Vienna Chapter
Mr. Chairman,
On behalf of the Group of 77 and China, I would like to express
appreciation to the Director-General, Mr. Elbaradei for his comprehensive
introductory statement, which covered the main themes of the agenda items
before this meeting. We also welcome the remarks presented on this subject
by the Deputy Director-General for Administration. The Group notes with
interest the report of the External Auditor, especially its response to
some of the requests made by the group, and the detailed follow-up
comments on previous years' recommendations on Strengthened Safeguards, on
the AFIMS, I.T. and Technical Cooperation projects and therefore wish to
comment as follows:
Mr. Chairman,
With regard to strengthened safeguards, we are delighted to note that
the Department has initiated a range of actions which have resulted in
significant improvements in the management process during the year under
review, especially as it relates to the five specific areas listed in
paragraphs 15-19.
The introduction of Accounting and Financial Information Management
System (AFIMS) in the early 2000 would enable the Agency to cope with
future accounting challenges. It further provides the opportunity for the
integration of AFIMS into the new computer system which is being evolved.
On the computer policy, we are encouraged that the strategic reforms
made in the Agency's Information Management and Information Technology has
enhanced synergies within the existing I.T. structures, a development that
has yielded valuable dividends, judging by the savings of US$140,000 in
2001 budget and the envisaged savings of US$450,000 in the 2002 budget.
The establishment of performance indicators for Model Projects,
including well-defined expected results and impacts at the planning stage
encouraging participatory monitoring and training of counterparts should
complement the old financial data criteria. However these indicators
should continue to be assessed both quantitatively and qualitatively and
be subject to constant reviews.
As regards the review of performance indicators carried out in the
Department of Nuclear Safety, we note that they represent a valuable
guidance for future application of these indicators in assessing the
success of the Agency activities. However, the divergence between the
expected indicators of outcomes and other variables such as demand and
output is enough pointer that more work needs to be done in this area. We
therefore support the views expressed by the External Auditor on the need
for the Agency to clarify its approach as well as focus on a limited
number of indicators that could be measured either quantitatively or
qualitatively. The need for detailed guidance for both Secretariat staff
and Member States counterpart on data collection and training can never be
over emphasized. We therefore support the recommendation that the Agency
should devise and follow a standard Agency wide-approach in the
application of Programme Performance Assessment Systems (PPAS).
Turning to the proposed Memorandum of Understanding between the
Agency and the OECD/NEA, we would like to recall the Group's support to
the principle of synergies and cooperation between the Agency and other
relevant specialized agencies, such as the OECD/NEA. The Group is of the
strong conviction that such synergies should entail clear benefits to all
Member States of the Agency. Therefore, and while recognizing the quest
for efficiency on the part of the External Auditor, the Group stresses
that in the proposed MoU, certain elements, such as divergence in
membership, and equal accessibility of information by members of both
agencies, should be adequately addressed before recommending cooperation
between the Agency and NEA/OECD.
On the treasury function, we support the recommendation on this
matter, and urge the Agency to continue to liaise with the respective UNDP
offices concerned on how best to utilize the funds held in currencies
which are difficult to convert, including those held in the Technical
Cooperation Fund. We also support the review of the Agency I.T. Systems
Security, with a view to evolving a comprehensive network that could
identify vulnerabilities and ensure Security Risk Management Strategy.
The high budgetary performance recorded in 2000 is applauded.
Finally, the Group is of the view that the Report touched on several areas
and it is our expectation that the Secretariat would take all the required
action as soon as possible.
Mr. Chairman,
The Group would like to express its appreciation to the Secretariat
for attempting to take into consideration its views as contained in its
letter of 16 February 2001 to DDG Mr. Waller, and issuing the modified
document GOV/2001/I/Mod.1. The Group would not attempt to comment on all
the specific aspects contained in the document, but would rather
concentrate on the following aspects:
1. The Group appreciates the Secretariat's efforts in identifying
further areas of savings, particularly in the administrative domains,
which eventually will lead to a decrease in the real growth originally
proposed by the Secretariat. However, the Group stresses the necessity
that such savings and reductions which occurred in all major programmes
would not affect the effective implementation of the core activities of
the Agency, with special reference to the activities of MP2, which are of
direct relevance to the developmental needs of members of the G-77 and
China.
2. Concerning the matter of the CAURBs, the Group would like to
emphasize again that the concerns remain unresolved and that there is
still a considerable increase in the total volume of unfunded activities.
It is still a fact that the bulk of the CAURBs are concentrated in one
major area, which does not seem to contribute to the desirable balance
between promotional and verification activities of the Agency. This will
lead to a growing dependence on extra-budgetary resources, which are
neither predictable nor assured, and the fact that the Agency does not
have the final say in the channelling and utilization of these resources.
3. The Group re-emphasizes that there should be an equitable balance
between verification and promotional or other statutoral activities of the
Agency.
4. The Group understands the concerns expressed by the Secretariat
over the possible lack of cash flow as witnessed last summer. However,
though the Group shares the view that increasing the working capital fund
could be considered in the future, the proposed scheme of increasing the
working capital fund would deprive Member States from their own resources
- which are in the form of surpluses - that may be used by Member States
to fulfil increasing financial obligations to the Agency. Therefore, it is
the conviction of the Group that the present status of the working capital
Fund be maintained at the current level and all Member States should be
strongly committed to pay their assessed contributions to the regular
budget.
5. With regard to the title of the Major Programme 1, the G-77 and
China is convinced that it should be read as "Nuclear Power, Nuclear
Fuel Cycle and Nuclear Science", in order to reflect the activities
in this Major Programme more accurately.
6. Finally, the Group would like to reaffirm its commitment to
support the enhancement and development of the Agency's activities in a
cost effective manner, which constitute a major benefit to all Member
States.
Mr. Chairman,
The G-77 and China studied carefully the document GOV/2001/16
regarding the revision of the rules of voluntary contributions to the
Agency and the recommended action on it. The Group is aware of the
increasing scarcity of public voluntary contributions to the UN system and
of the new role played by Intergovernmental Organisations and private
sector in promoting the international community goals. The United Nations
Secretary General provided guidelines for cooperation between the United
Nations and the non-traditional donor community. In this context, the
Group considers that it is not necessary any more to observe a ceiling of
100.000 US$ in values or services provided by intergovernmental
organisations or the business community which do not have an agreement
with the Agency as a condition for acceptance of voluntary contributions
to approved activities with special emphasis on Technical Cooperation
projects. For these reasons the Group supports the proposed actions in
document GOV2001/16 with the annexes A, B and C and authorizes the
Director General to propose to the General Conference the amendments
regarding the relevant financial rules.
Thank you!
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