STATEMENT BY AMBASSADOR BURHAN GAFOOR, PERMANENT REPRESENTATIVE OF THE REPUBLIC OF SINGAPORE, ON AGENDA ITEM 138: IMPROVING THE FINANCIAL SITUATION OF THE UNITED NATIONS, FIFTH COMMITTEE, 4 JUNE 2019

1                 Thank you Madam Chair, for giving me the floor. I also thank the Secretary-General for his presentation on this important agenda item. The fact that the Secretary-General continues to be here at the meeting shows the importance he attaches to this issue, and the importance we should all attach to this issue. Singapore aligns itself with the statement delivered by the State of Palestine on behalf of the G77 and China, and the statement delivered earlier by my own delegation on behalf of the Association of Southeast Asian Nations.

 Madam Chair,

2                 The financial situation of the UN has clearly been in deterioration. The numbers presented by the Secretary-General do not lie, and they do not paint a positive picture. But they do paint a realistic picture of the situation. The deficits are running deeper, and earlier in the year. Troop and Police Contributing Countries continue to be owed millions. And as the Secretary-General pointed out, they have become de facto subsidisers of peacekeeping operations. Fortunately, we have managed to cope thus far without significantly affecting mandates, but this may not always be possible. In this regard, my delegation recognises the Secretariat’s efforts at implementing stricter budgetary discipline across all duty stations and departments, and encourages the Secretariat to continue to do so.

3                 However, these efforts are stop-gap measures that can only go so far. They do not present a sustainable solution to the perennial financial challenges of the UN. The main challenge is one of liquidity. The UN cannot be expected to deliver on its ever-expanding mandates if Member States do not live up to their obligations to pay their assessed contributions in full, on time, and without conditions.

4                 The secondary challenge is flexibility to manage the budget. However, while flexibility and liquidity are related to some extent, not all proposals on flexibility will lead to greater liquidity. It is therefore important to focus as a matter of priority on liquidity issues that have created the current crisis. In this regard, I wish to make a few points:

5                 First, my delegation is open to the concept of suspending the surrender of unspent appropriations for a limited duration, in order to address pressing liquidity issues. We note that similar measures were undertaken in the past to address the Organisation’s financial difficulties. However, we would stress that there must be clarity in the duration of any such suspension, in order for this concept to be acceptable.

6                 Second, my delegation is also open to the idea of replenishing the Special Account, given its importance as a liquidity tool to complement the Working Capital Fund in managing the regular budget cash flow. For the Special Account to be effective as a liquidity tool, it has to maintain a sufficient buffer and should be replenished following significant draw-downs. It is a well known fact that there has been a draw-down of US$63.2 million since 2013, and it is therefore reasonable that we replenish the Special Account after such a significnat draw-down.

7                 Third, the cash pooling mechanism for active peacekeeping missions, while still maintaining the balances in separate funds for each mission, is a proposal which has merit and that deserves to be studied very carefully. In our view, this is a porposal that does not create additional financial burdens on Member States. Yet, it offers a partial solution to the selective and deliberate withholding of contributions to specific missions, which runs contrary to the General Assembly’s position that all peacekeeping missions should be given equal and non-discriminatory treatment in respect of financial and administrative arrangements. It is therefore unfair to expect Troop and Police Contributing Countries to continue offering their contingents when reimbursements are constantly delayed.

Madam Chair,

8                 Let me conclude by assuring you that my delegation will keep an open mind and participate constructively in the discussions on the proposals contained in the report of the Secretary-General. We hope we can work together to build consensus on as many of the proposals as possible. We all know that good medicine is often bitter, but we also know that good medicine must be taken early, before the situation worsens and necessitates even more drastic measures in future. I thank you very much for your attention.

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