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G E N E R A L      S E C R E T A R I A T

ADMINISTRATIVE MEMORANDUM NO. 51
SUBJECT: REORGANIZATION OF THE COMMITTEE FOR SALES AND/OR LIQUIDATION OF THE
MOVABLE PROPERTY (COVENT) OF THE GENERAL SECRETARIAT, TO ADAPT IT
TO THE STANDARD CONTRACTING SYSTEM (SUC/OEA)

 

MARCH 25, 1976

In accordance with the SUC/OEA, Chapters I and III, the following "Procedures for the Sale and Liquidation of Property of the General Secretariat" are established, which shall be in effect henceforth.

1. OBJECT

To implement Chapters I, III, and VIII of the SUC/OEA with respect to the sale and liquidation of movable property of the General Secretariat declared to be in "surplus" or "obsolete and trash" condition.

2. BASIC CONCEPT

For the sale and/or liquidation of a piece of movable property of the General Secretariat, there shall be a prior obligation to have the corresponding declaration that such property is in "surplus" or "obsolete and trash" condition. This procedure shall be under the responsibility of the Contracting Office, with the participation of COVENT.

3. DEFINITIONS

 3.1 Definition of movable property declared to be in "surplus" condition.

3.1.1 Property shall be considered in this condition that (a) has ceased to provide use for the purposes for which it was obtained, acquired, or donated; (b) whose service or use is inadequate; or (c) being out of service, its repair would be too costly.

3.2 Definition of property declared to be in "obsolete and trash condition."

3.2.1 Property shall be considered in this condition that (a) by use, has lost its initial conditions or characteristics; or b) whose normal use has become impracticable, because it has been replaced by more modern or more productive elements. This category includes those goods that require supplies that the market no longer provides.

4. SCOPE OF APPLICATION

These provisions shall be applied both at headquarters and in the field, so long as this is practical, and in the field the actions shall be the responsibility of the Offices of the General Secretariat in the member States.

5. MEMBERSHIP ON COVENT

5.1 COVENT is an ad hoc committee made up of the following members of the staff of the General Secretariat, established to study the presentations made by the Contracting Office.

  • Executive Officer of the Office of the Assistant Secretary General (or his representative);
  • Executive Officer of the Executive Secretariat for Economic and Social Affairs (or his representative);
  • Executive Officer of the Executive Secretariat for Education, Science, and Culture (or his representative);
  • Executive Officer of the Secretariat for Development Cooperation (or his representative);
  • Executive Officer of the Secretariat for Management (or his representative).

The Contracting Office shall serve as Technical Secretariat to the committee.

  1. PROCEDURE

 6.1 When the Contracting Office considers that sufficient pieces of property have been assembled to be declared surplus or in obsolete and trash condition it shall convoke the COVENT, for which purpose it shall prepare the corresponding technical reports, in which it shall clearly state, with the support of photographs when necessary, the reasons why the property has been presented to COVENT.

6.2 The various offices of the General Secretariat, through their respective Executive Officers, may bring before the Contracting Office the actions for the declaration of property as in surplus or in obsolete and trash condition providing the pertinent information.

6.3 COVENT shall make such recommendations as it considers pertinent to the Assistant Secretary for Management, using Form OC/40 for the purpose.

6.4 COVENT may recommend the procedure of sale or liquidation that it considers most appropriate, among those allowable in each case.

6.5 The Assistant Secretary for Management shall be informed on the recommendations prepared by COVENT and shall determine the subsequent disposal of the materials mentioned in points 3.1 and 3.2 by written indication to the Contracting Office.

7. METHODS OF SALE OR LIQUIDATION OF PROPERTY

     7.1 The methods for the liquidation of property whose sale is authorized by the Assistant Secretary for     Management (point III.i - SUC/OEA) shall be the responsibility of the Contracting Office and are the following:

7.1.1 Public Bidding: when the value of the property makes this advisable, since some expense will be involved in attracting a suitable number of bidders.

7.1.2 Private Bidding: when advertising expenses are not justified or when there is not sufficient time to hold public bidding.

7.1.3 Public Auction: for the cases of real estate or works or objects of art.

7.1.4 Direct Sale: this will be done in the following cases:

i.      When the conditions indicated for bidding are not present;

ii. When an invitation to bidding has produced no result; iii. When there are well justified reasons of urgency.

7.1.5 Donation: this shall be done in the following cases:

i. When, after following the procedures indicated in 7.1.1 through 7.1.4 and after using the appropriate media of information, such as advertisements in newspapers (two of the best known), on the radio, etc., and the local public has not shown interest in the property, COVENT may propose that it be donated to some charity institution (Goodwill, Salvation Army, etc.). In each case, a record should be kept of the advertising means used.

ii. When the authorities of the General Secretariat, with the recommendation of COVENT, decide on this means of liquidation because of the nature of the property.

7.1.6 Discards: When, because of the nature of the property to be liquidated and having complied with the provisions of paragraphs 7.1.1 through 7.1.5 of these regulations, the COVENT declares that this property is ready to be discarded, as a consequence of which it decides to get rid of it as unusable.

7.2 When the property to be sold or liquidated is deposited in some office or agency of the General Secretariat away from headquarters, the procedure to be followed shall be analogous to that provided for in these regulations, with the intervention of the Contracting Office of the General Secretariat, which shall see to the proper conduct of contracting of this kind.

  1. GUARANTEES AND PENALTIES

8.1 The Contracting Office shall propose such guarantees as it considers appropriate in each case, as well as such penalties as may be imposed increase of non-compliance.

9. AUDITING

9.1 The Contracting Office shall prepare a file containing a record of all the transactions that have taken place, a copy of which shall be sent to the Office of Audit and Evaluation.

10. INVENTORY

10.1 Once the operation of sale and/or liquidation of property of the General Secretariat has been carried out and the property has been delivered to those who have acquired it, the Contracting Office shall proceed to eliminate the property disposed of from the corresponding inventory.

10.2 Any income from sale and/or liquidation of movable property shall be deposited in the appropriate account indicated by the Office of Financial Services.

 

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