STATEMENT BY FIRST SECRETARY, MR CRAIG LIM, ON AGENDA ITEM 130: REVIEW OF EFFICIENCY - INDEPENDENT AUDIT ADVISORY COMMITTEE REPORT; AND AGENDA ITEM 140: REPORT ON OFFICE OF INTERNAL OVERSIGHT SERVICES ACTIVITIES; FIFTH COMMITTEE, 7 OCTOBER 2009

STATEMENT BY FIRST SECRETARY, MR CRAIG LIM, ON AGENDA ITEM 130: REVIEW OF EFFICIENCY - INDEPENDENT AUDIT ADVISORY COMMITTEE REPORT; AND AGENDA ITEM 140: REPORT ON OFFICE OF INTERNAL OVERSIGHT SERVICES ACTIVITIES; FIFTH COMMITTEE, 7 OCTOBER 2009

1 I would like to thank Ms Inga-Britt Ahlenius, Under-Secretary-General for Internal Oversight Services, for introducing the report on the activities of the Office of Internal Oversight Services (OIOS), as contained in document A/64/326 (Part I) and its addendum; Ms Neeta Tolani, Director of the Office of the Under-Secretary-General for Management, for introducing the comments of the Secretary-General on the annual report as contained in document A/64/326 (Part I) Addendum 2; and Mr David Walker, Chairperson of the Independent Audit Advisory Committee (IAAC) for introducing the report on the activities of the IAAC, as contained in document A/64/288. My delegation also aligns itself with the statement by Sudan on behalf of the Group of 77 and China.

Report of the Activities of the Office of Internal Oversight Services (OIOS)

2 Singapore affirms its strong belief in the value of improving accountability and oversight in the United Nations (UN). In 1994, we had supported the creation of the OIOS to be the champion of accountability within this organisation. The aim was to instil the highest ethical standards, transparency and fairness throughout the Secretariat. Thus, we look forward to the third five-yearly review of the mandate of the OIOS during this 64th session, which will provide an opportunity to take stock of the Office's performance, and to evaluate the challenges that lay ahead.

3 On the role of OIOS, while we remain fully supportive of a robust Oversight Office, we believe that the UN should continue to uphold the separate and distinct roles of internal and external oversight mechanisms. The work of various UN oversight bodies, including the OIOS, the Board of Auditors, the Joint Inspection Unit, and the IAAC, serve to complement one another in improving the overall functioning of the organisation. That said, we also recognise the importance of effective coordination between oversight bodies to maximise the use of resources, experiences, knowledge, and best practices.

4 In the area of internal audit, the need for stronger controls and oversight has grown over the years in light of the increasing scope, volume and complexity of UN activities, particularly in the area of peacekeeping, where the 2009/2010 budget now exceeds US$7.7 billion. For too long, the management, operation and control of many peacekeeping operations and related oversight projects have been dominated by a select group within the UN membership. This has led to the misuse of contributions totalling billions of dollars in at least one instance, namely, the 'Oil-For-Food-Programme'. Internal controls serve as important signposts for the organisation to conduct business on behalf of Member States, and the breakdown of internal controls should be a firm reminder of the need for constant vigilance.

5 My delegation takes the view that the evaluation function of OIOS will be a potentially valuable source of information on what works well, and what does not, in the organisation. It has played a positive role in improving performance, and in providing Member States with a useful perspective of the problems and constraints faced by the organisation in implementing mandated activities.

6 Singapore also believes that the investigations function of the OIOS will come under scrutiny, especially since the UN is now transiting into a new system of administration of justice. Naturally, Singapore supports the goal of strengthening investigations to combat corruption and wrongdoing at all levels in the Secretariat. The essence of accountability is that no one, including the OIOS, is exempt from it. The mixed experience of the Procurement Task Force is a case in point. It is therefore critical to ensure that investigations are conducted fairly, and in a transparent manner, to prevent abuse or bias, particularly with regards to due process and the protection of the rights of UN staff members.

Mr Chairman,

7 My delegation recognises the fact that the relationship between an oversight body such as the OIOS, and management, can sometimes be difficult given the nature of the work. However, we should remember that both the OIOS and management exist to serve the interests of the UN and its 192 members. Therefore, all stakeholders in this triangular relationship should endeavour to implement good working methods, and strive to achieve win-win results for the greater good of the organisation.

Report of the Activities of the Independent Audit Advisory Committee (IAAC)

8 On the IAAC, its establishment in August 2007 was a positive step forward for the UN. To date, our experience has been that the IAAC has provided useful insights on how the OIOS can improve its work. My delegation has benefited from the IAAC's valuable inputs, and we are thus appreciative of the work done by the IAAC in advising the General Assembly.

9 Turning to the IAAC report, Singapore shares the concerns raised regarding the current low rate of implementation by management of the recommendations of UN oversight bodies. That said, the quality of the recommendations by oversight bodies, as well as its implementation by management, is arguably more important than the quantity. In this connection, we note the assurances provided by the Department of Management that the implementation rate would improve substantially by the end of this year, though we feel that more attention should perhaps be focused on quality and value-added recommendations.

10 Regarding the important issue of the independence of OIOS activities, Singapore would be prepared for a serious discussion on how to ensure that the OIOS is not impeded in its work. The IAAC has made thoughtful and valuable recommendations in this regard. For example, the IAAC has suggested that the OIOS should prepare an internal oversight charter to improve clarity on its activities and responsibilities. The devil of course, is in the details, and we look forward to more in-depth deliberations on these matters.

11 On a final point, Singapore notes the concerns raised by several senior managers that their comments had been inaccurately recorded in OIOS reports. My delegation believes that it is vital for the OIOS to ensure that its reports are perceived to be unbiased, credible and accurate. In this connection, Singapore sees merit in the IAAC's recommendation that the complete and agreed record of responses by management should be included as an annex in future OIOS reports.

Mr Chairman,

12 Singapore is fully aware of the difficulties and challenges faced in running an organisation as large and as complex as the UN. No system is perfect, but we believe that all that can be done should be done to entrench a culture of accountability, transparency and credibility here in the UN. The OIOS, and the other oversight bodies in this organisation thus play a critical role in this endeavour, and we would like to assure them of Singapore's full support for their activities. Thank you.

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