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O N B E H A L FO F T H E E U R O P E A N N I O N U
S T A TEMENT ENNODROFENIK BY COUNSELLOR P E R MA N E N T MIS S ION AUSTRIATO THE UNITEDNATIONS OF

Item 122,124,128,129& 136:lnvesting the UnitedNations: in detailed report- Addendum. 5

FIFTHCOMM ITTEE

New York, 28 June 2006

P E R M A N E N TS S I OO FA U S T R IT OT H EU N I T E D A T I O N S MI N A N . 823 UNITED NArloNS PLAZA, BrH FL.,NEW YORK, 10017.TEL'.(212)949-1840 Fnx: (212)953-1302 NY AND(212\ 983-2677 EMAIL: new-york-ov@bmaa.gv.at. WEBSITE: http://www.aussenministerium.aVnewyorkov

Investing the UnitedNations Addendum. in 5
M r . C h a i r ma n , I havethe honourto speakon behalfof the European Union.The AccedingCountries Bulgaria and Romania, the CandidateCountries Turkey,Croatiaand the formerYugoslavRepublic of Macedonia, the Countries of the Stabilisationand Association Process and potential candidates Albania,Bosniaand Herzegovina and Serbiaand the EFTA countryLiechtenstein, member of the EuropeanEconomicArea, as well as Ukraineand the Republic Moldova of alignthemselves with this declaration. At the outset let me thank ControllerWarren Sach for presentingAddendum 5 of the Secretary-General's reporton Investing the UnitedNationsas well as the Chairman the in of ACABQ,RajatSahafor introducing theirrelatedreport. M r . C h a i r ma n , The EuropeanUnion attachesgreat importanceto the Procurement Reform as it constitutes an essentialpart of the ongoing ManagementReform process.We welcome the SecretaryGeneral'sreport N60l846lAdd.5, which outlinesthe strategicprocurementreformactionsfor the near future.We fully supportthe effortsto strengthen the internalcontrolmeasures, to optimiseUN acquisition and procurement management orderto reducethe acquisition in costs and to improve strategic management UnitedNationsprocurement. of The above-mentioned measures are of utmost importance to enhance transparency, accountability the ethicalbehaviour staffwithinthe Organisation. recentreports and of The on procurement in PKOs have clearly illustrated a lack of adequate internal controls, accountability measuresand resources. procurement the field should While the expedient in take placewithoutunduedelay,the procurement practices must alwaysfollowthe established f i n a n c i arlu l e sa n d re g u l a ti o n s. We acknowledgethat the Secretary-General, after having reviewed the findings and recommendations the report on the internalcontrols in procurement of and the Office of InternalOversight Servicesaudit of field procurement, has identified some recommendations to further strengtheninternalcontrolsover the procurement process.The EuropeanUnion welcomesthe variousmeasuresbeing taken to segregateduties and processes orderto in avoidconflict interest of and increase transparency and accountability to promote and integrity and ethicswithinthe Organisation. As the ACABQ notes in its report,there are a number of forthcoming reports, which might have impacton procurement reform.Due to this reasonand late issuance the procurement of reportsin front of us, the FifthCommittee might not be in a position addressthe substance to of the reportsin the given timeframe. However,based on the urgencyand the importance of the issuethe EuropeanUnion is readyto make a decisionon the additional resources and to revertto the consideration the procurement of policies and regulations duringthe main part of t h e 6 1 t ts e s si o n . The requestfor additional capacityfor Procurement Servicehas been addressed detailin in the contextof SupportAccount and we remain activelyengaged in the discussions this in regard.We trust that the additionalresourceswill improveefficiencyand cost-effectiveness of procurement the UnitedNations system. T h a n ky o u , Mr. C h a i rma n .