..says Council of Ministers must table the annual budget estimates, prior to vote on account proceedings
East African Legislative Assembly; June 30th, 2020: Arusha, Tanzania: The East African Legislative Assembly today unanimously stayed a request by the EAC Council of Ministers to approve a Vote on Account of USD 29,402,292, to support the normal operations of the EAC, as it awaits the tabling of proposals of budget estimates by the Council of Ministers. Consequently, the Speaker, Rt Hon Ngoga Martin, upon request by the House agreed to invoke section 12 of the EAC Budget 2008, to extend the period for consideration of the EAC Budget for FY 2020/2021. At the same time, the Assembly urged the Secretary General and the Council of Ministers to always comply with the provisions of the Treaty and the EAC Budget in regards to the preparation and presentation of the budget to the Assembly.
Following a letter to the Assembly by the Secretary General of the EAC, Chair of the Council of Ministers, Hon Nshuti Manasseh, yesterday, tabled a request for vote on account for Financial Year 2020/2021. The request, the Council of Ministers said was in line with Article 6 of the EAC Budget Act, 2008, as a stop-gap measure to allow for continuity of the activities of the Community. The Chair of Council noted that it had not been possible to bring the budget estimates in good time (by 30th April) of the financial year. He remarked that under normal circumstances, this should have been done but stated the Covid 19 pandemic, among other reasons, had led to the delay to table the proposals. He moved to assure the Assembly, that Council of Ministers would duly meet, no later than next week, to consider the budget proposals.
This morning as is the procedure, the Committee on General Purpose met to consider the request ahead of the afternoon sitting. Presenting the report of the Committee on General Purpose to an attentive House this afternoon, Chair, Hon Abdikadir Aden, said whereas the request was noted, it would be irregular to invoke the provision (section 6 of the Budget Act) when the Chairperson Council of Ministers had not presented the EAC Budget Estimates for the FY 2020/2021 as required by Article 132(2) of the Treaty and Section 4 of the Budget Act. “The Assembly cannot be an accomplice in the commission of such an illegality”, the Hon Aden indicated. “It would be speculative for the Assembly to approve a Vote-on-Account amounting to USD 29,402,292 at a time when the Council of Ministers has not met nor even set a date for a meeting to consider and approve the Budget Estimates”, the Chair of the Committee added.
The amount that was to be allocated to the EAC Organs and Institutions (but are yet to be tabled to the Assembly) are as follows; EAC Secretariat, USD 13,033,857, East African Court of Justice USD 1,323,469, East African Legislative Assembly, USD 5,585,242. On its part, the Lake Victoria Basin Commission was to receive USD 2,793,352, East African Science and Technology Commission, USD 512,250, while USD 466,439 was earmarked for the East African Kiswahili Commission. The East African Health Research Commission was to be allocated USD 626,533 while East African Competition Authority would receive USD 376,080. On their part, the Inter-University Council of East Africa was to receive USD 3,659,092 while the Lake Victoria Fisheries Organization had an earmarked figure of USD 1,025,978.
Hon Aden informed the House the EALA Commission had engaged the Council of Ministers and the Secretary General on the matter. “Nonetheless, the Council of Ministers has not indicated when the Budget Estimates will be presented to the Assembly. This has serious implications on the effective functioning of the Organs and Institutions of the Community”, he maintained.
The Committee, Hon Aden said, registered its displeasure over the failure by the Secretary General to appropriately guide and offer the necessary technical support to the Council of Ministers in the timely preparation and presentation of the EAC Budget Estimates for the FY 2020/2021. He reiterated While the Secretary General noted that failure to pass a Vote-on-Account will lead paralysis of Community operations, such proposition was not tenable.
“The Community will continue to operate normally under the provisions of Regulation 29(1) of EAC Financial Rules and Regulations (1) which stipulates that appropriation shall be available to meet obligations for the financial year to which they relate; and Rule 29 (2) further states that the appropriation shall remain available for 3 (three) months following the end of the financial year to which they relate in so far as they are required to discharge obligations in respect of goods, supplies and services rendered during the Financial year which they have not been settled”, Hon Aden said.
Section 6 of the EAC Budget Act, 2008, provides that
(a) The Assembly may approve a vote - on - account in every financial year to enable normal operations of the Community in the first quarter of the new financial year and before the approval of the budget;
(b) The vote - on - account shall not exceed one-third of the total budget of the Community or of any of its Institutions.
According to Article 4 of the Budget Act, 2008, the Council shall no later than the 30th day of April in each Financial Year, submit and lay before the Assembly, the budget for the next financial year.
At debate time, all Members opposed the Motion for the House to dissolve in to a Committee of Ways and Means, to debate the Vote on Count proceedings. Hon Abdulla H. Makame, said there was urgent need for Council of Ministers to convene, saying, the breach of the EAC Budget Act 2008 was worrisome. He maintained the expenditure for the new Financial year was yet to be appropriated. Hon Fancy Nkuhi said the Partner States had already passed their requisite budgets in time, and faulted the Secretary General for the impasse.
Hon Abdi Noor Mohammed said the Secretariat had ample time since October 2019, to present the budget estimates. “In failure of this, there is no legality in discussing the Vote on Account. The Council should have taken the Secretariat to task over the delay in presenting the proposed estimates”, he said. “It is prudent at this point to extend the process of budgeting”, he said.
On her part, Hon Dr Rose Akol, raised concern that the Community was undergoing a difficult time. However, there is no shutdown since, there is room in the EAC Budget Act, 2008 to provide the budget. However, we need an explanation from the Secretary General on why they did not act in accordance with the provisions of the law. Hon Akol said there were staff contracts also ending today and with that, the danger of the community suffering from
Hon Gideon Gatpan said there was no justification for the Secretariat and Council not to present budget estimates. “For this, we are experiencing a failure and plead with you Mr Speaker to extend the time of budget processing to allow for the estimates to be properly tabled before the House.
Others who rose up to speak and to oppose the motion were Hon Fancy Nkuhi, Hon Dr Oburu Oginga, Hon Maryam Ussi, Hon Fatuma Ibrahim, Hon Florence Jematia, Hon Dr Woda Odok Jeremiah and Hon Mary Mugyenyi.
In response, Chair of Council of Ministers, Hon Nshuti assured the House the Council would meet immediately next week to table the budget estimates.
In the current Financial Year that ends today, the Assembly approved a budget amounting to USD 111,450,529 following Budget proposals presented to the House in June 2019 by the (then) Chairperson of the Council of Ministers and Deputy Minister for Foreign Affairs and East African Cooperation, United Republic of Tanzania, Hon Dr Damas Ndumbaro.
The priority interventions for FY 2019/2020 budget lapsing at midnight today, included the consolidation of the Single Customs Territory and promotion of intra and extra EAC trade and export competitiveness, development of regional infrastructure, effective implementation of the Common Market Protocol and the enhancement of regional industrial development.
In February this year, EALA approved a further supplementary Budget of USD 4,977,475 to fund additional expenditure for priority projects and programmes, that were hitherto, unfunded.
-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
