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27-29 RABI-UL-AWAL, 1424H
28-30 MAY, 2003
Report of the Finance and Administration Committee.
On the Reports of the 31st Session of the Permanent Finance Committee and of the 23rd Session of the Finance Control Organ.
On the Budgets of the General Secretariat and Subsidiary organs for the Financial Year 2003/2004
Arrears of Contributions of Member States to the Budgets of the General Secretariat and the Subsidiary organs and the Concessions for Settlement of Contributions and Arrears
On the Requests of the Republic of Lebanon, the Hashemite Kingdom of Jordan and the Republic of Azerbaijan to reduce the percentage of their contributions
On the Reorganization of the General Secretariat to enable it to address the challenges of the New Millennium.
On the granting of encouragement bonuses to some members of the staff of the General Secretariat..
REPORT OF THE FINANCE AND ADMINISTRATION COMMITTEE OF THE 30TH SESSION OF THE ISLAMIC CONFERENCE OF FOREIGHN MINISTERS
(SESSION OF UNITY AND DIGNITY)
The Administrative and Financial Affairs Committee for the 30th Session of the Islamic Conference of Foreign Ministers held in Tehran, Islamic Republic of Iran from 27 to 29 Rabie Al-Awal 1424H (28-30 May 2003), convened to examine the items on the agenda related to administrative and financial affairs, submitted to it by the Conference.
1. At the beginning of its proceedings, the Committee established its Bureau from the States which are members of the Bureau of the Plenary Session.
2. The deliberations of the Committee were presided over by Mr. Mohsen Esperi, Director of the UN Specialized Agencies Department, Ministry of Foreign Affairs of the Islamic Republic of Iran.
3. Representatives of the Member States, the General Secretariat and the Subsidiary organs took part in the meeting.
4. The Chairman opened the deliberations with an address in which he welcomed the delegates of the Member States and the representatives of the General Secretariat, and wished them a pleasant stay in Teheran, asking the delegations assistance and cooperation to facilitate the Committee’s task.
5. The Committee began with the examination of the items of the agenda referred to it and agreed to submit the Draft Resolutions it adopted to the Plenary Meeting for approval. These are:
a) Resolution No. 1/30-AF on the Report of the 31st Session of the Permanent Finance Committee and the Twenty-third Session of the Finance Control Organ.
b) Resolution No. 2/30-AF on the Budgets of the General Secretariat and subsidiary organs for the Financial Year 2003/2004.
c) Resolution No. 3/30-AF on Member States’ contribution arrears to the budgets of the General Secretariat and the Subsidiary organs and on the offering of incentives for payment of contributions and arrears.
d) Resolution No. 4/30-AF on the Requests of the Republic of Lebanon, the Hashemite Kingdom of Jordan and the Republic of Azerbaijan to reduce the percentage of their contributions.
e) Resolution No.5/30-AF on the Reorganization of the General Secretariat to enable it to address the challenges of the New Millennium.
f) Resolution No. 6/30-AF on the Granting of Encouragement Bonuses to some staff of the General Secretariat.
6. At the end of its deliberations, the Committee expressed its appreciation and thanks to the Government of the Islamic Republic of Iran for its generous hospitality and for the excellent arrangements made to ensure the success of the Conference.
7. The Committee expressed its profound thanks to its Chairman for the skill and wisdom with which he conducted the deliberations, factors which had an obvious impact on the success of the activities.
8. The Committee conveyed its thanks to the General Secretariat for the clarifications and explanations it has provided and for the efforts it has made contributing thereby to the success of the meeting.
Mohsen Esperi
Chairman of the Finance and Administrative Committee
ON THE REPORTS OF THE 31st SESSION OF THE PERMANENT FINANCE AND ADMINISTRATIVE COMMITTEE OF THE 23RD SESSION OF THE FINANCE CONTROL ORGAN
The 30th Session of the Islamic Conference of Foreign Ministers (Session of Unity and Dignity), held in Tehran, Islamic Republic of Iran from 27 to 29 Rabie Al-Awal , 1424H (28-30 May, 2003),
Having taken note of the report of the 31st Session of the Permanent Finance Committee and the report of the 23rd Session of the Finance Control Organ on the closing accounts of the General Secretariat and its subsidiary organs for the fiscal year 2001/2002, and having examined the replies of the General Secretariat and subsidiary organs to the observations registered in this connection;
1. Invites the General Secretariat to abide by the observations contained in the report of the 23rd Session of the FCO adopted by the 31st Session of the Permanent Finance Committee regarding : the follow-up of the deposit at the liquidated Al-Ajhory Co., the inclusion of the contribution of Malaysia in the account of the year 2001/2002, non-transference of any amount from the item of symposia in chapter 4 of the General Secretariat budget to the symposia account, if the symposium is not held in the same financial year, the rationalization of medical expenses, the non-disbursement in cash of staff overtime dues, and the complete numbering of documents (without abridgement).
2. Accepts the clarifications of the General Secretariat concerning the FCO observations with regard to the cash refund of the value of the air tickets of the Director of the New York Office, the costs of the repairs of the car of the Islamabad Office.
3. Invites the General Secretariat to continue renting office equipment for the NY Office for an additional year while preparing a study on the feasibility of renting or purchasing such equipment, for presentation to the 32nd PFC Session.
4. Invites also the subsidiary organs to comply with the FCO observations contained in its 23rd report.
5. Invites the General Secretariat to refer the FCO observations relating to the Islamic Solidarity and Al-Quds Funds to the Councils of these Funds through H.E the Secretary General.
ON THE BUDGETS OF THE GENERAL SECRETARIAT AND SUBSIDIARY ORGANS FOR THE FINANCIAL YEAR 2003/2004
The 30th Session of the Islamic Conference of Foreign Ministers (Session of Unity and Dignity), held in Tehran, Islamic Republic of Iran from 27 to 29 Rabie Al-Awal , 1424H (28-30 May, 2003),
Having considered the budget proposals submitted by the General Secretariat and its subsidiary organs for the Financial Year 2003/2004,
Pursuant to the recommendations of the 31st Session of the Permanent Finance Committee on the budgets of the General Secretariat and the subsidiary organs for the Financial Year 2003/2004;
Decides:
First: To adopt the budget of the General Secretariat and its subsidiary organs for the financial year 2003/2004 with the same budget ceiling as last year (2002-2003), in accordance with the financial statute, rules and regulations, and as follows:
i) OIC General Secretariat - $11,372,000
Code |
Chapter |
US Dollars |
|
1000 |
Staff Emoluments |
8,628,000 |
|
2000 |
Recurrent Expenses |
1,472,000 |
|
3000 |
Acquisition and Renewal of Assets |
50,000 |
|
4000 |
Programmes of Activities |
1,222,000 |
|
|
Total |
11,372,000 |
ii) Islamic Fiqh Academy, Jeddah - US$1,650,000
Code |
Chapter |
US dollars |
|
1000 |
Staff Emoluments |
1,115,000 |
|
2000 |
Current Expenses |
200,000 |
|
3000 |
Studies, Research and Investigations |
250,000 |
|
4000 |
Acquisition and Renewal of Assets |
35,000 |
|
5000 |
Expenses of Meetings of the Committees of the Departments and the Bureau |
25,000 |
|
6000 |
Expenses for Meeting of Annual Session. |
25,000 |
|
|
Total |
1,650,000 |
iii) Statistical, Economic and Social Research and Training Centre for Islamic Countries, Ankara - $2,000,000
Code |
Chapter |
US dollars |
|
1000 |
Staff Emoluments |
1,225,000 |
|
2000 |
Current Expenses |
272,890 |
|
3000 |
Acquisition and Renewal of Assets |
83,900 |
|
4000 |
Conferences and Meetings |
160,000 |
|
5000 |
Programme of Activities |
259,000 |
|
|
Total |
2,000,000 |
iv) Islamic University of Technology Dhaka- $ 2,200,000
Code |
Chapter |
US dollars |
|
1000 |
Salaries and Emoluments |
1,275,000 |
|
2000 |
Current Expenses |
245,000 |
|
3000 |
Scholarships |
545,000 |
|
4000 |
Official Conferences and Meetings |
50,000 |
|
5000 |
Acquisition and Renewal of Assets |
85,000 |
|
|
Total |
2,200,000 |
v. Research Centre for Islamic History, Art and Culture, Istanbul - $ 2,230,000
Code |
Chapter |
US dollars |
|
1000 |
Salaries and Emoluments |
1,290,000 |
|
2000 |
Current Expenses |
191,000 |
|
3000 |
Acquisition and Renewal of Assets |
122,000 |
|
4000 |
Conferences and Meetings |
118,000 |
|
5000 |
Programme of Activities |
509,000 |
|
|
Total |
2,230,000 |
vi. Islamic Centre for Development of Trade, Casablanca. $1,172,214
Code |
Chapter |
US dollars |
|
1000 |
Salaries and Emoluments |
315,000 |
|
2000 |
Current Expenses |
170,000 |
|
3000 |
Acquisition and Renewal of Assets |
100,000 |
|
4000 |
Conferences and Meetings |
90,900 |
|
5000 |
Programme of Activities |
496,314 |
|
|
Total |
1,172,214 |
2. Authorizes the OIC Secretary General to make transfers, as the need be, from one chapter to another of the budget of the General Secretariat for the Financial Year 2003/2004, in accordance with Article 40 of the OIC Financial Regulations.
3. Urges the Member States to pay their mandatory contributions to the budgets of the General Secretariat and the subsidiary organs for the financial year 2003/2004 as well as their arrears of contribution to enable these Organs to carry out their tasks.
ON MEMBER STATES' ARREARS OF CONTRIBUTIONS TO THE BUDGETS OF THE GENERAL SECRETARIAT AND THE SUBSIDIARY ORGANS AND THE CONCESSIONS FOR THE SETTLEMENT OF CONTRIBUTIONS AND ARREARS
The 30th Session of the Islamic Conference of Foreign Ministers (Session of Unity and Dignity), held in Tehran, Islamic Republic of Iran from 27 to 29 Rabie Al-Awal , 1424H (28-30 May, 2003),
Aware of the importance of the role played by the OIC through its General Secretariat and Subsidiary organs at the Islamic and international levels for the promotion of solidarity and cooperation among Member States and defending the causes of the Ummah,
Referring to Resolution no. 1/6-AF adopted by the 6th Islamic Summit Conference held in Dakar, Republic of Senegal from 3 to 5 Hamada Al-Thani 1412H ( 9-11 December 1991) on the accumulation of arrears,
Referring to Resolution No. 3/21-AF adopted by the 21st ICFM held in Karachi, Islamic Republic of Pakistan from 4 to 8 Dhul Qa’da 1413H (25-29 April 1993) on the financial position of the OIC and the problem of accumulated arrears of Member States’ mandatory contributions;
Referring further to Resolutions no. 1/7 and 2/7-AF adopted by the 7th Islamic Summit Conference held in Casablanca, Kingdom of Morocco from 11 to 13 Rajab 1415H (13-15 December 1994), on the implementation of sanctions against Member States failing to settle their contributions and the problem of the accumulation of arrears,
Referring to resolution no. 2/25-AF adopted by the 25th Session of the ICFM held in Doha, State of Qatar from 17 to 19 Zil-Qaida 1418H (15-17 March 1998),
Referring to Resolution no. 6/27-AF on the OIC financial situation and the implementation of measures against Member States failing to settle their arrears and contributions, passed by the 27th ICFM session held in Kuala Lumpur, Malaysia from 24 to 27 Rabie Al-Awal 1421H (27-30 June 2000),
Referring to Resolution no. 1/9-AF of the 9th session of the Islamic Summit Conference held in Doha( State of Qatar) on 16-17 Shaba'n, 1421H (12-13 November 2000, on the financial situation of the OIC and the subsidiary organs and the problem of the accumulated arrears of mandatory contributions.
Referring to resolution no. 5/28-AF adopted by the 28th Session of the ICFM held in Bamako, Republic of Mali from 4 to 6 Rabie Al-Thani 1422H (25-27 June 2001),
Noting that the accumulated arrears relating to the General Secretariat and the subsidiary organs, amounted as on 22 May 2003 to $ 40.688.933 and $ 80 million respectively, making it impossible to carry out many activities.
Expressing deep concern over the financial problems facing the General Secretariat and the subsidiary organs in view of the delay, or non-payment of contributions by many Member States.
Stressing the need for providing the OIC and its subsidiary organs with the means with which they may fulfill their tasks in the service of the joint Islamic action.
Taking note of the report of the PFC 31st session held from 20 to 23, Muharram 1424H (23-26 March 2003) on the adoption of measures which would ensure the settlement of arrears and the regular payment of mandatory contributions by Member States, decides the following:
1- To urge Member States to settle their contributions on time in order to enable the OIC to carry out and the responsibilities entrusted to it by the FMs and Summits Conferences.
2. To invite the OIC Secretary General to contact as appropriate the Heads of State and Government as well as Foreign Ministers of Member States with a view to securing prompt payments of their contributions and arrears.
3. Highlights the need to provide a set of incentives for the settlement of arrears of Member States through:
- The possibility of waiving up to 50% of arrears of the concerned Member States provided that the concerned Member States would pay their contributions promptly for two consecutive years as of the year 2003-2004 and continue to do so for the subsequent years. If prompt payment for the following years is continued, a further 25% waiver would be considered. The concerned Member States would also enjoy preferential treatment in securing loans, grants and assistance from OIC subsidiary and specialized organs.
- Member States that fail to take into account the aforementioned scheme shall be subject to measures adopted in this connection in Resolution 3/21-AF, of the 21st Session of the ICFM held in Karachi, and shall be denied the privileges of borrowing or receiving assistance from OIC subsidiary and specialized organs until such arrears have been settled.
This resolution shall be valid for four years starting from 1/7/2003 (budget 2003/2004)
This resolution applies to the requests of the Republic of Lebanon to exempt it from the arrears of its contributions to the budget of the Islamic University of Technology prior to 2001/2002 and for all its arrears relevant to budgets prior to that of 2002-03 to be written off as well, as to benefiting from the incentive discount referred to in Para 3 above.
Requests the Secretary General to present a progress report on the implementation of this resolution to the 31st ICFM.
ON THE REQUESTS OF THE REPUBLIC OF LEBANON, THE HASHEMITE KINGDOM OF JORDAN AND THE REPUBLIC OF AZERBAIJAN TO REDUCE THE PERCENTAGE OF THEIR CONTRIBUTIONS
The 30th Session of the Islamic Conference of Foreign Ministers (Session of Unity and Dignity), held in Tehran, Islamic Republic of Iran from 27 to 29 Rabie Al-Awal , 1424H (28-30 May, 2003),
Taking note of the report of the 31st Session of the PFC held in Jeddah from 20 to 23 Muharram 1424H (23-26 March 2003), on the requests of the Republic of Lebanon to reduce the percentage of its contribution from 1.5% to 1%, and Azerbaijan from 1% to 0.5% ;
Also taking note of the request of the Hashemite Kingdom of Jordan presented during the meeting of the Administrative and Financial Committee of the Conference on the reduction of the percentage of its contribution from 1.5% to 1%;
Decides:
To consider the above requests as part of the consideration of the scale of assessment of all Member States as it is not possible to consider such requests on individual basis.
ON THE REORGANIZATION OF THE GENERAL SECRETARIAT TO ENABLE IT TO ADDRESS THE CHALLENGES OF THE NEW MILLENNIUM
The 30th Session of the Islamic Conference of Foreign Ministers (Session of Unity and Dignity), held in Tehran, Islamic Republic of Iran from 27 to 29 Rabie Al-Awal , 1424H (28-30 May, 2003),
Recalling Resolution No. 5/27-ORG of the Twenty-Seventh Session of the ICFM held in Kuala Lumpur, Malaysia, from 27-30 June, 2000, and Resolution No. 2/9-AF (IS) of the Ninth Islamic Summit held in Doha, State of Qatar from 12-13 November, 2000, and resolution No. 3/29-AF of the Twenty-ninth Session of the Islamic Conference of Foreign Ministers, held in Khartoum, Republic of the Sudan from 25 to 27 June 2002;
Taking note of the Secretary General’s report on the reorganization of the General Secretariat;
1. Welcomes the report submitted by the Secretary General on the steps taken to prepare the Final Study on restructuring the General Secretariat, particularly on the choice of (Accenture) organization to prepare this study.
2. Calls for an open-ended meeting of Inter-governmental Experts as soon as possible to consider this study, and to present after its finalization to the Tenth Islamic Summit Conference to be held in Kuala Lumpur, Malaysia, for consideration and decision.
3. Invites the Secretary General to submit a report thereon to the Thirty-first Session of the Islamic Conference of Foreign Ministers.
ON THE GRANTING OF ENCOURAGEMENT BONUS TO SOME STAFF OF THE GENERAL SECRETARIAT
The 30th Session of the Islamic Conference of Foreign Ministers (Session of Unity and Dignity), held in Tehran, Islamic Republic of Iran from 27 to 29 Rabie Al-Awal , 1424H (28-30 May, 2003),
Having considered the report of the 31st Session of the Permanent Finance Committee of the Organization of the Islamic Conference, held in Jeddah from 20-23 Muharram 1424H (23-26 March 2003) (Report No.PFC/31-2003/REP/FINAL).
Considering the need to enlarge the number of beneficiaries from the encouragement bonus and to induce them to be dedicated in their services to the General Secretariat;
Decides to amend article 46 of the Statute to read as follows:
“The Secretary General may grant, once a year, encouragement bonus of up to 2 months basic salary or exceptional scale increment to staff in the principal and professional categories who have rendered services to the Organization, and have done outstanding work or valuable research or submitted practical proposals leading to improvement of work procedures, to efficiency or rationalization of the Organization’s expenses, provided that the numbers of recipients do not exceed 10% of the total number of staff in the two categories within the limits of the amount adopted in the budget”.