Statement by Irfan Soomro Third Secretary Permanent Mission of Pakistan to the United Nations On Agenda Item 130: Review of the Efficiency of the Administrative and Financial Functioning of the United Nations; Comprehensive Report on the United Nations Procurement Activites at Fifth Committee Main Part of the 64th Session of the United Nations General Assembly.
New York (28 October 2009)
Mr. Chairman,
Pakistan delegation would like to thank Mr. Warren Sach, Assistant-Secretary-General for Central Support Services for introducing the comprehensive report of the Secretary General.
- We also appreciate Ms. Susan McLurg for presenting the related report (A/64/369) of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) and Mrs. Inga-Britt Ahlenius for introducing the Office of Internal Oversight Services (OIOS) report (A/64/369).
- My delegation aligns itself with the statement made by the distinguished representative of Sudan on behalf of the Group of 77 and China. We have some additional points to make.
Mr. Chairman,
- We are cognizant of the fact the demands of field operations have grown exponentially and along with the expansion of peacekeeping itself, there has been a large increase in peacekeeping related procurement. Indeed the volume of UN global procurement, around 85% of which represents peacekeeping has increased from US$1.3 billion in 2004 to US$3.3 billion in 2008. Given the scale and the very nature of the operations in the field missions, we attach great importance to the issue of procurement reforms with a view to ensure the efficiency, cost-effectiveness, transparency and competitiveness of procurement process as well as to make it responsive to the needs of the Organization.
- We believe that procurement reforms should be addressed comprehensively. Various steps that are being currently considered should clearly illustrate how they will complement the ongoing reform process; the objectives of internal control regime, oversight and accountability; and the implementation of corresponding legislative mandates. There is also a need to take stock of the dividends if any, achieved as a result of our previous efforts pertaining to the Procurement Task Force, and given the urgency of the matter we should further deliberate on why the progress has been slow including on the fundamental issue of 400 investigation cases pending on procurement issues.
- We have looked at the reports under consideration on procurement reform and concur with ACABQ that the report does not contain clearly indicated productivity gains in the procurement functions and lack sufficient data to substantiate the progress achieved.
Mr. Chairman,
- The lack of clarity of procedures, insufficient training and the cumbersome processes impede efficiency and speed. Furthermore, the lack of comprehensive procurement strategy and inadequate monitoring of field procurement lead to irregular actions which hamper the achievement of economies of scale and improvement in the delivery of goods and services. Simple, transparent, competitive, implementable and rule-based procurement processes are a sine qua non for an efficient and effective procurement system. Therefore, the multiplicity and duplication of various processes and potential proliferation of new structures should be carefully checked. In this regard, we share the OIOS views that the terms of reference and the reporting lines of the contract review committee, the Headquarters and Local Committees on Contracts (HCC/LCC) should be clearly defined and efforts to further simply the procedures should be increased.
- We also agree with OIOS recommendation that the Procurement Division should develop key performance indicators against which its performance could be measured.
Mr. Chairman,
- A high degree of accountability is fundamental to the efficient and effective functioning of the procurement system. Whilst increasing the delegated authority of the Department of Field Support and Procurement Division may seem a logical step to speed up the acquisition process in the field, it is important also to ensure mechanisms to strengthen effective monitoring, oversight and accountability of staff at all levels, including senior management, with regard to procurement carried out both at the headquarters and in the field.
- With regard to the Secretary General’s intention to review procurement rules and procedures to support immediate operational requirements of peacekeeping missions, we have noted the set of measures which are being considered including the setting up of the proposed regional procurement office on pilot basis. We expect that such initiatives would be based on thorough review of the whole procurement process aimed at optimization of procurement functions, transparent and non-discriminatory application of best value for money and the strengthening of internal controls and oversight.
- On the vital question of increasing procurement opportunities for vendors from the developing countries and countries with economies in transition, we welcome the steps taken such as streamlining the vendor registration process, updating the vendor data base, provision of supplier financing option with access to the liquidity, bidding by joint ventures and holding of business seminars. While we are optimistic that these measures will increase the opportunities for participation of small and medium sized vendors from the developing countries and countries with economies in transition, we urge the Secretariat to further explore additional ways in that regard. The perception of small enterprises regarding bid bonds and performance bonds as an additional financial burden that limits their participation needs to be adequately addressed while safeguarding the interests of the Organization.
Mr. Chairman,
- The total amount of United Nations procurement, although small compared to the size of the economies of many developed countries, can have a significant impact in some developing countries particularly in promotion of their social and economic development. Better outreach in developing countries and economies in transition would enable the United Nations to considerably increase the number of possible vendors, which would result in increased competition and lower prices. In this regard, we also wish to point out that the concept of sustainable procurement should not become a new conditionality to the participation of vendors from developing countries and countries with economies in transition.
Thank you.