Mr Chairman,

1. I have the honour to speak on behalf of the Group of 77 and China on agenda item 140, entitled "Report of the Office of Internal Oversight Services", and on agenda item 129, entitled "Review of the efficiency of the administrative and financial functioning of the United Nations".

2. The Group of 77 and China would like to thank Mr. David Kanja, Assistant Secretary-General, Office of Internal Oversight Services (OIOS), for introducing the report of the annual activities of the OIOS, as contained in A/67/297 (Part 1), as well as the associated Addendum. We also express our appreciation to Mr. Adrian Patrick Strachan, Vice-Chair of the Independent Audit Advisory Committee (IAAC), for introducing the report on the activities of the Independent Audit Advisory Committee contained in document A/67/259. Also we want to thank the Joint Inspection Unit for introducing the report concerning the investigations function in the UN system contained in document A/67/140 and the related Addendum.

Mr. Chairman,

3. The Group of 77 and China continue to attach great importance to the work of the OIOS in strengthening oversight throughout the Organization. The Office has an essential role to play in improving internal controls, accountability mechanisms and organizational efficiency and effectiveness, in accordance with its given mandate in the relevant General Assembly resolutions. The Group also notes the various assignments conducted and recommendations issued by the Office during the reporting period, aimed at cost savings, recovery of overpayments, efficiency gains and other improvements to ensure that risks were managed consistently and systematically through focused control processes across the Organization.

4. Our Group takes this opportunity once again to reiterate its support for the operational independence of the OIOS within the context of General Assembly resolution 48/218 B, and its role to assist the Secretary-General in fulfilling his internal oversight responsibilities, in respect of the resources and staff of the Organization, through internal audit, monitoring, inspection, evaluation and investigations.

5. The Group also reaffirms the separate and distinct roles of internal and external oversight mechanisms. In this regard, we appreciate the continuation of the Office to have regular coordination with other UN oversight entities in particular the Board of Auditors and the Joint Inspection Unit in the context of tripartite and other arrangements which has improved the delivery of the given mandate.

Mr. Chairman,

6. Turning to the annual activities of the OIOS, the Group notes with encouragement the ongoing initiatives on the overall efforts to strengthen the functions of the Office in particular on the strengthening of work processes and systems and cultivating a professional workforce its existing functions, namely, inspection and evaluation, internal audit and investigations.

7. The Group has taken note that the Office is in the process of compiling key oversight terms related to its work and we would like encourage the timely completion of this exercise.

8. The Group of 77 and China is encouraged that Office is gradually making progress in resolving its longstanding vacancy issues. We also welcome the appointment of the Mr. David Muchoki Kanja the new Assistant Secretary-General for the Office. We believe that his appointment will strengthen the leadership and managerial function of the Office.

9. While we acknowledge the improvement in recruitment especially at the senior level our Group remains concerned on the high vacancy rates at the Office which is now stood at 15%. We would like to encourage the Secretary-General to make every effort to fill them in strict conformity of relevant General Assembly resolutions including the observance of the principle of gender balance and equitable geographical distribution.

Mr. Chairman,

10. The Group of 77 and China notes that during the reporting period the Office issued a total of 807 recommendations to improve internal controls, accountability mechanisms and organizational efficiency and effectiveness. We also note that of those recommendations, 65 were classified as critical to the Organization. We have also taken note of the financial implications of the issued recommendations. We encourage the Office to continue to focus its work on the quality of recommendation. Our Group will examine a number of issues and request specific clarification during the informal consultations.

11. We have also taken note of the assignment of rating to the findings, efficient monitoring of the recommendations, improvement on the internal analysis of the risks and trends. We would like to emphasize that it is important that the Office involve and agree with clients when introducing new initiatives or approach.

12. We also note the highlights on the oversight coverage on the Capital Master Plan and the UN Compensation Commission, and construction of the additional office facilities at the Economic Commission for Africa in Addis Ababa and the United Nations Office at Nairobi and look forward to discussing detailed findings in the context of the relevant agenda item.

Mr Chairman,

13. Turning to the annual report of the IAAC, the Group thanks the IAAC for its work in providing expert advice and assistance to the General Assembly in fulfilling its oversight responsibilities, in accordance with the terms of reference of the IAAC in General Assembly resolution 61/275. We note that the IAAC has presented concrete suggestions to enhance the effectiveness, efficiency and impact of the audit activities and other oversight functions of the OIOS in conjunction with the review of the functions and reporting procedures of the OIOS.

14. We have carefully examined a number of comments, observations and recommendations of the Advisory Committee including the deferred ones and we look forward to a comprehensive discussion on these matters in the informal consultations.

Mr. Chairman,

15. In conclusion, we would like to assure you of our readiness to open, transparent and constructive deliberation on this important agenda item

I thank you Mr. Chairman.