UN reform of budget rule is not a fix: controller

UNITED NATIONS, July 2 — The UN General Assembly’s decision to change a bizarre rule on unspent budget funds is short of a fix, said the UN controller on Wednesday.

“It prevents a (plane) crash or prevents a (boat) sinking. It does not do away with all the problems,” said Chandramouli Ramanathan, the controller.

The General Assembly on Tuesday decided to change, for a four-year trial period, a 75-year-old rule that requires the United Nations to return unspent budget funds as credits, at the end of each budget period, to member states, including those in arrears. In practice, the world body had to return funds that it had not received in the first place.

Ramanathan, who is also UN assistant secretary-general for programme planning, finance and budget, said the General Assembly decision allows the United Nations to return unspent funds to member states only when they are backed by cash.