STATEMENT ON BEHALF OF THE GROUP OF 77 AND CHINA
BY MS. KAREN LOCK PERMANENT MISSION OF SOUTH AFRICA TO THE UNITED NATIONS' ON *INVESTING IN THE UNITED NATIONS: FOR A STRONGER ORGANISATION WORLDWIDE'' TO TI{E FIFTH COMMITTEE OF THE GENERAL ASSEMBLY New York. 19 June 2006 Mr. Chairman, I have the honour to speak on behalf of the Group of 77 and China on in the United Nations for a stronger Organisationworldwide". "lnvesting

The Group wishes to thank the Controller, Mr. Warren Sach, and the Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ)' Mr. (4/60/846 and Rajat Saha,ior introducing the respective reports of the Secretary-General the relevant Addenda) and the Advisory Committee (A/60/370). We also appreciatethe presentationby Mr. Juan-Luis Larrabure and Mr. Kenneth Herman of the reports of the on ioint lnspectionUnit and the Secretary-General the use of open sourcesoftware. We largely support the recommendationsof the Joint lnspection Unit and will revert to them in the context of the comprehensive fact-finding study on Information and CommunicationTechnologyto be submittedin the 61" session. Mr. Chairman, A great deal has been said during the past few months about the reform agenda and the commitment of the Group of 77 andChina and other Member Statesto reforming and China held a the United Nations. As recently as on 29 May 2006, the Group of 77"strong support to reaffirmed our Special Ministerial Meeting in Putrajaya, Malaysia, and the United Nations, and to all collective efforts aiming at enhancing its ability to fully in implement its mandatesand to ensure the effective delivery of all its programmes, particular in the social and economic developmentfield". The Ministers also stressed ,,th" legitimacy and viability of any reform measuresdependultimately on the broad thut support of Membei Statesof the United Nations, as well as of the United Nations staff to who dedicatethemselves the values and principlesof the Organization". The Putrajaya wili continue to guide the approachof the Group of 77 and China Ministerial Statement during the upcomingnegotiations. China has also maintained that Member Stateswould have The Group of 77 and. to demonstrate their commitment to the United Nations by ensuring that it receives perform adequateand predictableresources. The Organisationcannot be expectedto budget levels, in effeitively if it is expectedto undertakemore tasks within stagnant particular in the areasof economic and social development. Member Statescannot,on

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the other hand, the one hand, be calling for the reform of the Organisation, whilst, on through their actions bring it to the brink of financial insolvency. that It is for this reason that the Special G77 Ministerial Meeting reaffirmed "financial contributions to push for the adoption of certain proposals are efforts to use for and violate the obligationsof Membel Statesto provide resources counter-productive that, in the Organisation, as enshrined in its Charter". The Ministers also reaffirmed expenditure of the order to avoid a crisis within the United Nations, the limit on the of the SecretaryOrganisation shall be automatically lifted upon receiving the request General and urged all Member Statesto act accordingly' finance We wish to state for the record that the Group of 77 and China is ready to as revised the additional costs resulting from the adoption of reform measures substantialinvestment in the appropriations.We note that some proposal will require stand ready to current and future biennia. We trust that other Member States would of the budgets demonstratetheir commitment to reform by increasing the existing levels to finance new of the Organisation. Member States have for far too long attempted urnealistic but activities from within existing resource levels which is not only the Organisation underminesthe functioning of ttre LTN. It is time to commit to providing and predictableresources' with adequate Mr. Chairman, China has always maintained that proposals that touched on The Group of 7l and, which are clearly the role and prerogativesof Member Statesin the GeneralAssembly, We have enshrinedin itre Ctarter, fall outside the scopeof the World Summit decisions' management reform of also maintained that these are issues that have no relation to the these concems in April and trust that they have been the Secretariat. We have addressed has not fully laid to rest once and for all. However, it is regrettablethat the Secretariat no relation to the and implementresolution 601260 re-submittedsomeproposalsthat bear among discussions -urrug"rn"nt reform issues. Theseproposalshave led to very divisive and the Member States during the World Summit negotiations, the budget negotiations discretion(Addendum2) is a in negotiations April iooe . The report on limited budgetary Assembly clear case in point as it does not respond to the provisions of General considered. It would be prudent and, therelore,cannotbe resolutions 601246and 601260 embarking on a potentially divisive negotiation on such a for Member Statesto avoid highly controversialissue. This position is in iine with the call by the G77 Ministers on the SecretaryThe G77 Ministers General to fully implement General Assembly resolution 601260. by that pioposals that were not endorsed the GeneralAssembly should not have stressed General Assembly be re-submitted. In this regard, we wish to also point out that has already pronounced itself on the proposals on the charging of resolution 601260 performance and interestson arrears,a public ut."r, policy and the consolidation of provisionswill financial information into one annual ieport. We expectthat the relevant

be respected,as the implementation of resolutions should ultimately be part and parcel of the efforts to increasethe accountability of the Secretariatto the Assembly' Mr. Chairman, There are numerous other proposals of the Secretary-Generalbefore us that we believe bear relation to the managementreform of the Secretariat. I therefore, have the honour to state the position of the Group of 77 and China on most of these proposals,which we believe would require careful reflection by Member States.We United nt t5". believe that these proposals have the potential of ensuring a strengthened of pertinentissueson aspects Nations.We note that the ACABQ has alsoraiseda number of Addenda 1,3 and,4. The Group looks forward to discussingthe proposalsfurther during the informal consultations. Information and Communication Technology to The Group of 77 andChina supportsmeasures improve the infrastructure of the United Nations. To this end, the Group has firmly supported the development of a comprehensiveinformation and communication technology strategy that would enhance intei-connectivity between the United Nations Headquarters in New York and other Offices in Geneva,Nairobi, Vienna, as well as the Regional Economic Commissions. to During the budgetnegotiationsin 2005,we also called on other Member States support increaiing the resources allocated to training and Information and Communication Technology at the United Nations. Our calls unfortunately did not find support among other Member Statesat the time. We, however,trust that Member Stateswill be willing in to considerrequestsfor resourceincreases a more favourablelight this time round. The Group supports the creation of a post of Chief Information Technoloey it We, Officer at the levil of Assistant-Secretary-General. therefore,would appreciate if th. proporal of the ACABQ to meet the function through redeployment could be clarihed. We, furtherrnore, look forward to receiving information on the composition, structureand reporting lines of the proposednew office, as well as its interactionwith other Secretariatstructures, in the report that the Secretary-Generalintends to submit in the 61't session. The Group of 77 and China also supportsthe proposal to replacethe lntegrated Management Information System (IMIS) with a next generation enterprise resource plannine system GRPS) or any other appropriatesolution. We, consequently,look forward to the findings of the detailed study and costing plan that the Secretary-General has initiated and undertook to submit to the Assembly in the 61't session.We trust that the study will respondto the issuesraisedby the Advisory Committee, as well as by the The Group notes the potential savings Assemblyin Seciion IV of its resolution601260. that the Organisationmay realizethrough using open source software and expectsthat the study will elaborateon this element, as requestedin Paragraph 1 (f) in Section V of 601260. resolution

Mr. Chairman, International Public Sector Accounting Standards of the United Turning to the proposals to improve financial managementpractices -and China believes that it is important to maintain and enhance Nations, the Group of'77 processesand transactions the credibility, transparencyand accountability of the financial for of the United Nations. wL, therefore, support the proposal of the Secretary-General (IPSAS) the united Nations to adopt Internationui Publi. Sector Accounting Standards that the for its financial statements. We fuither concur with the Advisory Committee to be proposed timetable for implementation should be realistic and would have tynctrottired with the introduction of a new information technology system' Working CaPital Fund to The Group of 7i and China supports the proposal of the Secretary-General has remained increase the level of the Working Capital Fund. The level of the Fund it to a more stagnantsince 1981 and it would be prudent for lhe Assembly to increase situation realistic level. The Organisationr.gr"itubly finds itself in a precariousfinancial we believe that the due to non- and late-fayment by Member States of dues. Whilst from a technicaipoint is justified, we are mindful that it will not solve the bigger increase the need to political problem of late puy-"tri of dues. We, therefore,whilst tecognizing financial extend sympathetic understanding to those temporarily unable to meet their reiterate our call to all of obligations as a consequence genuine economic difficulties, to bear the Member Statesto reaffirm their commitment to meeting their legal obligations of the United Nations. with the Charter expensesof the Organizationin accordance Budget SurPluses for The Group is syrnpathetic towards the request by the Secretary-General the costs of Member States to appiy ih" bndg.tary surpluses to meet either the After-Service Health Insurance Organisation's unfunila UuUitlties arising from the It is important, Schemeor from the increasein level of the Working Capital Fund. would not have had to make this however, to acknowledge that the Secretary-General on time proposalif Member Stateshave met their commitmentto the Organisationin fuIl, withhold their and without conditions. Pronouncements by some that they may finds are assessments also compounding this unfortunate situation that the Organisation be a once-off itself in. We will require clarification if the retention of surpluseswill due to them measureand that the right of Member Statesto determine how the surpluses will be able to have to be used will b-erespected. We also expect that the Secretariat to reach clarify a number of issuesin ttre informal consultationsto enable the Committee a final decisionon this matter. accounts Consolidationof peacekeeping

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On the proposal to consolidatethe accountsof closed and active peacekeeping operations, the Group notes the indication that the consolidation may provide a more predictable cash flow to peacekeepingoperations, including those that traditionally face cash shortagedue to non-or late paynent, as well as permit a more timely reimbursement of troop and police-contributing countries. It is also statedthat consolidation may have certain administrative advantagesand enable the Organisation to settle long outstanding with cash deficits. We look operations liabilities in the accountsof closedpeacekeeping forward to further elaboration on theseaspectsin the informal consultation. We, however, note that consolidationwould not solve the problem of non-or late paymentof duesby Member States. In this rcgard,we note the commentsof the ACABQ that those Member States that pay their assessmentsin full and on time may be subsidizing those that do not. We also note the acknowledgementby the Secretariatthat overall availability of cash would continue to dependon the overall prompt payment of by assessments Member States. In light of these comments,we would appreciatea clarification on thesemattersin the informal consultations. Mr. Chairman, The Group of 77 and China will continue to negotiate in a constructive manner through the establishedprocessesof the General Assembly. Linkages between the are variousproposalsand outcomesof the different negotiatingprocesses not helpful and should be avoided. The setting of artificial deadlinesfor the considerationof proposals and conclusionof negotiationsare also not conducive. Member Stateshave receiveda large number of technical proposalsthat will require careful consideration,as they will have a lasting impact on the work of the Organisation. Reform is not an end in itself and Member Stateshave to take sensibledecisionsto ensurethat the United Nations is ableto undertakea broad rangeof activitiesin the immediateand longer-term. I thank vou. Mr. Chairman.