EALA yesterday debated and adopted the Report of the Committee on Accounts on the EAC’s audited accounts for the Financial Year ending 30th June 2013. The Council of Ministers meanwhile assured the House of key remedial steps taken to address the gaps raised in the report.
Key amongst the issues the Council of Ministers has undertaken directives to the EAC Management to adhere to set out procedures and regulations, measures to ensure adherence to valid contracts and the recovery of funds from EAC Officers that were not used in the appropriate way.
The (Acting) Chair of the Council of Ministers, Hon Dr. Abdalla Saadalla Abdulla noted that fundamental corrections had been taken in response to the audit queries raised in the Committee’s report.
The Minister further clarified that during the FY'2012/2013, there was no over expenditure as stated in the report. He informed Members that an amount of USD 1,674,084 appropriated by the Assembly was transferred to the EAC General Reserve account as a result of improved efficiency in running the operations although part was due to unexpended salaries for vacant positions.
The Council of Ministers further exonerated EAC over the impression created by the Audit Commission report that substantial advances were made to Accounts staff at the close of the year for activities not taken. He remarked that the amount in question of USD384, 834 was spent in accordance with the Financial Rules and Regulations, and the activities facilitated were captured within the approved EAC Calendar of activities.
“Records of the meetings and acknowledgment from the delegates paid were availed to the Council”, the Minister said.
“The EAC Management has ensured that since February 2013, daily attendance lists are attached to accountability documents, indicating the participants to all EAC meetings, in addition to boarding passes”, he added.
On the issue of excessive pay of daily subsistence allowances, the Council of Ministers told the House that all the undertaken activities had hitherto received approval by the Assembly. He further added that all travel was in tandem with the Calendar of Activities approved by the Council of Ministers and had received operational clearance by Management.
“The Council directed that save for self-accounting EAC Institutions, EALA, and EACJ, statutory/policy and technical meetings for Organs and Institutions of the EAC, should rotate and be shared between Headquarters and Partner States on a ratio of 50/50 basis; subject to further review and finalization of the Study on Equitable Sharing of the Costs and Benefits of the Community integration”, Minister Saadalla said.
The Chair of Council of Ministers clarified there were no issues of double ticketing and maintained that the unused tickets were paid for as is the stipulated policy within the airline industry. “The EAC then put in the said amount for reimbursement,” he noted.
The Minister said that the Council has taken it upon itself to arm the risk committee with more teeth to investigate queries raised and to any unearth instances of impropriety.
Debate on the report which was tabled at the last sitting in Arusha in January 2015 by the Chair of the Accounts Committee, Hon Jeremie Ngendakumana, was adjourned following a motion for adjournment (then) by the Council of Ministers, Hon Dr Abdulla Saadalla Abdulla.
The motion for adjournment of the debate was then pegged on the basis of Rule 31(c) of the Rules of Procedure governing the Assembly which provides that a motion for adjournment may be moved without notice.
Contributing to the debate which started last week, Members reiterated that it was vital to tighten procedures to enable the EAC to utilize resources more efficiently.
In his submissions, Hon Abubakar Zein remarked that he would at the next sitting in June 2015 introduce 3 key Private Members Bills to support effective use of resources and better management at the regional bloc. He cited the envisaged Bills as the EAC Integrity and Anti-Corruption Bill, the EAC Procurement Bill and the EAC Whistle Blowers Bill.
Hon Peter Mathuki raised the issue of extended short-term contracts at the EAC and urged the management to adhere to the rules and regulations provided for in the labour laws.
“We need to ensure that EAC adheres to the labour laws as is the case in the Partner States and international convention and that Council of Ministers must remedy the situation to enhance productivity”, Hon Mathuki said.
Hon Dora Byamkama said that in some instances, the EAC lacked policies to help it in its duties and said it was necessary to have effective policies with stringent measures to non-adherence.
Hon Isabelle Ndahayo urged the EAC to give value of money in all its expenses. She challenged the EAC to prioritise funds for key sectors.
“Climate change for example is a major factor today and we need adequate resources for this aspect,” she said.
Hon Joseph Kiangoi urged the EAC to take the reports of the audit commission more seriously. He called for objectivity in procurement matters while Hon Bernard Mulengani noted it was time to undertake an audit for value for money.
Hon AbuBakr Ogle opposed the report saying it was necessary for the entire Community, EALA included to adequately utilize available resources of the Community.
Hon Susan Nakawuki termed inadequate staffing as a chronic problem and said the Organs and Institutions of the EAC were unable to undertake their duties well.
She urged the Council to fastrack the realization of the alternative funding mechanism for sustainability purposes.
The Secretary General of the EAC, Amb Dr. Richard Sezibera said management would continue to take audit reports seriously and informed the House that 12 audit series had been undertaken by the management during the financial year.
“We take the reports of the audit commission very seriously and shall continue to do so. I want to assure this Honourable House”, he said.
Amb Sezibera maintained that EAC management had instituted several measures including; putting in place an audit manual, conflict of interest policy, risk management manual and the automation of financial, human resources and budget management systems.
The Secretary General said the management had moved ahead to correct some of the anomalies including the recovery of funds inappropriately used by Officers.
“Management has also addressed concerns about project management and a process of setting up a project management unit at the secretariat was underway”, Hon Sezibera remarked.
The Secretary General said the issues at the Financial Sector Development and Regionalization Project (FSDRP) had also been addressed.
“We have restructured the project and laid off two staff due to unsatisfactory performance”, he remarked.
The Secretary General noted that generally the partners had continued to release funding on time and remarked that during the reporting year, the Community had utilized the funds and made savings of about USD 1 Million.
Amb Dr Sezibera said the Community lacked adequate resourcing compelling management to source for short-term contracts. He remarked that a Human Resources Advisory Committee had been set up to look into modalities of staff matters and to offer advisory services to the Secretary General.
The Minister for EAC, Republic of Uganda, Hon Shem Bageine, noted that the media had exaggerated the issue especially that related to travel.
“It is unacceptable to generalize that EAC has misused funds given the fact that the nature of work involves travel. The travel budget was in effect approved by this House and I plead with media not to be sensational but to adequately research and report objectively”, he said.
The Minister also stated that media had also misinformed the public about the construction of the EAC Headquarters. He assured the House that the construction of the EAC was managed by a project management team appointed by the Development Partners. The only role of the Secretariat was to clerk the contractual obligations between the partners and the contractors.
He remarked that the Council of Ministers was committed to effectively overseeing its role. “We are hoping to have more presence in Arusha and work with management to address the issues”, he said.
Minister Bageine noted that Council of Ministers would in the interim hold quarterly meetings between sectoral ministries with the Permanent Secretaries.
Others who spoke to the report included Hon Saoli ole Nkanae, Hon Celestine Kabahizi, Hon Leonce Ndarubagiye, Hon Yves Nsabimana and Hon Emmanuel Nengo.
Read: Responses from Council of Ministers to the EALA Committee on Accounts Report on the Financial Statements for FY Ended 30 June 2013
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