PEACEKEEPING FINANCE FOR 2005/2006 COULD REACH $5 BILLION, BUDGET COMMITTEE TOLD, AS RESUMED SESSION BEGINS

Fifty-Ninth General Assembly

Fifth Committee

46^th & 47^th Meetings (AM & PM)

PEACEKEEPING FINANCE FOR 2005/2006 COULD REACH $5 BILLION,

BUDGET COMMITTEE TOLD, AS RESUMED SESSION BEGINS

The cost of United Nations peacekeeping operations in 2005/2006 could reach an unprecedented level of almost $5 billion, the Fifth Committee (Administrative and Budgetary) was told, as it opened its second resumed session today.

The Budget Committee traditionally devotes its late spring session, which is expected to last through 27 May this year, to various aspects of financing of United Nations peacekeeping, ranging from individual mission budgets to procurement and procedures for determining Member States’ reimbursement for contingent-owned equipment.  The financial year of peacekeeping operations runs from 1 July to 30 June, and their costs are assessed among Member States on the basis of a special peacekeeping scale.

Introducing the proposed peacekeeping budget for 2005/2006, the new United Nations Controller, Warren Sach, stressed the volatile and unpredictable nature of peacekeeping, which was subject to decisions of the Security Councilin response to conflicts in various parts of the world.  A recent surge in peacekeeping had put an extraordinary strain on the capacity of the Secretariat to support and manage peacekeeping operations, he said.

In the absence of full budgets for missions in the Democratic Republic of the Congo and East Timor, the $3.6 billion budget proposals for only 13 out of 15 ongoing missions, the Support Account and the United Nations Logistics Base in Brindisi, Italy, were submitted to the Committee today.  [The proposal includes commitment authority requests for the Democratic Republic of the Congo and the Sudan missions for the period from 1 July to 31 October 2005.]  That figure also takes into account the downsizing of operations in Sierra Leone and Kosovo, the liquidation of the United Nations Mission of Support in East Timor (UNMISET) and the planned downsizing of the United Nations Mission in Liberia (UNMIL), on the assumption that the elections in that country would be completed in October.

In the past year, however, three large operations had been established in Haiti, Burundi and Côte d’Ivoire, he said.  The UNMISET and the United Nations Mission in Sierra Leone (UNAMSIL) had evolved to new stages of their existence; the mandate of the United Nations Organization Mission in the Democratic Republic of the Congo (MONUC) had been further expanded; and the Sudan mission had been authorized at the end of March.  The budget for 2004/2005 had now risen to some $4.4 billion, due to the additional resources approved for MONUC, the commitment authority for the United Nations Mission in the Sudan (UNMIS) and the revised appropriation for the United Nations Interim Administration Mission in Kosovo (UNMIK).  The total authorized number of military and civilian police personnel in peacekeeping operations had increased to 64,709 in 2004/2005 and was projected at 68,843 in 2005/2006.

Presenting his detailed remarks on the peacekeeping budget, the Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), Vladimir Kuznetsov, said that as the Organization’s peacekeeping activities continued to grow in size and importance, the aggregate level of related expenditure far outstripped the level of its regular budget.  However, the administration and financing of peacekeeping operations lagged far behind the discipline, which characterized the regular budgeting process.  It was incumbent upon all to move past the “make it up as we go along” phase and to learn from past experience.  The Advisory Committee intended to take an active role in fostering the establishment of consistency and efficiency in the structure, financing and operation of peacekeeping missions.

Among the speakers who commented on the weaknesses noted by the ACABQ was the representative of the Republic of Korea, who stressed the need for significant improvement.  He said there should be a focal point for analysis and assessment reviews and application of the results throughout the Department of Peacekeeping Operations.  That work should be linked to the Peacekeeping Best Practices Section.  Peacekeeping operations were among the most expensive efforts of the United Nations, and making them more efficient and accountable would go far in increasing the public’s trust in the Organization.

Several speakers in the debate also expressed concern over the 41 per cent increase in outstanding assessed contributions, as well as “the ageing” of unpaid peacekeeping assessments.  In that connection, the representative of Namibia (on behalf of the African Group) urged all Member States to pay their assessed contributions in full, on time and without conditions in order to ensure the effective operation of all peacekeeping missions and timely reimbursement for troops and contingent-owned equipment.

Some 70 reports before the Committee were introduced by Sabiniano Cabatuan, Director of External Audit of the Philippines, who spoke on behalf of the Chairman of the Board of Auditors; Jonathan Childerly, Senior Management Analyst in the Office for Management Improvement and Oversight Support; Hazel Scott, Director, Administrative Support Division of the Department of Peacekeeping Operations; Joan McDonald, Director of the Facilities and Commercial Services Division; Michael Edward Hanrahan, Chairman of the 2004 Working Group on Contingent-Owned Equipment; Barbara Dixon, Officer in Charge of the OIOS; and Jan Beagle, Director of the Division for Organizational Development, Department of Management.

Statements in two meetings were also made by representatives of Belgium (on behalf of the European Union), Norway, Turkey and Serbia and Montenegro.

Also today, the Committee approved its programme of work for the coming month, on the understanding that adjustments would be made, as necessary, during the course of the resumed session.  The representative of Brazil spoke on the organization of work on behalf of the Rio Group.

Background

The Fifth Committee (Administrative and Budgetary) this morning opened its second resumed session, which would be devoted primarily to peacekeeping financing.  During two meetings today, the Committee was expected to hear introduction of numerous reports to be considered during the session, including those on the Board of Auditors’ audit of peacekeeping operations for the period ending on 30 June 2004, administrative and budgetary aspects of peacekeeping; the budgets of individual missions, the UN Logistics Base in Brindisi, Italy, and the Support Account; the staffing and management of field missions; peacekeeping procurement; and regional investigations in Vienna and Nairobi hubs.

Organization of Work

Speaking on behalf of the Rio Group, FRANCISCO S. DUQUE ESTRADA MEYER (Brazil) agreed with the proposed programme of work and the items to be considered during the session.  The Fifth Committee would have to provide the Secretary-General with the necessary resources to allow the execution of the mandates of peacekeeping operations, on the understanding that they carried out the strict purposes and principles of the Charter.  However, the Group was concerned over the overall level of peacekeeping resources, which constituted an increasing financial burden for Member States.  For that reason, he insisted that the budgets of peacekeeping missions needed to be fully justified, in search of the greatest possible efficiency.  The Group attached great importance to the cross-cutting issues related to peacekeeping and would work in a constructive manner to reach a resolution in the second resumed session.

Among other important issues, he also mentioned the need to address the issue of sexual exploitation and abuse in peacekeeping missions.  However, the proposal to establish a personal conduct unit in New York and in all peacekeeping missions may result in duplication of functions.  He was also concerned over the financial burden that would create and asked for clarifications in that regard.

The Group followed with interest the Organization’s peacekeeping activities, and within its region, the mission in Haiti, he said.  In that regard, he stressed the commitment of the members of the Group established in the Rio Declaration during the Rio Group Summit in November 2004.  In order to reach a complete solution to the crisis in Haiti, it was important to create a solid base in which the Haitian society would build efficient and democratic institutions, achieve economic development and social justice.

Regarding the Capital Master Plan, he said that the Group was concerned over the shortage of time assigned to that issue.  The Group expected to receive an updated report on the issue and be informed in detail on the evolution of the negotiations.  He invited all delegations to constructively engage in negotiations for the Committee to conclude its work in a timely manner.

The Committee then approved its programme of work for the coming month, on the understanding that adjustments would be made, as necessary, during the course of the resumed session.

Introduction of Reports

SABINIANO CABATUAN, Director of External Audit of the Philippines, speaking on behalf of the Chairman of the Board of Auditors, introduced the report of that body for the 12-month period from 1 July 2003 to 30 June 2004 on the United Nations peacekeeping operations (documents A/59/5 (Vol.II) and Corr.1).  He said that the report not only included the usual summary of the main findings and recommendations, but also addressed several special requests by the Advisory Committee on Administrative and Budgetary Questions (ACABQ), including the issues of the management of rations in peacekeeping operations as a whole, follow-up to management reviews, management review of the staffing and organizational structure of the United Nations Observer Mission in Georgia (UNOMIG), and follow-up on various matters, including efficient use of resources.

He recalled that the Assembly, in its resolution 57/318, had requested the Board to review the implementation of the recommendations of the Special Committee on Peacekeeping Operations.  Of the Panel’s 57 recommendations, 51 had been approved by the Secretary-General and endorsed in General Assembly resolution 55/135.  The Board had reviewed the implementation of 41 of those recommendations.  To the extent possible, the Board had gauged the effects of the management reform measures taken since the approval of the report.  In general, it had noted that there was no overall project plan to coordinate the implementation of the recommendations of the Panel.  Consequently, there were no indicators against which to formally measure the combined impact of implementing the recommendations.

Regarding the financial statements, he said that the Board had issued an unmodified opinion for the year ended 30 June 2004.  The results of operations for the year had been presented fairly, in accordance with stated accounting policies of the United Nations.

Highlighting some of the Board’s main findings, he said that overall, the financial position of the United Nations peacekeeping had deteriorated since the previous financial period.  Total income of some $3 billion had exceeded total expenditure of $2.9 billion, but assessed contributions outstanding had amounted to $1.52 billion -- an increase of 41 per cent over the prior year.  In aggregate, available cash had only amounted to $1.54 billion, while liabilities had stood at $2.01 billion as at 30 June 2004.  Centralized monitoring could be enhanced in several operational areas.  With regard to air operations, only one mission aviation assessment had been conducted, out of 14 missions, and only 11 air carrier onsite visits out of the approximately 125 registered air carriers.  Furthermore, although a new air operations tracking system had been piloted in the United Nations Organization Mission in the Democratic Republic of the Congo (MONUC) with many reported benefits, that system had not been evaluated by December 2004.

Total accumulated expenditure of $141.5 million had been incurred for strategic deployment stocks as at 30 June 2004.  As previously reported, there were still no finalized policies and procedures regarding the rotation and replenishment of strategic deployment stocks, although those had been drafted.  In the area of rations management, there was no continuous cooperation among the missions and Headquarters relating to lessons learned and common areas of concern.  The monitoring of contractors quality management systems could be tightened.  As for procurement, while improvements had been noted in some areas, the Board had again noted that procurement plans were not always submitted to Headquarters in a timely manner and that some of the mission procurement plans submitted were incomplete.  Also, local vendors were again registered on the database without being pre-qualified, although perhaps the pre-qualification criteria did not cater to local conditions.  A recurrent finding was non-availability of supplier evaluations. At the United Nations Mission in Ethiopia and Eritrea (UNMEE), the lack of local benchmarking had resulted in the Mission paying a monthly rate of $350 per person for security services compared to another United Nations agency that paid $219 per person for similar services.

JONATHAN CHILDERLY, Senior Management Analyst in the Office for Management Improvement and Oversight Support, introduced the report of the Secretary-General on the implementation of recommendations of the Board of Auditors concerning UN peacekeeping operations for the period ending 30 June 2004 (document A/59/704).

VLADIMIR KUZNETSOV, ACABQ Chairman, introducing the Committee’s related report (document A/59/736), said the Advisory Committee had integrated its observations and recommendations on the report of the Board of Auditors into its general report on peacekeeping.  Although the ACABQ had noticed a number of useful improvements made by the Board in the presentation of its report, that report continued to be lengthy and could be streamlined.  The Committee also believed that the Board could make an essential contribution to a further analysis of how the support account had evolved and how it might further evolve.

He said the Committee also took up the issue of management reviews, the state of which it found to be “troubling”.  The lack of plans, schedules or a systemic database to track the management reviews was indicative of weaknesses in the management culture of the Department of Peacekeeping Operations.  He called for the designation of a focal point for assessment of the reviews’ results.  Efficiency gains that had been achieved and the possibility for further gains through streamlining and improved methods should be taken into account before additional resources were requested, he said.

SILUKA BRENDAN KABUKU (Namibia), speaking on behalf of the African Group, noted that the Advisory Committee had made several special requests to the Board and expressed the hope that the latter would inform Member States of any additional resource requirements that may arise as a result of the additional audits that it might undertake and that it would, in fulfilling those requests, continue to focus on those aspects that fell within its technical purview.  With regard to the special request made in paragraph 21, the African Group stressed that the civilian support component of peacekeeping operations related not only to the troop strength of a given operation, it also had to respond to the size of the given mission area, the location of deployment within a mission area, and the substantive components of the mandate.

He said the African Group agreed with the ACABQ that cases of serious non-compliance with administrative instructions, which had led to over-expenditure, should be addressed without delay.  The Group, furthermore, noted the recurrence of a number of findings that had been revealed by the Board in previous audits, and urged the Administration to fix responsibility, as well as prioritize and set time frames for the implementation thereof, with a view to avoiding the repeated non-compliance of some recommendations.

He noted that the financial situation of United Nations peacekeeping operations had deteriorated during the period under review and expressed the African Group’s concern with the impact that the ageing of unpaid assessments was having on the Organization’s ability to meet its financial obligations.  The shortfall in several active and completed missions was impacting on the ability of the United Nations to settle outstanding liabilities and reimburse troop-contributing countries, many of which were from Africa.  It was also impacting on the functioning of some active missions.  The Group, therefore, urged all Member States to pay their assessed contributions in full, on time and without conditions in order to ensure the effective operation of all peacekeeping missions and timely reimbursement for troops and contingent-owned equipment.

KARL VAN DEN BOSSCHE (Belgium), speaking on behalf of the European Union, said the Union would return to the recommendations in the report of the Board of Auditors in its overall statement tomorrow.

DAE-JONG YOO (Republic of Korea) said the number of peacekeeping operations had increased over the last few years.  It was impressive to see how the implementation of recommendations of the Board had been increasing.  He concurred with the ACABQ observation regarding the improvements of the report, but said there was more room for improvements.  He would like to see expected time frames for recommendations and the “age” of past recommendations.  A more formal mechanism was needed on the follow-up of recommendations, and he encouraged the Secretary-General to expedite its establishment.  The resident auditor’s role should be more clearly defined.

The 41 per cent increase in outstanding assessed contributions was a matter of concern, he said, as was the ageing of unpaid assessments.  Tighter financial control of peacekeeping operations might give a more accurate picture of the current financial needs.  Between 2000 and 2005, the cost of peacekeeping operations had increased by 76 per cent, while the support account had grown by 217 per cent, with 110 posts requested this year for the support account.  New management tools, training and information technology should be able to reduce support account requirements.

As for the weaknesses in the management culture in the Department of Peacekeeping Operations, as noticed by the ACABQ, he said there was a need for significant improvement.  There should be a focal point for analysis and assessment reviews and application of the results throughout the Department.  That work should be linked to the Peacekeeping Best Practices Section.  Peacekeeping operations were among the most expensive efforts of the United Nations.  Making them more efficient and accountable and fundamentally enhancing its management culture would go far in increasing the public’s trust in the Organization.

Overview of Peacekeeping, Introduction of Further Reports

In his first address to the Committee, the newly appointed United Nations Controller, WARREN SACH, said that the past 12 months had proven to be an extraordinary challenge to the Secretariat in deploying and managing peacekeeping operations.  The volatile and unpredictable nature of peacekeeping would continue to challenge the Secretariat.  In the past year, three new large peacekeeping operations had been established in Haiti, Burundi and Côte d’Ivoire.  The Missions in Timor-Leste and Sierra Leone had evolved to new stages of their existence, and MONUC’s mandate had been further expanded.  The Sudan mission had been authorized at the end of March, for which the Committee had just recently concluded its review and approval of the start-up funding.  The end result was that final requirements for peacekeeping operations financing for 2004/2005 had just been completed.  Some $2.8 billion had been approved for the existing missions last June, and last fall additional appropriations for new and evolving missions had been approved.  By October, the total peacekeeping budget had amounted to
$3.9 billion.  The final approved budget level had now risen to some $4.4 billion, due to the additional resources approved in the revised budget for MONUC, the commitment authority for the Sudan, and the revised appropriation for Kosovo.

As for the performance for 2003/2004, he said that total resources for that period amounted to $3 billon, inclusive of the Support Account and the Logistics Base.  Related expenditures amounted to $2.9 billion, resulting in an unencumbered balance of $149.9 million.  He was proud to report that overall budget implementation rate amounted to some 95 per cent, which was higher than the overall implementation rate of 92 per cent for the period ending on 30 June 2003.  Notable among the missions was Liberia, with an implementation rate of 97 per cent in its first full budget year.  The 2003/2004 period was also the first one for which the missions had been able to assess their performance against the planned results-based frameworks.  He also noted important improvements in peacekeeping budget submissions.

The 2005/2006 budgets of 13 out of 15 ongoing missions, the Support Account and the Logistics Base had been submitted, totalling some $ 3.6 billion.  That lower figure reflected the absence of the full budgets for MONUC and the Sudan and included only the commitment authority requests for the period from 1 July to 31 October 2005.  The detailed 2005/2006 budgets for MONUC and the Sudan would be submitted in the main part of the sixtieth session.  The budgets for 2005/2006 took into account the downsizing of the United Nations Mission in Sierra Leone (UNAMSIL) and the United Nations Interim Administration Mission in Kosovo (UNMIK), the liquidation of the United Nations Mission of Support in East Timor (UNMISET) and the planned downsizing of the United Nations Mission in Liberia (UNMIL) on the assumption that the elections would be completed in October.

He then introduced several reports on the administrative and budgetary aspects of peacekeeping financing (documents A/59/714 and Add.1, A/59/730, A/59/681, A/59/691, A/59/701 and A/59/292).

Regarding the Support Account, he said that in 2005/2006, peacekeeping was expected to reach an unprecedented level of almost $5 billion.  Rapid deployment capacity and improvement of efficiency of supporting peacekeeping were of particular importance, in that regard.  A recent surge in peacekeeping had put an extraordinary strain on the capacity of the Secretariat to support and manage peacekeeping operations.  In addition to 16 peacekeeping missions (including the United Nations Military Observer Group in India and Pakistan (UNMOGIP) and the United Nations Truce Supervision Organization (UNTSO)), the Department of Peacekeeping Operations managed the administrative and logistical support for 13 special political missions.  To meet the immediate capacity needs, ad hoc and temporary arrangements were being made to utilize vacant mission posts.

The total authorized number of military and civilian police personnel in peacekeeping operations had increased to 64,709 in 2004/2005 and was projected at 68,843 in 2005/2006, he said.  The existing Support Account budget amounted to $121.6 million, and the proposal for 2005/2006 amounted to $150.7 million, representing an increase of $29.1 million over the current amount.  That mostly related to an increase of 110 posts for the Support Account, including a transfer of 10 resident auditor posts from the budgets of the United Nations Stabilization Mission in Haiti (MINUSTAH), the United Nations Operation in Burundi (ONUB) and the United Nations Operation in Côte d’Ivoire (UNOCI).

One of the reports before the Committee analysed possible recruitment criteria for positions financed against the Support Account budget, he said.  There were a relatively small number of Support Account posts in the Professional and higher categories, which could be used for the factors to determine a system of desirable ranges.  The differences between the proposed options were small.  They were also expected to have only a marginal impact on Member States’ representation status.  The number of overrepresented Member States remained unchanged and only a few Member States (major troop contributors) would slightly change their current representation status.

The Logistics Base Budget for 2005/2006 in the amount of $37.7 million was presented in document A/59/691, showing an increase of some 32 per cent, he said.  In the report on strategic deployment stocks (document A/59/701), there were several proposals to enhance the efficiency of the stocks in enhancing the Organization’s rapid deployment capacity.  Reformed procedures for reimbursement for contingency-owned equipment were reported in document A/59/292.

HAZEL SCOTT, Director, Administrative Support Division of the Department of Peacekeeping Operations, introducing the Secretary-General’s report contained in documents A/58/767, 740, 753, 765, 764, A/57/787, A/59/763 and 762, said the first three reports, on staffing of peace operations, offered an insight into a series of efforts over the past three years to strengthen the ability to staff United Nations peace operations through competitive, fair and transparent processes.  Since October 2003, the Department had focused on its staffing efforts.  Regarding greater use of national staff in field missions (document A/58/756), she said the circumstances particular to each mission must be taken into account.  The Department had continually pursued the “light footprint” strategy that had emerged through the recommendations of the Brahimi Panel in order to make maximum use of national staff.  The number of authorized national staff posts in field missions had increased since the January 2004 figures reported.  As of mid-April, the number of authorized national Professional officers had increased from 206 to 453, and the number of national General Service staff had increased from 8,925 to 10,036.

She said common to the reports was the central goal of placing the right people in the right place at the right time.  Among efforts made to enhance the timeliness, competitiveness, fairness and transparency of recruitment processes were the development of generic job profiles and the circulation of generic vacancy announcements, using exclusively the Galaxy system.  An online vacancy tracking and reporting system was being introduced.  The Department Headquarters worked closely with colleagues in the field in the selection of suitable candidates for field service.  The Department had focused on learning from experience, developing the guidance and building the support systems and tools needed to pursue further delegated authority.

She said mission start-up was probably the most critical phase in the life of a mission.  The report contained in document A/59/763 described the civilian rapid deployment roster.  The report also evaluated the experience in the development and use of that roster from October 2003 through 2004.  A number of improvements to be made to the process had been identified, including:  expanding the pool of eligible staff, including staff outside the Department; mechanisms to strengthen the ability to identify and secure the timely release of all parties involved; expanding the length of deployment from 90 to 120 days; and strengthening the training of the rapid deployment team.  The Department continued to see merit in renewing the rapid deployment roster.

Regarding staffing of field missions, including use of 300 and 100 series appointments (document A/59/762), which reported on the reappointment of mission staff members who had reached the four-year limit under a 300 series appointment and submitted proposals on functions deemed relevant for reappointment under the 100 series, she said of the 346 international staff members who would have reached four years of service under a 300 series appointment of limited duration by 30 June, 287 staff members had been deemed to be necessary and their performance had been confirmed as fully satisfactory.  Forty-eight staff members had not met those criteria.  Four staff members would reach the age of retirement and the performance of five staff members had not been fully satisfactory.  The appointments of two staff members remained under review.

She said the Department was required to:  attract, recruit and develop highly skilled and experience staff; retain those staff, as missions were likely to have a longer duration; and adequately compensate staff for the dangerous and difficult conditions under which they served.  It was essential to move towards more competitive conditions of service, as well as harmonization of the conditions of service between different groups of staff, including those on loan from within the United Nations system.  As a critical first step towards that goal, the Department proposed that the 100 series appointment be used as the contractual instrument for the employment of staff performing functions which, by their nature, were not temporary or limited in duration.

Turning to report A/58/753 on training policy and evaluation systems of the Department, she said the overall objective of the training policy was to ensure that peacekeeping personnel were given the training necessary to meet the ongoing and ever-evolving challenges of peacekeeping operations.  An integrated system to monitor and evaluate the results of training was based on the “Kirkpatrick” model, dealing with evaluation comprehensively on five ascending levels:  reaction; learning; behaviour; results; and return on investment.

As for the report on functional requirements of field missions for communication and information technology (document A/58/740), she said communications and information technology support was extended to meet the requirements of military contingents, military observers, civilian police, mine action services and the substantive, administrative and logistical components of field missions.  The report detailed the strategies employed to ensure that such assets were managed in the most cost-effective and efficient manner throughout the entire life cycle of the equipment, as well as the governance structures in place within the Department to ensure the alignment of strategies in support of the Department’s programme objectives.

JOAN MCDONALD, Director of the Facilities and Commercial Services Division, introduced the reports on the analysis of establishing a global procurement hub for all peacekeeping missions in Brindisi, Italy (document A/59/703), and procurement and contract management for peacekeeping (documents A/59/761 and A/59/688).  The conclusion of the first document was that establishment of a consolidated hub in Brindisi would be neither operationally advantageous nor cost-effective.

She said that the procurement and contract management for peacekeeping was a major area of concern, and considerable efforts were being made to improve performance in that area.  The Procurement Service and the Logistics Support Division were working closely together to address the issues observed by the Board of Auditors.  The issue had also been reviewed by the ACABQ.

She was pleased to report that now, informal comments had been received from the Office of Legal Affairs concerning the ethical guidelines and that the Procurement Service was finalizing the document prior to forwarding it to the Office of Human Resources Management (OHRM) and the Office of Legal Affairs for their formal comments.  The declaration of independence, now called the declaration of ethical responsibilities, had been reviewed by the General Legal Division and the OHRM.  The latter had also consulted with the chiefs of administration and staff representatives.  The Procurement Service would be meeting with OHRM this afternoon to discuss how the comments could best be incorporated into that important document.

Work was also under way on the draft code of conduct for suppliers, she continued, as well as the implementation guidelines.  The revised delegation of authority had been issued in February to the Assistant Secretary-General, Office of Mission Support, Department of Peacekeeping Operations.  After clarification of certain operational issues, it was being issued to the missions this week.  The Procurement Service had been working very closely with the Logistics Support Division to improve the quality and timeliness of the procurement planning carried out in the missions and, although it was not yet ideal, significant progress had been achieved in that area, which was critical to effective and efficient procurement management.  She trusted that the reports would provide the Committee with the assurance that the Secretary-General was committed to the continuous improvement of procurement and contract management in support of peacekeeping missions.

Colonel MICHAEL EDWARD HANRAHAN, Chairman of the 2004 Working Group on Contingent-Owned Equipment, introduced that Group’s report on its meeting in March 2004, contained in documents A/C.5/58/37 and Corr.1.

Mr. KUZNETSOV, introducing its related reports contained in documents A/59/708, 722, 736 and 784, said the ACABQ was becoming more and more concerned about the unevenness in the quality of presentation of the budgets of peacekeeping operations, and expected that special attention would be paid to appointing the best and most experienced managers to carry out administrative, financial and budgetary responsibilities in such missions.  Ultimately, responsibility rested with Headquarters for maintaining standards regarding presentation, timeliness of submission, accuracy of figures and consistency in policies.

The administrative structures of missions, especially complex integrated missions, had been a matter of continuing concern, he continued.  Problems with duplicative and top heavy structure persisted.  There also appeared to be a growing tendency to establish new units for additional functions.  Functions such as information analysis, strategic planning and best practices could be combined.  The ACABQ suggested that each of the missions consider the formation of a management committee and pointed to the need for clarification on how the Joint Military Analysis Cell function could be coordinated with strategic planning and best practices.

The Advisory Committee had further noted the use of budgets to introduce initiatives with policy implications, rather than first seeking the guidance from the General Assembly, he said, highlighting the proposal in a number of budgets to use assessed contributions to fund activities under the humanitarian pillar of peacekeeping operations.  Closely related was the question of who paid for the post of the Deputy Special Representative of the Secretary-General.  The Committee suggested a formula whereby the United Nations Development Programme (UNDP) paid for the post up to the D-2 level.

As for “the art” of results-based budgeting, he reiterated that such budgeting depended on an adequate financial system to support it.  However, intergovernmental discussion of budgets was still input-driven.  In general issues relating to the military component, the Committee had noted a number of improvements in the timely and cost-effective provision of rations.  The primary consideration should be the efficient supply of fresh, high quality rations, being mindful of cultural and religious requirements.

Concerning civilian personnel, Mr. Kuznetsov said that a major issue was the proposal to convert a large number of personnel on special service or individual contractor agreements to national General Service staff, with the explanation that those personnel carried out core or continuing functions.  However, continuing functions should be carried out by staff occupying established posts.  The Committee requested, in that regard, that future submissions contain detailed performance information on arrangements with individual contractors, in order to confirm that they were being hired in accordance with proper procedure.

Turning to operational activities, he said that training must be specifically suited to the unique organizational qualities and particular skills.  Training must be mission-specific with a direct link to the needs of the mission.  There was also a need for a mechanism to evaluate the effectiveness of training and to track competency gaps.  The Committee called again for strict monitoring of travel.  Maximum account should be taken of the latest advances in communications and information technology.  The Department for Peacekeeping Operations should develop a policy with regard to the purchase and assignment of both standard civilian and specially equipped armoured vehicles, as well as representational vehicles.  The latter vehicles should not be utilized as status symbols. 

The over-budgeting for air transportation had become a chronic problem, he said.  The Committee asked the Peacekeeping Department once again to come up with a way to better formulate the air operations budget to make it more reflective of actual operations.  It requested the Board of Auditors to look into arrangements for medical evacuation by air.  It welcomed the intention of the Department to regionalize its air operation approach wherever feasible.  It encouraged missions to keep the use of executive jets under review.

Regarding the Support Account, the Committee recommended a reduction of nearly $7.1 million to the proposed budget for the period 1 July 2005 to 30 June 2006.  A major concern of the Committee was with the nature of the Support Account itself.  Since the Support Account had been established in 1991, there had been a considerable expansion of peacekeeping activity and there had been an evolution of backstopping capacity due, among other things, to technological progress, establishment of the Logistics Base and strategic deployment stocks, impact of training and the development of a rapid deployment capacity.  In addition, peacekeeping missions had evolved into complex operations of multidimensional character.  The Support Account had, therefore, evolved well beyond what was originally foreseen.  The time had, therefore, come to “step back and take a look at what had evolved and why”.  The Committee recommended that the Secretary-General be requested to analyse the evolution of the Support Account with the original concept of overload and describing changing needs to justify departures from the original concept.

Where 110 additional posts were proposed for establishment under the Support Account, the Committee recommended approval of 69 posts.  He emphasized the Committee’s continuing concern with the issue of coordination and cooperation between the Department of Peacekeeping Operations and the Department of Political Affairs and the need to consider possible redistribution of resources.

As for the Logistics Base, the Committee recommended a reduction of $6.2 million for the 2005-2006 period, mainly due to the San Vito expansion project.  Pending the completion of some procedural requirements, the Committee had recommended that no action be taken at the current stage regarding the provision of $5.4 million for the first phase of the expansion plan.  Another issue was the proposal to convert some 64 personnel currently on special service or individual contractor status and charged to operational costs, to staff members charged to posts under civilian costs.  The Committee had found no basis to conclude that the functions described were not of a continuing nature.  To correct the current situation, the Committee did not object to a one-time, across-the-board conversion.

He said the Committee recommended that the Assembly approve the use of savings derived from liquidation of strategic deployment stocks and the unspent balance to cover losses on currency exchange and replenishment of the stocks.  It also recommended approval of the inclusion of strategic deployment stocks replenishment within the $50 million commitment authority.  A further analysis should be made of how the Logistics Base could best be utilized to provide efficient and economical communications and information technology services, as well as other services, for peacekeeping and Headquarters clients.  The analysis should also address the cost-effectiveness of reducing reliance on commercial providers in favour of increasing the role of the Logistics Base.

As for procurement and contract management, he said persistent problems remained in the area of field procurement.  He regretted, therefore, that the Secretary-General’s reports did not fully address the findings of the Board of Auditors.  The Committee recommended that future reports should be more specific and fully reflect and build upon the findings and recommendations of the oversight bodies.  It also emphasized the need to finalize, promulgate and implement the guidelines on ethical principles, as well as the declaration of independence.  It also recommended expeditious finalization and promulgation of the code of conduct for suppliers and the revised General Conditions.

As for its report on communication and information technology, he said no proposals were being made.  Regarding the issue of “staff in the field”, he said the Committee recommended that the Secretary-General be authorized to continue the practice of reappointing serving staff under 100 series contracts after they reached the maximum period of service permitted under a 300 series appointment of limited duration, if there was a continuing need for their services and a fully satisfactory performance record.  As to the issue of appointing staff to the 100 series of staff, the Committee was of the opinion that no action should be taken pending consideration of the Secretary-General’s comprehensive report in that regard.

Turning to the Committee’s report on contingent-owned equipment, the Committee pointed out that it was for the Assembly to decide whether or not to accept the Secretary-General’s proposal to maintain the current reimbursement rates for troop costs until such time as the Assembly determines that an adjustment was warranted.  Regarding procedures for determining reimbursement to Member States for contingent-owned equipment, the Committee recommended that consideration be given to having recourse to a diverse group of qualified and impartial individuals to make proposals on the factors and the elements on which the reimbursement of troop costs could be based.

In conclusion, Mr. Kuznetsov said that as peacekeeping activities continued to grow in size and importance, the aggregate level of peacekeeping expenditure far outstripped the level of the regular budget.  However, the administration and financing of peacekeeping operations lagged far behind the discipline which characterized the process of the regular budget.  It was incumbent upon all to move past the “make it up as we go along” phase and to learn from past experience.  The ACABQ intended to take an active role in fostering the establishment of consistency and efficiency in the structure, financing and operation of peacekeeping missions.

The Officer-in-Charge of the Office of Internal Oversight Services (OIOS), BARBARA DIXON, introduced the Office’s reports on the first year of experience of regional investigators in Vienna and Nairobi hubs (document A/59/546); the global audit of field security management (document A/59/702); and the mission subsistence allowance (document A/59/698).

Regarding the regional investigators’ experience, she said that among the significant matters investigated, were cases of allegations against MONUC civilian and uniformed personnel of sexual exploitation and abuse of young girls.  Also highlighted in the report were cases investigated by the anti-corruption investigations task force initiated by the OIOS in UNMIK.  With most peacekeeping investigations located away from Headquarters, in the 12-month period under review, the OIOS had seen an increase of about 8 per cent in the number of reports of alleged wrongdoing.

The investigation of significant high-risk cases handled by the regional investigators left limited time for them to address other cases, which could, therefore, be delayed or deferred to mission management.  The OIOS estimated that, as a result of the upward trend in the proportion of significant cases, the time needed to complete an average case had increased from 250 to 340 person-hours.  The number of cases for 2004-2005 was estimated at 230, with up to 80 of them assessed as significant.  Current investigative resources could not handle that number of significant cases, let alone all matters requiring investigation.

Based on the analysis of the first year of operation of regional investigators, she said that the Oversight Office had concluded that a combination of regional and resident investigators would be the most beneficial and efficient approach.  The OIOS had recommended a mix of regional investigators and resident investigators at the larger missions.

Turning to the global audit of field security management, she said that the report before the Committee consolidated the results of 20 individual audits conducted by the Office last summer.  The OIOS had found that basic security arrangements existed or were being improved in most of the missions.  However, improvements were still needed in such areas as security plans and policies, deployment and administration of personnel, budgeting and coordination with host governments.

The report raised several critical issues relating to the organization of the security function, she said.  For example, some missions experienced difficulties in identifying and clearly understanding the roles and responsibilities of various security governing bodies and individuals.  In some missions, chief security officers did not report to, and were not evaluated by, respective heads of missions.  The OIOS was also concerned that most missions did not fully comply with the minimum operating security standards.  Immediate action was needed to address weaknesses concerning the physical security of United Nations personnel and premises.

On subsistence allowance policies and procedures, she said that mission subsistence allowance, which was paid to United Nations international civilian staff, military observers and civilian police during mission service, constituted a significant portion of overall peacekeeping costs.  For the current financial period, such payments were expected to exceed $554 million, or 15 per cent of the total budget expenditure of 11 special peacekeeping missions.  The Oversight Office had found that the OHRM had improved its oversight of mission monthly subsistence allowance rates.  However, it had also noted that of the seven missions it had reviewed, three -– Western Sahara, Ethiopia-Eritrea and Timor-Lester -– had subsistence rates higher than the applicable daily subsistence allowance established by the International Civil Service Commission (ICSC) for short-term travel to the same locations.  The OHRM had not agreed to lower the mission subsistence allowance rates in Western Sahara and Ethiopia-Eritrea, noting the poor conditions of service in Western Sahara and objecting to having separate mission subsistence allowance rates in the two mission countries based on different daily subsistence allowance rates.  Mission subsistence allowance rates in Timor-Leste had been lowered in response to the review.

Both the OHRM and the Department of Peacekeeping Operations had argued that mission subsistence allowance rates should not necessarily be linked with daily subsistence allowance rates, and pointed out that conditions of life in certain missions were difficult and warranted higher mission subsistence allowance rates.  The OIOS had recommended that the way to resolve that issue would be to undertake the comprehensive review requested earlier by the Special Committee on Peacekeeping Operations, and consider establishing a two-component mission subsistence allowance structure.  One component would cover food and housing costs and the second one would compensate for difficult living conditions in peacekeeping duty stations.  The OHRM and the Peacekeeping Department had accepted that recommendation as a workable solution.

Introducing the Secretary-General’s comments to the OIOS report on mission subsistence allowance policies and procedures (document A/59/698/Add.1), JAN BEAGLE, Director of the Division for Organizational Development of the Department of Management, said that the Secretary-General supported and welcomed the recommendations related to a review of mission subsistence allowance rates.  As for the recommended comparative analysis of mission subsistence allowance and daily subsistence allowance, the Secretary-General stressed that those rates served very different purposes.  In the case of staff appointed exclusively for mission service (the vast majority of mission staff), mission subsistence allowance was paid in lieu of post adjustment, mobility and hardship allowance and assignment grant.  Thus, it had become part of the pay package, rather than merely a subsistence allowance, like daily subsistence allowance.

Given the different purposes of the two allowances, the Secretary-General did not consider that there was justification for using an across-the-board set formula to determine mission subsistence allowance by reference to daily subsistence allowance, she continued.  However, in response to the OIOS recommendation, the OHRM, for monitoring purposes, was undertaking monthly comparisons of mission subsistence allowance and daily subsistence allowance rates in localities where there were special peacekeeping missions.  To the extent possible, the OHRM was also implementing the recommendation related to making new rates effective from the first day of the month following issuance of its final mission subsistence allowance report.  The Secretary-General agreed that any technological advances that would enable the distribution and completion of the mission subsistence allowance questionnaire and more timely analysis of data would be beneficial.  However, the Secretary-General noted that the development or acquisition of such specialized software would be subject to the availability of resources.

Statements

MARI SKAARE (Norway) said the advantages of results-based budgeting were easy to see in the format of the reports and she welcomed improvements for the Support Account.  It was, however, important that the Secretariat continue its efforts to maximize the use of scarce resources.  It was also important that all investigation divisions of the OIOS and resident investigation units were strengthened.  That was crucial when swiftly investigating allegations of sexual exploitation and abuse.  A strict zero-tolerance policy must be enforced, based on uniform and binding standards.  Implementation of the Fourth Committee’s draft resolution on a strategy to eliminate future sexual exploitation and abuse must not be made dependent on voluntary contributions.  She fully supported the establishment of a new personnel conduct unit to help to prevent and identify misconduct and to ensure compliance with and enforcement of United Nations standards and conduct.

She said that, even though the United Nations capacity for peacekeeping had been considerably strengthened, there was a need to strengthen deployment capacity, as noted in the Secretary-General’s report “In larger freedom”.  The Special Committee on Peacekeeping Operations had noted gaps in the areas of enabling and niche capabilities, as well as strategic lift.  Tactical air support, field medical facilities and movement control should also be expanded.  She welcomed the work being done to coordinate the role of the different United Nations entities in complex peace operations and encouraged further efforts to clarify roles, avoid overlapping of activities and ensure efficiency of the operations.

Regarding the issue of the use of assessed contributions for disarmament, demobilization and reintegration, she said her country favoured including disarmament, demobilization and reintegration and other humanitarian tasks in the assessed peacekeeping budget, as part of the mission’s mandate.  It was the Organization’s responsibility to ensure predictable, stable and timely financing of all aspects of an integrated mission, including the humanitarian pillar.

CIHAN TERZI (Turkey) said that due to the growing size and complexity of peacekeeping missions, as well as the diverse conditions, the Organization had been facing a management challenge.  Coupled with those conditions, increasing financial resource requirements had been putting on more pressure to improve efficiency and effectiveness.  Recent large peacekeeping start-ups, as well as expansions of existing ones, had tested the Organization’s capacity to respond to requirements.  Successful design and implementation of ongoing reform efforts in such areas as human resource management, procurement, information and communications technology, as well as results-based budgeting, were expected to increase significantly the efficiency and effectiveness of United Nations peacekeeping.

Noting that procurement was one of the Organization’s main expenditure items and support functions, he called for the establishment of accountability mechanisms, solid rules and regulations, which would be critical in that area.  In addition, ethical responsibility and quality management measures should be swiftly promulgated.  It was also important to implement common procurement management systems, model lease and contract templates, performance rating and evaluation, as well as vendor registration and review measures.  Another important item to explore for efficiency was inventory management.  Global, automated and real-time inventory management should be integral to effective management and control.

Peacekeeping missions, due to their operational complexity, geographical dispersion and large financial expenditure, carried more inherent control risk than other parts of the United Nations, he said.  Management should, therefore, consider restructuring auditing with a view to improving coverage of field peacekeeping activities and develop benchmarks and parameters for facilitating future auditing.  The success of peacekeeping activities was closely linked to the solution of its root causes, primarily poverty and illiteracy.  Peacekeeping missions should, therefore, be planned in an integrated manner with substantial development input from agencies.

In connection with the upcoming thirtieth session of the Inter-Agency Working Group on Procurement, which would be held in Moscow in May, VLADIMIR IOSIFOV (Russian Federation) informed the Committee that the organizers of that event were ready to invite up to 15 observers from interested Member States.  He believed that invitations should go, first of all, to those delegations who had displayed interest in holding similar sessions in their countries.

Financing of Peacekeeping Missions -– Introduction of Reports

Mr. SACH then introduced the Secretary-General’s reports on the financial performance and budgets of nine active and two closed peacekeeping missions, as well as two notes by the Secretary-General on the review of the management structure of all peacekeeping operations and the feasibility of consolidating the account of various peacekeeping operations.

He said that the mandate for the United Nations Mission in Bosnia and Herzegovina (UNMIBH) (document A/59/751) had expired on 31 December 2002, with the administrative liquidation being carried out from 1 January to 30 June 2003.  The report before the Committee contained information on income and expenditure, assets, outstanding liabilities and fund balances as at 30 June 2004.  A cash balance of some $7.18 million was available in the Special Account for UNMIBH, and the Secretary-General proposed that it be retained.  The Secretary-General would report to the General Assembly at its sixtieth session on the matter.

Regarding the United Nations Peacekeeping Force in Cyprus (UNFICYP) (documents A/59/620 and A/59/656/Add.1), he said the Secretary-General proposed a total amount of $47.4 million for the period from 1 July 2005 to 30 June 2006 -– an increase of $200,000 against the appropriation of $47.2 million for the current period.

Turning to the United Nations Mission in Ethiopia and Eritrea (UNMEE) (documents A/59/616 and A/59/636 and Corr.1), he said that the Assembly, by its resolution 57/328, had approved a total amount of $188.4 million for the period up to 30 June 2004. Of that amount, a total expenditure amounted to $183.6 million, resulting in an unencumbered balance of $44.8 million.  The Secretary-General proposed a total amount of $176.7 million for the 2005/2006 period –- a decrease of $21.6 million against the appropriation of $198.3 million for 2004/2005.  The key resource variances were due to lower resource requirements attributed to the expected drawdown of the military from the authorized strength of 3,980 to a budgeted strength of 3,184 by 1 July 2005 and a 10 per cent reduction in the level of civilian personnel.

Regarding the United Nations Observer Mission in Georgia (UNOMIG) (documents A/59/622 and A/59/634), he said that an amount of $30.7 million had been appropriated for 2003/2004.  The total expenditure for that period amounted to $30.5 million, resulting in an unencumbered balance of $200,000.  For 2005/2006, the Secretary-General proposed a total amount of $35.5 million for the Mission -– an increase of $3.6 million against the appropriation for the current period.  There were increased requirements under facilities and infrastructure, for the purchase of security and safety equipment, fire alarm systems and smoke detectors.  An increase under air transportation was a result of the higher commercial costs of two helicopters under the new contract terms with the carrier.  There was also an increase in requirements due to the proposed establishment of 45 posts (42 of them security positions) and the application of a lower vacancy rate of 1 per cent.

On the disposition of the assets of the United Nations Iraq-Kuwait Observation Mission (UNIKOM) (document A/59/614), he said that the total inventory value of its assets as at 3 July 2003 amounted to $23.9 million.  The value of assets transferred to other missions or for temporary storage to the Logistics Base amounted to $412.6 million, representing 52.9 per cent of the total inventory value.  The assets disposed of in the Mission area amounted to $3.7 million.  The value of assets written off or stolen amounted to $7.5 million (31.5 per cent of the inventory value).

On the United Nations Interim Administration Mission in Kosovo (UNMIK) (document A/59/623 and Corr.1, and A/59/633), he said that there was an unencumbered balance of $9,000 for the period of 2002/2003.  The Secretary-General proposed some $240.4 million for the maintenance of the Mission in 2005/2006, which represented a decrease of $54.2 million (18.4 per cent) against the approved appropriation of $294.6 million for 2004/2005.  The change was attributable to the progressive reduction of civilian police from 2,195 in July 2005 to 1,325 by June 2006 and repatriation of four special police units during the same financial period.  There was also a progressive reduction of international staff from 765 in July 2005 to 675 by April 2006.

Regarding the United Nations Mission in Liberia (UNMIL) (document A/59/624 and A/59/630), he said that the total expenditure for 2003/2004 amounted to $548.2 million, resulting in an unencumbered balance of $16.3 million.  The Secretary-General proposed a total amount of $722.6 million for the budget of the Mission in 2005/2006 -– a decrease of $99.4 million against the current appropriation of $822 million.  Among other things, there would be lower requirements due to the repatriation of three infantry battalions (2,348 troops) as of 1 March 2006, on the assumption that the October 2005 elections took place as scheduled and were successful.  Lower requirements would also stem from the fact that rations and cash compensation payments in relation to the disarmament and demobilization of ex-combatants would no longer be needed, as that phase of the disarmament, demobilization, reintegration and rehabilitation programme would be completed.  There was also a reduced number of flying hours, as the Mission planned to continue using its current reduced fleet of 22 rotary-wing aircraft through February 2006.  That fleet would be further reduced by seven helicopters in March 2006.

Turning to the United Nations Disengagement Observer Force (UNDOF) (documents A/59/625 and A/59/653 and Corrs.1 and 2), he said that a total amount of $40 million had bee approved for 2003/2004, and there was an unencumbered balance of $300,000.  For 2005/2006, the Secretary-General proposed a total amount of $41.6 million –- an increase of $700,000 against the appropriation for 2004/2005.

On the United Nations Interim Force in Lebanon (UNIFIL) (documents A/59/626, A/59/635/Corr.1, A/59/758 and Corr.1, and A/59/654), he said that $90 million had been approved for 2003/2004, of which total expenditure amounted to $89.9 million, resulting in an unencumbered balance of $100,000.  For the next budget year, the Secretary-General proposed a budget of $94.3 million –- an increase of $1.3 million against the $93 million for the current period.

Regarding the United Nations Mission in Sierra Leone (UNAMSIL) (documents A/59/635 and Corr.1, A/59/758 and Corr.1, and A/59/759), he said that the total expenditure for 2003/2004 amounted to $448.7 million, resulting in an unencumbered balance of $71.3 million against an appropriation of $520 million.  For 2005/2006, the Secretary-General proposed a budget of $107.2 million -- a decrease of $184.4 million (63.3 per cent) against the appropriation of $291.6 million for 2004/2005.

As for the proposed donation of the Mission’s assets to the Government of Sierra Leone, he said that their total inventory value amounted to $71.9 million.  Some 12 per cent of that amount was proposed for donation to the Government.  Withdrawal of assets proposed for donation may impede the rehabilitation of the country, because of infrastructural and logistical challenges faced by the country’s armed forces and police.

On the United Nations Mission for the Referendum in Western Sahara (MINURSO) (documents A/59/619 and A/59/629), he said that some $41.5 million had been approved for the Mission for 2003/2004, and there was an unencumbered balance of $2.7 million.  The Secretary-General proposed $46.3 million for the maintenance of the Mission in 2005/2006 -– an increase of $4.4 million against the appropriation of $41.9 million for 2004/2005.  The increase was attributable to the increase in the cost of petrol, oil and lubricants, the acquisition of closed circuit TV and metal detectors and renovation of buildings and facilities.  There was also a new contract for two cargo and one passenger fixed-wing aircraft and three rotary-wing aircraft.

Regarding the review of the management structure of all peacekeeping operations, he said that the note by the Secretary-General (document A/59/794) provided the reasons as to why the Secretariat had been unable to submit the report, which had been requested by the Assembly.  The document would be submitted at the second part of the resumed sixtieth session.

Another note by the Secretary-General (document A/59/795) provided an explanation of the reasons for the delay in the submission of the report on the feasibility of consolidating the account of various peacekeeping operations.  The Secretary-General intended to submit the report for consideration by the Assembly at its sixtieth session.

Mr. KUZNETSOV, ACABQ Chairman, introduced the Advisory Committee’s related reports, contained in documents A/59/736 and Addenda.  He said the committee’s comments on the information in the related performance reports had been integrated, where relevant, in the Committee’s discussion of the proposed budgets for 2005-2006.

The Committee recommended approval of the Secretary-General’s proposal with respect to the UNMIBH, he said.

As for the United Nations Peacekeeping Force in Cyprus (UNFICYP), he said the Committee’s recommended reductions of $152,600 related to posts.  While welcoming UNFICYP’s intention to convert a number of international posts to national posts and to hand over functions from international staff to national staff, success in that could also result in lower overhead costs, without decreasing efficiency.  The Committee encouraged UNFYCIP and other missions to pursue efforts in that area.

The Advisory Committee recommended acceptance of the Secretary-General’s proposals with respect to the UNMEE, he said.  The Committee had been informed of the current vacancy rate for international staff of 22 per cent, due to the high turnover of staff as a result of the start-up of new peacekeeping missions, but was of the opinion that, although it was good for experienced staff to be mobile and to be available for new missions, the situation should be monitored in order to avoid disruption in the mission’s activities.  Measures should be taken to find ways to retain experienced staff.

He said that, regarding UNOMIG,the Advisory Committee recommended that the General Assembly appropriate the amount of $34.58 million for the maintenance of the Mission for the 12-month period from 1 July 2005 to 30 June 2006. The recommended reduction related mainly to the Committee’s recommendations on posts and on helicopters.  In its report, the Committee had presented detailed comments on results-based budgeting format and presentation, pointing out a number of areas that needed improvement.

He said the Committee was particularly troubled by the manner in which the management review of UNOMIG had been conducted.  The review of staffing requirements and structure of the Mission, never finalized, had become irrelevant, and time and resources had, therefore, been wasted.  Managers should be held accountable for their inaction or delayed action.  Also, the Committee had difficulties with the policy for acquisition and replacement of vehicles and information technology equipment.  It recommended a $300,000 reduction with respect to rental and operation of helicopters, since there was, in all likelihood, significant over-budgeting for that item.

The Committee recommended that the Assembly take note of the Secretary-General’s report on UNIKOM, he said.

Regarding UNMIK, he said the Committee’s recommended reduction of $114,600 related to the requested provision for travel, as the proposed travel programme needed to be further rationalized through the elimination of what appeared to be redundant trips of Department of Peacekeeping Operations staff and through a significant reduction in the number and duration of trips of UNMIK personnel, especially outside the Mission area.  Regarding post-grading, he said that if functions could be consistently performed by staff at grades lower than the budgeted level of particular posts, then those posts should be considered for downward classification.

A recommended reduction of $211,500 for UNMIL related to the Committee’s call for a reduction in requests for posts.

The Advisory Committee recommended acceptance of the Secretary-General’s proposal for UNDOF, as it did for UNIFIL and UNAMSIL, Mr. Kuznetsov said.  However, the performance report for UNAMSIL indicated considerable cost overruns that were chiefly due to the conversion of 120 staff members from the 300 to the 100 series.  The Committee requested that the detailed actual cost of such conversions be established in a fully transparent manner.  Noting the extensive travel plans for UNAMSIL that were not justified for a mission that was nearing liquidation, the Committee recommended that the travel programme be rationalized.  The Committee also recommended acceptance of the Secretary-General’s proposal concerning the donation of assets to the Government of Sierra Leone.

As for MINURSO, finally, he said the Committee’s reduction recommendation of $686,600 related to budgeted vacancy/delayed deployment rates.  The Committee requested the mission to closely monitor use of aircraft and to carry out a management review aimed at an efficient utilization of air assets.

BORIS HOLOVKA (Serbia and Montenegro) recalled that the mandate of UNMIK and Metohia was to maintain civil law and order, protect and promote human rights, assure the safe and unimpeded return of all refugees and internally displaced persons to their homes, and to secure the freedom of movement.  Unfortunately, even six years following the setting up of the Mission, those requests had not been met.  Due to that unsatisfactory state of affairs, his delegation had been astonished by the proposal to downsize the Mission.

The high implementation rate of the Mission’s budget notwithstanding, as stated in the ACABQ report, he was of the view that the resources saved, including future proposed rationalization, should be maintained in the budget, on the condition that they were reallocated and redirected at providing services of substantial nature.  That would facilitate greater safety and security for all and contribute to the success of the Mission.  According to the Mission’s performance report, the first six months of 2004 had seen the return of no more than 645 persons to the Province.  However, the document failed to mention what, if anything, had been done to facilitate the return of other internally displaced persons, who accounted for more than 220,000 people.

He was worried by the report’s interpretation of the freedom of movement of the minorities, he continued, which presumed daily escorted transport of 250 minority members to work.  Serbia and Montenegro could not concur with such an interpretation of the Mission’s mandate under resolution 1244.  The issue of decentralization, which was of paramount importance for the creation of a stable environment, had once again been omitted from the planned activities, as could be seen from document A/59/633.

If and when the proposed reductions were effected, they should by no means affect the financial resources envisaged for security and the protection of minority rights, he said, including freedom of movement and the right to return.  On the contrary, there was a need to increase those resources to fulfil the mandate in those areas.  There could be no rationale for cutting resources aimed at fulfilment of those basic humanitarian needs.

He added that his delegation would present more questions and comments on the issue in informal consultations.  He also endorsed the recommendation of the ACABQ that the Secretary-General’s proposal for the budget of UNMIK for 2005/2006 should explain in a more transparent manner the rationale for downsizing the Mission.

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