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.
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.
3.1 Definition of movable property declared to be in "surplus"
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because it has been replaced by more modern or more productive elements.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
- Executive Officer of the Office of the Assistant Secretary General (or his
- Executive Officer of the Executive Secretariat for Economic and Social Affairs (or his
- Executive Officer of the Executive Secretariat for Education, Science, and Culture (or
- Executive Officer of the Secretariat for Development Cooperation (or his
- Executive Officer of the Secretariat for Management (or his representative).
The Contracting Office shall serve as Technical Secretariat to the committee.
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
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
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
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.
- 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.
9.1 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
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.