East African Legislative Assembly, Nairobi, Kenya: 22nd November 2016: The Assembly has this afternoon urged the EAC Council of Ministers to enhance its Monitoring and Evaluation mechanism to enable full implementation of the Council decisions, the recommendations of the Assembly and those of the Audit and Risk Committee.
The Assembly this afternoon debated and adopted the Report of the Committee on Accounts on its meeting with the Risk and Audit Committee held in Nairobi on November 13-16, 2016. it further directed EAC Secretariat to allocate adequate resources to enable the Audit and Risk Committee timely and effectively execute its mandate. In addition, the regional legislators want physical monitoring for verification on the reported status of implementation of their decisions and recommendations.
The Committee met the Audit and Risk Committee earlier on this month to forge a working relationship. The Committee on Accounts being an accountability Committee and an arm of the Assembly as an oversight organ, would work with the Audit and Risk Committee, just like it works with the Audit Commission. The roles of the two Committees are almost similar despite performance in different capacities with different reporting structures.
The report tabled before the Assembly, calls for establishment of an EAC Projects Co-ordination Unit. At the same time, it wants the EAC to convene a tripartite meeting of the EAC Secretariat, EAC Council of Ministers and the Revenue Authorities in all Partner States, to forge a lasting solution on the matter of Value added Taxation (VAT) on goods purchased by the Community. This is pegged on the fact that the EAC needs a conclusive Headquarters Agreement that enables the bloc to enjoy all privileges. The report also calls stringent procurement of goods and services.
“There have been irregularities in the procurement of goods and services in contravention of Financial Rules and Regulations (2012) and EAC Procurement Policies and Procedures Manual (2011)”, a section of the report says.
It thus calls for better management of the processes including adherence to approved thresholds and quorum. On the accounting function at EAC, the Assembly calls on the Council of Ministers to ensure financial transactions are accurately and timely posted in the financial information system. It therefore suggests EAC Management need to enhance capabilities of finance and internal audit staff; and that the Directorate of Finance needs to render its supervisory role over the accountants.
The Audit and Risk Committee informed the meeting that some achievements have so far been registered including improvements of linkages between the Internal Audit function and the Council of Ministers. This is resultant of Internal Audit reports which are now regularly reviewed by the Audit and Risk Committee and tabled to Council annually. The Audit and Risk Committee has likewise played a key role in assisting Council of Ministers in analyzing and making recommendations on matters of governance, accountability and effective use of the Community’s resources.
Some levels of success have also been realized in establishment of internal audit functions. At the moment, the Lake Victoria Fisheries Organization has established an audit unit headed by a Principal Internal Auditor. In addition, the recommendations from the Audit Commission are now part of the reports of the Council of Ministers enabling them to monitor implementation through the existing EAC Monitoring & Evaluation framework.
During debate, Hon Shyrose Bhanji called for immediate actions to end irregularities in Organs and Institutions.
“We need to give positive impressions to East Africans and end the recurrent malpractices so that we deliver on the objectives and programmes of the Community”, she said.
Hon Mumbi Ngaru informed the House that the Audit and Risk Committee has consistently made raised similar issues in the past and that the Council of Ministers needs to take the recommendations seriously.
“Perhaps the few times that the Council meets each year is not sufficient to deal with the gravity of matters within the Community. May be the Chair of Council of Ministers should permanently reside in Arusha to streamline the activities of the Community”, she said.
Hon Bernard Mulengani urged the Council of Ministers to strive to implement the recommendations of the Assembly and further asked for consistency in the implementation of the same.
On her part, Hon Nancy Abisai cited underutilization of budget funds, unrealistic project budgeting and late disbursement of funds as major challenges at EAC.
EAC Secretary General, Amb Hon Liberat Mfumukeko, assured the August House that all recommendations would be implemented despite the challenges. He further remarked there was renewed confidence within the Development Partners and that the bloc had already received about USD 300 Million for various programmes in this Financial Year.
Other Members who contributed in support of the Report were Hon Pierre Celestin Rwigema, Hon Mike Sebalu and Hon Dora Byamukama. Others were Hon Adam Kimbisa, Hon Taslima Twaha, Hon Valerie Nyirahabineza and the Chair of Council of Ministers, Hon Dr Susan Kolimba.
Over the next week, the Assembly is expected to deliberate on a number of reports from various Committees. It shall also debate and enact the Gender Equality and Development Bill, 2016.
H.E. Uhuru Kenyatta is expected to address the House on Tuesday, November 29th, 2016.
-Ends-
For more Information, contact: Bobi Odiko, Senior Public Relations Officer;
East African Legislative Assembly;
Tel: +255-27-2508240 Cell: +255 787 870945+254-733-718036;
Email: bodiko@eachq.org
Web: https://www.eala.org
Arusha, Tanzania
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