Speakers Concerned by Negative Impact of Unpaid Dues on Peacekeeping Efficiency, as Budget Committee Discusses United Nations Financial Situation
Concerned by the high level of overdue payments for peacekeeping operations, speakers in the Fifth Committee (Administrative and Budgetary) today called on Member States to meet their financial obligations to the United Nations promptly so it could completely fulfil its mandate to maintain international peace and security.
Introducing the Secretary-General’s reports on the peacekeeping support account — which provides backstopping assistance to 14 peacekeeping missions — Bettina Tucci Bartsiotas, Assistant Secretary-General and Controller of the Department of Management’s Office of Programme, Planning, Budget and Accounts, said the 2017/18 proposed budget for the support account — at $339.5 million — was similar to the 2016/17 level and remained within the current approved level of resources.
“One of my main concerns in managing the support account is to balance the challenges inherent in backstopping a volatile peacekeeping environment with the limited resources we have to react to and manage those challenges,” she said.
Speakers agreed that handling those challenges effectively depended on Member States fulfilling their obligations and paying their dues. Indeed, a small number of Member States were responsible for a large proportion of unpaid assessments to the regular budget, the European Union’s delegate said, calling on those countries to address the matter urgently. She also called for more progress in paying monies owed to troop and equipment contributors. Cuba’s representative expressed concern that the largest debts in the United Nations budget as a whole were due to one Member State.
Non-payment of assessments should not be linked to political motives, said India’s delegate. Sharing a troop-contributing country’s perspective, he said that inadequately resourcing peacekeepers would impact their effectiveness. The Organization must use resources optimally and efficiently, with troop- and police-contributing countries consulted at all decision-making stages.
Echoing that call, Canada’s representative, speaking also for Australia and New Zealand, expressed concern about the effects of the nearly $1.7 billion in unpaid peacekeeping assessments, which troop- and police-contributing countries had been forced to shoulder. Also concerned at an increasing dependence on budget reserves and reliance on the Working Capital Fund and the Special Account each year, he said projected cash shortfalls would again present severe problems. Timely payments to Member States for troops, formed police units and contingent-owned equipment they contributed depended on all Member States meeting financial obligations to the United Nations in full and on time.
Ecuador’s representative, speaking on behalf of the “Group of 77” developing countries and China, conveyed a concern over efforts by some to create artificial justifications for non-payment of their assessed contributions. That not only affected mandate delivery, but also undermined the United Nations principles of governance on the basis of the sovereign equality of Member States. Among the Group’s priority issues was that many troop-contributing nations were developing countries unable to sustain commitments on their own for extended periods, she said, reaffirming the legal obligation of Member States to bear the expenses of the Organization and ensure its financial stability. “It is not enough to express support for this Organization with words,” she said. “We must also do so in deeds.”
Yukio Takasu, Under-Secretary-General for Management, updating the Fifth Committee on developments since his presentation on 3 May of the United Nations, said that since the 30 April cut-off date, $170 million had been received from 23 Member States. To date, a total of 41 Member States had paid their assessments in full for all categories.
Speakers also shared concerns about massive investments in Umoja when no medium- to long-term efficiencies and economies of scale had yet materialized. Ecuador’s delegate, speaking for the Group of 77, agreed with the Advisory Committee on Administrative and Budgetary Questions’ (ACABQ) view that initiatives such as the Global Field Support Strategy, Umoja Enterprise Resource Planning System and other supply chain management improvements had not notably impacted the level of resources requested under the support account. Pointing to the $25 million requirement for the Umoja planning project, a nearly 50 per cent increase compared with 2016/17 provisions, she said the Group would examine the proposed restructuring of the Logistical Support Division.
Jean-Pierre Lacroix, Under-Secretary-General for Peacekeeping Operations, said that despite substantial progress in mandate implementation in some missions, many continued to operate in non-permissive environments or faced challenging conditions caused by lagging advances in their respective political processes. He expressed hope that under the Secretary-General’s leadership and Member State support, the Organization would continue to advance efforts to improve the peacekeeping tool, which had transformed the lives of countless men, women and children over the past six decades.
During the meeting, Ms. Bartsiotas also introduced the Secretary-General’s reports on the budget performance for 2015/16, and the budget for 2017/18, of the United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic (MINUSCA), United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) and the United Nations Mission in the Republic of South Sudan (UNMISS).
Carlos Ruiz Massieu, Chair of the Advisory Committee, introduced its related reports on MINUSCA, MINUSMA and UNMISS as well as on the support account for peacekeeping operations.
Also delivering statements today were representatives of China and Japan.
The Committee will meet again at a date and time to be announced.
Financial Situation of United Nations
YUKIO TAKASU, Under-Secretary-General for Management, updated the Fifth Committee on developments since his presentation on 3 May of the United Nations financial situation. (See Press Release GA/AB/4231 for background.) The full overview is set out in the Secretary-General’s report on the situation (document A/71/440/Add.1). He said that since the 30 April cut-off date, $170 million had been received from 23 Member States. Some of those payments had resulted in additions to the lists of Member States that were fully paid in various categories — 96 Member States had now paid in full for the regular budget, including recent payments from Chile, Federated States of Micronesia, Italy and Kenya; 51 had fully paid for peacekeeping due to payments from Armenia, Italy and Kenya; and, for the International Criminal Tribunals for Rwanda and the former Yugoslavia, the Federated States of Micronesia, Italy, Kenya and Malaysia had paid in full, bringing that category total to 69 Member States. In addition, payments from Kenya and Norway had resulted in a total of 41 Member States paying their assessments in full for all categories.
AMÉRICA LOURDES PEREIRA SOTOMAYOR (Ecuador), speaking on behalf of the “Group of 77” and China, said the Group was encouraged that the Organization’s financial indicators were generally sound. However, it was concerned by an increase in unpaid assessments for peacekeeping operations. Emphasizing that the Organization’s financial health through the rest of 2017 depended on action by all Member States, she expressed appreciation for the Secretariat’s efforts with regard to outstanding payments to Member States for troop costs and contingent-owned equipment. That issue was a priority for the Group, as many troop-contributing countries were developing countries that could not sustain their commitments on their own for extended periods.
Turning to the subject of unpaid assessments, she said the Group reaffirmed the legal obligation of Member States to bear the expenses of the Organization and ensure its financial stability. While some Member States were temporarily unable to meet their financial obligations, all Member States were urged to pay their assessed contributions in full, on time and without conditions. “It is not enough to express support for this Organization with words; we must also do so in deeds,” she said, conveying the Group’s concern over efforts by some to create artificial justifications for non-payment of their assessed contributions, which not only affected mandate delivery but also undermined the United Nations principles of governance on the basis of the sovereign equality of Member States.
FIONA GRANT, European Union, said the Organization’s financial health was a shared responsibility underpinning the United Nations capacity to fulfil its mandate. While unpaid assessments in all categories were now lower than in April 2016, the low payment rate continued to have negative effects, she said, noting that a small number of Member States were responsible for a large proportion of unpaid assessments to the regular budget and calling on them to address the matter urgently. She also called for more progress in paying monies owed to troop and equipment contributors.
KENT VACHON (Canada), speaking also for Australia and New Zealand, expressed concerns about increasing dependence on budget reserves and the fact that projected cash shortfalls would again present severe problems. He was also concerned by the effects of the nearly $1.7 billion in unpaid peacekeeping assessments, which troop- and police-contributing countries had been forced to shoulder. Timely payments to Member States for troops, formed police units and contingent-owned equipment they contributed would always depend on all Member States’ meeting financial obligations to the United Nations in full and on time. Unpaid assessed contributions adversely affected the Organization, he said, expressing concern over the increasing reliance on the Working Capital Fund and the Special Account each year and urging all Member States to pay dues in full, on time and without conditions.
FU LIHENG (China), associating himself with the Group of 77, said his country was pleased to note that the overall financial situation of the United Nations was generally sound and positive. However, the level of both arrears and unpaid reimbursements to troop-contributing countries was disconcerting, he said, emphasizing that a sound financial position not only underpinned the Organization’s work but also helped to advance reforms. He called on Member States, particularly those at the high end of the scale of assessments, to do their best to pay their dues expeditiously. As a strong supporter of the United Nations, China had already paid its assessments in full and on time.
ANA SILVIA RODRIGUEZ ABASCAL (Cuba), associating herself with the Group of 77, said it was worrying that the largest debts in the United Nations budget as a whole were due to one Member State. The same Member State benefited from a distortion in the methodology for calculating the scale of assessments, she said, adding that it was also the one where Headquarters was located. She went on to say that Cuba’s ability to pay into the United Nations budget remained a challenge due to the economic, commercial and financial blockade unilaterally imposed by the United States for more than 50 years. Hopefully, the new United States Administration would be receptive to the international community’s near-unanimous demand to end that criminal policy, she said.
KATSUHIKO IMADA (Japan) said his country had faithfully met its assessment obligations. However, the capacity of Member States to pay was not unlimited. It was therefore important to set realistic resource levels that were both necessary and sufficient to implement mandates, he said, reiterating his delegation’s request for the Secretariat to ensure that the Organization’s assessed budget was used in the most efficient, effective and accountable manner. “Stricter adherence to budgetary discipline is required,” he said.
Mr. TAKASU, responding to delegates’ queries, said the cash flow issue was being addressed. The trend was clear, with a tight cash flow at the end of the year. Examining the Working Capital Fund was important. On peacekeeping operations, he said the highest priority was accorded to making payments to contributing countries. Most recently, the Secretary-General had sent a reminder to adhere to strict budget guidelines.
Statement by the Under-Secretary-General for Peacekeeping Operations
JEAN-PIERRE LACROIX, Under-Secretary-General for Peacekeeping Operations, said that despite substantial progress in mandate implementation in some missions, many continued to operate in non-permissive environments or faced challenging conditions caused by lagging advances in their respective political processes. The significant role of peacekeeping in addressing long-standing conflict and building peace had been demonstrated by the closure of the United Nations Operation in Côte d’Ivoire (UNOCI) and United Nations Mission in Liberia (UNMIL) and the transformation of the United Nations Stabilization Mission in Haiti (MINUSTAH) into a smaller, tailored operation. Considering the pressures caused by the current financial environment and uncertain global security, the current approach must be reconsidered and new ways must be found in planning, sourcing, conducting and transitioning peacekeeping operations to make them more flexible, effective, responsible and accountable. Building on the successes of Côte d’Ivoire, Liberia and Haiti, efforts were being redoubled to strengthen operations in Central African Republic, Democratic Republic of the Congo, Mali and South Sudan to protect vulnerable civilians and facilitate peace and stability.
Elaborating on those efforts, he said the Department for Peacekeeping Operations (DPKO) had taken a pragmatic, field-focused and performance-oriented approach to management and reform. Those efforts, which enjoyed cross-regional consensus among Member States for a progressive vision of peacekeeping, would be for naught if the United Nations reputation continued to be stained by the shameful acts of a few, he said, highlighting the Secretary-General’s new strategy to combat sexual exploitation and abuse. He expressed hope that under the Secretary-General’s leadership and Member State support, the Organization would continue to advance efforts to improve the peacekeeping tool, which had transformed the lives of countless men, women and children over the past six decades.
Support Account for Peacekeeping Operations
BETTINA TUCCI BARTSIOTAS, Assistant Secretary-General and Controller, Office of Programme, Planning, Budget and Accounts, Department of Management, introduced the Secretary-General’s reports on the budget performance of the support account for peacekeeping operations for the period 1 July 2015 to 30 June 2016 (documents A/71/726 and A/71/726/Add.1) and on the budget for the support account for peacekeeping operations for the period from 1 July 2017 to 30 June 2018 (document A/71/806). The support account encompassed 14 offices and departments in the Secretariat that backstopped about 160,000 military, police and civilian personnel in 15 missions, with 14 missions to be expected in 2017/18.
She said key areas in the 2015/16 budget performance included mission strengthening and the deployment of Umoja cluster 4 in November 2015. As part of the latter, payment processing to Member States for contingent-owned equipment and troop and police reimbursement was implemented through Umoja, making it the single largest payment that had been processed by the United Nations for an average annual amount of $2.3 billion, 28 per cent of the total peacekeeping operations expenditure. Efforts were also intensified to respond to a surge in the number of reports of sexual exploitation and abuse cases and measures had been introduced to strengthen that response, including suspension of allowance payments to personnel allegedly having engaged in those crimes. Other activities including the preparation of the International Public Sector Accounting Standards-compliant financial statements using Umoja, the first ever managed mobility exercise for the Political, Peace and Humanitarian Network and the implementation of several strategic enterprise solutions. As a result of those activities, the support account incurred expenditures of $335.9 million, an implementation rate of 99.8 per cent.
Turning to the 2017/18 budget proposals, she said that based on the General Assembly’s request, reprioritization and efficiency measures had resulted in the current level of the support account containing 4.17 per cent of the peacekeeping budget, similar to the 2016/17 level. The proposed $339.5 million budget reflected a realignment of activities towards priority areas, such as restructuring the Office of Operations in the Department of Peacekeeping Operations and the reorganization of the Logistics Support Division. Secretariat efforts to streamline resource requirements had resulted in a net decrease of nine posts and positions compared with 2016/17 and in operational cost reductions. The support account remained within the current approved level of resources, she said. “One of my main concerns in managing the support account is to balance the challenges inherent in backstopping a volatile peacekeeping environment with the limited resources we have to react to and manage those challenges,” she said.
CARLOS RUIZ MASSIEU, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced its related report (document A/71/883), saying its recommendations would entail a reduction of $11.7 million to the Secretary-General’s proposals under both post and non-post resources. Noting the withdrawal of military and civilian components in UNOCI and UNMIL, he said the ACABQ considered that the requirement for backstopping support should decrease in 2017/18. In addition, a prudent approach to any increase in the support account would be appropriate, pending a comprehensive review of the support account that would be submitted to the General Assembly in the second part of the resumed seventy-second session.
He went on to reiterate the Advisory Committee’s view that the use of external consultants be kept to an absolute minimum, with the Organization using its in-house capacity for core activities and recurrent long-term functions. With regard to official travel, he added, ACABQ encouraged compliance with General Assembly resolution 67/254 A, including on the 16-day advance booking of tickets, and emphasized greater utilization of videoconferencing, among other measures to keep travel costs under control. Given its views on the proposed level of the support account, the Advisory Committee recommended against new posts and positions, thought it did recommend approval of the conversion from position to post of one P-2 Associate Legal Officer in the Administrative Law Section, as well as 74 continuations of general temporary assistance positions.
MARINA NIKODIJEVIC (Serbia), Vice Chair of the Fifth Committee, then drew its attention to the report of the Independent Audit Advisory Committee on the proposed budget of the Office of Internal Oversight Services (OIOS) under the support account for peacekeeping operations for the period from 1 July 2017 to 30 June 2018 Report of the Independent Audit Advisory Committee (document A/71/800). She said a statement by the Chairman of that Committee would be made available on the Fifth Committee website.
Ms. PEREIRA SOTOMAYER (Ecuador), speaking on behalf of the Group of 77, said the changing nature of peacekeeping had posed new challenges, with the level of the support account reflecting the size and complexity of activities on the ground. The Group would closely analyse the Secretary-General’s proposal for the 2017/18 period for post and non-post resources, reflecting an increase from the previous period.
Turning to recent reform efforts, she agreed with the Advisory Committee’s view that no discernible impact had been made on the level of resources requested under the support account from initiatives such as the Global Field Support Strategy, Umoja Enterprise Resource Planning System and other supply chain management improvements. No medium- to long-term efficiencies and economies of scale had yet materialized despite massive and continuing investment in those initiatives. Pointing to the $25 million requirement for the Umoja planning project, reflecting a 48 per cent increase compared with 2016/17 provisions, she said the Group would examine the proposed organization restructuring of the Logistical Support Division. On representation, she reiterated a concern about the lack of improvement with regard to troop- and police-contributing countries within the peacekeeping support structure. The Group would seek updates from the Secretariat on measures take to improve the situation.
ANJANI KUMAR (India), associating himself with the Group of 77, underscored his country’s longstanding commitment and contribution to United Nations peacekeeping. Welcoming and supporting the Secretary-General’s initiatives, he said the Organization must use resources optimally and efficiently, with troop- and police-contributing countries consulted at all decision-making stages. Not adequately resourcing peacekeepers would impact their effectiveness, he said, adding that non-payment of assessments should not be linked to political motives. He added that what the United Nations paid to troop- and police-contributing countries was a token amount considering the kinds of services rendered by peacekeepers and the risks they faced.
Financing of United Nations Peacekeeping Operations
Ms. BARTSIOTAS then introduced the Secretary-General’s reports on the budget performance for 2015/16, and the budget for 2017/18, of the United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic (MINUSCA) (documents A/61/651 and A/61/819), the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) (documents A/61/690 and A/61/842) and the United Nations Mission in the Republic of South Sudan (UNMISS) (documents A/61/653 and A/61/841).
With respect to MINUSCA, she said the proposed 2017/18 budget of $921.6 million reflected an increase of 0.1 per cent over the 2016/17 approved budget. The Mission would pursue its strategic objective of sustainably reducing the presence and threat of armed groups, she said. At the national level, its integrated approach to fulfilling its mandate focused first and foremost on robust efforts to protect civilians. At the same time, the Mission would engage armed groups in dialogue to persuade them to enter into a disarmament, demobilization, reintegration and repatriation process. It would also address conflict-related sexual violence and children and armed conflict, and pursue the administration of justice for serious crimes through the establishment of a Special Criminal Court.
Turning to MINUSMA, she said the proposed 2017/18 budget of $1.08 billion reflected an increase of 15.4 per cent over the approved 2016/17 budget. She recalled that the Security Council, by its resolution 2295 (2016), had expanded the Mission’s military strength by 2,049 personnel and its police strength by 480 personnel. Growing insecurity in the north of Mali had affected implementation of the 2014 peace agreement, she said, adding that MINUSMA had become a target of choice for violent extremist groups. Given that context, she said the Mission would focus on the political aspects of the peace accord, strengthen the agreement’s security mechanisms to improve the security situation in the north, build sustainable peace through early recovery activities in close collaboration with the United Nations country team, and strengthen its presence and activities in northern and central Mali, in particular by reinforcing a new office in Ménaka and increasing the troop presence in Mopti.
On UNMISS, she said the estimated resource requirements of $1.18 billion for 2017/18 represented an increase of 8.9 per cent compared to approved resources for 2016/17. She noted that the Security Council, by its resolutions 2304 (2016), had increased the Mission’s authorized military strength by an additional 4,000 military personnel for the Regional Protection Force set up to provide a secure environment in and around Juba. By its resolution 2327 (2017), it also increased the Mission’s police ceiling by 100 police personnel. Going forward, she said, the Mission would continue to implement its main priorities, including the protection of civilians, monitoring and investigating human rights, creating conditions for the delivery of humanitarian assistance and supporting implementation of South Sudan’s peace agreement.
Mr. RUIZ presented the Advisory Committee’s corresponding reports on MINUSCA, MINUSMA and UNMISS (documents A/61/836/Add.8, A/61/836/Add.14 and A/61/836/Add.15), respectively. On MINUSCA, he said the Advisory Committee was recommending a reduction of $18.87 million to the proposed budget through the non-establishment of 10 posts and positions and the abolishment of another 12 posts that were proposed for reassignment. It also recommended a 10 per cent reduction to proposed resources for construction, a 50 per cent reduction for proposed consultant resources and a 30 per cent reduction on official travel, as well as adjustments to proposed resources for aerostat, unmanned aerial systems and fuel.
Turning to MINUSMA, he said the Advisory Committee was recommending a reduction of $16.68 million to the proposed 2017/18 budget, reflecting its recommendation against the establishment of 22 posts and positions and the abolishment of three posts proposed for reassignment. It also recommended a 20 per cent reduction in proposed travel expenditures outside the Mission area, a 50 per cent reduction of proposed resource increase for facilities and infrastructure and adjustments to proposed resources for unmanned aerial systems and public information services.
Lastly, for UNMISS, he said the ACABQ was recommending a reduction of $19.3 million to the proposed 2017/18 budget. That would reflect, among other things, the abolishment of eight posts proposed for reassignment, the elimination of a further 13 posts that had been vacant for more than two years, and the discontinuation of three general temporary assistance positions. With regard to operational costs, he said the Advisory Committee was recommending a number of reductions in the areas of consultants, official travel, facilities and infrastructure, air operations and communications.