Madam Chair,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China on agenda item 136: financial reports and audited financial statements, and reports of the Board of Auditors on the United Nations peacekeeping operations.

2. At the outset, the Group extends its appreciation to the Chair of the Audit Operations Committee of the Board of Auditors, Mr. Richard Bellin, for introducing the report of the Board for the 12-month period from 1 July 2024 to 30 June 2025, to the Controller, ASG Chandru Ramanathan, and to the Chair of the Advisory Committee on Administrative and Budgetary Questions, Ms. Juliana Gaspar Ruas, for introducing their related reports.

Madam Chair,

3. The Group of 77 and China recognizes the important role played by the Board of Auditors in providing independent and professional external oversight of the Organization. We commend the quality of the Board's report and its valuable recommendations, which contribute significantly to enhancing transparency, financial discipline, accountability and operational efficiency across peacekeeping operations.

4. The Group notes with concern that the financial position of peacekeeping operations remains under pressure, with a decrease in the solvency ratio and continued liquidity risks. We note that, in 2024/25, $421 million, equivalent to 8 per cent of the budget, was not received, and that the cumulative shortfall over the past five financial periods amounted to approximately $2 billion. We further note that, as of 30 June 2025, 75 per cent of outstanding arrears were attributable to a single contributor, which are the root cause of the current peacekeeping financial position. The Group renews its call on all Member States to pay their assessed contributions in full, on time and without conditions, in accordance with the UN Charter.

5. The Group also notes with concern that working capital has decreased significantly over recent financial periods due to the large amount of arrears, reducing the capacity of missions to absorb liquidity pressures and implement mandates effectively. We consider that the continued use of temporary cash management measures cannot substitute for the timely payment of assessed contributions. The Group looks forward to engaging further on measures to protect mandate delivery, while preserving transparency, accountability and the intergovernmental oversight role of the General Assembly.

6. Regarding the implementation of recommendations, the Group takes note that all 19 new recommendations issued by the Board for the period ended 30 June 2025 are under implementation, including 14 main recommendations. We also note that, of the 73 existing recommendations from prior periods, 36 have been fully implemented, while 36 remain under implementation. While acknowledging the improvement in the rate of implementation of the Board's recommendations from the previous period as well as the important efforts undertaken by the Administration, the Group reiterates its request to the Secretariat to enhance efforts to implement endorsed recommendations in a prompt and timely manner, address root causes of recurring issues and put in place robust accountability mechanisms for unjustified delays.

Madam Chair,

8. The Group notes that the Board identified several areas requiring further improvement. On fuel management, the Group shares the concern of the Advisory Committee regarding deficiencies identified and stresses the need to enforce accountability where applicable. We expect updated information on reviews undertaken, mitigation measures adopted and progress achieved in the next reports on the peacekeeping operations concerned.

9. The Group also notes with concern the deficiencies identified in the transfer of assets and purchase orders during the liquidation of MINUSMA. We note that $82 million worth of assets were transferred to other entities, while $186 million were written off during the liquidation period. The Group supports the development of guidance on the reallocation of purchase orders in the event of mission liquidation and strengthened control over transferred assets, including the prompt initiation of insurance claims in cases of losses in transit.

10. With regard to asset valuation, the Group takes note of the finding that associated cost rates applied to property, plant and equipment and inventories had not been updated since 2021. We support the recommendation to regularly update such rates and formalize the review process, in order to ensure more accurate accounting and stronger financial management.

11. The Group further notes the recommendations related to disarmament, demobilization and reintegration, including the need for clearer definitions, improved data collection, outcome-focused monitoring and strengthened weapons and ammunition management.

Madam Chair,

13. The Group considers that against the backdrop of the UN80 Initiative and ongoing efforts to improve efficiency and accountability across the Organization, the findings of the Board should be better implemented and accompanied by strong internal controls, risk management, financial and human resources management, and transparent reporting, while not undermining the ability of peacekeeping operations to deliver their mandates safely and effectively.

14. In conclusion, Madam Chair, the Group of 77 and China assures you of its readiness to engage constructively during the informal consultations, with a view to ensuring the full and timely implementation of the Board's recommendations, strengthening financial discipline and accountability, and supporting the effective delivery of peacekeeping mandates.

I thank you.