Mr. Chairman,

1. I have the honour to speak on behalf of the Group of 77 and China on agenda item 139 entitled "Report on the Activities of the Office of Internal Oversight Services" and agenda item 128 entitled "Review of the efficiency of the administrative and financial functioning of the United Nations." The Group would like to thank Ms. Carman L. Lapointe, Under-Secretary-General, Office of Internal Oversight Services (OIOS), for introducing the report on the activities of the OIOS for the period of 1 July 2009 to 30 June 2010, as contained in document A/65/271 (Part I), as well as the associated Addendum 1. We would also like to express our appreciation to Mr. David Walker, Chairperson of the Independent Audit Advisory Committee (IAAC), for introducing his Committee's related report as contained in document A/65/329.

2. Allow me to take this opportunity to congratulate Ms. Lapointe on her appointment as the Under-Secretary-General for the OIOS. The Group would like to assure Ms. Lapointe of its co-operation and support in discharging the mandate given to her Office.

Mr. Chairman,

3. With regard to the appointment of the Under-Secretary-General for the OIOS, we would like to note with regret that the procedures followed by the Secretary-General were not in conformity with the principle of geographical rotation as contained in paragraph 3 (e) of General Assembly resolution 46/232 of 1992. In terms of this resolution, the General Assembly decided that, "as a general rule, no national of a Member State should succeed another national of that state in a senior post, and that there should be no monopoly of senior posts by nationals of any State or Group of States". It is the Group's expectation that future appointments will be made in conformity with the relevant provision of this resolution.

4. The Group of 77 and China is concerned that overall vacancy rates in the OIOS have slightly increased from last year. We are further concerned that two posts at Director level, namely the Director of Investigations Division and Director of Inspections and Evaluations Division have still not been filled and continue to adversely affect the work of the Office. The Group once again reiterates the urgent need to fill all vacant posts in the Office in full compliance with the principle of gender and equitable geographical distribution. The Group will follow up on specific issues of concern with regard to this matter.

Mr. Chairman,

5. The Group of 77 and China attaches great importance to the work of the OIOS in strengthening accountability and 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 resolution. The Group also notes that assignments conducted by the Office during the reporting period underscore the need for the Organization to develop an accountability framework, including a formal control framework, to ensure that risks were managed consistently and systematically through focused control processes across the Organization.

6. The Group would like to take this opportunity 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.

7. The Group further reaffirms the separate and distinct roles of internal and external oversight mechanisms. To that end, we appreciate the continued effort of the OIOS to have regular co-ordination and consultations with other UN oversight entities, namely the Board of Auditors and the Joint Inspection Unit. Such oversight co-ordination among the relevant bodies helps to avoid duplication and overlap in the conduct of oversight work, and also minimizes gaps in oversight coverage.

Mr. Chairman,

8. The Group notes the ongoing efforts and initiatives aimed at strengthening the functions of the Office inspection and evaluation, internal audit and investigations. We welcome these efforts aimed at improving the alignment of work priorities with organizational risks; improving and ensuring the highest quality of its work; and cultivating professional workforce for its staff.

9. The Group also notes that the OIOS had issued 1,992 recommendations to UN entities during the period 1 July 2009 to 30 June 2010 - a slight increase of 52 recommendations from the previous reporting period. Although a number of UN entities under OIOS oversight coverage have consistently implemented recommendations in a timely manner during the reporting period, we are equally concerned that the implementation of a greater number of recommendations that are critical were lagging or management had failed to respond in a timely manner. The Group will be seeking clarification on these matters during informal consultations.

10. The Group reiterates the importance of implementing all recommendations and the full co-operation of all departments and entities with the OIOS. We commend those entities that accepted and implemented the OIOS recommendations. We also urge OIOS to engage closely with the Secretariat and other UN entities with respect to OIOS recommendations and to resolve differences before matters surface to others parts or to the Fifth Committee's deliberations.

Mr. Chairman,

11. In addition to the status of OIOS recommendations, the Group also notes the oversight findings of the OIOS on the seven risk categories as outlined in the report. We recall that the classification by the OIOS of its work in those seven risk categories reflects a comprehensive approach that covers the full spectrum of potential risks faced by the Organization. We welcome dialogue between OIOS, IAAC and Secretariat in better strengthening this area.

12. The Group also notes the highlights on the OIOS report on the Procurement, Capital Master Plan, United Nations Compensation Commission, constructions of additional office facilities at the United Nations Office at Nairobi (UNON) and Economic Commission for Africa (ECA) and look forward to discussing the key findings in the context of the relevant agenda items.

Mr. Chairman,

13. The Group would like to thank the IAAC for its work in fulfilling its role as an advisory committee to the General Assembly in accordance with its terms of reference (TOR) as contained in General Assembly resolution 61/275. We note that the IAAC has continued to present a number of recommendations to enhance the effectiveness, efficiency and impact of the audit activities and other oversight functions. In this regard, we emphasize that any modification to the TOR of IAAC remains the sole prerogative of the General Assembly.

14. In conclusion, the Group of 77 and China is committed and stands ready to engage in constructive discussions with the aim of achieving a positive outcome on this agenda item.

I thank you, Mr. Chairman.