STATEMENT ON BEHALF OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS BY DEPUTY PERMANENT REPRESENTATIVE KAREN ONG OF SINGAPORE, ON AGENDA ITEM 134: PROPOSED REVISIONS TO THE FINANCIAL REGULATIONS OF THE UNITED NATIONS

Thank you, Mdm Chair.

                    I have the honour to speak on behalf of the Association of Southeast Asian Nations (ASEAN) on agenda item 134 on the proposed revisions to the financial regulations of the UN. ASEAN aligns itself with the statement made by Uruguay on behalf of the Group of 77 and China.  ASEAN expresses its appreciation to Deputy Controller Maria Costa for introducing the report. We also thank Ms Juliana Gaspar Ruas, Chair of the ACABQ for introducing the ACABQ’s related report. 

2                 Just last week, the Fifth Committee heard a briefing from the Controller on the management of the liquidity situation. We were alarmed to hear that 2025 ended with a record level of arrears and that the Organisation’s liquidity reserves have been severely depleted. More significantly, the chronic issue of the return of unspent funds in the form of credits to Member States that are not backed by cash collections – even to those Member States that have not paid their assessed contributions in full – has seriously eroded the Organisation’s operational viability and its ability to deliver on crucial mandates.

Mdm Chair,

 3                 The present situation is not sustainable. ASEAN therefore welcomes the Secretary-General’s efforts to propose revisions to the Financial Regulations and Rules (FRR), while stressing that the root cause of the liquidity crisis can only be addressed if all Member States that have the capacity to pay their assessed contributions do so in full, on time and without conditions. Any changes to the FRR should aim to enhance mandate implementation and the transparency and effectiveness of the Organisation.

4                 ASEAN welcomes the proposed regulations 3.2, 3.4 and 4.14, which reflect the decisions taken by the General Assembly in its resolution 80/243 to align the return of credits across the regular, peacekeeping and international criminal tribunal budgets. We also welcome the proposed updates to codify existing financial practices for the Peacekeeping Reserve Fund and the Special Account.

5                 ASEAN does not oppose the proposed changes to financial regulations 5.5 and 5.10 on expanding the reimbursement policy to all peace operations, including special political missions (SPMs), and agrees with the ACABQ’s views. We note that this proposal precisely reflects the reality underpinning ASEAN’s longstanding view that a separate account should be established for SPMs to align with the budget cycle for peacekeeping operations. This is because most backstopping support for these missions are drawn from those departments funded by the peacekeeping budget.

 6                 ASEAN agrees with the ACABQ’s observation that the Secretary-General has the authority to present proposals to the General Assembly, including on the suspension of the return of credits, and we look forward to receiving further information and justifications in the relevant reports. ASEAN also notes the Secretary-General’s proposal to conduct regular reviews of the level of the Working Capital Fund and the ACABQ’s observation that a technical review of the appropriate reserve level could be a useful reference point.

Mdm Chair,

 7                 We assure you that ASEAN will continue to play an active role in the upcoming discussions. We look forward to a constructive dialogue with all delegations.

Thank you. 

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