STATEMENT ON BEHALF OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS BY MR. TERRENCE TEO, COUNSELLOR, PERMANENT MISSION OF SINGAPORE TO THE UNITED NATIONS, ON AGENDA ITEM 137: IMPROVING THE FINANCIAL SITUATION OF THE UN AT THE SECOND RESUMED SESSION OF THE 74TH SESSION OF THE GENERAL ASSEMBLY, NEW YORK, 14 MAY 2020

Mr Chair,

1 I have the honour to deliver this statement on behalf of the Association of Southeast Asian Nations (ASEAN) on agenda item 137: Improving the Financial Situation of the United Nations. ASEAN aligns itself with the statement by the Group of 77 and China.

2 ASEAN thanks the Secretary-General and his team for their regular outreach on the financial situation of the organisation, including through the Secretary-General’s letters of 27 January and 31 March, the presentation to all member states on 7 May, and for the updates provided today. Amidst the ongoing liquidity challenges, ASEAN appreciates the efforts undertaken by the Secretariat to contain expenditures while minimising any negative impacts on the delivery of mandates. Given the ongoing global health crisis, it is more crucial than ever to ensure the effective and efficient delivery of mandates as competition and demand for financial resources increases. 

Mr Chair,

3 ASEAN is deeply concerned that even though the Organisation faced one of its worst liquidity crises over the past two years and has yet to emerge from the woods, the number of member states that have fully paid their assessments for both the regular budget and peacekeeping operations has fallen. Nevertheless, we understand that this could be due partly to special circumstances caused by the ongoing global health pandemic. But it is a worrying trend if it is sustained.

4 While the cash position for the regular budget has improved compared to this same point in previous years, we recognise that this is partly due to tight expenditure control measures undertaken by the Secretariat. However, arrears from previous years continue to accumulate, and as a result the total amount of unpaid assessed contributions has in fact risen. 

5 On the peacekeeping front, we are heartened to note that the measures approved in General Assembly resolution 73/307 have borne fruit and resulted in an improved liquidity situation. These measures include lifting the restrictions on cross-borrowing of cash between the active peacekeeping missions, and the issuance of assessments for the full budget period, including the period for which the mandate has not yet been approved by the Security Council. ASEAN encourages all member states who are in position to do so to voluntarily pay their assessments in full for the entire peacekeeping year. We also expect that Troop and Police Contributing Countries will continue to be reimbursed as expeditiously as possible, given the improved liquidity situation for peacekeeping operations.

Mr Chair,

6 The financial challenges of the Organisation are mainly due to the late payment of assessments. ASEAN sympathises with countries that face genuine difficulties in paying their contributions due to factors beyond their control. This is particularly so in the face of COVID-19, which has already impacted many economies. Notwithstanding this, we urge all countries that can do so to pay their assessments in full, on time, and without conditions. All member states have a legal responsibility to fulfil their financial obligations, and a moral responsibility to ensure that the United Nations has adequate resources to implement its mandates. 

7 ASEAN remains committed to engaging constructively in any efforts towards resolving the financial difficulties of the Organisation. At the same time, we stress that all such efforts must not result in an unfair shifting of burden between member states. Member states that have consistently paid their contributions in full should not be subsidising those that have the capacity to fulfil their financial obligations, yet continue to withhold payments deliberately. As long as the root causes of the problem remain unaddressed, it will be difficult to find a sustainable solution to place the Organisation on stable and predictable financial footing.

8 I thank you, Mr Chair.

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