Press Briefing by UN Under-Secretary-General for management

The United Nations Under-Secretary-General for Management, Catherine Ann Bertini, briefed correspondents about the “delicate” financial situation of the United Nations at a Headquarters press conference this afternoon, and also spoke about the Secretary-General’s proposal for improving the Organization’s security management, which was introduced yesterday before the Fifth Committee (Administrative and Budgetary) of the General Assembly.

Ms. Bertini, who currently holds the portfolio of acting security coordinator, said the Secretary-General’s proposal addressed the need for a unified security management structure, expanded security capabilities, and improved mechanisms to ensure the best protection for United Nations staff throughout the world.  Of the $97 million proposed, roughly $70 million would go toward increased staff, with the remainder for facilities improvements.  Staff adjustments would include strengthening field security, increasing guard units at United Nations offices, and expanding training, assessment, and accountability capabilities within the security system.

She said the proposal already had received significant support from Member States, many of which recognized that “if we value the work of United Nations staff around the world, then we have to be sure that we provide them the resources they need so that they are adequately protected”.  However, more support was needed, she said, adding that formal discussions on the item had not yet begun.

Responding to a journalist who asked whether the proposal represented the “militarization” of the United Nations, she said that it was not militarization at all, but rather protection and basic support for civilian staff.

Asked by a correspondent what was the status of the security coordinator position, she said the Secretary-General was actively reviewing candidates and hoped to appoint a full-time, professional security director soon.  The United Nations was seeking someone who had been steeped in security management and operations for most of his or her career, and who could work seamlessly with the various entities, agencies, and governments that have security information.

She also responded to questions regarding the status of the three United Nations staff members who were taken hostage in Afghanistan.  There were no new developments, she said, but the Government of Afghanistan was leading the investigation and the United Nations was doing everything it could to support those efforts.  There were no plans for the United Nations to make any changes in its operations in Afghanistan at this time.

On the security situation in Iraq, she said there were ongoing efforts to improve security and support for the 35 United Nations staff currently in Baghdad, and to determine whether additional staff could be adequately protected there.  She confirmed that some Fijians would be deployed later this month to provide protection for United Nations staff and facilities in Baghdad.  Meanwhile, the United States had provided “very detailed descriptions” of what they were able to provide for United Nations staff currently, and for any additional staff.  The Secretariat was still assessing that information.

The financial situation of the United Nations had improved in 2004, but remained “delicate”, she said.  Because many States still weren’t meeting their obligations in full, large amounts were outstanding for peacekeeping operations, the financial position of the international tribunals remained precarious, and the amount available for “cross-borrowing” may not be adequate, she said.  “The only way to secure a strong financial future for the United Nations is for Member States to meet their financial obligations in a full and timely manner.”

She noted that the number of Member States that had paid their regular budget assessments in full stood at 114 by 29 October 2004, compared to the recent high of 141 Member States having paid in full by the end of 2000.  Of the total $706 million outstanding from the regular budget, the United States owed $530 million, Brazil owed $76 million, Argentina owed $18 million, and Iraq owed $13 million.  Saudi Arabia and Mexico owed $10 million apiece, and 71 other Member States together owed $49 million.

The cash-on-hand available at the end of the year was estimated at $113 million, which would be an improvement from the “very precarious” $23 million in cash-on-hand for the regular budget at the end of 2003.  That projected positive balance was partly based on the fact that the United States had said it would pay approximately $300 million of their assessment for the regular budget in near future.

The level of unpaid peacekeeping assessments should be seen in the context of the “very significant increase” in overall assessments for peacekeeping operations, which totalled $4.5 billion as of 29 October 2004 as compared to $2.3 billion in 2003.  Also, of the $2.4 million in unpaid peacekeeping assessments, roughly $1.4 million was overdue while the remainder fell within the 30-day due period.

The United Nations was expected to owe some $605 million to Member States for troops and contingent-owned equipment.  She said that there have been significant improvements in the amount of time taken to repay Member States, with payments roughly three months behind schedule for current peacekeeping operations.

United Nations Controller Jean-Pierre Halbwachs, who was also present and responded to questions from the floor, said there were also substantial amounts owed to governments for troops and equipment for closed missions that had no money left over.  Asked by a correspondent whether that outstanding debt to Member States would be owed forever, Mr. Halbwachs said, “We hope not.  We are still trying. But I’m not too optimistic in getting the money”.

Ms. Bertini stressed that the ongoing financial problems faced by the international tribunals for Rwanda and for the former Yugoslavia continued to be “a cause for great concern”.  Only 79 Member States had fully paid their Tribunal assessments by 29 October 2004.  The persistent arrears potentially had very severe implications for the ability of the Tribunals to operate, she warned.  Already, measures had been taken to freeze staff at the Tribunals and cut back on other expenditures, and further cuts would likely slow down the justice process further.  “If the process gets slowed down, it means the Tribunals have to go on longer, which means that Member States will be assessed for longer periods of time”, she said.  “So it’s counter-intuitive not to pay and get it finished.”

The United Nations had had to borrow funds from closed peacekeeping missions to keep the Tribunals operating, a practice known as “cross-borrowing”.  The amount available in closed peacekeeping missions, which was “the only pot” for cross-borrowing, was estimated to be $27 million at the end of 2004.  That was not a large cushion and could potentially pose a very serious problem for the Organization, Ms. Bertini said.

* *** *