing and information technology that can only be successfully pursued by joint efforts for which the working groups appear to be quite an appropriate forum.

Regarding the United Nations printing services, the ACABQ urges the Secretary-General to continue his efforts to make them an attractive option for the printing needs of the funds and programmes of the system.  It requests to be informed about the measures to improve in-house publishing capacities at Geneva, so that they could increasingly be used by the United Nations specialized agencies located there.  It also says that it would be desirable to have an independent technical evaluation of printing practices at the United Nations Office at Geneva, including costs of internal printing and outsourcing (external printing).

In its separate report on the construction of conference facilities at Addis Ababa (document A/55/7/Add.7), the ACABQ recommends that the General Assembly take note of the balance of over $7.7 million in the construction-in-progress account and decide to retain those funds in that account until it considers all related matters.

The report of the Secretary-General on security arrangements at the United Nations Office at Geneva (document A/55/511) presents the current situation and outlines a new security concept, which was developed in the course of 1999.

The report provides an evaluation of the security risks and threats in Geneva, citing as an example a commando-type raid on the Palais des Nations carried out in 1999 by a militant group, which occupied one of the conference rooms for one and a half days.  Considerable efforts have been made to upgrade the level of protection in the most vulnerable areas.  Budgetary expenditures amounting to $767,800 in 1998-1999 and provisions of $746,000 in 2000-2001 are being used to improve overall security at the United Nations Office at Geneva.  Recent measures include the installation of an electronic access control system and of a video control system; renovation of the gate; installation of fences and motorized shutters to protect the outside doors of the Secretariat; and systematic screening of incoming mail. 

Further security work planned for the remainder of 2000 and for 2001 includes the installation of security cameras and additional remote controlled metal shutters; the extension of the electronic access control system; and reinforcement of sections of the perimeter fencing.  Early in 1999, a task force was created, comprising security specialists from the Swiss Federal and Cantonal authorities and the United Nations Office at Geneva.  It was considered imperative by all concerned to devise a joint security strategy. 

According to the report, the new security concept is based on the creation of three distinct physical zones, including a reinforced perimeter, an intermediate buffer zone and the buildings proper.  The task force also recommended that a specialized consultancy firm perform a feasibility study for the physical implementation of the concept.  The United Nations Office at Geneva is currently preparing the specifications and terms of reference for the launch of a bidding process to select such a firm.  The study is expected to be completed early in 2001. 

Although not finalized, an understanding has been reached that the additional costs for the implementation of the security concept have to be borne by the United Nations and the host country, with the United Nations assuming the costs relating to the upgrading of the security infrastructure inside the United Nations compound.  It is estimated that the United Nations security costs could amount to approximately $2.7 million.  It should be noted that this amount is some $2 million higher than the amounts spent or allocated for 1998-1999 and 2000-2001. The Secretary-General intends to address the requirements for upgrading the security of the United Nations compound in Geneva in the context of the proposed programme budget for 2002-2003.

Human Resources Management

The Committee had before it a note by the Secretary-General transmitting a report of the Joint Inspection Unit (JIU) on senior-level appointments in the United Nations and its programmes and funds (document A/55/423), which proposes measures to ensure the selection of the most qualified candidates, transparency of recruitment, geographical distribution of senior-level posts and streamlining of relevant policies and procedures.

The report says that standard recruitment or promotion procedures do not apply to senior-level appointments, which fall under the discretionary power of the Secretary-General.  When making appointments, the Secretary-General consults "as necessary" an informal group of independent advisers established in 1997.  The General Assembly may wish the Secretary-General to conduct broader consultations with Member States prior to making appointments at the level of Under-Secretary-General and Assistant Secretary-General.  The Inspector recommends that the term of office for the Deputy Secretary-General should not exceed that of the Secretary-General and that the Under-Secretary-General for Internal Oversight Services should serve for one fixed term of five years without the possibility of renewal.  The appointment at the level of Under-Secretary-General and Assistant Secretary-General should be for an initial period of up to five years and, subject to prolongation or renewal, not to exceed 10 years. 

The Inspector also recommends that the Secretary-General prescribe which staff members are eligible for permanent appointments.  The probationary period for granting a permanent appointment should not exceed two years and may be extended for not more than one additional year.  The Secretary-General should advise Member States in advance of vacancies and necessary qualifications for positions at the level of Under- and Assistant Secretary-General.  As the importance of appointments to Director-level (D-2) posts cannot be overemphasized, the Inspector recommends identifying achievement-oriented candidates with proven managerial and leadership skills.  Contracts for newly appointed D-posts should not exceed five years.  Such posts should be advertised both internally and externally and not later than six months before the expiration of the initial contract.

Regarding geographical representation in senior-level positions, the report says that Member States representing developing countries continue to be inadequately represented in senior-level positions and that gender balance in senior-level posts, as well as representation of women at the level of Under-Secretary-General and Assistant Secretary-General, are still low.  Furthermore, as repeatedly stated by the Assembly, no post, including at the senior level, should be considered the exclusive preserve of any Member State or groups of States. Special emphasis should also be placed on better representation of women from developing countries and countries with economies in transition.

The report goes on to say that the Performance Appraisal System (PAS), which was introduced in 1996 to evaluate the performance of staff members, including at the Under-Secretary-General level, has been only selectively applied to senior staff.  At the end of 1999, only one Under-Secretary-General and one Assistant Secretary-General had been appraised.  Many staff at the Director and Principal Officer levels have also not been appraised.

In his comments to the report of the JIU (document A/55/423/Add.1), the Secretary-General notes that senior appointments have already been the focus of several JIU reports and that the Secretary-General's function as the Organization's chief administrative officer requires delegation of genuine and unencumbered decision-making authority. 

Regarding the recommendation that consultations with Member States be a requisite part of the selection process, the Secretary-General points out the possibility of unnecessary delays in appointments as a result of protracted consultations, together with the prospect of further politicization of the issue. Nevertheless, the Secretary-General expresses his determination to seek the widest possible spectrum of views to ensure that his appointments are of the highest calibre.

The Secretary-General further states that the JIU report appears to show ambivalence towards some of the key tenets of the international civil service concept as outlined in Article 100 of the Charter.  This is manifest, for example, in the suggestion that all Under-Secretary-General and Assistant Secretary-General appointments are “political” and that, by implication, they are neither merit-based, nor transparent.  The recommendations that all senior staff, including those in the Director-level grades, be given fixed-term contracts and that Member States be consulted in their appointment and/or extension, are similarly flawed.

According to the document, when deciding on appointments at the levels of Under-Secretary-General and Assistant Secretary-General, the Secretary-General consistently takes into account qualifications, skills and experience, as well as the need to have the broadest possible geographical distribution and gender balance in such positions.  Regarding the recommendations on the appointment of Deputy Secretaries-General and Under-Secretaries-General, the Secretary-General states that they propose extensive amendments to staff regulation 4.5 and seem to go completely against repeated adjurations by the General Assembly to simplify the Staff Regulations and Rules.  To respond to all of the aspects of these recommendations, staff regulation 4.5 (a) would need to be amended as follows:

“Appointment of officials at the Assistant Secretary-General level and above shall normally be for an initial period of up to five years, subject to prolongation or renewal.  The total duration of such an appointment at the same level shall normally not exceed ten years.”

The Secretary-General advises the JIU that he is currently undertaking a complete review of the contractual arrangements available for the Secretariat. This review includes comprehensive discussions with the staff of the Organization and with Member States.  An initial overview of the issues involved is contained in his report to the General Assembly on human resources management reform (documents A/55/253 and Corr.1).  On vacancy announcements, the report says that the Secretary-General proceeds in accordance with General Assembly resolution 51/226 of 3 April 1997, which stipulates that equal opportunity should be given to all qualified staff, with the understanding that the discretionary power of the Secretary-General outside the established procedures should be limited to his Executive Office, special envoys and appointments at the Under-Secretary-General and Assistant Secretary-General levels.

On recruitment at D-2 level, the Secretary-General states that the managerial competencies for this process have been defined to include leadership, vision, empowering others, building trust, managing performance and judgement/ decision-making.  For purposes of consistency, it would be preferable to maintain these terms rather than introducing a new set of competencies.  Internal staff selected for posts at the D-2 level retain the contractual status they held at the time of their selection for the D-2 post.  In general, for external candidates, all such appointments are done on a one- or two-year fixed-term basis.  The Secretariat’s fixed-term contracts are normally not offered for longer than two or three years.  Staff members are evaluated for extension of appointment on the basis of their performance.

According to the report, the Secretary-General attaches utmost importance to ensuring the widest possible geographical mix and gender balance at the senior policy-making levels.  For appointments at the D-2 level, his Senior Review Group reviews all recommendations from departments to ensure that geographical representation and gender balance have been fully considered along with the provisions of the Charter relative to integrity and performance.  The Secretary-General has designated several women as heads of major entities within the Secretariat, and his recent senior-level appointments include women from a country with an economy in transition and from a developing country.  Furthermore, the Secretary-General would welcome concrete suggestions from the JIU on the broad measures that might be taken to improve the representation of women at senior levels.

Regarding performance appraisal, the Secretary-General says that the PAS system is applicable to all staff, including those who report directly to the Secretary-General.  Also, in February 2000, a new instrument -- the programme management plan -- was put in place, which requires the heads of departments to define clearly the goals and results they seek to achieve.  The Secretary-General has been meeting with each head of department to review plans and the proposed objectives for the forthcoming year.  The Secretary-General is fully prepared to report biennially to the General Assembly on the extent of the application of the PAS to senior-level officials as part of its reporting on the implementation of the overall performance management process.  Managers' accountability for all aspects of the work process is a crucial element of the human resources reform effort.

Administrative and Budgetary Coordination

On this agenda item, the Committee had before it a statistical report of the Administrative Committee on Coordination (ACC) (document A/55/525), which contains information regarding the budgetary and financial situation of the organizations of the United Nations system.  The tables in the report are grouped under three main subject headings:  regular budgets and assessed contributions; working capital funds; and expenditure and receipts of voluntary contributions.  The information is presented by the biennium budget cycles.

Election

At the outset of the meeting, the Committee elected Ramesh Chandra (India) as Vice-Chairman to replace Park Hae-yun (Republic of Korea), who had resigned from the position in February due to his reassignment.

GERT ROSENTHAL (Guatemala), Committee Chairman, welcomed Mr. Chandra and thanked Mr. Park for his contributions to the work of the Bureau.

Statements

PER NORSTRÖM (Sweden), on behalf of the European Union and associated States, said this was a “personnel year”, and it was, therefore, fitting that the first resumed session would be dominated by questions related to human resources management.  The Union considered the relevant proposal by the Secretary-General essential to the delivery of United Nations programmes.  Through those efforts, the Organization could rely on effective management and highly qualified staff.  The staff was an invaluable asset of the Organization and should be placed at the centre of concerns. 

The Union was pleased with the programme of work, he said.  It was convinced that several issues could be solved during the session.  The question of the application of Article 19 of the Charter was important to the Union, he noted. The three weeks made available to the Committee for the session would be sufficient for it to accomplish its work.  Keeping the interests of smaller delegations in mind, night and weekend meetings should be avoided.

The CHAIRMAN noted that no such meetings had yet been scheduled.  For the time being, no Committee activities were envisaged that would have supplementary financial implications.

The Committee then approved its programme of work.

Following a brief suspension, TOSHIYUKI NIWA, Assistant Secretary-General for Central Support Services, introduced the reports of the Secretary-General on: the Integrated Management Information System (IMIS)(document A/55/632); review and assessment of the asbestos problem at the United Nations (document A/55/135); facilities management (document A/54/628); overseas property management and information exchange network (document A/55/210); common services (document A/55/461); and profitability of the commercial activities of the United Nations (document A/55/546).

In the context of those introductions, he gave an update on the IMIS since the issuance of the Secretary-General’s report.  He said that since January 2001 the entire United Nations payroll had been processed through IMIS -– almost 10,000 staff members.  The transition had been implemented without problems.  Both the users of the System and the staff had welcomed the change.  The financial applications had been successfully implemented in ESCAP in Bangkok, and they would be implemented at the United Nations Office in Nairobi in the first half of the year.

The successful implementation of payroll and related components completed the development phase of the IMIS, he said.  The porting of the system to a new platform and its prototyping as a Web application were already at an advanced stage of development.  Remote access to the system using landlines was already a reality.  The IMIS would be the main component of the “E-administration” that would be implemented incrementally over the next two years.  The IMIS had led to the availability of detailed, timely and rich information never available before and had introduced modern technologies to the Secretariat.

WARREN SACH, Director, Programme Planning and Budget Division, introduced the reports of the Secretary-General on internal and external printing practices of the Organization (document A/55/132), the security arrangements at the United Nations Office in Geneva (document A/55/511), and construction of additional conference facilities at Bangkok and Addis Ababa (document A/55/493).  He said that both the internal and external printing had been reduced at the United Nations as a result of better management and increased use of electronic capacities. 

With regard to security arrangements in Geneva, he said that the report presented the current situation and outlined the implications of the security concept developed in 1999 by a task force in Geneva.  The financial implications would be borne by both the United Nations and the host country.  For the Organization, they had been estimated at about $2.7 million. 

The construction project in Addis Ababa had been completed, he said, and the report before the Committee should be considered as the last one on that matter.  The Secretariat was currently reviewing the proposals for further improvement of facilities at Nairobi and Addis Ababa.  It was recommended that the balance from the project be retained until the Assembly had considered those proposals.

CONRAD S.M. MSELLE, Chairman of the ACABQ, introduced the Committee’s relevant reports, saying it was urging the Secretariat to make further progress in implementing the IMIS in peacekeeping missions.  It also recommended that the General Assembly take note of the reports before the Committee.  Some of the items would be revisited within the framework of the next budget and in view of new experience. 

ABDOU AL-MOULA NAKKARI (Syria) thanked Mr. Niwa for responding to his concerns about the work of the so-called Vienna Café, which was being considered by the Fifth Committee within the context of the document on the viability of the commercial activities of the United Nations.  He was happy to learn that the cafeteria would continue to function throughout the year.  It would also remain open for delegations during night meetings.  That information had been provided to his delegation by fax.  He would present his comments on the rest of the reports before the Committee tomorrow.

Introducing the report of the JIU on senior-level appointments (document A/55/423), Inspector EDUARD V. KUDRYAVTSEV said that the Unit’s report was based on the materials and statistical data for 1999, as it had been directed to the Secretary-General for action in April 2000.  Under the current rules, the report, together with the Secretary-General’s comments, should have been transmitted for consideration by the General Assembly no later than six months after its issuance.  However, while the report of the JIU had been transmitted in September, the comments of the Secretary-General had not been released for over 10 months.  As far as he knew, it was actually distributed only on 12 March -– one day prior to the submission of the documents to the Fifth Committee.  Such delays could not be beneficial.

The JIU report before the Committee was the first separate report devoted to senior appointments, he said.  As a fundamental principle, the report was based on Article 101 of the Charter.  According to paragraph 1 of that Article, the staff should be  appointed by the Secretary-General under regulations established by the General Assembly.  Clearly, it was relevant for all staff, including senior positions.  If the Assembly had a right to establish such regulations, it could also  make adjustments and amendments to them.  

The Inspection Unit recommended wider consultations with Member States regarding senior appointments, he continued.  The Secretary-General had expressed a willingness to consult Member States with respect to such appointments.  It would be appropriate to strengthen such a democratic approach by a special decision by the Assembly, so that it could be integrated into future United Nations practice.

Turning to the geographic representation, he said that according to the latest report of the Secretary-General on the composition of the Secretariat in 2000, 56.2 per cent of the total number of 311 senior posts (D-1 and higher) were occupied by nationals of 17 States, while representatives of 79 States did not hold any such positions.  Definite progress had been achieved last year in that respect, and it needed to be consolidated.  That did not mean that it was necessary to artificially distribute senior posts between States, but more energetic steps were needed to reduce such a significant disproportion.  Further improvement was also called for in the representations of women in senior posts.

MAGNUS LENEFORS (Sweden), on behalf of the European Union, welcomed the review of the appointment process, as senior management played a crucial role in the operations of the United Nations.  The Secretary-General was the chief administrative officer of the United Nations, and his prerogatives must be respected, he stressed.  The Union concurred with the Secretary-General’s comments on the JIU report.  The JIU’s recommendation that the Secretary-General hold consultations with Member States on the hiring of senior officials risked leading to unnecessary delays in the appointment process. 

To extensively amend staff regulation 4.5 would run counter to previous efforts to simplify the Staff Regulations and Rules, he said.  The JIU rightly pointed to the importance of ensuring as wide a geographic mix at the senior level as possible and the necessity of improving gender balance -– the Union welcomed the Secretary-General’s important efforts in those areas.

SEYED MORTEZA MIRMOHAMMED (Iran), for the “Group of 77” developing countries and China, expressed the importance the Group attached to the issue of human resources management and to the Secretary-General’s proposals thereon.  The meetings of the Committee, he added, should be managed in such a way that late night meetings were avoided. 

The Group appreciated the Inspector’s introduction, he said.  It was concerned that the report of the Secretary-General had not been prepared in accordance with the obligatory timetable.  The report of the JIU was very useful and contained helpful tables and explanatory information.  He wished to have the Inspector’s statement in writing.  Equitable geographical representation at the senior level was very important to the Group, he stressed.  The relevant resolutions on human resources management had clear language expressing the importance of equitable representation.  The JIU’s report was very timely, especially in light of information that less than 10 per cent of nationalities occupied some 57 per cent of the posts at senior levels.

KIRILL FEDOROV (Russian Federation) supported the concern expressed by several delegations regarding the late submission of the comments of the Secretary-General.  A full study of those comments had, therefore, not been possible.  He supported the JIU recommendation for wider consultation with Member States on senior-level appointments and said that, as set out in the report, the performance appraisal system should be applicable to all staff. 

He stressed that, further to the Charter, efficiency, competence and integrity should be the criteria for hiring staff.  Recommendation number 10 of the JIU report -– “the General Assembly may wish to request the Secretary-General to report to it biannually on the extent of the application of the performance

appraisal system to senior-level officials” -- was very interesting in light of reform efforts in the United Nations.

QAZI SHAUKAT FAREED, Director, Office for Inter-Agency Affairs, then introduced the statistical report of the ACC on the budgetary and financial situation of organizations of the United Nations system (document A/55/525).  He noted several minor errors in the report to that had to do with placement of figures and said a corrigendum would be issued.  It was the only system-wide resource of financial data, and he hoped it would be of use to the Committee.

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