STATEMENT ON BEHALF OF THE GROUPOF 77 AND CHINA BY MS. KAREN LOCK PERMANENT MISSION OF SOUTH AFRICA TO THE UNITED NATIONS, ON "INVESTING IN THE UNITED NATIONS: FOR A STRONGERORGANISATION WORLDWIDE', TO THE FIFTH COMMITTEE OF THE GENERAL ASSEMBLY NewYork.28June2006

Mr. Chairman, I have the honour to speakon behalf of the Group of 77 and China on "lnvesting in the United Nations for a strongerOrganisation worldwide". The Group of 77 and China wishesto thank the Controller, Mr. Warren Sach,for presenting the reports of the Secretary-General,as contained in documents N60l846lAdd.5 and Add.7. The Group, furthermore,wishes to expressits appreciation to the Chairmanof the Advisory Committeeon Administrative and BudgetaryQuestions for his introduction of the related reports of the Advisory Committee (4/60/903 and N601904). Mr. Chairman, great importanceto the collective efforts of Member States The Group attaches to the strengthen oversightand auditing bodiesof the United Nations. We believethat these are crucial matters that have to be reviewed in a comprehensivemanner, in order to ensurethat the decisionsof the Assemblyprovide a solid basis for the functioning of the oversightbodies. It is thereforeimperativethat Member Statesreceive the reportsof the and Secretary-General the Advisory Committeein a timely manner so as to enableus to and treat the proposalswith the seriousness they deserve. consider that The General Assembly in its resolution 601248 decided to establish the Independent Audit Advisory Committee (IAAC). However, at that time in December 2005 Member Stateswere not able to finalise considerationof the proposed terms of reference the IAAC due to time constraintand pressure the Committeeto conclude for on various other time-bound matters of great importance. Member States felt that the proposal required careful consideration as to ensurethat the final Secretary-General's so terms of referencewould be robust enough to enable the Committee meet the desired objectiveof strengthening the ability of the GeneralAssembly to dischargeits oversight responsibility. We, however, acting under time-pressure,establishedthe Committee without agreeingon its terms of reference, role, membershipcriteria and relationshipwith other parts of the oversight and governancesystems. It further will be recalled that Member Stateswere informed that the govemancereview, which would start in 2006, would consider theseimportantaspects.

how the proposedchangesin one part As Member States,we will have to assess other parts of the system,which is one of the of the system,if accepted,ffiay strengthen in in resolution 601248requestedthe Secretary-General, reasonswhy the Assembly with the outcome of the ongoing proposingthe terms of reference,to ensurecoherence Bearing in mind that the outcome of the governancereview and review of oversight. external evaluation of audit and oversight have not been issued or consideredby the Advisory Committee and the Fifth Committee,we support the proposeddeferral of the report (N60l846lAddendum 7) to the 61't sessionwhen the Fifth Committee will also review and extemal evaluation. We also note that receivethe outcomeof the governance the Advisory Committee at that point will revert to the considerationof the proposed terms of referencefor the IAAC, as well as its mandate,composition, selectionprocess and qualifrcation of experts. ln the absenceof any decision by the Assembly on the qualification of the expefts,the compositionof the Committee and the selectionprocess, the rationale for the Advisory Committee's proposal to provide general temporary a is assistance not clear and we would appreciate clarification. Mr. Chairman, that an externalevaluation It will be recalled that Member Stateshave requested of be underlakento inter alia consider the operationaland budgetary independence the Office of Internal Oversight Services. We note that the findings of that external evaluation,as well as the commentsof the Off,rceof lnternal Oversight Servicesthereon, have not been finalised for submissionthrough the Advisory Committee to the Fifth Committee. It is for this reasonthat Member Stateshave agreedthis moming to provide to generaltemporary assistance the OIOS, as was done in December2005, to ensureits of effectivefunctioning until we receivethe findings of the evaluationand the assessment of imporl of the observations the the OIOS. The Group, therefole, is not clear as to the Advisory Committee contained in paragraph 12 of its report. It is not clear if the observationrelates to sorneof the proposalscontainedin the draft terms of referenceof the IAAC that addressedits envisagedinteraction with the OIOS vis-ir-vis that of the ACABQ. We, while recognising that Mernber Stateswill considerquestionsrelatedto of the resourcerequirements and independence the OIOS in the 61tt session,would and the a clarification of the relationshipbetweenthe ACABQ's observations appreciate matterbeforeus todav. Mr. Chainnan, Turning to the leport on procurementreform, the Group wishes to reiteratethe importancethat we attach to improving the procurementsystem of the United Nations. Member Statesunfortunately have only receivedthe reporl of the Advisory Committee, pressure, on27 June2006 andwill not be able which hasbeenworking undertremendous to finalise negotiationson this important aspectin the remaining two days of the session. in This view was conveyedto other Member States our letter dated20 July 2006. We, therefore,do not believe that it is prudent to place Member Statesin a on to positionwherewe are expected takerusheddecisions mattersthat could potentially

and oversightof billions of dollars, as well as the reputation impact on the management of ine Organisation. Member Stateswill have to review this matter carefully in the 61't session and ensure that our decisions translate not only in a more transparentand effective procurementsystem,but also in one that reflects the intemational characterof reservesthe right to revert to this report in the Organisation. The Group, consequently, this matter. when the Committeeconsiders in formal consultations the 61" session We trust that the Secretariat,in the meantime, will prepare supplementary in information to respondto SectionV of GeneralAssemblyresolution 601260 which the to be respondedto in the detailed report on procurement Assembly set out elements reform. In this regard,we expectconcreteproposalsto be submittedto the Assembly as in it requested paragraph1 (g) of that section. We also note the commentof the ACABQ of that someaspects procurementreform are not well developedin the report (Addendum 5) and its expectation that other reform procurementmeasureswill be elaboratedin will preparesupplementary greater detail in future reports. We trust that the Secretariat approachwhen it reportsthat will enableMember Statesto take a more comprehensive revertsto procurementreform in the 61't session. I thank you, Mr. Chatnnan.