East African Legislative Assembly; December 19th, 2018: Arusha, Tanzania: The East African Community is in dire financial crisis and the Assembly now wants immediate remedial measures taken to address the matter. Critical to the matter is the need for all Partner States to duly remit their financial obligations in a timely manner and fashion. Late yesterday, the Assembly passed a resolution moved by Hon Susan Nakawuki urging the Council of Ministers to direct Partner States to remit their finances (current and previous) by 31st De 2018. Consequently, the House also needs to be updated on the state of finances of the EAC by the next sitting in February, 2019.
In a resolution moved without notice but under Article 30(L) of the Rules of Procedure, Hon Nakawuki decried the lack of adequate finances noting that EALA Members and staff were headed for the December festive season without their December salaries, a state she termed as unacceptable. The legislator said the matter of sustainable funding mechanism was now due and that all options should be explored to ensure the Community is stable.
“It is heart-wrenching that 6 months down the road, Partner States are not complying to our own Financial rules and regulations. What is necessary is adequate and predictable funding”, Hon Susan Nakawuki said, noting there was a significant funding gap between the planned budget and actual remissions – which interferes with the planned activities.
“As we talk, the Community has received only 35% of the funds from the Partner States as at mid Financial Year”, Hon Nakawuki told an attentive House. All Partner States contribute USD 8,371,320 per Financial Year. Accordingly, statistics revealed to the House yesterday, shows Republic of Kenya has remitted 80% of the said amount (USD 6,681,154), Republic of Uganda 53% (USD 4,468,804), United Republic of Tanzania 52% (USD 4,366,045) and Republic of Rwanda, 25% (USD 2,091,350). Republic of Burundi has not contributed anything in this current Financial Year (0%) other than reducing the previous arrears by remitting USD 1,531,152.33 to the EAC coffers. Republic of Burundi thus has an outstanding amount of USD 15,742,437 owed to the Community while Republic of South Sudan which is yet to remit dues for the current Financial Year owes USD 15,742,437.
According to Hon Nakawuki, the contribution per Organ/Institution of the EAC is therefore pegged at EAC Secretariat (34%), East African Court of Justice (31%), East African Legislative Assembly (41%), Lake Victoria Basin Commission (26%), East African Kiswahili Commission (31.4%), East African Science and Technology Commission (31.4%), East African Health and Research Commission (31%), and the EAC Competition Authority (31%).
During debate, Hon Maryam Ussi stated the need for stable remittances saying the Assembly’s statutory mandate of legislation, oversight and representation stood threatened due to the financial situation. The legislator called for the issue of zero increment to be addressed.
Hon Fancy Nkuhi called for direct remission of funds by the Partner States’ Parliaments to EALA. “Let us borrow the model that is in place by the Parliament of Uganda which directly remits the Assembly’s (EALA) portion to its coffers”, she said.
Hon Wanjiku Muhia said it was necessary for Partner States to explain to East Africans the rationale behind the delay to remit funds. “At the African Union, Member States that delay remission of funds are only allowed to observe proceedings”, she said. “I concur we may need to go the AU way where defaulters remain as observers. Let us face reality and avoid a situation where diplomacy needs to collapse of the Community”, Hon Muhia added.
Hon Rose Akol said the EAC Adhoc Commission which has been looking at the Institutional Review to enhance job placements and enable the Community to do its work efficiently was unable to meet due to no funds. “At EALA this is serious given the fact that some contracts of Assembly staff have expired and the vacancies are yet to be filled”, Hon Akol mentioned. The legislator said time was ripe for a sustainable funding mechanism to be put in place. Last year, the Council of Ministers rejected a proposal by the EALA Commission to extend albeit on a temporary basis the contracts of staff until the new staff were recruited. Hon Akol said contracts of other key Assembly staff were coming to an end in the next financial year and said the matter needs to be urgently addressed.
Hon Kennedy Mukulia, while in support of the motion said the EALA South Sudan Chapter had tried (was trying) within its level best to ensure Juba remits the due arrears, while Hon Kim Ghai said the Republic of South Sudan remained committed to meeting its obligations despite facing a number of challenges.
Rising in support of the motion was Hon Fatuma Ibrahim, Kim Gai, Hon Florence Jematiah, Paul Musamali, Hon Gai Deng, Hon Kennedy Kalonzo, Hon Florence Jematiah and Hon Abdikadir Aden.
In response, the Deputy Minister for EAC, United Republic of Tanzania, Hon Dr Damas Ndumbaro remarked that all Partner States need to contribute fully by 100% and reiterated that Council of Ministers was committed to discharging its duties to ensure total compliance. “The Council has taken the item seriously and made it an agenda item to be discussed at the Summit of EAC Heads of State”, he said. He called for further discussions on the merits and demerits of the sustainable models in use by the European Union and the African Union to see what can be considered as best options for the region should it follow suit.
-Ends-
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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
