Vienna Chapter
Madame Chair,
It gives me great pleasure to congratulate H.E. Ambassador Kongit
SINEGIORGIS on behalf of the Group of 77 and China on your election as the
Chair of the 22nd session of the UNIDO Programme and Budget Committee. We
are confident that your experience will lead to the success of this
session.
I also take this opportunity to congratulate the members of the
Bureau upon their election. The Group would also like to thank your
predecessor Ms. Sandra Noriega, Minister Counsellor of the Permanent
Representative of Guatemala, for her commendable leadership of the
previous PBC meeting.
The Group would like to thank Mr. Kandeh Yumkella during his first
session of the Programme and Budget Committee, as Director-General, for
his comprehensive presentation on the financial situation of UNIDO and the
programme and budget proposals for the next biennium. Points made by the
Director-General deserve serious consideration, especially the emphasis on
resources. The Group is also grateful to the Secretariat for making all
the necessary arrangements and consultations for the meeting.
I would avail this opportunity to thank the Director-General and the
UNIDO Secretariat for their support during the 40th Meeting of the
Chairpersons/Coordinators of the Chapters of the Group of 77 and their
active participation in the panel discussion on capacity building and
energy for development that took place last June. The Vienna Spirit which
has been adopted by the Chapters meeting has been issued as an official
document of the sixtieth session of the General Assembly.
Madam Chair,
The Group would be making comments on Agenda items 3, 4, 6 and 7 in
the course of discussions on each item. I would restrict my intervention
to comment on item 3 for this opening statement.
Madam Chair,
The Group of 77 and China takes note of the detailed information
provided in the documents IDB.32/3- PBC.22/3 and IDB.32/4 - PBC.22/4.
The Group would like to express its thanks to the External Auditor
for the services rendered by him. The Group appreciates the full
cooperation and support of the Secretariat to the External Auditor in
performing his audit. The Group also commends the Secretariat for External
Auditor's assurance that "the financial records of UNIDO are
generally reliable and well maintained and that adequate internal controls
have been implemented".
It is satisfying to note that the collection rate of the assessed
contributions during the years 2004-2005 remained at the respectable level
of 91.6%. Yet, both the collection rate of assessed contributions and the
rate of regular budget spending for the biennium under review were lower
then comparable figures of the previous biennium. The Group understands
that while slight variations over time are natural, yet we should remain
on guard against a negative trend.
The Group is in agreement with the External Auditor's observation
regarding the critical role of timely and full payments by the Member
States of their assessed contributions towards achievement of budgetary
targets. However, the Group would like to stress that, in case the savings
are unavoidable, they should be achieved with minimum possible negative
affect on the efficiency and output of the Organization, particularly, its
field operations.
As regards External Auditor's observations on the Office of the
Internal Oversight Services, the Group of 77 and China is concerned that
the OGV/IOS was not able to attend several important assignments on its
work plan for 2004-2005. The Group hopes that measures would continue to
be taken to appropriately address this concern as well as to overcome all
other weaknesses indicated by the External Auditor. As far as OGV/IOS
plans to undergo an independent external quality assessment at the end of
2006, the Group would seek clarification on whether this assessment can be
done by the External Auditor.
The Group notes the External Auditor's observations on the use of
results based management and encourages the Secretariat to continue
improving it.
The Group of 77 and China is concerned over the weaknesses pointed
out by the External Auditor with regard to non-expendable property, which
was the same finding in the previous biennium 2002-2003. The Group
requests the Secretariat to undertake immediate corrective measures.
Furthermore the Group would like to be updated on the steps being taken
for the implementation of a comprehensive Fraud Prevention Strategy.
With regard to the procurement practices of the Organization, the
Group would like to urge the Secretariat to appropriately address External
Auditor's observations as well as regarding the hiring of consultants and
experts services. The Group would also like to emphasize the importance of
maintaining a level playing field in these two areas of Organizational
activity for individuals/companies belonging to different
countries/regions.
Regarding field offices the Group requests the Secretariat to take
appropriate steps to rectify the situation wherever weaknesses have been
observed by the External Auditor since the performance of field offices
have direct bearing upon the quality and quantity of technical cooperation
delivery.
The Group of 77 and China takes note of the External Auditor's
observations about the Information and Communication Technology (ICT)
Control Environment and impresses upon the Secretariat the importance to
address, comprehensively, the issues raised therein so as to ensure a
safe, secure, and reliable communication system/ information database and
back up systems.
The Group of 77 and China takes note of the information furnished in
the table of follow-up of the recommendations made in prior external audit
reports (Annex I to the External Auditor's Report). Since the follow-up
table presents recommendations relating to the biennium 2002-2003 only,
the Group assumes that the recommendations pertaining to earlier financial
periods have been appropriately addressed by the Secretariat. The Group
encourages the Secretariat to continue taking appropriate corrective
measures for implementation of the Auditor's recommendations.
I thank you Madam Chair.
Madam Chair,
The Group of 77 and China has examined document PBC.22/7 on the
financial situation of UNIDO as at 30 June 2006 and has noted that despite
the fact that the delay in the payments of some major contributors
resulted in a lower collection rate of 2006, compared to the 2005 and 2004
assessed contributions, the financial situation of UNIDO remained stable.
The G-77 and China notes with appreciation that the collection rate
of prior years' arrears, as compared to the current year's assessments,
was 5.1 per cent as compared to the assessment of 2005 - 2004 which were
respectively 4.3 and 1.8 per cent. However, the Group is concerned that
again the voting rights of 42 Member States have been suspended as at 30
June 2006.
The Group is pleased to note that following the efforts of the
Secretariat, negotiations for payment plan arrangement are currently
ongoing with a number of Member States, in particular some members of the
Group of 77 an China in order to settle their outstanding assessed
contributions. The Group encourages other Member States in arrears to
consider submitting payment plans to fulfill their financial obligations.
The Group also notes that since the issuance of document IDB.31/9,
there have been no developments on incentives and disincentives and
arrears by former Member States. Therefore, the Group invites the
Director-General to continue making a follow-up of this question.
The Group further takes note that following the General Conference
decision GC.11/Dec.13 on the unencumbered balances of appropriations, only
six per cent of the total amount due for distribution in 2006 to eligible
Member States, € 3,076,488, was refunded to the Member State
concerned.
The Group commends the Secretariat for the efforts made to reach a
high level of technical cooperation delivery which recorded another
impressive performance during the biennium 2004-2005 with an amount of €170.8
million. This represents an increase of 20 per cent over the previous
biennium 2002-2003, which was €162.5 million.
Keeping in view that this was the first half year of the current
biennium and hoping that budget implementation will pick up pace as we
move further in the biennium, the Group would like to express its
satisfaction at the levels of regular and operational budget expenditures
achieved so far. At the same time, the Group would like to reiterate that
the financial resources provided to the Organization need to be utilized
efficiently and effectively. The Group would urge Member States for the
timely payment of their assessed contributions so that the Organization
could implement the programmes.
The G-77 and China welcomes the initiatives undertaken by the
Secretariat for achieving quality, consistency and comparability of the
financial reporting. Consequently, the Group encourages the Secretariat to
prepare detailed proposals of the adoption of International Public Sector
Accounting Standards (IPSAS) by UNIDO, including implementation strategy
and estimated costs, and to be presented to the policy-making organs
during 2007 with a view to commencing implementation in 2008 to meet the
target date of 1 January 2010. The Group is of the view that briefings by
the Secretariat to the Member States on various aspects of the IPSAS
including on how it is going to be better then the current system would be
helpful to the Member States in making decision.
As regards the collection of the supplementary estimates for security
enhancement measures at VIC, the Group is pleased to note that more than
91% amount has already been received by the Organizations, a reflection of
the importance the Member States accord to the security of the VIC. The
Group invites the Secretariat to continue reporting on security
enhancement measures and on the progress of its implementation as well as
on new conference facilities.
I thank you Madam Chair.
Madam Chair,
The Group of 77 and China takes note of documents IDB.32/6-PBC.22/6
and PBC.22/2-IDB.31/2 (chapter V) regarding mobilization of financial
resources.
The Group notes with satisfaction that voluntary contributions for
financing the Integrated Programmes and Country Service Frameworks
continued to show a positive trend. Their figure in the biennium 2004-2005
was higher by 30% over that in the biennium 2002-2003 and is more than
double compared to 2000-2001.
The Group commends the Secretariat on mobilization of financial
resources and urges it to continue the efforts with the same enthusiasm
and momentum. The Group welcomes Secretariat's anticipation that, with the
approval volume of multilateral funds stabilizing at a higher level,
greater growth of the governmental contributions can be maintained. The
Group, nevertheless, understands that the Secretariat will continue to
mobilize greater resources from the multilateral funds.
The Group acknowledges the continued contribution of the development
partners towards achievement of UNIDO's objectives. The Group of 77 and
China encourages all Member States and particularly the donors to consider
enhancing their voluntary contributions to the Organization.
The Group notes Secretariat's strategy of maintaining sharp focus on
a small number of thematic areas within its mandate and development of
partnerships with other international development organizations to attract
greater volume of financial resources. The Group appreciates the
Secretariat's intention to expand strategic partnerships with
international and regional bodies as well as private sector partners and
NGOs. With regard to the UNIDO-UNDP Cooperation Agreement (CA), the Group
urges UNIDO to mobilize adequate financial resources for the full
implementation of the agreement and looks forward to the Secretariat's
briefing and final evaluation report.
I thank you Madam Chair.
Madam Chair,
The Group of 77 and China takes note of the document PBC 22/8
containing the proposed activities of the Director-General as for the
forthcoming MTPF 2008- 2011.
The Group also takes note of the lines on which the 2008- 2011 MTFP
will be elaborated, in close conformity with the Strategic Long Term
Vision (SLTV) and the Millennium Development Goals (MDGs).
In this context, the Group wishes to reiterate its attachment to the
priority areas, the cross cutting approaches and the regional dimensions
of the SLTV, and more particularly to activities aiming at poverty
reduction through industrial productive activities, trade capacity
building and environment and energy.
The G-77 and China stresses the need to make human and financial
resources available to ensure the full implementation of the activities
for the forthcoming MTPF. In this context, it calls upon the Secretariat
to continue to explore ways and means to mobilize adequate funding.
The Group wishes to express its appreciation that the Organization
will ensure that the 2008- 2011 MTPF is in continuity with the prevailing
one and that the transition between both MTFPs will be done with a minimum
of disruption while keeping the priorities for the benefit of Member
States.
The Group of 77 and China invites the Director-General to continue to
work in close consultation with Members States during the finalization
process of the MTPF.
|
|
|
|
| First
Page
Vienna Chapter |
G-77 Homepage |