GENEVA, Nov 10 (KUNA) -- Board Chairman of Public Authority for Assessment of Compensation for damages resulting from the Iraqi aggression (PAAC) of Kuwait, Khaled Ahmad Al Mudhaf said Tuesday the Government of Kuwait notes that pursuant to Security Council Resolution 1859 of 2008, the mandate of the International Advisory and Monitoring Board (IAMB) is scheduled to expire in December 2009.
Al Mudhaf, also Secretary General of Kuwait National Focal Point, further said that the Iraq Committee of Financial Experts will take over as the successor body to oversee Iraqi oil exports.
He added, in his address at the opening of the United Nations Compensation Commission (UNCC) 68 governing council session, that the State of Kuwait requests the Governing Council to take necessary steps to ensure that the current arrangement for payments into the Compensation Fund of the five per cent deducted from Iraqi oil sales continues uninterrupted especially after the Iraq Committee of Financial Experts replaces IAMB.
"Kuwait National Focal Point has already made major advancements in its planning phase since the revision of the structure of the management of the environmental remediation program.
The Kuwait Environmental Rehabilitation Program (KERP) is managed by a group of local experts, supported by national research and academic institutions as well as international experts," he said.
Al Mudhaf noted that this Management Team has been engaged in the process of planning and supervision of the program.
"The administrative plan of the environmental program and the technical work plan for KERP elaborated the fundamentals utilized in its development and the role of the advisors selected from among individuals and governmental institutions.
The plan also explained the role of the entities that will be in charge of verifying the efficiency and the financial auditing of the Program as well as the role of the Independent Reviewers," he said.
Al Mudhaf noted that the Kuwait NFP has updated its Phasing Plan which was submitted to the Independent Reviewers for review and recommendation to your Honorable Council.
"In August 2009, Kuwait NFP convened a meeting in Geneva with the Independent Reviewers and representatives of the UNCC Secretariat. At that meeting, the Kuwait NFP technical team reported on the progress made in relation to Kuwait's environmental remediation projects and the Independent Reviewers made important recommendations, which Kuwait KNFP has incorporated in its September 2009 Report provided to your Council at this session," he said.
Al Mudhaf said that at the present session, the Governing Council will also address the issue of the options for the future of the Program and whether there is a need for a new arrangement outside the UNCC to follow-up the implementation of the environmental remediation program.
"The Government of Kuwait notes that the Governing Council is still responsible for two essential issues. First, to ensure the implementation of the environmental remediation program of claimant countries, pursuant to Guidelines annexed to Decision 258; and Second, the payment of the outstanding awards to Kuwait amounting to 24 Billion US dollars," he said.
-- PAAC Chairman and Secretary General of KNFP said that Kuwait reaffirms the importance of the continuity of the functions of the UNCC and for the Governing Council to accomplish its mandate pursuant to Security Council Resolutions and Governing Council Decisions.
"Kuwait understands that the environmental remediation programme was not envisioned at the time of the establishment of the UNCC but the Governing Council, upon the request of Iraq, and in agreement with Iran, Jordan, Kuwait and Saudi Arabia, established in 2005 Decision 258 and its Guidelines that include the procedures for the supervision, as well as the financial and technical follow-up of the implementation of the environmental remediation projects," he added.
Al Mudhaf said that Kuwait's environmental remediation program is now moving forward from a solid footing with the assistance of the Secretariat and Independent Reviewers and with positive momentum that could be disrupted by a change at this time in the way the Program is administered.
"As conveyed to the Executive Head, Kuwait continues to be committed to the idea of negotiations with Iraq under the auspices of the UNCC to discuss its remaining outstanding award amounting to 24 Billion US dollars.
In that regard, the State of Kuwait stresses the importance of the continuity of payment of awards pursuant to Security Council Resolutions and to the UNCC Governing Council decisions," he said.
PAAC Chairman and KNFP Secretary General said that Kuwait stresses the importance of the continuation of payment of administrative expenses pursuant to Decision 18 which allows governments to deduct from compensation awards up to 3 per cent for the costs of processing claims.
"Thus, the expenses of Kuwait National Focal Point, since its creation in 2006, have been met from the deducted amounts, which are also used for payment of the expenses of the Follow-up Program of the UNCC and the expenses of the Independent Reviewers," he said. Al Mudhaf added that this way, Kuwait has achieved huge economies of cost by meeting many obligations related to the management of the Program from these deductions. Funding the administrative expenses from interest earned on awards will impose serious financial limitations on the functioning of KNFP.
"It would increase uncertainties and hinder proper financial planning of KNFP administration, UNCC and /or any other entity that may be supervising the program, as well as the Independent Reviewers' budget. In the long run it may cause budget deficits towards the end of the program," said Al Mudhaf.
He added that Kuwait considers that the interest generated from the accumulation of amounts in the Special Account for the implementation of the environmental remediation projects should be ploughed back into the special account to cover the effects of inflation as the environmental claims were awarded a long time ago and the period to implement these projects will continue for another five to eight years in the future. (end) hn.ajs KUNA 101925 Nov 09NNNN