WORLD HEALTH ORGANIZATION FIFTY-FIFTH WORLD HEALTH ASSEMBLY Provisional agenda item 15.2 A55/26 10 May 2002
Status of collection of assessed contributions, including Members in arrears to an extent which would justify invoking Article 7 of the Constitution Second report of the Administration, Budget and Finance Committee of the Executive Board to the Fifty-fifth World Health Assembly
INTRODUCTION 1. The Administration, Budget and Finance Committee met on 10 May 2002 under the chairmanship of Dr K. Karam (Lebanon) to consider, inter alia, the status of collection of assessed contributions including Members in arrears to an extent which would justify invoking Article 7 of the Constitution (see Annex 1). 2. The Committee noted that the rate of collection of assessed contributions was 33% at 30 April 2002, compared with 52% at 30 April 2001. 3. The Committee also noted with much appreciation that since the preparation of the document contained in Annex 1, 10 additional Members had paid their assessed contributions for 2002 in full (Botswana, China, Jamaica, Kenya, Lebanon, Maldives, Mauritius, Nicaragua, Slovenia and Turkey). As a result, 64 Members had now paid in full their contributions for 2002. A further seven Members had partially paid their assessed contributions for 2002 (Brunei Darussalam, Chile, Cuba, Ecuador, Germany, India and Russian Federation), and as a result a total of 32 Members had made partial payment for 2002. The total number of Members that had not yet made any payments for 2002 was thus reduced to 97. 4. Following the receipt of a further US$ 1.4 million in respect of prior year contributions, the total due for prior years had been reduced to US$ 126 million, compared to US$ 117 million at 30 April 2001. 5. The Committee noted that the voting privileges of 23 Members (Afghanistan, Antigua and Barbuda, Armenia, Azerbaijan, Bosnia and Herzegovina, Central African Republic, Chad, Comoros, Dominican Republic, Georgia, Guinea-Bissau, Iraq, Kazakhstan, Kyrgyzstan, Liberia, Nauru, Niger, Nigeria, Republic of Moldova, Somalia, Tajikistan, Turkmenistan and Ukraine) remained suspended, and that suspension would continue at the Fifty-fifth and subsequent Health Assemblies until the arrears had been reduced to a level below the amount which would justify invoking Article 7 of the Constitution.
A55/26
6. The Committee also noted that no payments had been received from Belarus, Djibouti, Democratic Republic of Congo, Guinea, Suriname and Togo, and that unless payment was received before the opening of the Fifty-fifth World Health Assembly, voting privileges of Belarus, Djibouti, Democratic Republic of Congo, Guinea, Suriname and Togo would be suspended as from the aforesaid opening, in accordance with resolution WHA54.5. The Committee also noted that should a payment of US$ 345 100 be received from Belarus before the opening of the Fifty-fifth World Health Assembly, it would ensure retention of the voting privileges of Belarus. 7. Pursuant to resolution WHA41.7, unless there were exceptional circumstances justifying a different measure, the Fifty-fifth World Health Assembly would adopt a resolution under which the voting rights of Argentina, Gabon, Paraguay and Solomon Islands would be suspended as from the opening of the Fifty-sixth World Health Assembly. As a result of payments made by Peru and Uruguay in May 2002, the Committee noted that those countries would no longer be included under such a resolution. 8. Examining the requests of Azerbaijan, the Dominican Republic and Somalia for special arrangements, the Committee noted that there were no set limits for either the maximum or minimum number of years of a payment plan, but that different payment periods had been approved in the past. Any recommendations made by the Committee would be considered by the Health Assembly, which would decide whether to approve any proposals. 9. The Committee observed that the three requests fell into two categories: the Dominican Republic and Azerbaijan were requesting a rescheduling of arrears over a number of years, in return for a restoration of voting privileges, whereas Somalia was requesting that its prior arrears be written off. The latter case would therefore result in an immediate financial impact on the Organization, given that the arrears would no longer be considered payable. 10. The Committee concluded that it would recommend adoption of the proposals put forward by Azerbaijan and the Dominican Republic. 11. The Committee felt that it could not recommend that the request of Somalia to waive the arrears should be accepted, as that would set an undesirable precedent. It noted that Somalia had encountered serious economic difficulties, and recognized that the total amount owed was not very large compared to the amount owed by some other Member States. However, the Committee pointed out that there were numerous other examples of Member States in difficult circumstances. Establishing such a precedent would not be fair to those Member States which had been making strenuous efforts to pay their contributions, and might induce other Members in arrears to make similar requests for a writeoff, which could prove to be very damaging to the finances of the Organization. The Health Assembly had seldom adopted a resolution which resulted in a Member State being exonerated from payment for certain years, and had, in each case, followed a precedent established earlier by the United Nations. 12. Recalling the provision of resolution WHA54.6, Special arrangements for settlement of arrears, the Committee concluded that Somalia should be urged to make a request for rescheduling of its arrears, which could be considered at a future Health Assembly.
RECOMMENDATION TO THE HEALTH ASSEMBLY 13. The Committee recommended the following resolutions for consideration by the Fifty-fifth World Health Assembly:
2
A55/26
The Fifty-fifth World Health Assembly, Having considered the second report of the Administration, Budget and Finance Committee of the Executive Board to the Fifty-fifth World Health Assembly on Members in arrears in the payment of their contributions to an extent which would justify invoking Article 7 of the Constitution;1 Noting that, at the time of opening of the Fifty-fifth World Health Assembly, the voting rights of Afghanistan, Antigua and Barbuda, Armenia, Azerbaijan, Bosnia and Herzegovina, Central African Republic, Chad, Comoros, Dominican Republic, Georgia, Guinea-Bissau, Iraq, Kazakhstan, Kyrgyzstan, Liberia, Nauru, Niger, Nigeria, Republic of Moldova, Somalia, Tajikistan, Turkmenistan and Ukraine remained suspended, such suspension to continue until the arrears of the Member State concerned have been reduced, at the present or future Health Assemblies, to a level below the amount which would justify invoking Article 7 of the Constitution; Noting that, in accordance with resolution WHA54.5, the voting privileges of Belarus, Djibouti, Democratic Republic of Congo, Guinea, Suriname and Togo have been suspended as from 13 May 2002 at the opening of the Health Assembly, such suspension to continue until the arrears have been reduced to a level below the amount which would justify invoking Article 7 of the Constitution; Noting that Argentina, Gabon, Paraguay and Solomon Islands were in arrears at the time of the opening of the Fifty-fifth World Health Assembly to such an extent that it was necessary for the Health Assembly to consider, in accordance with Article 7 of the Constitution, whether or not the voting privileges of these countries should be suspended at the opening of the Fiftysixth World Health Assembly, DECIDES: (1) that in accordance with the statement of principles in resolution WHA41.7 if, by the time of the opening of the Fifty-sixth World Health Assembly, Argentina, Gabon, Paraguay and Solomon Islands are still in arrears in the payment of their contributions to an extent which would justify invoking Article 7 of the Constitution, their voting privileges shall be suspended as from the said opening; (2) that any suspension which takes effect as aforesaid shall continue at the Fifty-sixth and subsequent Health Assemblies, until the arrears of Argentina, Gabon, Paraguay and Solomon Islands have been reduced to a level below the amount which would justify invoking Article 7 of the Constitution; (3) that this decision shall be without prejudice to the right of any Member to request restoration of its voting privileges in accordance with Article 7 of the Constitution. 14. In respect of the proposals received from Azerbaijan and the Dominican Republic the Committee further recommended adoption of the draft resolutions contained in Annexes 2 and 3 respectively.
1
Document A55/26.
3
A55/26
15. Recalling the provisions of resolution WHA54.6, Special arrangements for settlement of arrears, the Committee recommended that the request from Somalia for the write-off of its arrears should not be accepted, but that Somalia should be encouraged to make a proposal for a special arrangement to be considered at a future Health Assembly.
4
ANNEX 1
WORLD HEALTH ORGANIZATION ADMINISTRATION, BUDGET AND FINANCE COMMITTEE OF THE EXECUTIVE BOARD Seventeenth meeting Provisional agenda item 3 EBABFC17/2 24 April 2002
Status of collection of assessed contributions, including Members in arrears to an extent which would justify invoking Article 7 of the Constitution Report by the Secretariat
1. In order that WHO may deliver the approved programme budget in full, contributions from Member States must be received in full and on time. All Member States are required under Financial Regulation 6.4 to pay their contribution as of 1 January of the year in which they are due. Low annual rates of collection have been of serious concern to successive Executive Boards and Health Assemblies. 2. The rate of collection at end 2001 was 87%, the same as at 31 December 2000. Contributions in full had been received from 122 of the 193 Members and Associate Members. The rate of collection for 2002 was 26% as at 31 March, compared with slightly less than 23% at 31 March 2001. Annex 1 shows the status of collection as of 31 March 2002 for all Members and Associate Members. The modest improvement in the amount collected is welcome, but attention is nevertheless drawn to the fact that 108 Members had not paid any part of their contributions as at 31 March 2002. This compares unfavourably with the situation as at 31 March 2001, when 76 Members had not paid any part of their contributions. 3. Unpaid contributions as at 31 March 2002 amounted to US$ 421 million, with a further US$ 5.5 million due under special arrangements authorized by the Health Assembly, but which may be paid in the future, under instalment schemes (see Annex 1, Sections 2 and 3). The unpaid amount of US$ 421 million, comprises US$ 294 million relating to 2002, and US$ 127 million due for prior years. In comparison, at 31 March 2001 unpaid contributions were US$ 447 million, of which US$ 122 million was for prior years and a further US$ 6.6 million was due under special arrangements. 4. Article 7 of the Constitution states that “If a Member fails to meet its financial obligations to the Organization … the Health Assembly may … suspend the voting privileges to which a Member is entitled”. If at the time of the opening of the Health Assembly, a Member is in arrears in an amount which equals or exceeds the amount of contributions due from it for the preceding two full years, the Health Assembly takes a decision on suspension of the Member’s voting privileges in accordance with resolution WHA41.7.
EBABFC17/2
5. In accordance with previous Health Assembly resolutions, the voting privileges of the 23 Member States, as listed in Annex 2, have been suspended (Afghanistan, Antigua and Barbuda, Armenia, Azerbaijan, Bosnia and Herzegovina, Central African Republic, Chad, Comoros, Dominican Republic, Georgia, Guinea-Bissau, Iraq, Kazakhstan, Kyrgyzstan, Liberia, Nauru, Niger, Nigeria, Republic of Moldova, Somalia, Tajikistan, Turkmenistan and Ukraine). The suspension is to continue at the Fifty-fifth and subsequent Health Assemblies until the arrears have been reduced to a level below the amount which would justify invoking Article 7 of the Constitution. 6. Pursuant to adoption of resolution WHA54.5 by the Fifty-fourth World Health Assembly, the voting privileges of Belarus, Djibouti, Democratic Republic of Congo, Guinea, Suriname and Togo will be suspended as from the opening of the Fifty-fifth World Health Assembly on 13 May 2002 if at that time these Members are still in arrears in the payment of their contributions to an extent which would justify invoking Article 7 of the Constitution. 7. Six other Members (Argentina, Gabon, Paraguay, Peru, Solomon Islands and Uruguay) are in arrears in the payment of their contributions in amounts which equal or exceed the amounts due from them for the preceding two full years, as listed in Annex 2. 8. Pursuant to resolution WHA41.7, unless there are exceptional circumstances justifying a different measure, the Fifty-fifth World Health Assembly may wish to adopt a resolution under which the voting privileges of these Members will be suspended as from the opening day of the Fifty-sixth World Health Assembly in May 2003, if at that time the Members concerned are still in arrears to the extent referred to in paragraph 7 above.
REQUESTS FOR SPECIAL ARRANGEMENTS IN RESPECT OF ARREARS 9. Of the countries listed in Annex 2, proposals have been submitted with respect to three Members, Azerbaijan, Dominican Republic and Somalia, concerning their arrears owed to WHO. These proposals are described below. 10. Azerbaijan. The total amount owed by Azerbaijan as at 1 January 2002 was US$ 4 294 273. The full text of the request from Azerbaijan is attached as Annex 3. The request outlines the reasons for the financial difficulties encountered by Azerbaijan in the past which resulted in the Member being unable to make its payments to WHO. Azerbaijan proposes to pay the amount owing over a period of 10 years and undertakes, in accordance with the provisions of resolution WHA54.6, to make a minimum payment of US$ 100 000 each year, in return for restoration of its voting privileges. As a gesture of its good intentions, Azerbaijan has paid US$ 100 000 in March 2002. Azerbaijan also requests the Health Assembly to consider a reduction of its total arrears due in respect of prior years. 11. Dominican Republic. The total amount owed by the Dominican Republic as at 31 March 2002 was US$ 1 025 359 representing US$ 957 988 arrears due in prior years and US$ 67 371 due for 2002. The Member submitted a request to reschedule its arrears in May 2001, which was received too late for consideration by the Fifty-fourth World Health Assembly. This request is attached as Annex 4. The Dominican Republic proposes to pay its arrears over a period of 10 years at the rate of US$ 89 492 per year, based upon an assumption that the level of assessment will remain the same as that of 2001. The Dominican Republic has advised the Director-General that it expects to meet these financial commitments should this proposal be accepted.
2
EBABFC17/2
12. Somalia. The Regional Committee for the Eastern Mediterranean at its 48th session requested by resolution EM/RC48/R.11 that the commitment undertaken by Somalia during that session to pay all its assessed contributions in time be brought to the attention of the Executive Board, and that consideration should be given to waiving the arrears owed by Somalia up to 13 August 2000, when a Transitional National Government was established. The total amount owed by Somalia up to 31 December 2000 is US$ 379 023; further amounts of US$ 4200 and US$ 4211 are due for 2001 and 2002, respectively.
ACTION BY THE ADMINISTRATION, BUDGET AND FINANCE COMMITTEE 13. No action is required by the Committee in respect of those Members whose voting privileges have already been suspended under previous Health Assembly resolutions, or of those Members which may lose their voting privileges as from 13 May 2002 under resolution WHA54.5 (if by that time these Members are still in arrears in the payment of their contributions to an extent which justifies invoking Article 7 of the Constitution). 14. The Committee may wish to draft a resolution in accordance with the principles stated in resolution WHA41.7, for consideration by the Fifty-fifth World Health Assembly in respect of Argentina, Gabon, Paraguay, Peru, Solomon Islands and Uruguay. 15. The Committee is invited to comment on the proposals made by Azerbaijan and the Dominican Republic and to make recommendations to the Fifty-fifth World Health Assembly as to whether these proposals may be accepted, in which case the voting privileges of these Members would be restored. 16. The Committee is invited to consider the proposal submitted in respect of Somalia by the Regional Committee for the Eastern Mediterranean and make recommendations to the Fifty-fifth World Health Assembly.
3
A55/26
ANNEX 2 ARREARS IN PAYMENT OF CONTRIBUTIONS: AZERBAIJAN Draft resolution The Fifty-fifth World Health Assembly, Having considered the second report of the Administration, Budget and Finance Committee of the Executive Board on Members in arrears in the payment of their contributions to an extent which would justify invoking Article 7 of the Constitution, with respect to the request of Azerbaijan for the settlement of its outstanding contributions, and the terms of that proposal as set forth in the report of the Director-General to the Administration, Budget and Finance Committee,1 1. DECIDES to restore the voting privileges of Azerbaijan at the Fifty-fifth World Health Assembly; 2. ACCEPTS that Azerbaijan should pay its outstanding contributions, totalling US$ 4 194 273, in 10 annual instalments (with a minimum payment of US$ 100 000 per year) payable in each of the years 2002 to 2011, subject to the provisions of Financial Regulation 6.4, in addition to the annual contributions due during the period; 3. DECIDES that, in accordance with Article 7 of the Constitution, voting privileges will be automatically suspended again if Azerbaijan does not meet the requirements laid down in paragraph 2 above; 4. REQUESTS the Director-General to report to the Fifty-sixth World Health Assembly on the prevailing situation; 5. REQUESTS the Director-General to communicate this resolution to the Government of Azerbaijan.
1
Annex 3 of document EBABFC17/2, contained in document A55/26, Annex 1.
1
A55/26
ANNEX 3 ARREARS IN PAYMENT OF CONTRIBUTIONS: THE DOMINICAN REPUBLIC Draft resolution The Fifty-fifth World Health Assembly, Having considered the second report of the Administration, Budget and Finance Committee of the Executive Board on Members in arrears in the payment of their contributions to an extent which would justify invoking Article 7 of the Constitution, with respect to the request of the Dominican Republic for the settlement of its outstanding contributions, and the terms of that proposal as set forth in the report of the Director-General to the Administration, Budget and Finance Committee,1 1. DECIDES to restore the voting privileges of the Dominican Republic at the Fifty-fifth World Health Assembly; 2. ACCEPTS that the Dominican Republic should settle its outstanding contributions for the period 1993-2001, totalling US$ 957 988, in 10 annual instalments as follows: US$ 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total 95 788 95 800 95 800 95 800 95 800 95 800 95 800 95 800 95 800 95 800 957 988
payable in each of the years 2002 to 2011, subject to the provisions of Financial Regulation 6.4, in addition to the annual contributions due during the period; 3. DECIDES that, in accordance with Article 7 of the Constitution, voting privileges will automatically remain suspended if the Dominican Republic does not meet the requirements laid down in paragraph 2 above; 1
Annex 4 of document EBABFC17/2, contained in document A55/26, Annex 1.
1
A55/26
Annex 3
4. REQUESTS the Director-General to report to the Fifty-sixth World Health Assembly on the prevailing situation; 5. REQUESTS the Director-General to communicate this resolution to the Government of the Dominican Republic.
=
=
=
2