VZCZCXYZ0005
OO RUEHWEB

DE RUCNDT #1014/01 3092158
ZNR UUUUU ZZH
O 042158Z NOV 08
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5261
INFO RUEHDS/AMEMBASSY ADDIS ABABA PRIORITY 1811
RUEHNR/AMEMBASSY NAIROBI PRIORITY 0714
RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0739

UNCLAS USUN NEW YORK 001014 
 
SIPDIS 
 
DEPARTMENT FOR IO 
 
E.O. 12958: N/A 
TAGS: PREL OARC
SUBJECT: UN MANAGEMENT:  FIFTH COMMITTEE CRITICIZES 
MISMANAGEMENT OF CONSTRUCTION IN NAIROBI AND ADDIS ABABA 
 
¶1.  Summary.  In session from October 7 to 27, the UN General 
Assembly (UNGA) Fifth Committee (Administrative and 
Budgetary) received reports on construction projects underway 
in Vienna, Nairobi and Addis Ababa.  Despite serious 
reservations about the latter two, Secretariat officials 
recommended proceeding with all three projects.  Delegations 
expressed satisfaction with progress in Vienna, but were 
gravely disappointed at delays in Addis Ababa and Nairobi. 
Delegates questioned Secretariat officials, called for 
accountability, and bemoaned poorly defined responsibilities. 
 Committee Chairman Henric Rasbrant of Sweden proposed a 
draft resolution for further discussion during informal 
meetings.  End Summary. 
 
¶2.  In formal session October 7, Under Secretary General for 
Management Angela Kane presented two reports.  The first, on 
construction in Nairobi (A/62/794), recommends additional 
funding.  The second report (A/63/303) provides an update on 
the progress in Vienna and relates the current status of 
Addis Ababa construction, for which UNGA approved USD 
14,333,100 but has not been built.  Chairman of the Advisory 
Committee on Administrative and Budgetary Questions (ACABQ) 
Susan McLurg then presented a report on the three projects 
(A/63/465).  Director of Facilities and Commercial Services 
Division Joan McDonald then spoke, and later took questions. 
These presentations were followed by interventions by 
representatives of France (speaking for the EU), Antigua and 
Barbuda (speaking for the G77 and China), Ethiopia, Costa 
Rica, and South Africa.  Subsequent informal consultations 
that afternoon and on October 27 yielded additional comments 
from representatives of Japan, Ecuador, Singapore, Senegal, 
South Africa, Cote d'Ivoire, Russia and Egypt.  Whereas there 
was no significant discussion on the Vienna project, which 
Rasbrant characterized as "crystal clear", there were 
repeated calls to account for lack of progress in Nairobi and 
Addis Ababa.  Rasbrant circulated a third version of a draft 
resolution to be forwarded to UNGA after further committee 
deliberations. 
 
¶3.  The ACABQ report pointed a finger at mismanagement. 
McLurg reported that arrangements in Nairobi are "neither 
adequate nor well-implemented" and result from insufficient 
understanding and guidance from HQ.  Her committee 
recommended a reduced scope project for USD 3,479,000. 
McLurg also criticized the Addis Ababa project, "services 
provided were not adequate....very little real progress has 
been made."  ACABQ recommended annual progress reports to 
UNGA on all construction projects. 
 
¶4.  Nearly every intervention highlighted agreement with the 
ACABQ recommendation for accountability and closer oversight. 
 The South African delegate was typical in calling the 
Nairobi project a "non-starter," and telling Secretariat 
officials "enough excuses."  The representative of Antigua 
and Barbuda, for the G77, called for an accounting, "This is 
unacceptable."  The Ethiopian representative's suggestion to 
hire a local firm to monitor construction received no 
reaction. 
 
¶5.  The projects are dogged by poorly defined procedures and 
unclear responsibilities.  In response to a question from the 
Japanese delegate, McDonald explained that the responsibility 
is different for the two projects: whereas the UN Office in 
Nairobi (UNON) oversees its own construction, HQ in New York 
is responsible for Addis Ababa.  Another problem are the 
taxes and duties that UN has been paying in Addis Ababa, 
despite a supposed exemption.  In response, the Ethiopian 
delegate offered that the taxes are reimbursable. 
 
¶6.  Costa Rican and Ecuadorian representatives questioned 
McDonald on access for persons with disabilities and 
criticized the reports for omitting this topic.  On October 
7, the South African delegate, on behalf of the G-77 and 
China, expressed hope that lessons can be learned.  On 
October 27, the Egyptian representative echoed this widely 
held sentiment. 
 
¶7.  Secretariat officials endorsed the ACABQ recommendations 
but defended the projects.  McDonald claimed there were valid 
reasons for the delays, including a lack of local expertise, 
design changes, and confusion due to unclear instructions 
from New York. 
 
¶8.  In informal session on October 27, UNON Director-General 
Anna Tibaijuka appeared to answer questions.  The South 
African delegate subjected her to highly critical remarks, 
complaining, "seven years later, and nothing done." 
Referring to audits, Tibaijuka denied allegations of 
 
 
kickbacks and malfeasance.  Other critics included 
representatives of Russia and Japan.  The delegate from Cote 
d'Ivoire inquired as to the identity of the project manager. 
 
 
¶9.  Rasbrant circulated a draft resolution to be presented to 
UNGA.  The draft endorses the ACABQ recommendations and 
expresses appreciation for the progress in Vienna.  The draft 
also expresses deep concern at the lack of progress in 
Nairobi; deeply regrets the procedural difficulties in the 
UN, decision-making delays, and insufficient responsiveness; 
and emphasizes the importance of coordination between 
headquarters and the field.  The resolution will request the 
Secretary-General to complete the projects on schedule in 
2011 without any additional requirements from the regular 
budget and ensure accountability for the delays.  The 
resolution will also request a review by the Office of 
Internal Oversight Services, and will approve the estimated 
cost of USD 25,252,200 for Nairobi. 
 
¶10.  In light of intense criticism from the G-77 
representative, it is unlikely that the draft resolution will 
be adopted expeditiously. 
Khalilzad