091028_Fifth_Procurement

Mr. Chairman

I have the honour to speak today on behalf of Australia, New Zealand and Canada on the United Nations procurement activities.

First, I would like to thank the Assistant Secretary-General for Central Support Services, Mr Warren Sach, for introducing the report of the Secretary General on the United Nations procurement activities. I would also like to thank Ms Inga-Britt Ahlenius, Under-Secretary-General for Internal Oversight Services (OIOS), and Ms Susan McLurg, Chair of the ACABQ, for introducing their respective report on this item.

Mr. Chairman

Over the past five years, the procurement activities of the United Nations have been characterized by a significant expansion. In less than four years, we have seen procurement volume almost triple, from $1.3 billion in 2004, to $3.2 billion in 2008. With this substantial increase in volume, we as Member States must ensure that the Organisation has the appropriate controls and oversight mechanisms in place to enable the procurement function to operate as effectively and efficiently as possible.

CANZ delegations note the efforts made by the Secretariat to improve the UN procurement activities. Indeed, we acknowledge the hard work that has be done.

As the Organisation continues reforming its procurement activities, CANZ would like to stress that these efforts, and future ones, must be guided by the four main principles of UN procurement. These principles are:

• best value for money;
• fairness, integrity, and transparency;
• effective international competition; and,
• the interest of the Organization.

Mr. Chairman

While our delegations appreciated the fact that the Secretariat structured its report to reflect the procurement reform mandates as stated in several General Assembly resolutions, including 62/269, CANZ notes that the report failed to provide specific data on the performance of the UN procurement system. We agree with the ACABQ’s observation that information is required on how well the procurement system is performing.

Similarly, we are concerned by the OIOS observation that, currently, it is not possible to reliably quantify the procurement process cycle times. This lack of performance indicators needs to be urgently addressed.

Moreover, during its 60th session, the General Assembly requested strong internal controls for UN procurement activities. In the context of a comprehensive report on procurement, our delegations would have welcomed an assessment of the adequacy of the controls currently in place.

Mr Chairman

One of the main themes throughout the Secretary-General’s report is the notion of governance and how to support adequately the operational requirements of peace operations. As the question of enhancing the flexibility and the effectiveness of support to UN peace operations is a priority for CANZ, we are eager to consider practical measures that meet this critical strategic objective.

In order to optimize the functionality of the UN procurement process, CANZ note the Secretariat’s interest in establishing a regional procurement office with staff from the Procurement Division co-locating with staff from the Department of Field Support. While we see merit in both concepts – “co-location” and “shared-services centre” – our delegations would welcome additional information on these concepts in informals. We agree that the analysis requested by the ACABQ should be conducted and believe that the Regional procurement office concept could be better considered in the context of the new support strategy proposal expected in spring.

CANZ delegations also note that these concepts are aimed at addressing governance concerns identified by the OIOS. We look forward to discussing this issue further in informals, with a view to ensuring that the proposal clearly responds to the OIOS observations.

The OIOS also identified the need for the Secretariat to develop a comprehensive strategy on procurement. Our delegations look forward to discuss, during informal sessions, how the Secretariat intends to further develop its procurement strategy.

CANZ countries recognize the importance of sustainable procurement. We look forward to obtain further information on the proposed “phased approach” to sustainable procurement recommended by the Secretariat.

Mr Chairman

In concluding, I am confident that Member States recognize the importance of ensuring the efficiency of the Organisation procurement capabilities. To achieve this, CANZ countries will engage constructively with other member states and the Secretariat in hope of further improving the procurement activities of the Untied Nations.

Thank you, Mr Chairman.