UN MANAGEMENT: FIFTH COMMITTEE CRITICIZES

UNCLAS USUN NEW YORK 001014

SIPDIS

DEPARTMENT FOR IO

E.O. 12958: N/A
TAGS: PREL OARC
SUBJECT: UN MANAGEMENT: FIFTH COMMITTEE CRITICIZES
MISMANAGEMENT OF CONSTRUCTION IN NAIROBI AND ADDIS ABABA


1. Summary. In session from October 7 to 27, the UN General
Assembly (UNGA) Fifth Committee (Administrative and
Budgetary) received reports on construction projects underway
in Vienna, Nairobi and Addis Ababa. Despite serious
reservations about the latter two, Secretariat officials
recommended proceeding with all three projects. Delegations
expressed satisfaction with progress in Vienna, but were
gravely disappointed at delays in Addis Ababa and Nairobi.
Delegates questioned Secretariat officials, called for
accountability, and bemoaned poorly defined responsibilities.
Committee Chairman Henric Rasbrant of Sweden proposed a
draft resolution for further discussion during informal
meetings. End Summary.


2. In formal session October 7, Under Secretary General for
Management Angela Kane presented two reports. The first, on
construction in Nairobi (A/62/794),recommends additional
funding. The second report (A/63/303) provides an update on
the progress in Vienna and relates the current status of
Addis Ababa construction, for which UNGA approved USD
14,333,100 but has not been built. Chairman of the Advisory
Committee on Administrative and Budgetary Questions (ACABQ)
Susan McLurg then presented a report on the three projects
(A/63/465). Director of Facilities and Commercial Services
Division Joan McDonald then spoke, and later took questions.
These presentations were followed by interventions by
representatives of France (speaking for the EU),Antigua and
Barbuda (speaking for the G77 and China),Ethiopia, Costa
Rica, and South Africa. Subsequent informal consultations
that afternoon and on October 27 yielded additional comments
from representatives of Japan, Ecuador, Singapore, Senegal,
South Africa, Cote d'Ivoire, Russia and Egypt. Whereas there
was no significant discussion on the Vienna project, which
Rasbrant characterized as "crystal clear", there were
repeated calls to account for lack of progress in Nairobi and
Addis Ababa. Rasbrant circulated a third version of a draft
resolution to be forwarded to UNGA after further committee
deliberations.


3. The ACABQ report pointed a finger at mismanagement.
McLurg reported that arrangements in Nairobi are "neither
adequate nor well-implemented" and result from insufficient
understanding and guidance from HQ. Her committee
recommended a reduced scope project for USD 3,479,000.
McLurg also criticized the Addis Ababa project, "services
provided were not adequate....very little real progress has
been made." ACABQ recommended annual progress reports to
UNGA on all construction projects.


4. Nearly every intervention highlighted agreement with the
ACABQ recommendation for accountability and closer oversight.
The South African delegate was typical in calling the
Nairobi project a "non-starter," and telling Secretariat
officials "enough excuses." The representative of Antigua
and Barbuda, for the G77, called for an accounting, "This is
unacceptable." The Ethiopian representative's suggestion to
hire a local firm to monitor construction received no
reaction.


5. The projects are dogged by poorly defined procedures and
unclear responsibilities. In response to a question from the
Japanese delegate, McDonald explained that the responsibility
is different for the two projects: whereas the UN Office in
Nairobi (UNON) oversees its own construction, HQ in New York
is responsible for Addis Ababa. Another problem are the
taxes and duties that UN has been paying in Addis Ababa,
despite a supposed exemption. In response, the Ethiopian
delegate offered that the taxes are reimbursable.


6. Costa Rican and Ecuadorian representatives questioned
McDonald on access for persons with disabilities and
criticized the reports for omitting this topic. On October
7, the South African delegate, on behalf of the G-77 and
China, expressed hope that lessons can be learned. On
October 27, the Egyptian representative echoed this widely
held sentiment.


7. Secretariat officials endorsed the ACABQ recommendations
but defended the projects. McDonald claimed there were valid
reasons for the delays, including a lack of local expertise,
design changes, and confusion due to unclear instructions
from New York.


8. In informal session on October 27, UNON Director-General
Anna Tibaijuka appeared to answer questions. The South
African delegate subjected her to highly critical remarks,
complaining, "seven years later, and nothing done."
Referring to audits, Tibaijuka denied allegations of


kickbacks and malfeasance. Other critics included
representatives of Russia and Japan. The delegate from Cote
d'Ivoire inquired as to the identity of the project manager.



9. Rasbrant circulated a draft resolution to be presented to
UNGA. The draft endorses the ACABQ recommendations and
expresses appreciation for the progress in Vienna. The draft
also expresses deep concern at the lack of progress in
Nairobi; deeply regrets the procedural difficulties in the
UN, decision-making delays, and insufficient responsiveness;
and emphasizes the importance of coordination between
headquarters and the field. The resolution will request the
Secretary-General to complete the projects on schedule in
2011 without any additional requirements from the regular
budget and ensure accountability for the delays. The
resolution will also request a review by the Office of
Internal Oversight Services, and will approve the estimated
cost of USD 25,252,200 for Nairobi.


10. In light of intense criticism from the G-77
representative, it is unlikely that the draft resolution will
be adopted expeditiously.
Khalilzad