STATEMENT ON BEHALF OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS BY CHIA YIHUI, DELEGATE OF SINGAPORE TO THE UNITED NATIONS, ON AGENDA ITEM 141: IMPROVING THE FINANCIAL SITUATION OF THE UNITED NATIONS, AT THE MAIN PART OF THE 79th SESSION OF THE FIFTH COMMITTEE OF THE UNITED NATIONS GENERAL ASSEMBLY, NEW YORK, 23 OCTOBER 2024

Thank you, Madam Chair.
  
1 I have the honour to speak on behalf of the Association of Southeast Asian Nations (ASEAN) on agenda item 141 on Improving the Financial Situation of the United Nations. ASEAN aligns itself with the statement made by Uganda on behalf of the Group of 77 and China.  

2 ASEAN thanks the Secretary-General and his team for their updates on the financial situation of the organisation, and for their efforts in ensuring the prudent use of resources, as well as the cash conservation measures to manage the liquidity crisis.

3 The recent briefings by the Secretariat clearly indicate that the UN’s liquidity situation remains bleak. We note that these challenges continue to be caused by irregular, late, or non-payments of assessed contributions. ASEAN is concerned about the $1.5 billion in unpaid regular budget assessments at the end of the third quarter this year, the highest in four years. We are also disappointed to learn that the 2024 financial target remains unmet, as it has been for the last five years. It is concerning to note that the Secretariat has had to launch active liquidity management and borrow from the Working Capital Fund due to lesser collections in 2023 and 2024, and that it will even have to dip into the Special Account in October.

4 The peacekeeping budget has not been spared from liquidity challenges. We note that the percentage of unpaid assessments is on the upward trend despite the overall declining peacekeeping budget. 

5 This unstable capital inflow and the resultant dire liquidity situation across the various budgets of the UN is unsustainable. It has already affected mandate delivery of some activities. This is unfortunate, particularly when we are looking to accelerate the implementation of the Sustainable Development Goals, and implement other initiatives across the UN, including in key areas such as digital cooperation, and peace and security. 

Madam Chair,

6 The root cause of the severe liquidity issues can only be addressed by ensuring that Member States consistently fulfil their financial and legal obligations to the UN. It is essential that all Member States fulfil their financial obligations in full, on time, and without conditions. This is the only way to ensure that the UN can fulfil the mandates that we, as Member States, have given the Organisation. We recognise that some Member States face genuine difficulties in paying their assessed contributions due to circumstances beyond their control. We commend Member States who, despite these difficulties, endeavour to meet their obligations to the UN. 

Madam Chair,

7 ASEAN stresses the importance of continued regular updates by the Secretariat so that Member States are fully apprised of the UN’s financial situation, and the proposed path ahead. ASEAN remains fully committed to meeting our financial obligations so that the UN remains a credible institution that is well-equipped to tackle the complex challenges facing us today. We call on all Member States to do likewise. 

Thank you. 

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