Madam Chair,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China on agenda item 134, on supply chain activities in the United Nations Secretariat.

2. The Group thanks the Assistant Secretary-General of the Department of Operational Support, Ms. AnneMarie van den Berg, for introducing the report of the Secretary-General, the Vice Chair of the Advisory Committee on Administrative and Budgetary Questions, Ms. Yukiko Nakagawa Matsuda, for presenting the related report, as well as the Director of the Internal Audit Division, Office of Internal Oversight Services, Mr. Byung-Kun Min, for presenting the Office's report on strategic management and monitoring of procurement.

3. The Group reiterates that United Nations supply chain and procurement activities must continue to be guided by the principles of best value for money, fairness, integrity and transparency, effective international competition, and the interests of the Organization. The Group further underscores the importance of ensuring fair and equitable opportunity for suppliers from least developed countries, developing countries and countries with economies in transition, including through sustained and targeted outreach, and through measures that enable broader participation in higher-value and more complex procurement, recognizing that their participation in 2024 was still below the level reported in 2020.

4. The Group notes the role of supply chain management as a strategic enabler of cost-efficiency across the Organization, particularly in the context of the UN80 Initiative. The Group takes note of the joint supply chains initiative and encourages efforts to improve efficiency, reduce duplication and strengthen delivery outcomes. At the same time, the Group stresses the importance of clear governance arrangements, including applicable procurement and legal frameworks, decision-making processes, cost-sharing or cost-recovery mechanisms, performance indicators, and the roles of service providers. Accountability must remain unambiguous, and appropriate safeguards should be in place to protect the Secretariat from financial or reputational exposure.

5. It is recalled that the General Assembly established the Global Procurement Support Section in Entebbe as a regular office within the Procurement Division of the Secretariat, servicing procurement needs for United Nations offices, including peacekeeping and special political missions in Africa. The Group remains of the view that this Centre should be utilized to a greater extent, including in initiatives related to circular supply chain approaches, such as the return, refurbishment and reuse programme, particularly in the context of mission drawdowns and closures.

6. On the framework for accountability and integrity in supply chain management, the Group recalls the importance of analyzing procurement methods, including requests for proposals and invitations to bid, with a view to identify and mitigate potential risks of misconduct. In this context, the Group also notes with concern the continued underperformance in achieving equitable geographical representation. The Group will continue to call for targeted and concrete measures by the leadership to meet the geographical targets established under the senior managers' compacts signed with the Secretary-General.

7. The Group notes the Advisory Committee's emphasis on the importance of strengthened internal controls, oversight and accountability in asset management. In this regard, we look forward to the newly established Property Management Working Group further enhancing coordination and process harmonization and establishing effective oversight arrangements to ensure compliance and accountability in asset management.

8. On procurement and vendor management, the Group stresses the importance of implementing the recommendations of the Board of Auditors, including regarding strengthening competition and vendor participation. The Group also notes the Advisory Committee's emphasis on strengthened vendor performance assessments and improved system-wide coordination on vendor sanctions.

9. With respect to the digitalization of supply chain management, the Group notes the continued enhancement of digital platforms, including the service request platform and improvements to procurement-related information systems, as well as the availability of procurement guidance in the six official languages. On the same vein, although we value the positive overall trends in terms of invitations to tender, the Group recognizes the need to further strengthen outreach activities targeting vendors from least developed countries, developing countries and countries with economies in transition.

10. Regarding the need for a systematic monitoring mechanism for contract extensions or amendments in lieu of re-bidding, the Group supports the call for an analytical overview of its main drivers, frequency, duration, cumulative value and exceptions to the rule of open competitiveness. The Group also supports the Advisory Committee's request for analysis of the impact of solicitation methods on vendor origin, including identification of potential procedural or structural barriers limiting broader participation by vendors from developing countries in higher-value procurement.

Madam Chair,

11. In conclusion, the Group of 77 and China reiterates the importance of transparent, efficient and accountable supply chain management that supports mandate delivery while promoting broad and equitable vendor participation, including from developing countries, least developed countries and countries with economies in transition.

I thank you.