In progress at UNHQ

Seventy-third Session,
31st Meeting (PM)
GA/AB/4317

Speakers Seek Clarification, Justification for Changes, as Budget Committee Considers Proposed Amendments to Financial Regulations, Rules

The Fifth Committee (Administrative and Budgetary) today began discussing proposed amendments to the Financial Regulations and Rules of the United Nations, with speakers seeking justification for the changes and adequate time to examine and discuss them.

The Secretary-General’s report on proposed amendments to the Financial Regulations and Rules of the United Nations (document A/73/717) describes two structural changes. 

Introducing the report, Pedro Guazo, Director of Finance of the Department of Management Strategy, Policy and Compliance, said that the first change is the inclusion of the regulatory framework for engaging with implementing partners, including non-governmental organizations, and the issue of grants, based on the recommendations of the Board of Auditors.  The framework represents principles that the Secretariat will have to follow at a higher level, he explained, adding that further guidance will be developed for the operational level in different administrative documents.

The second one, he said, relates to the process of donating property installed in a country following the liquidation of a peacekeeping operation — such as airfield installations, buildings, bridges and mine-clearing equipment — which, if dismantled, would restrain or reverse the rehabilitation of that country, he explained.  The proposal entails eliminating the obligation to obtain prior General Assembly approval for disposing such assets, while retaining the obligation to report on those donations.

Cihan Terzi, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introducing the oversight body’s related report (document A/73/817), said that while ACABQ recognized the need for a legal framework for implementing partners and grant awards, the proposed amendments must be refined as some language lacks clarity and consistency.  The Advisory Committee therefore recommends not to approve the proposed changes, he said.

The observer for the State of Palestine, speaking on behalf of the “Group of 77” developing countries and China, said that the purpose of the Financial Regulations and Rules is to implement Assembly decisions and that the Secretariat must provide detailed, specific and thorough explanations for any proposed amendments, including the accurate presentation of the level of compliance with the International Public Sector Accounting Standards.  

“Member States should be provided with a legislatively and technically sound basis for proposals, and not an oversimplified statement of intent,” she said, stressing that report should have included a clear description of lessons learned from the application of the current Financial Regulations and Rules; details of the internal process leading to the amendments — including consultations with the Board of Auditors and the Office of Internal Oversight Services (OIOS) — as well as how the amendments would be put into practice and aligned with General Assembly mandates. 

The Group trusts that the Bureau of the Fifth Committee will schedule enough time to discuss the proposed amendments to enable the full democratic participation of all delegations in negotiations, she added.

The Russian Federation’s delegate said that the Secretary-General’s report uses language requiring clarifications and justifications and does not see the need to be approved at this stage.  On the contrary, ACABQ’s report represents a balanced position that could serve as a basis for further discussion.  The fate of the proposed changes depends on the General Assembly, he stressed.

In other business, the Committee heard the introduction of the budget proposal for the United Nations Mission to Support the Hudaydah Agreement for the period from 1 April to 30 June.

Presenting the Secretary-General’s report on estimates in respect of special political missions, good offices and other political initiatives authorized by the General Assembly and/or the Security Council (document A/73/352/Add.8), Mr. Guazo recalled that on 16 January 2019 the Security Council decided to establish the Mission for an initial period of six months.

Pending the submission of a detailed revised programme budget, the Assembly is requested to approve $17.64 million for the period 1 April to 30 June 2019.  The proposal would provide for the phased deployment of 75 United Nations monitors, 69 international and 36 national staff positions and 20 Government-provided personnel; and the deployment of one rotary-wing and one fixed-wing aircraft.  In addition, the proposed resources would provide for a forward surgical team in Hudaydah, communications and information technology equipment, and official travel.  Concerning facilities and infrastructure, it is assumed that the rented marine vessel will be used as a short-term arrangement to provide for office and living accommodation, he said.

Mr. Terzi, ACABQ Chair, introducing the body’s related report (document A/73/498/Add.8), expressed doubt that the proposed deployment targets underpinning the present funding request are achievable.  As such, the Advisory Committee urges the Secretary-General to redouble efforts to expedite deployments and recommends that more realistic vacancy factors be presented in the forthcoming budget submission for the Mission.  ACABQ also trusts that the budget submission will contain information on the Mission’s financial performance thus far and reflects proposals based on the actual experience on the ground.

Considering the slow pace of deployment and other observations contained in the report, the Advisory Committee recommends that the General Assembly authorize the Secretary-General to enter into commitments for the Mission in an amount not exceeding $15.6 million for the current quarter, he said.

The Committee will meet again at 3 p.m. on Friday, 5 April, to conclude the first resumed part of the seventy-third session.

For information media. Not an official record.