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06USUNNEWYORK1340 2006-07-11 19:55:00 UNCLASSIFIED USUN New York
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DE RUCNDT #1340/01 1921955
P 111955Z JUL 06
					  UNCLAS USUN NEW YORK 001340 



E.O. 12958: N/A

1. Summary. The Fifth Committee considered over 60 reports
related to the budgetary, administrative and policy issues
for UN peacekeeping at its second resumed 60th session from
May 22 to June 30, 2006. By the end of the session, the
Committee had agreed to financing resolutions for all 13
active peacekeeping missions (financed under the peacekeeping
scale of assessments; two others are financed under the
regular budget), three closed peacekeeping missions, the UN
Logistics Base in Brindisi, and the Support Account. The
Committee also considered reports of the Board of Auditors
and OIOS and addressed a number of critical management issues
in its second annual cross-cutting resolution, applicable to
all peacekeeping operations and activities. In advance of
and throughout the second resumed session, USdel engaged in
extensive coordination with the EU and JUSCANZ on common
objectives and strategies for UN peacekeeping. This strong
coordination and common approach in the Fifth Committee
resulted in, among other things, the adoption of the
action-oriented cross-cutting resolution, which addressed key
management issues for all missions and for the Department of
Peacekeeping Operations (DPKO). The combined budget
appropriation for all activities for the period 1 June 2006
to 30 June 2007 is approximately $4.7 billion. This accounts
for the following budgets: UNOMIG, UNDOF, MINURSO, UNFICYP,
ONUB (commitment authority pending the submission of its full
budget at the main 61st session), UNIFIL, UNMEE, UNMIK,
Brindisi, and the Support Account. A mission-by-mission
breakdown of approved budget levels can be found in document
A/C.5/60/31. Detailed below are key elements and highlights
from the 6-week session. End summary.


Cross-cutting resolution


2. Following last year's successful negotiation of a
cross-cutting policy resolution applicable to all
peacekeeping missions and activities, USdel, with the support
of Japan, the EU and CANZ, argued strongly for another
cross-cutting resolution to be negotiated this year. The
most notable resistance came from the South African delegate,
who claimed that no resolution was needed this year given the
time pressures in the second resumed session, the absence of
a formal ACABQ report on cross-cutting issues, and the
consideration of only some of the peacekeeping reports that
would be applicable to a cross-cutting resolution. However,
the major financial contributors were undeterred by this weak
argument and were also able to tap into divisions within the
G-77 to garner support for the resolution. With firm
assurances from USdel and others that this year's resolution
would be short and action-oriented, the pressure was too
great for South Africa to continue to oppose the negotiation
of such a resolution. However, the South African and
Nigerian delegations' procedural obstructions throughout most
of the session meant that the Committee was only able to
seriously consider the draft resolution in the final week of

3. Despite these obstacles, the resolution was successfully
concluded and contained critical policy and management
elements identified by the US, Japan, CANZ and the EU. The
full text of the 7-page resolution is contained in
A/C.5/60/L.60, however, the major elements/sections (and key
highlights) are briefly described below:

A. Budget presentation: The Committee requested the
Secretary-General (SG) to continue his review of staffing

requirements to reflect evolving mandates of each mission.
The SG was also requested to submit more detailed and current
information, to the extent possible, on monthly expenditures.
The SG was further requested to review the practice of
seconding staff from one mission to another for extended
periods of time, with a view to ensuring that the parent
mission is not adversely affected.

B. Use of consultants

C. High vacancy rates

D. Accountability, fraud, corruption, mismanagement and
conflict of interest: Among other things, the Committee
requested the SG to address all cases of fraud, corruption,
mismanagement, and misconduct; to ensure that all UN staff
are held accountable for any proven wrongdoings; to take all
necessary steps to recover financial and other losses; to
take preventative measures to stop future incidents; to
ensure that accountability is applied and enforced
impartially at all levels in the UN system; and to ensure
that lessons learned from fraud and presumptive fraud in
peacekeeping missions are shared systematically with all

E. Integrated missions: The SG was requested to continue to
refine the concept and functioning of integrated missions,
strengthen the mission planning process, and clearly detail
lines of responsibility and accountability within integrated

F. Procurement opportunities

G. Quick-impact projects (QIPs): the Committee emphasized
the need for a comprehensive policy, including on resource
allocations, and requested the SG to report back at the 61st
GA addressing the definition of QIPs, their selection
process, duration of projects, and how they complement and
can be integrated with the activities of other UN entities on
the ground.

H. Regional cooperation: The Committee emphasized the
importance of further enhancing collaboration between
missions in the same region, with a view to achieving greater
synergy in the effective and efficient use of peacekeeping
resources. It also requested the SG to develop and implement
regional coordination plans aligned to the missions'

I. Fuel management: Taking into account the considerable
expenditures on fuel and the prospects for fuel fraud in
missions, the Committee requested the SG to review all
aspects of fuel management, including the preparation of a
comprehensive fuel management manual, implementation of the
electronic fuel accounting system, development of standard
operating procedures on fuel, and preparation of an annual
fuel procurement plan.

J. Costing structure for air operations: Among other things,
the Committee requested the SG to review the ongoing
necessity and frequency of flights, to ensure the optimal use
of air assets, to reconfigure them to respond to the changing
circumstances, and to achieve better utilization of air
assets by reviewing flight schedules to accommodate more
passengers and cargo.

K. Spare parts: The Committee encouraged the SG to continue
to limit the acquisition of spare parts pending a study on
optimal levels for holdings, as well as to report back on the
possible establishment of a global management system of spare
parts to ensure their most efficient and effective

L. Better use of technology: The SG was requested to make
greater use of videoconferencing and e-learning facilities
for training and other purposes and to report at the 61st
session on improvements and efficiencies made in this regard.

M. Staffing of field missions (300/100 series)

N. Disaster recovery

O. Strategic deployment stocks


Support Account


4. In keeping with past practice, negotiations on the Support
Account proved to be one of the more contentious elements of
the session. USdel successfully proposed and negotiated
language addressing the sharp increase in the requests for
consultancies (which have been made in addition to the
provision of additional posts under the Support Account in
recent years). As a result, future budget proposals will
include a trend analysis of the requested level of resources
for consultancies compared with approved levels over the past
five years, as well as detailed supplementary information on
justification for the request and why expertise is not
available within the Organization. In a separate policy
issue, USdel got language in the resolution requesting the SG
to report back on support to capacity-building for the
African Union (in compliance with the World Summit Outcome
Document), taking into account the functions and
contributions to be provided by the UN, its funds, programs
and agencies and all external partners, including on the
efforts made to avoid duplication and overlap.

5. The Committee accepted the Advisory Committee on
Administrative and Budgetary Questions (ACABQ)
recommendations on post, general temporary assistance (GTA),
and non-post resources with the following exceptions:

-- Approval of eight posts for the following functions:
Senior Political Affairs Officer for MINUSTAH; Policy

Coordinator for the Peacekeeping Best Practices Section;
Secretariat Services Officer for the Fifth Committee;

Information Officer and Finance Analysts in support of
African Peacekeeping Capacity; Chief of the Integrated
Training Service (to be evaluated in the 2007-2008 budget);
Chief of the Transport and Movement Service (to be offset
through abolition of another post in the section);
Environmental Engineer (to be rejustified in the 2007-2008

-- The Committee did not approve an additional Security
Coordinator Officer post, but requested that it be
rejustified in the 2007-2008 budget.

-- Approval of $27 million in GTA and non-post resources to
meet critical functions in the following areas: African
Peacekeeping Capacity; Office of Internal Oversight Services;
Procurement Service; Headquarters Committee on Contracts;
procurement-related functions in the Office of Legal Affairs
and DPKO; Conduct and Discipline.

-- The Committee reduced the provision for consultancy by

6. Following strong justification by the Secretariat, there
was general agreement among delegations on the need to
provide the posts and functions listed above, however,
negotiations were derailed over the provisioning of GTA to
meet critical needs in the area of conduct and discipline.
Comment: The Committee deliberated whether to provide GTA to
fill the functions needed in the Conduct and Discipline Unit,
given that the actual posts were unable to be approved at
this stage due to the late issuance of the SG's policy report
on conduct and discipline. The GA is expected to consider the
report at the 61st GA, at which time it will consider the
approval of posts at headquarters and in individual missions.
End comment.

7. USdel took the firm position that the full amount of GTA
must be provided to meet the critical functions of the nine
headquarters posts requested by the SG to address conduct and
discipline. However, this was consistently blocked by the
Nigerian delegate, who argued that GTA be provided at the
2005-2006 maintenance level. In effect, this would have
limited the UN's ability to address the continuing problem
and rising number of cases related to conduct and discipline.
While the Nigerian delegate refused to negotiate directly
with USdel and would only negotiate through the Egyptian
delegate, it was widely believed that her position was
predicated on her concern that a Nigerian national (the
current P-5 head of the unit) would not/not be appointed to
the proposed D-1 level of head of the unit. As such, her
position was to block any new provision to meet the necessary
functions of the unit. Following days of unwavering
positions from USdel and the Nigerian delegate, an agreement
was reached to provide the full amount of GTA without
referring to the number and level of posts for which the GTA
would be provided. In a twist of irony, the agreement --
which was largely brokered by the Egyptian delegate --
provides considerable flexibility for the SG to apply the GTA
funds as he chooses. Before agreeing to this approach, USdel
received strong and clear assurances from DPKO
Assistant-Secretary-General Jane Holl Lute that the functions
corresponding to the nine posts sought by the SG for Conduct
and Discipline would receive priority attention, would be
advertised as soon as the GA adopted the resolution in
plenary, and would be filled at the levels specified in the
SG's proposed budget.


UN Logistics Base in Brindisi


8. The Committee reiterated its request that information on
the possible expansion of the base -- including a concept of
operations, financial and legal implications and any expected
benefits -- be submitted to the GA for its consideration at
the 61st session. Also requested for the 61st session, was
detailed information on the efficiency and effectiveness of
all DPKO training programs to be implemented through the
newly-formed Integrated Training Service at UNLB and a
preliminary assessment of the regional aviation safety office
pilot project.


Peacekeeping Mission Budgets


9. By and large, the Committee concurred with the conclusions
and recommendations of the ACABQ with respect to individual
peacekeeping mission budgets for 2006-2007. Absent GA
consideration of the SG's policy report on conduct and

discipline functions, the Committee was not in a position to
endorse the creation of conduct and discipline posts in
individual missions (as recommended by ACABQ for some
missions) but did provide the equivalent level of GTA to
ensure that the functions are filled until the GA considers
the policy report at its 61st session. Listed below are
mission-specific departures from or additions to the
recommendations of the ACABQ.

10. UNOCI (Cote d'Ivoire): While approving the resources
sought for quick-impact projects (QIPs), the Committee
requested the SG to ensure that QIPs are implemented in
compliance with the original intent of such projects and
relevant GA resolutions, and to ensure their full
implementation in the 2006-2007 financial period.

11. UNFICYP (Cyprus): The Committee requested the SG, in view
of the recent amendment of the concept of operations and
force level of the Force, to conduct a review of the number
and grade levels of support staff, including the possibility
of utilizing UN Volunteers, and to report thereon in the
context of the proposed budget for 2007-2008.

12. MONUC (Congo): The Committee emphasized the importance
of ensuring coordination and collaboration of efforts with
the agencies and programs and requested the SG to report to
the GA on measures taken, including on the progress made on
the development of an integrated workplan and coordination
network referred to in paragraph 54 of the report of the
ACABQ (A/60/669). It also requested the SG to ensure that the
recommendations of the consultant's report on the
comprehensive review of staffing and structure of the Mission
be fully analyzed by the Mission itself and that its results
be reflected in the budget for 2007-2008. With respect to
QIPs, the Committee approved the proposed resources and
requested the SG to ensure that they were implemented in
compliance with the original intent of QIPs, and that they be
fully implemented in the 2006-2007 financial period. It also
recommended that the SG review the administrative support
structure for QIPs with a view to minimizing overhead costs
(comment: MONUC and UNMIL are the only two missions that
have posts specifically for the implementation of QIPs).

13. MINUSTAH (Haiti): In light of the delayed implementation
of the disarmament, demobilization and reintegration (DDR)
program in Haiti and the continuing need for clarification on
the mission's role in DDR activities, the Committee requested
the SG to ensure that future budget submissions include clear
information regarding mandated DDR activities, clear
justification for post and non-post resource requirements and
their projected impact on delivery of DDR, and information on
collaboration with all relevant UN entities present in the
field and acting in this area. The Committee also called for
the SG to review the use of consultants for DDR in light of
the number of dedicated staff in the DDR section, as well as
to ensure the coordination and collaboration of efforts with
agencies, funds and programs, with clear definition in future
budget submissions of their respective roles and
responsibilities. As was the case in other missions with
QIPs funding, the SG was requested to ensure that QIPs in
MINUSTAH are in compliance with the original intent of the
projects and that they be fully implemented in 2006-2007.
The Committee also engaged in a lengthy discussion of the
proposed off-site, in-theater secondary disaster recovery and
business continuity center. At present, MINUSTAH has
established its off-site location in Santo Domingo in the
same building as INSTRAW. Comment: It was likely that only
because of the co-location with INSTRAW -- a program which
has long been a contentious issue for Member States -- that
the Committee even became aware of the facility and entered
into a policy debate on backup facilities. End comment. As
a result of this discussion, the Committee noted that full
information for the need to establish such a facility for
MINUSTAH has yet to be provided and, as such, comprehensive
and detailed information should be provided in the context of
the 2007-2008 budget. Similar language was included in the
cross-cutting resolution since the budgeting for back-up
facilities is applicable to nearly all missions. Finally,
the Committee requested the SG to ensure that future budget
submissions include full justification of the rationale for
the number of interpreters required for the efficient
functioning of the mission to meet its mandate, and to
rejustify the need for administrative posts in support of

14. UNMIL (Liberia): As it did with other large missions, the
Committee emphasized the importance of ensuring coordination
and collaboration of efforts with the agencies and programs
and implementation of a unified workplan, and requested the
SG to report back on measures taken and progress made, and to
provide clear descriptions of respective roles and
responsibilities in future budget submissions. Here too, the

Committee agreed to the provision for QIPs and called for
their implementation in 2006-2007 in compliance with the
original intent of the activity; it also requested the SG to
review the administrative overhead costs associated with QIPs
with a view to minimizing them. Finally, in light of
expenditure patterns, the Committee reduced the operational
costs by $1,000,000.

15. UNAMSIL (Sierra Leone): The Committee adopted a short,
procedural resolution with regard to UNAMSIL, which is now a
closed mission. However, USdel was successful in getting
language included in which the Committee noted with concern
the cases of fraud and presumptive fraud identified by the
Mission (and reported by the Board of Auditors), and
requested the SG to report to the GA at its 61st session on
these matters, including on investigations and actions taken
in proven cases, and efforts to recover any lost funds.

16. UNMIS (Sudan): Despite its large size and considerable
logistical challenges, USdel and others were once again
pleased with efforts made by the mission to find alternative
modes of transport in lieu of air transport, as well as the
mission's commendable efforts to integrate its work with
other relevant actors in the country. As such, the Committee
noted with appreciation the strong coordination between UNMIS
and the UN country team, and requested the SG to share the
mission's experiences and lessons learned with other complex
peacekeeping missions with a view to increasing their
coordination and reducing potential duplication of activities
with other entities. It further requested the SG to continue
to provide the latest available information on specific
management efficiencies achieved and future plans in this
regard. With regard to staffing, the Committee requested the
SG to intensify his efforts to reduce the vacancy rate and to
continue his efforts to recruit local staff, where
appropriate. Following additional justification from the
Secretariat, the Committee decided to establish a Planning

Officer post in the Strategic Planning Unit, while
emphasizing the critical need to coordinate and collaborate
with partners in the field. It also requested that clear
information be included in future budgets regarding the
provision of mine detection and clearing services. USdel
successfully included language noting the considerable
reliance on air assets and, bearing in mind the expected
lifetime of the mission, requesting the SG to utilize (and
where possible) increase the available road, rail and inland
waterway transport modes and to report back on any
efficiencies achieved in this regard. USdel also got
language agreed requesting the SG to increase the utilization
of information and communication technology tools wherever it
is possible and creates more efficiencies. Again, the
Committee agreed to the provision of QIPs, while calling for
their implementation in line with the original intent of
QIPs. Finally, the Committee requested further refinement in
the presentation of DDR requirements in future budgets, with
clear delineation of the responsibility of the mission as
compared with the responsibility of other actors.

17. MINURSO (Western Sahara): The Committee requested the SG
to report in the next performance report any savings or
efficiencies resulting from the military operational audit
conducted in June 2005.

18. UNIFIL (Lebanon): As has been the case since 1996, the
Committee voted on the draft resolution submitted by South
Africa on behalf of the G-77. While the Group's text
contained the same objectionable paragraphs in years past
(preambular 4 and operatives 4, 5, and 17), this year's draft
included language negotiated by the Committee noting with
great concern the report fuel and rations fraud, recognizing
that the investigation by the OIOS is still ongoing, and
requesting the SG to report in the next budget on the status
of recovery of the financial loss, if any, to the mission.
Prior to the adoption of the resolution in the Fifth
Committee, the United States and Israel requested a recorded
vote on preambular paragraph 4 and operative paragraphs 4,5,
and 17, as well as a recorded vote on the resolution as a
whole. In the Fifth Committee, the result of the paragraph
vote was 93 yes; 5 no (Australia, Canada, Israel, Palau, US);
49 abstain. On the resolution as a whole, the outcome was
144 yes; 3 no (Israel, Palau, US); 1 abstain (Australia). In
the GA plenary, the outcome of the vote on the paragraphs was
as follows: 99 yes; 6 no (Australia, Canada, Israel, Palau,
Papua New Guinea, US); 49 abstain. On the resolution as a
whole the outcome was: 150 yes, 3 no (Israel, Palau, US); 1
abstain (Australia). USdel delivered the following
explanation of vote, after the vote in the Fifth Committee:

Thank you Mr. Chairman,

The United States strongly supports UNIFIL, which is
implementing an important mandate. However, the use of

General Assembly funding resolutions to pursue claims against
a Member States procedurally is not correct. This is the
reason why we have opposed the General Assembly resolution on
this item in previous years, since they required Israel to
pay for costs stemming from the Q'ana incident of 1996.
These resolutions were not consensus resolutions.

Since shortly after the UN's inception, the procedure which
has been followed is that the Secretary-General presents and
pursues the settlement of the Organization's claims against a
state or states. Using a funding resolution to legislate a
settlement is inappropriate. It also politicizes the work of
the GA's Fifth Committee, and should be avoided both now and
in the future.

Thank you, Mr. Chairman.

End explanation of vote.


Next Steps


19. The Fifth Committee is expected to revert to the
consideration of peacekeeping issues at the main 61st
session. Among the items to be considered are the 2006-2007
budget for ONUB (Burundi), possible revised budgets for
MINUSTAH, UNMEE, UNOCI and UNMIS, and a range of policy
reports including the SG's reports on conduct and discipline,
DDR, and the methodology for troop reimbursements.