Seventy-fourth Session,
15th Meeting (AM)
GA/AB/4344

Timely Approval of 2020 Regular Budget Key to Avoid Global Operations Shutdown, United Nations Controller, Fifth Committee Chair Warn Member States

Delegates Also Review Proposed Subvention to Special Residual Court for Sierra Leone

The United Nations Controller and the Chairman of the Fifth Committee (Administrative and Budgetary) urged delegates today to accelerate their efforts to agree on a 2020 budget in order to prevent a shutdown of most global operations and avoid exacerbating the Organization’s ongoing liquidity crisis.

Chandramouli Ramanathan, Controller and Assistant Secretary‑General for Programme Planning, Finance and Budget in the Department of Management Strategy, Policy and Compliance, advised delegates to regard making budget decisions in a timely fashion as seriously as possible.

If the budget is not approved by year’s end, the Secretary‑General does not have the authority to make cash or non‑cash financial commitments, Mr. Ramanathan said.  The Secretary‑General will then have to shut down all regular budget operations globally and maintain minimal staff to ensure safety and security until he receives the necessary authority to spend resources from the budget.  Mr. Ramanathan also pointed to the human element of timely budget approval.  Even if the Fifth Committee finishes its work before Christmas, staff will have to remain working the rest of the year.

He noted that last year, the United Nations issued its assessment letters to Member States on 28 December.  “Any delay in the issuance of assessment letters would aggravate the liquidity crisis,” he said.  The Organization now has a $190 million cash deficit and there are barely enough reserves to pay staff salaries and entitlements for December, he pointed out.

Fifth Committee Chairman Andreas D. Mavroyiannis (Cyprus) said the Committee needs to be aware that “what is essentially at stake is the adoption of the 2020 UN budget, which remains our absolute priority for this session.  Amid the severe liquidity crisis and with scarce cash available, the UN cannot and should not be confronted with yet another crisis caused by delays in the work of the Fifth Committee”.

He wanted to “make it abundantly clear that there can be no further extension of our work, because serious practical complications could arise.”  The Organization’s cash situation means the Fifth Committee must decide on budget and financial items and authorize the collection of contributions for 2020.  “There are also specific operations for which we need to authorize expenditure in the coming period,” he said.  The General Assembly President and senior Secretariat officials are gravely concerned about the delays in the Fifth Committee’s deliberations, especially as the Committee has yet to start considering the regular budget.

The Chairman added that he did not want Fifth Committee delegates to feel guilty about the situation.  “You are doing your jobs in an excellent manner,” he said.  He hoped the Controller’s comments would provide an incentive to work more purposely.  “We need to conclude our work on time, and the Bureau and I will continue to support you,” he said, stressing, “The timely conclusion of our work is critical.”

In the first order of business, the Fifth Committee considered the Secretary‑General’s request for a $2.9 million subvention, through appropriation, to fund the activities of the Residual Special Court for Sierra Leone.

Mr. Ramanathan introduced the Secretariat’s report on the issue while Julia Maciel, Vice‑Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) introduced that body’s related report.  Ms. Maciel said the subvention from the regular budget is a bridging financing mechanism approved on set conditions to supplement insufficient voluntary contributions.  There is on ongoing need for intensified fundraising efforts by the Secretary‑General, including broadening the donor base of the Residual Court.

The representative of Botswana, speaking on behalf of the African Group and associating himself with the “Group of 77” developing countries and China, said he was worried that the Residual Court has not received enough voluntary contributions for its operations since 2015 and has had to rely on subventions from the General Assembly.  The African Group is ready to work with all stakeholders to establish a more sustainable funding mechanism that would be predictable and reliable.

The observer for the State of Palestine, speaking for the Group of 77, said the Residual Court has carried out important work since its inception in January 2014 and reiterated the need for a long‑term sustainable funding mechanism through assessed contributions from Member States.

The representative of Sierra Leone said the Residual Court has provided critical residual functions, such as witness protection, supervising the enforcement of sentences and preserving archives.  Securing a predictable and sustainable funding mechanism remains a matter of concern for his country’s Government.

The Fifth Committee will meet again at 10 a.m. on Friday, 13 December, to discuss the conditions of service of judges of the International Residual Mechanism for Criminal Tribunals and progress in the implementation of the capital master plan.

Subvention to Residual Special Court for Sierra Leone

CHANDRAMOULI RAMANATHAN, United Nations Controller and Assistant Secretary‑General for Programme Planning, Finance and Budget in the Department of Management Strategy, Policy and Compliance, introduced the Secretary‑General’s report on the use of the commitment authority and request for a subvention to the Residual Special Court for Sierra Leone (document A/74/352).  The report addresses the activities of the Residual Court, its current financial situation, efficiency measures and future financing arrangements, he said.  Voluntary resources are not adequate, despite the efforts of the Secretary‑General, the Government of Sierra Leone and key donors of the Residual Court, including member countries of the Oversight Committee, and the intense fundraising by the Principals of the Residual Court.  Given the lack of adequate, sustained voluntary contributions, as well as prospects for such contributions, needed for the Residual Court to fulfil its mandate, the Secretary‑General asks the General Assembly to approve a $2.9 million subvention, through appropriation, to fund the its activities in 2020.

JULIA MACIEL, Vice‑Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introducing that body’s related report (document A/74/7/Add.21), said that the subvention from the regular budget is a bridging financing mechanism approved on set conditions to supplement insufficient voluntary contributions, and therefore there is the ongoing need for intensified fundraising efforts by the Secretary‑General, including by broadening the donor base of the Residual Court.  For the 2020 resource requirement, the Advisory Committee recalls that the General Assembly stressed the need for the Residual Court to adopt a realistic approach to budgeting based on actual needs.  The Residual Court managed to implement its mandate in 2019 drawing on the approved commitment authority and considers that it should be able to operate in 2020 on a subvention of the same amount as the one for 2019, she said.

SAED KATKHUDA, observer for the State of Palestine, speaking for the “Group of 77” developing countries and China, reiterated the Group’s strong support for the Residual Court’s work.  Since the inception of its operations in January 2014, the Residual Court has carried out important residual functions of the Special Court for Sierra Leone.  This includes supporting witness protection, supervising the enforcement of sentences, assistance to national prosecuting authorities and the management and preservation of archives.  In addition, the Residual Court conducts ad hoc proceedings and has the power to prosecute the remaining fugitive, if arrested, or to refer his case to a competent national jurisdiction for trial.  In this regard, the Group gives great importance to ensuring the adequacy of resources for the effective implementation of the Residual Court’s mandate.

The Group is again concerned with this year’s insufficient voluntary contributions despite intensive fundraising endeavours, he said.  While supporting the full amount of the subvention requested by the Secretary‑General, the Group remains aware the subvention is only a temporary measure and reiterates the need for a long‑term sustainable funding mechanism for the Residual Court through assessed contributions from Member States.  The Group is encouraged by measures taken by the Residual Court to reduce expenditures, with the view of increasing value for money, and the effective use of the commitment’s authority as well as actions taken to secure additional voluntary contributions, he said.

KATLEGO MMALANE (Botswana), speaking on behalf of the African Group and associating himself with the Group of 77, said that it is worrying that the Residual Court has not received enough voluntary contributions for its operations since 2015 and has had to rely on subventions from the General Assembly.  The African Group stands ready to work with all stakeholders to establish a funding mechanism that would be more sustainable, predictable and reliable for the Residual Court.  He noted the Secretary‑General’s request for a $2.89 million subvention, $85,100 less from the previous year due to identified cost savings, to enable the Residual Court to continue carrying out its mandate.  The preservation of the legacy of the Special Court continues to be an important element of the work of the Residual Court, which seeks to contribute to the development of international criminal justice.  The African Group appreciates that the judges of the Residual Court continue to participate in external activities as part of promoting the legacy and increasing the profile of the Residual Court at no cost to that organ.  The physical archives of the Residual Court occupy about 600 linear metres of paper records and the digital archives about 13.4 terabytes, in addition to the original audiovisual recordings of about 150 terabytes.

ALIE KABBA (Sierra Leone) said that the Residual Court has continued to provide critical residual functions related to witness protection, supervision of enforcing sentences, monitoring of conditional early releases, responding to request for information and evidence from national prosecuting authorities, as well as management and preservation of archives.  It also conducts ad hoc judicial and administrative proceedings from time to time, he added, stressing that the Residual Court’s mandate is heavily linked to the continuing peace and stability in his country and the subregion.  Securing a predictable and sustainable funding mechanism remains a matter of concern for his country’s Government.  The gains made in the broader pursuit of international criminal justice and consolidating the peace in Sierra Leone stands in peril if the Residual Court lacks the ability to continue to provide critical protection to witnesses.  Financing the Residual Court is fundamental to the overall peace consolidation efforts of the Government, especially so, when Sierra Leone has been withdrawn from the agenda of the Peacebuilding Commission, he stressed.

For information media. Not an official record.