UN CHILDREN'S FUND (UNICEF) EXECUTIVE BOARD --

UNCLAS USUN NEW YORK 000205 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: UNICEF EAID ECON CH UNDP SUBJECT: UN CHILDREN'S FUND (UNICEF) EXECUTIVE BOARD -- FEBRUARY 4 TO 6, 2009 REF: A. STATE 1500 ¶B. STATE 2047 ¶C. USUN 20 ¶1. (U) SUMMARY: The February 4-6, 2009 session of the UN Children's Fund (UNICEF) Executive Board featured frank discussions on the humanitarian situation in Gaza and on proposals to reform UNICEF's accountability framework. UNICEF's very factual oral report on Gaza and its efforts there likely helped diffuse any possible efforts to use the Board meeting as a forum to condemn Israel, and the Palestinian and the handful of other interventions were relatively mild, including Iran's. The Sudanese representative made the most inflammatory statement. There was insufficient support at the Board session to secure approval to modify UNICEF's accountability framework into one similar to UNDP's new rules, largely due to the issue of access to internal audits. Chinese representatives, while expressing general support for reform, continued to pursue elements that would make the accountability framework unworkable. Nonetheless, bilateral discussions with China and other delegations moved the issue forward, likely cueing up a decision at the June 2009 Board. The WEOG group presented a unified position for adoption in June 2009 of a framework similar to that at UNDP, and the Malian President of the Executive Board supported publicly our aim of concluding this issue at the next board meeting. In the upcoming months the U.S. should work to build confidence, further demarche China and finalize negotiations on a declaration. All other agenda items were adopted by consensus with little additional discussion. END SUMMARY. GAZA ¶2. (SBU) The outgoing Swedish President of the Executive Board as well as the new President from Mali made it known to Board members in advance of the Gaza discussion that they would not support proposals that might politicize the Executive Board meeting or allow it to be used to condemn a member state. They and others objected to any action beyond a discussion on the report of UNICEF about the humanitarian situation of children in Gaza. ¶3. (U) UNICEF Regional Director Sigrid Kaag gave a factual and balanced oral report of the humanitarian situation in Gaza. In contrast, the Palestinian representative spoke of the tragedy of 3150 dead civilians and focused on the humanitarian situation. While demanding that the "responsible criminals" be brought to justice, he refrained from directly naming Israel or the U.S. The representative also said that all Palestinians should not suffer for the actions of a few. He offered to e-mail participants graphic photographs from Gaza, but did not show them during his statement. The Palestinian representative underlined with appreciation Egyptian efforts towards a long-lasting cease-fire and expressed hope for increased support from the new U.S. Administration in this regard. (He later approached U.S. delegation privately and made the same point.) Lastly, he also asked for increased pledges to UNICEF's flash appeal for Gaza. ¶4. (U) Iran, Syria, Bangladesh, Mali and Malaysia were also measured in their statements. Only Sudan gave an inflammatory speech directly accusing Israel of a "brutal aggression" and implicitly accusing the U.S. for providing protection to Israel. (Comment: while Sudan is the leader of the G-77, the representative appeared to be speaking only on behalf of his government. End Comment.) There were no proposals for a decision or a declaration. (Comment: We had informally signaled, as had many other delegations, that we would not take the floor unless a proposal for a decision or any other action was tabled. This may have contributed to the measured statements by Palestine and others. Iran's measured statement suggests that it may be trying to present a more statesmanlike appearance in UNICEF discussions and may be related to its recent assumption of the Presidency of the UNDP Executive Board. End Comment.) UNICEF ACCOUNTABILITY FRAMEWORK - ACCESS TO INTERNAL AUDIT REPORTS ¶5. (U) While originally placed as a separate main agenda item, a discussion on a proposed new UNICEF accountability framework took place on the last morning of the meetings as an "other matters" agenda item, due to a concern that a public discussion of this issue would be too contentious. The U.S. and other delegations protested its removal from the original agenda. (Note: A statement by Sudan on behalf of the G-77 and China at a late January UNDP meeting appeared to indicate the G-77 and China were backing away from the compromise agreed to at the September 2008 UNDP Board.) ¶6. (U) In a very open and constructive discussion within WEOG Group during the UNICEF Board meetings, the UK, Sweden, Germany and others expressed support for our position. We indicated our willingness to modify our future audit request letters to more explicitly declare conformity with all the regulations of the accountability system, including confidentiality, in order to unblock the situation. The Chinese delegation, which was the final holdout in the UNDP compromise, had objected strongly to the form of a December U.S. audit request letter to UNDP. ¶7. (U) WEOG group members agreed to a unified position for adoption of a UNDP-like framework at the June 2009 Board, which the Japanese delegate as WEOG representative presented to the Bureau of the Board. Switzerland was particularly supportive of our position in plenary and its representative formally requested that the UNICEF Board take action on the accountability framework in June 2009, following the model of the UNDP accountability system. China responded that it had no interest in prolonging the debate and particularly stressed the point that all parties should respect all rules of the accountability framework, implicitly referring to its confidentiality provisions. ¶8. (U) In bilateral discussions, Chinese representatives indicated they supported accountability and transparency and were unhappy that this was being portrayed by many as a U.S.- China dispute. China, however, did not propose a constructive way forward, other than suggesting the U.S. take steps to build good will, which the U.S. delegation attempted to address in its plenary statement. Moreover, China said that the outcome would depend on the upcoming negotiations and should not be tied to a specific timetable (such as the June meeting). China also professed a desire to negotiate a draft UNICEF document that would potentially raise new barriers, such as additional Executive Board action, to access to audits. The President of the Executive Board from Mali in his concluding remarks made the helpful proposal of working together to resolve this issue at the June board. ¶9. (U) Comment: The U.S. delegation's flexibility and openness to take into account the views of other members helped cement a unified WEOG position on accountability. Most WEOG members support improved transparency and accountability, including access to audits, but are not often forceful proponents. By publicly addressing concerns raised by China and others, and by implementing those changes in our use of the UNDP framework, we have raised confidence and trust among other members on this issue. Our strengthened support should put pressure on China to adopt a more measured approach. Cuba, which had supported the Chinese position aggressively, and worked to derail using the UNDP compromise for UNICEF, scaled back its rhetoric at the plenary. End Comment. UNICEF REPORT TO ECOSOC ¶10. (U) Many delegations used this early agenda item to air their general views about UNICEF's work and their support for the Organization. The U.S. statement focused on our support for UNICEF and praised its work in several areas, including child protection. It also expressed our interest in avoiding efforts to increase operational control by the General Assembly and ECOSOC over UNICEF. ¶11. (U) The President of the Board welcomed explicitly that our delegation had not announced any reductions in future contributions. Cuts in contributions from donor countries as a consequence from the financial crises were a major concern of all developing countries that reverberated through many of their statements. UNICEF FINANCIAL REPORT AND AUDITED STATEMENT ¶12. (U) A number of Board members, particularly the UK, the Netherlands and Sweden expressed concern about the high amount of unexpended funds; this was also reflected in the respective Board decision. UNICEF's Board Secretariat, as well as its auditor, pointed out that the $643 million figure was misleading, as it was only momentarily significantly higher than the USD 300 million of reserves that the organization felt prudent to retain. At the request of several members, UNICEF will provide an update on this subject at the next Board. APPROVED COUNTRY PROGRAM DOCUMENTS ¶13. (U) The Executive Board approved the proposed country programs on the agenda without further review or comment. Prior U.S. comments on the drafts had been taken into account and were reflected in the respective documents. GENDER POLICY IMPLEMENTATION ¶14. (U) The statement of UNICEF Executive Director Veneman, as well as the statements of many delegations, underlined the special importance UNICEF attaches to gender policy implementation. The decision on this agenda item urges continued effort by the leadership of UNICEF to improve the integration of gender equality in programming including in institutional and individual accountability mechanisms in programs, management and human resource systems. UNICEF was also asked to consult the Executive Board when updating its gender equality policy and to clarify expected results for effectiveness and impact. BILATS WITH VENEMAN AND DEPUTY HILDE JOHNSON ¶15. (U) In separate bilateral meetings with Veneman and Deputy Executive Director Johnson, the U.S. delegation discussed key issues for the future of the organization and asked for Board support for the WEOG group position on the proposed UNICEF accountability framework. Veneman noted that she had created separate auditing, evaluation and investigation departments at UNICEF A separate office for investigation ensures that auditors keep personal names out of audit reports, that a separate process exists to address suspected fraud and other problematic issues, and that regular audits proceed quickly. Johnson said that UNICEF was working on stricter rules on the retention of funds by UNICEF national committees/funds. Following the crises at the German National Committee, UNICEF is working to increase transparency and accountability of the national committees and modifications of UNICEF headquarters' interaction with them. Johnson views the U.S. National Fund as the most professionally run and doing well. The National Fund in Germany has recovered from its recent crises, but the events have cost UNICEF a 30% decline in donations from Germany, and corporate donations have particularly suffered. According to Johnson, the problems in Germany have been a painful learning experience for UNICEF on the importance of accountability and transparency. ¶16. (U) (SBU) On child protection, the U.S. delegation voiced its special interest in the Child Protection Unit, and concern that the Unit is not sufficiently funded and staffed. Johnson admitted that the Unit had gone through a difficult period and is not appropriately staffed. She added, though, that it was UNICEF's intention to strengthen child protection as a whole. She specifically mentioned that UNICEF would name a new Director for the Child Protection Unit and undertake other measures. Johnson added that donors traditionally do not tend to give earmarked funds to child protection, unfortunately making the unit somewhat of an "orphan" among donors. ¶17. (U) The texts of USDEL statements at the February 4-6 UNICEF Executive Board meetings can be found at: http:www.usunnewyork.usmission.gov/press_rele ase.pho?i-O Rice